ERP Modules: Types, Features & Benefits in 2024

Priya Naha

Senior Writer

ERP Modules

Enterprise Resource Planning (ERP) is an integrated application system for managing business operations. ERP works and automates business operations that tackle various factors such as technology, services, and human resources to give a better experience in cross-functional department communication.

Looking for ERP Software? Check out SoftwareSuggest’s list of the best ERP Software solutions.

Allied Market Research recently conducted a study stating that the ERP market is expected to grow at 10.2% CAGR from 2019 to 2026. The market is projected to reach $35.81 billion in 2018 to $ 78.40 billion by 2026.

Companies worldwide adopt ERP system modules to increase transparency, operational efficiency, and data-driven decision-making. All this will bring massive transformation in the workplace. 

ERP system modules can streamline all the major operations of the business. They also automate the administrative back-office work and increase operational efficiency between departments.

What Are ERP Modules?

ERP modules are programs developed for specific business functions and processes. There is only one credible data source with the modules of ERP, as all the modules are integrated within the ERP’s central database. Also, it makes it simple for numerous systems to communicate, cooperate and carry out more challenging activities.

ERP Modules

ERP software modules come integrated with multiple system modules that are meant to be purchased individually by the organization according to the utility of their business. These various system modules help manage business processes such as human resources, inventory, supply chain management, etc.

We have churned out a crucial modules of ERP list for you. But before that, let’s understand how ERP helps businesses grow.

How Are Enterprise Resource Planning Modules Helpful in Business Growth?

ERP modules benefit firms by consolidating departmental data onto a centralized platform. They automate and streamline company procedures to boost productivity and enhance daily operations.

ERP modules better analyze real-time data to understand anticipated sales, revenues, and cash flows. The ERP software modules aid firms in boosting efficiency and revenue margins and enhance internal communication.

Alfresco reveals that out of 753 business professionals, about 83% rely on technology to improve cooperation within the company.

Business owners and executives may automate and streamline time-consuming back-office processes, support staff in becoming more effective and successful in their positions, and gain real-time visibility into the inner workings of their operations with the help of good ERP software.

The main goal of ERP systems is to assist leaders and managers in better understanding all the working parts of their operations, identifying opportunities, and making decisions that will ultimately affect the success and viability of their companies.

ERP systems provide integration into all sectors and functions within an organization. ERP systems are utilized by companies of all sizes, large and small. ERP systems are mostly of two types, on-site and cloud-based. 

Systems for enterprise resource planning (ERP) streamline data collection, storage, and utilization inside your company. The proper ERP system can assist you in gathering and organizing data from several sources, including

  • Finance and Accounting module
  • Human Resources
  • Customer Relationship Management
  • Production Management
  • Business Intelligence
  • Warehouse Management
  • Inventory Management
  • Supply Chain Management
  • Point-of-Sale (POS)
  • eCommerce

12 Types of ERP System Modules and Their Features

Most ERP systems have several sophisticated modules. These ERP system modules handle a vast and diverse range of organizational functions. They are scalable, meaning that organizations can add more or additional modules as they grow in size or operations.

At this point, organizations must know their needs to select business modules in ERP.  Here are some of the different types of ERP modules list and functions:

Types of ERP System Modules

1. Sales and Marketing Module

Sales and marketing ERP modules help to store essential sales data, such as customer inquiries, quotations, orders, and invoices.

It can track marketing campaign data by measuring client engagement, email campaign success rate, and search engine optimization statistics. This enables organizations to invest in marketing initiatives that will pay off well in the long run.

Sales and Marketing Features:

  • Automation of sales activities such as customer visits and expenses incurred on such visits
  • Setting targets for the marketing team
  • The sales team can track the entire process, from the dispatch of goods to the settling of invoices. It can contact customers for any follow-up
  • Allows the sales team to record payments received from customers after rendering services
  • Automatically tracking lost orders and identify reasons for the same
  • Allows preparation of comprehensive reports on sales and marketing
  • Helps to forecast sales for future planning accurately

2. Material Requirements Planning (MRP) Module

Material Requirements Planning ERP module helps an organization plan inventory material investment and improve productivity and customer service by getting the right materials at the right place and time.

Biz21 MRP Module involves the purchase, inventory, and production working in sync to avoid all issues applicable to it.

