What essential modules must include an ERP?

Erp module

Today we find ERP programs with just half a dozen modules and other exceeding 30 Modules, market Is better because it has more ERP modules? Not necessarily, lets see what are the most important to include.

As explained in a previous article, one of the main advantages of ERP is that there is a single program, but a software package that includes several tools connected together in order to manage an integrated all resources a company. Each of these tools is called a module and performs various functions.

But then how many modules have an ERP ? It is a difficult question to answer, because the number of modules varies by manufacturer or type of business that the software addresses. For example, a system ERP for SMEs whch has six core modules; while a program for midsize companies like SAP Business One includes 13 modules; and the ERP for large companies such as offering Oracle and other vendors the figure can skyrocket up to 30 modules or more!

However, enterprise resource planner that has more program modules is not necessarily better: we must keep in mind that each additional module increases the cost of implementing an ERP and not all businesses need the same modules. In this sense, it offers good review manufacturers ERP  to ensure that does not require us to implement modules of ERP we do not require or will not use for now.

Then we will give a brief overview of the essential modules that include (or should include) the majority of ERP and then see the modules that are optional to end up with a few tips.

Essential system modules ERP

The modules are generally present in most software ERP are:

Production / Inventory : is the area in which focused first ERP and consists of tools to plan production, purchase of raw materials, manage the store, always know where each part or finished product, etc. However, it is a module that is losing weight as the ERP no longer unique to manufacturing companies to be extended to service companies.

Finance: now is the linchpin around which revolve almost all ERP , since most companies tend to implement this type of program to improve financial management. The financial module in an integrated handles everything related to the economic activity of the company such as budgeting, accounting, cost control, bank accounts, paying bills and receipts, taxes, etc.

Human Resources: This module covers all aspects of the personnel of the company, from salaries and wages to the employee information, performance evaluations, and attendance, etc. The ERP may include other more advanced functions such as career planning, job descriptions, incentives, etc.

CRM : Customer Relationship Management (or management of customer relationships) is an element that is used to administer separately using software CRM specific. But increasingly it also chooses to integrate the ERP , because of the close links it has with other modules such as production, inventory or sales.

Sales: It is another aspect of the business that tends to progressively integrated into the ERP and covers all the business of the company, from the generation of offers and budgets shipping products, track orders, etc. Sometimes modules Sales and CRM bind, especially in the ERP for SMEs.

SCM: Managing the Supply Chain ( SCM ) is an activity that has been freeing module production / inventory due to its importance for companies. Includes purchases from procurement and distribution of the final product or service, through intermediate flows with suppliers and customers.

Optional modules of an ERP

The amount of additional modules that can be incorporated into software enterprise resource management is almost endless. Some of the extra common modules are:

  • Marketing to manage promotional activities (sometimes integrated with Sales).
  • Business Analysis: get a strategic overview on the company.
  • Project management: planning, budgeting and implementation of non-repetitive tasks.
  • Management Product Lifecycle ( PLM ) is the entire process relating to a product, from its design and launch to the end of its life on the market.

Other newer modules that progressively tends to add to the ERP include, for example, the e-commerce to sell online, or the  document management for scanning documents and move towards the paperless office. Finally, we must take into account the specialized modules that can incorporate the ERP vertical : from the management of transport companies floating on the aftermarket and customer support manufacturers.

In any case, we must never lose sight of the real needs of the company at the time of implementing the ERP , to avoid adding modules that are not needed. We must also take into account the flexibility offered by the  ERP to incorporate new modules as you need them in the future, since the supply is increasing.