Understanding ERP Modules and Their Business Benefits

What are Business Modules in the ERP Package?

Business modules of ERP packages are software components that connect all departments, enabling them to share data and streamline operations to improve efficiency and accuracy. Different modules of ERP include finance and accounting, customer relationship management, inventory management, procurement, sales and distribution, and supply chain management.

Business modules in an ERP package enable executives to extract sufficient data to make informed decisions for business development. Business modules in ERP are designed to address specific business requirements. For example, the sales and marketing module is designed to improve customer relationships and elevate the customer experience.

To facilitate the scalable ERP modules for growth within companies, certain measures need to be taken. These include streamlining operations and businesses to centralise business. For this trust, Praxis Info Solutions is a reliable SAP business partner in India. We can empower companies to unify their data through integrated decision-making and effective end-to-end management.

So, what are the various ERP modules, and what are the primary business benefits of an ERP system? Let’s discuss this in the next section.

What are the modules of ERP?

Primarily, ERP software includes many business modules that represent each business function. Here is a look at the most popular ERP modules used by most organisations:

1. Finance & Accounting Module

The finance and accounting module is an essential component of any ERP tool. As the name suggests, this module handles a business’s financial and accounting functions. They are designed to provide economic insights for basic reporting and financial statements, facilitating regulatory compliance. Business finance modules help analyse the organisation’s performance against key performance indicators, identify trends that affect the business, and incorporate the profit drivers. The primary characteristics of these functional modules of ERP are account payables and receivables, general ledger, balance sheets, business expenditures and payment receipts.

How does the finance and accounting ERP module benefit the enterprise? Here are a few of the ERP modules and their benefits.

• ERP module automation benefits tasks like billing, account reconciliation, and vendor payments.
• Prepare financial reports, including profit and loss and cash flow statements.
• Provides visibility of the company finances to other business departments like sales and human resources.
• Updates real-time financial data automatically in response to a new sale or any other transaction.

Also Read: How SAP Business One Helps in Improving Sales and Marketing?

2. Human Resource Management or HRM Module

The HRM module in ERP primarily stores employee data and enables onboarding and training for the existing workforce. Employee data stored in the HRM module includes the employee’s personal information, designation, payroll data, working hours, and leave-related data. Additional features of the HR module include talent management, payroll management, and workforce management.

How does the HRM ERP module benefit the enterprise? Here are some of its benefits:

• Collects and integrates employee data from multiple departments.
• Prevents duplication or multiple entries of the same data records.
• Provides a smooth and seamless experience for every new hire.
• Provides information about employee leaves or vacations to the payroll module.
• Automates tasks like applying for leave and leave approval, thus saving time and effort.
• Improves regulatory compliance to maintain employee records, contracts, and statutory documentation.
• Increases employee satisfaction by availing personal service portals where they can update, request and manage information.

3. Customer Relationship Management or CRM Module

Also known as the Sales and Marketing ERP module, the CRM module is designed to store all customer information, including sales leads, contact details, and quotations. The marketing module in CRM is used to send business emails to prospects and to run marketing campaigns.

How does the CRM ERP module benefit the enterprise? Here are some of its benefits:

• Manage the entire customer lifecycle right from the initial contact to post-sale customer support.
• Stores all customer information, including inquiries, purchase history, and communications.
• Provide a quick response to any customer service calls.
• Automate sales-related operations like populating purchase orders and sending email notifications.
• Increase sales and business revenue from the existing customer base.

4. Inventory Management

Inventory management is among the main modules for the manufacturing industry. With this ERP module, manufacturers can now gain real-time visibility into their inventory and stock levels. Further, manufacturers can manage multiple areas of their business, including logistics, operations, and supply chains.

Some of the main features of the inventory module include just-in-time inventory, goods receipts, inventory audits, and demand forecasting.