It ensures that a sufficient inventory level is available for production while maintaining the lowest possible inventory levels. This module ensures that a minimum cost is incurred for storing raw materials.

Material Requirements Planning Features:

  • Allows grouping of items with similar demand pattern
  • Automatically generates forecast reports based on parameters set by the user
  • Users can manually enter material requirements, and the due date 
  • Integration of various operations such as production, an inventory for effective planning
  • Enables comparison between different production schedules and their expenses
  • Effective stock management

3. Customer Relationship Management Module

CRM ERP is one of the most widely subscribed ERP system modules. The principal object of the CRM module is to increase sales performance by providing customer support and a holistic experience to clients. 

CRM modules greatly support organizations and enable team members to give quality service to loyal customers. It allows sales or marketing professionals to develop a better relationship with clients by giving them personalized attention. 

Customer Relationship Management Features:

  • CRM modules enable the organization to enter and maintain demographic and other information about prospects and customers
  • Multiple phone numbers, email addresses, and physical addresses can be stored and accessed easily
  • Allows integration between the sales and marketing team and CRM team. They can gather information about prospective customers
  • Easy access to the quotes and proposals that you have sent to your customers and turn them into a sales order
  • CRM modules are specifically designed to tackle problems and resolve them so that the majority of customer issues can be addressed proactively

4. Finance ERP Module

One of the essential modules is the ERP finance module. It helps to manage and improve all the cash flows and assists in other accounting features such as ledger management, bank reconciliation, etc.

Another essential function of the financial management module is to handle taxation and follow current government regulations.

Through this module, management can quickly access critical financial statistics to get an overview of the company’s financial status. 

Finance ERP Module Features: 

  • Most finance modules are equipped with a profit tracker, which enables the company to get an overview of its financial health
  • General ledger helps to record and track all the financial transactions
  • Automating accounts payable to manage and keep track of the money an organization owes to its vendors and creditors
  • Accounts receivable is an important aspect that tracks payments and handles cash and invoices
  • Companies make use of fixed asset management features to manage tangible assets such as land, vehicles, etc.
  • Access to financial data in real-time and prepare financial reports for internal usage

5. Manufacturing ERP Module

All manufacturing companies require this module in their ERP system. It handles engineering flow at all stages and ensures material management, quality control, and expenditures.

The Manufacturing ERP module is an automated solution that monitors the day-to-day production activities. It ensures that all resources are well utilized and that the organization’s manufacturing capacity functions optimally.

Manufacturing ERP Features

  • It helps an organization streamline all the procurement activities
  • Establish communication with the sales department to get information on orders received
  • Helps in effective inventory management
  • It helps to forecast future manufacturing requirements that help to take various essential decisions such as recruitment, training, and payroll
  • Easy forecasting of future data and sales orders through which you can easily estimate profits

6. Human Resource Management Module

The human resource module of an ERP system helps maintain a comprehensive employee database. HR ERP module enables managers to have complete employee data, ensuring the right person is on the right job.

It handles all activities, from salary slip generation to disbursement, payroll management, etc.

Human Resource ERP Features:

  • Helps to optimize the recruitment process to minimize workload
  • An organization can forecast or analyze human resource costs by integrating relevant information
  • It gathers information from various departments to predict future human resource needs
  • Helps to plan training schedules for employees 
  • Many modules come with a function of payroll management

7. Supply Chain Management

One of the most popular ERP modules is supply chain management. It helps an organization handle the entire flow of materials from the manufacturer to the retailer and then to the final customer.

It helps ensure enough inventory stock so there is no shortage during production. 

Supply Chain Management ERP module helps to streamline all the major activities involved in the supply, transportation, and distribution of raw materials and finished goods.

Supply Chain Management Module Features:

  • Automatically create demand requests when orders are received
  • Create job scheduling and tracking the same in real-time
  • Effectively manage procurement and supply of goods, services, and other resources across the chain
  • Manage all the aspects from manufacturing to warehousing, including the transportation process in a supply chain
  • Once the production starts, record all the resources utilized in real-time, i.e., raw materials and labor 
  • Automatically generate invoice once the goods are shipped to customers

8. Purchasing ERP Module

The purchasing ERP module is one of the most requested modules that allow companies to do all the tasks related to procuring raw materials.

