ERP Modules: Characteristics, Functions, Types, Features, And Typologies

Enterprise Resource Planning (ERP) is a complete and coordinated programming arrangement that undertakes the role of smoothing out and improving the different capabilities of an organization. 

In the present business climate, organizations need a robust framework that can effectively deal with their core tasks, data, and resources, and that is where ERP comes to the rescue!

In terms of an analogy, the ERP modules can be seen as resembling the various body organs, each with a special capability but cooperating to guarantee the general well-being and execution of the association. 

ERP modules can be altered to meet the necessities of different enterprises and business types, which makes the ERP frameworks exceptionally versatile and adaptable. 

Whether it is money, HR, inventory network for the executives, client relationship with the board, or some other part of the business, ERP modules give a focused stage to information and interaction for the executives, empowering associations to pursue information-driven choices, further develop effectiveness, become efficient money-wise, and improve in general.

In a recent report published by the Market Research Engine, it has been stated that “The ERP market is expected to multiply by 2027, with a total value that exceeds a total of $49.5 billion.” This is pretty digestible news, as we know how enterprises and businesses have recently come to rely heavily on ERP software! 

Without wasting further time with this simple guide, we will look into the ERP Modules, their Characteristics, Functions, Types, Features, and Typologies. 

Characteristics of ERP Modules

Integration: ERP systems connect and integrate superior business functions and departments, which ensures a smooth flow of information and processes within an organization. This integration is critical to breaking down information silos and improving collaboration. 

Centralized data: The centralized database of ERP systems acts as a single source of truth for the organization. This feature ensures consistency, accuracy, and accessibility of data, which makes it easier for an organization as a whole to make the right decisions.  

Automation: ERP systems automate monotonous routine tasks and workflows, which helps reduce manual work and shrinks the window for human errors. This not only increases efficiency but frees up employees to focus on more strategic activities. 

Real-time updates: ERP systems provide up-to-date information. Real-time updates are essential to making timely, informed decisions and responding to volatile, changing business conditions. 

Modular structure: The modular structure of ERP systems allows customization according to the specific needs within the organization. This adaptability is crucial because it enables companies to tailor their ERP solutions to their unique needs.

Functions of ERP Modules

· Provide a workable solution adaptable to the needs of the company.

· Quickly access information on any process in real-time and make any changes.

· Automation reduces time and errors in all processes.

· Protection of all data by centralizing its management and automated backups.

· Standardization of work so that all the company members work under the same support.

Types Of Existing ERP Modules

As mentioned previously, ERP business management software is made from independent elements called modules. Each of these is responsible for performing a specific function.

Basic ERP Module: These are the modules that every company must acquire in a mandatory way so that the ERP system can undertake its most basic functionalities.

Optional ERP Module: These other types of modules are more specific. These are functionalities that companies can add over the life of the ERP program to complement features that, in their day, were not considered necessary but, over time, have become essential.

Vertical ERP Module: Finally, this module is characterized by being the same type as the optional ones but with a subtle difference: these are specialized modules in specific economic and industrial sectors, such as the horticultural and tourism sectors. The most essential tool for hotels is the PMS, and for the horticultural sector, the horticultural ERP – specializes in cooperatives in this sector.

But beyond the typology of modules, which is common in all ERPs, another type of simultaneous characteristic occurs in all the tools of the different business management software providers in the market. Some of the most important are the client/server architecture, many features, the degree of abstraction of the tool, the adaptability to different needs, and the modularity of the ERP system.

Therefore, it is vital to be aware of the main characteristics that must be set when choosing an ERP business management software that meets your needs and requirements as a business owner.

ERP Typologies and their Functions

Material Requirements Planning (MRP): Production planning, scheduling, and inventory control help streamline manufacturing. This also helps determine the amount of material needed, manage the workloads of employees and equipment, and plan purchases to satisfy consumer demand.

Order management helps retailers acquire, track, and fulfill orders across various sales channels. This process also streamlines order entry and processing. Establishes delivery schedules, monitors completion, helps to bring together the sales orders and inventories, and generates the necessary reports.

Warehouse management organizes and supervises inventory and activities within a warehouse, aka a distribution center, to maximize inventory efficiency. Distributors can manage workflows, workforce, stock, invoices, and coordination with docks and shipping yards well ahead of their schedule with the help of suitable ERP software.

Financial Management and Accounting module comprises bookkeeping modules that track the profit and loss of a business. These monetary exchanges are followed by an overall bird’s-eye-view record that helps the business owners gain a holistic view. The accounts payable functionality includes tasks such as payables approvals, invoice processing, and executing the payments.

Procurement, or the buying module, assists your business with getting things required for your business activities. A procurement module will give orders for administrations and items by following all critical request data progressively, including the seller, purchasing amounts, conveyance periods, installment terms, and, lastly, the expenses.

Inventory Management gives an organization control over inventory by following stock levels and costs of all items an organization purchases, constructs, stores, and sells. This arrangement helps the users see the raw components you have close by, where to track them, and, if needed, reorder them.

Supply Chain Management modules deal with the movement of labor and products between areas as expertly and economically as possible. Mainly utilized by manufacturers, strategies suppliers, and retailers, supply chain management programming modules help plan, control, and execute the expected assembling or potentially circulation of completed merchandise to magnify cost and lessen windows in getting items from the seller to the customer, which over the long term might hinder profit margins.

Customer Relationship Management (CRM) module stores data of all customers and potentials your association is trying to create professional relations with. This tracks the relationships and cooperation between your business staff and customers. CRM data obtained from CRM tools is utilized to develop business relationships with your clients further, leading to a much better and more profitable relationship on either side.

Human Resources (HR) manages representative data while automating errands affecting individuals in an association, for example, worker planning, deployment, and supporting worker efficiency. This module keeps records of all goods reports and things like execution surveys, sets of responsibilities, pay data, hours worked, and time. Human asset capacities resemble CRM and can be considered like a CRM for worker information. 

Conclusion

ERP modules are known to streamline the process of any business, in turn making it more efficient, improving the communication between levels, and overall leading to a better organization.

When it comes to the implementation of ERP, there are a lot of options. For example, you can purchase a specific ERP model that your business needs right now, and then later, as your business needs grow, you can integrate additional ERPs.

All in all, ERPs are making a great wingman for a business owner. They make their jobs much easier, increasing time and monetary efficiency.

Frequently Asked Questions (FAQs)

What is the cycle of an ERP?

ERP implementation is a six-phase cycle that includes discovery & planning, design, development, testing, implementation, and support.

Can organizations choose specific ERP modules based on their needs?

Yes, organizations can choose specific ERP modules based on their unique requirements. This approach allows for flexibility, enabling businesses to address their urgent needs and scale their ERP system as their operations evolve.

How do ERP modules communicate with each other?

ERP modules communicate with each other through a centralized database. The integrated nature of an ERP system ensures that data entered into one module is accessible to other modules in real-time. This facilitates a cohesive flow of information across the organization, avoiding data silos and improving collaboration.

Can ERP modules be integrated with existing software?

Yes, ERP modules can often be integrated with existing software and applications to ensure a smooth transition. Integration may involve connecting the ERP system with tools such as CRM software, legacy systems, or third-party applications to maintain continuity in business operations.