How does inventory management benefit the enterprise? Here are some of its benefits:

• Maximises productivity with accurate invoicing and order management.
• Fulfil customer orders with accurate stock levels.
• Boosts profit margins by managing inventory costs.
• Improve customer satisfaction with timely deliveries.
• Provides accurate valuation of incoming and outgoing inventory.
• Improves the decision-making process by use of real-time ERP models that will provide real-time data on the flow of stocks, trends in demand and replacement needs.
• The communication of the supply chain is improved, and the procurement, warehousing and data production are properly coordinated.

5. Material Requirement Planning (MRP)

In the digital age, a manufacturing ERP system is incomplete without the Material Requirements Planning (MRP) module. Essentially, the MRP module determines the materials and components required for manufacturing a product. Primarily, this module operates by taking inventory of available materials, identifying what is needed, and scheduling their purchase or production.

How does the MRP module benefit the enterprise? Here are a few of its benefits:

• Ensures that the right inventory is available for any production schedule.
• Improves the efficiency and profitability of any manufacturing process.
• Improves product quality and response to increased market demand.
• Prevents production delays that could lead to loss of business.
• Improves the working efficiency and productivity of shop floor workers.

Along with these benefits, the operational visibility of MRP might also be utilised in its favour, enabled by full integration with ERP modules to create a single system for planning, scheduling, and execution. Modern ERP packages depend on MRP to streamline procurement, minimise waste, and improve coordination across departments. The various ERP modules and implementation now provide more accurate forecasts based on material availability, thereby alleviating production workload and time. Further, this helps optimise manufacturing development across businesses.

6. Supply Chain Management (SCM)

For companies dependent on supply chains, supply chain management (SCM) is a complex and time-consuming business process. Typically, SCM involves all methods used to transform raw materials into final products. Supply chains involve multiple stakeholders, including manufacturers, suppliers, vendors, and customers.

The SCM module has a host of features, including inventory management, goods transportation and logistics, supplier and material master data, and materials transfer.

How does the SCM module benefit the enterprise?

Here are a few of its benefits:

• Ensures the availability of inventory at the right time and right quantity.
• Improves the flow of information across the entire supply chain.
• Optimises supply chain costs.
• Optimises the physical movement of goods and materials.
• Plans and manages future demands accurately.

How to Choose the Right ERP Tool for Your Business?

With multiple ERP modules, it is challenging for any business to select the right ERP tool that works to its benefit. Today’s business owners have a variety of ERP solutions to choose from.

If you are looking to integrate your entire business ecosystem, SAP ERP is the best choice. What are the primary business benefits of an ERP system like SAP? Here are some of them:

● Multiple Functional Modules

SAP ERP comprises multiple ERP business modules for functions like sales and marketing, financial accounting, manufacturing , supply chains, and warehouse management. SAP ERP collects and stores data from across functional areas, providing complete visibility into daily operations.

● Cost Efficiency

By leveraging real-time, accurate data, SAP ERP can reduce operational and administrative costs for any business. For instance, SAP effectively eliminates production delays, which can add up to business costs. Deploying SAP ERP on cloud premises can further reduce the cost of building and maintaining on-premises infrastructure.

● Improved Decision-Making

By integrating with the business ecosystem, the SAP ERP tool provides real-time access to business data and insights, thereby improving decision-making. Further, by storing all business information in a single centralised database, SAP ERP eliminates data duplication and improves the overall data quality.

Conclusion

As discussed, an ERP tool can help streamline operations across any industry. As a business owner, you can choose the ERP modules that are right for your business growth. We have looked at many ERP modules in this article and how they can benefit your business.

Also Read: Why Your Business Needs an ERP and How SAP Business One Can Help

Among the leading ERP companies, the SAP ERP solution is well-suited for large corporations as well as small to medium-sized businesses. To help you leverage its immense capabilities, you can partner with an ERP solution provider such as Praxis Info Solutions. Praxis has years of industry experience implementing various SAP projects for its global clientele.

Also Read: Challenges SMEs Face During ERP Implementation

Which are the ERP modules that can transform your business? We can help you answer this question. Contact us today with your contact details.