The purchase module integrates the inventory and supply chain management module, which helps ensure that the data related to the movement and purchase of inventory is centralized and accessible to all departments. The purchasing ERP module will reduce data duplication and notify the timely availability of raw materials.

Purchasing ERP Module Features:

  • Streamline the entire purchase and process cycle
  • Prepare raw material requirements as per the anticipated demands
  • Systematically record the quotations received from suppliers
  • Provide for Management Information System for vendor evaluation based on quality, price, and delivery time
  • Helps to generate purchase orders in domestic currency as well as foreign currency
  • Order tracking to have centralized control over the procurement cycle
  • Integration with the finance team to streamline the payment process
  • Establish a system of supplier relationship management

9. Project Management Module

ERP system modules are a great tool for managing the project by tracking all activities and ensuring they do not exceed the expected time limit.

The project management module monitors the resource allocation and adjusts the workflow pace to get maximum productivity. It helps to track real-time costs as the project moves along and compares them with estimated expenditures.

Centralized information can help management to track project progress and take corrective actions.

Project Management Module Features:

  • Helpful for the effective allocation of resources needed for the completion of a project on time
  • There are various changes during the implementation of a project. A useful ERP system module will help to track these changes and reschedule and adjust the workflow as per the revised version of the project
  • Lets you record the costs incurred in real-time and compare the same with estimated costs and find out the reasons for deviation if any
  • Management and executives can access real-time and up-to-date information for any particular project
  • Automatically generates alerts in case of late completion of a project
  • Automatically creates incentives for early fulfillment of the plan (if the project promises incentives in case of early completion)

10. Bulk Email & SMS Module

In this digital world, marketing your products and services is vital. Only with the help of proper marketing can you ensure the business’s sustainable growth.

Bulk Email and SMS marketing is one such tool that allows you to send bulk messages to several recipients. So it is easy for you to educate your customers about your products and services. 

Several ERP systems provide bulk email and SMS modules that are robust and secure platforms to fulfill all your marketing needs.

Bulk Email & SMS Module Features: 

  • Automates email communication by scheduling mailers
  • Helps to send an immediate response to end-users or route it to respective staff to ensure accurate and timely correspondence
  • Track users who might be interested in your products and send them marketing emails and SMS
  • Generate comprehensive reports such as trend analysis and export these reports in various formats
  • Helps to maintain a communication channel with prospective buyers

11. Inventory ERP Module

ERP Inventory modules are designed to automate highly complex inventory and sales order processes. Inventory is one of the most significant investments made by the organization, so it is vital to manage it effectively.

The right ERP solution will help you provide up-to-date information on what is in stock, where it is located, and how long it will last. Without this information, you risk running out of stock or overstocking inventory, which can reduce customer service or increase costs due to high storage costs.

Inventory ERP Module Features 

  • Direct integration with production, work orders, and purchase department for advanced planning
  • Classify items into various groups for improved reporting
  • Clone, rename, and merge different inventory items
  • Assign serial numbers and track the products information in real-time
  • Warranty tracking of multiple inventory items
  • Effective quality management 
  • Assign cost methods to different inventory items. It can be standard, average, FIFO, LIFO 
  • See quantity in hand after checking multiple parameters such as quantity allocated to orders in process and outstanding purchase orders
  • Management of inventory in case of numerous warehouses
  • Enables seamless transfer of stock between two departments

12. Purchase Order Module

An ERP purchase module will help you maintain data for various suppliers and their contacts and track purchases. It systematically records data from multiple suppliers, purchase orders, quality checks, returns, and invoices settled.

The entire purchase order system is optimized by linking inventory to purchase accounts. This saves time and resources for any organization. It also helps to keep a constant check on stock levels and generate alerts for replenishment.

Purchase Order Module Features: 

  • Maintain centralized records of all the purchase orders
  • Creates centralized data of all the vendors, including their name, address, price list, tax identification number, and payment terms
  • Easy integration with accounts payable to streamline the payment process
  • Helps to conduct supplier audits based on support and quality
  • Integration with the inventory department to notify them when an order is received, and the inventory required for the same 

What Are the Benefits of Enterprise Resource Planning Software Modules?

