ERP software is made up of many software modules. Each ERP software module mimics a major functional area of an organization.
Common ERP modules include modules for product planning, parts and material purchasing, inventory control, product distribution,
order tracking, finance, accounting, marketing, and HR. Organizations often selectively implement the ERP modules that are both
economically and technically feasible.
ERP Production Planning Module
In the process of evolution of manufacturing requirements planning (MRP) II into ERP, while vendors have developed more robust
software for production planning, consulting firms have accumulated vast knowledge of implementing production planning module.
Production planning optimizes the utilization of manufacturing capacity, parts, components and material resources using historical
production data and sales forecasting.
ERP Purchasing Module
Purchase module streamline procurement of required raw materials. It automates the processes of identifying potential suppliers,
negotiating price, awarding purchase order to the supplier, and billing processes. Purchase module is tightly integrated
with the inventory control and production planning modules. Purchasing module is often integrated with supply chain management
software.
ERP Inventory Control Module
Inventory module facilitates processes of maintaining the appropriate level of stock in a warehouse. The activities of inventory control involves
in identifying inventory requirements, setting targets, providing replenishment techniques and options, monitoring item usages, reconciling
the inventory balances, and reporting inventory status. Integration of inventory control module with sales, purchase, finance modules allows
ERP systems to generate vigilant executive level reports.
ERP Sales Module
Revenues from sales are live blood for commercial organizations. Sales module implements functions of order placement, order scheduling, shipping
and invoicing. Sales module is closely integrated with organizations' ecommerce websites. Many ERP vendors offer online storefront
as part of the sales module.
ERP Market in Module
ERP marketing module supports lead generation, direct mailing campaign and more.
ERP Financial Module
Both for-profit organizations and non-profit organizations benefit from the implementation of ERP financial module. The financial module is
the core of many ERP software systems. It can gather financial data from various functional departments, and generates valuable
financial reports such balance sheet, general ledger, trail balance, and quarterly financial statements.
ERP HR Module
HR (Human Resources) is another widely implemented ERP module. HR module streamlines the management of human resources and human capitals.
HR modules routinely maintain a complete employee database including contact information, salary details, attendance, performance evaluation
and promotion of all employees. Advanced HR module is integrated with knowledge management systems to optimally utilize the expertise of all
employees.
Related Topics
ERP Definition - What is ERP
History and Evolution of ERP
ERP Systems - ERP Software, Business Processes, Users and Hardware
ERP Benefits - Operational Control, Management Control and Strategic Planning
ERP Implementation Methodologies
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