As many organizations mostly use ERP modules, here are a few benefits of ERP to help you understand the need to manage your company departments well.

Benefits of Enterprise Resource Planning Software Modules

1. Improved Productivity

ERP modules are an asset to the organization. If integrated properly, they can reduce the time and effort your workforce requires to carry out routine activities. The software will eliminate repetitive manual processes and let your team focus on the revenue-generating task.

Also, overall efficiency increases since all business functions are managed under a single portal. Visual dashboards allow managers to glance at parameters and make better decisions.

2. Promotes a Culture of Collaboration

ERP modules break down the walls between various company departments by establishing a proper communication method. Such a cross-departmental collaboration ensures a smooth flow of information. It helps the team to work in an atmosphere of collaboration which will, in turn, minimize the wastage of resources and boost innovative ideas.

3. Data Protection

One of the most significant advantages of using ERP system modules is data security. It allows sharing of data across multiple functional departments but, at the same time, controls who can see and edit the very same data.

Further, the ERP system provides a single input system that gives authority to a single repository. Such a data protection process increases the accuracy and consistency of data input, thus avoiding any conflict.

4. Facilitates Regulatory Compliance

Maintaining perfect financial records and reporting is one of the most challenging things for any business. ERP modules ensure timely compliance with various regulatory provisions by validated data and built-in reporting, ensuring you don’t get penalized for non-compliance.

5. Accurate Business Forecasting

Advanced databases and real-time data analysis are some features of ERP modules that provide accurate business forecasts. They help to calculate expected sales, revenues, and cash flow, help an organization plan well in advance, and reduce the wastage of resources.

How to Choose the Right ERP System Modules for your Business?

It doesn’t logically imply that an ERP framework suits your business because it has received positive reviews or widespread recognition.

You can follow these steps during your ERP selection process to choose an ERP system optimized for your business and its current technology.

Ways to Choose the Right ERP System Modules

1. Develop your ERP Selection Team

In setting up ERP modules, researching your selection team is an essential initial step, regardless of the duration of your core ERP modules journey. You must include key players from other departments who will use the ERP system modules and the IT team members.

The team can provide you with further information about the applications they use regularly and their current procedures, inefficiencies, and important specifications for a new platform.

2. Prioritize Data Quality Improvements

It’s advisable to avoid duplicating any data issues, mistakes, or errors in a new system while making a significant systems transfer. Before transferring to the ERP modules, consider spending money on data quality improvement technologies like data cleansing. Your team can save time and money by doing this step, and you’ll have a better grasp of data usage.

3. Focus on ERP Modules for Business Use Cases

To operate a business efficiently, every firm requires a particular set of ERP modules. Think about areas that cause the most difficulty for your enterprise, especially regarding the functionality of your business apps.

 Most major suppliers have a module that streamlines your strategy, whether you’re attempting to handle workflows in your distribution chain or the employee lifecycle for human resources. It’s crucial to avoid spending money on modules that won’t benefit your team.

4. Connect with the ERP Vendor’s Clients

One of the essential final steps of the decision-making process is to speak to a potential ERP vendor’s client.

Most vendors can offer you a recommendation for a task done well, but these endorsements are typically issued soon after launch. It says much if a seller can put you in touch with one of their customers to share their experience with you. Ask them about their partnership with the vendor, continuing support, training, and other essential questions.

5. Prepare Queries for a Product Demo

Your team should arrange a new product with a customer service specialist as a prospective ERP client. So, ensure you prepare all the necessary questions and essential documents before going for a product demo process.

Final Words

ERP software can make a business more efficient than ever by managing many functions. It is a highly cross-functional solution that has impressive and innovative modules. Each ERP system module is tailor-made for a specific business function.

ERP modules are the future of business technology. Investing in good ERP software can increase efficiency and profits and gain a competitive edge.

Which modules do you utilize in your organization? In the comment section below, let us know which ERP modules work well with your organizational departments.

Frequently Asked Questions

   

No, you can purchase the ERP modules relevant to your business model to meet your organization’s needs.

Some of the core ERP modules are:

  1. Finance and Accounting
  2. Inventory management
  3. Customer relationship management CRM

Some challenges while implementing ERP modules are:

  1. Resistance to Change
  2. Maintenance Costs
  3. Poor Project Management
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