Choosing the Right ERP Modules for Your Business

While the ERP modules a business should invest in will vary based on business model, industry, current obstacles and other factors, there are a few modules that most organizations need to run their business operations. Every company needs a finance and accounting module to operate, monitor its financial health and ensure its bills are paid. It’s difficult to run a business without software that can provide financial information and execute basic accounting tasks.

Though not as critical as finance and accounting, almost every company—regardless of industry, and whether it’s product- or services-based—depends on some type of customer, so CRM is another module that would benefit most businesses. Similarly, the workforce management or HRM module is a worthy investment for most companies with more than a few employees. Employees must be paid on time, and employers need a central place to track their information and career development.

Any products company—a category that includes almost all manufacturers, distributors and retailers—will benefit from a supply chain management module. Most organizations start with inventory and order management modules, since those are crucial to daily operations, and might later add solutions for manufacturing, warehouse management and procurement.

Services businesses like consultancies, agencies and maintenance and repair companies could realize a fast return on investment with a project management module. It automates complex, time-intensive billing processes and simplifies resource planning for projects.

Commerce and marketing automation are both pieces of software that some would not put under the ERP umbrella, though many businesses rely on them to attract and convert customers, especially as the internet has become a primary driver of new business. Though there are plenty of marketing automation and commerce solutions available from non-ERP vendors, solutions from your ERP provider offer a tighter, more reliable integration and may share a common user interface that reduces the learning curve and increases adoption among employees.

Purchasing and implementing an ERP platform used to be intimidating, even overwhelming, but by beginning with an ERP system that’s right for your business allows you to hit the ground running with the foundations and build it out as you grow. The ideal ERP modules for your business is one that meets your need right now and is scalable to help you meet the challenges and opportunities that growth presents.

ERP Modules FAQs

What are ERP modules?

ERP modules are applications dedicated to certain business functions and processes. All modules are integrated with the ERP system’s central database so there’s a single source of accurate data. This also allows different systems — like finance and inventory management, for example — to easily exchange information and work together to execute more complex tasks.

What is ERP and its types?

ERP stands for enterprise resource planning and is a platform many businesses rely on to support their daily business operations. Systems that manage key processes related to finance, supply chain, HR, customer relationship management (CRM), project management and more are all con- nected to the ERP.

There are multiple delivery models for ERP, including cloud, on-premises and hybrid. A cloud system runs on remote servers and may be managed by the software vendor, while an on-premises system requires local, company-owned servers. A hybrid approach blends the two, combining aspects of both on-premises and cloud ERP platforms.

What are the mandatory modules of any ERP system?

Business requirements determine which ERP modules a company needs, but most start with a finance module to automate accounting processes, track all financial information and provide key reports. A CRM is another popular module, as just about any company has customers to manage. Products-based businesses typically need inventory management, order management and other supply chain-related modules, while services organizations often require a professional services automation application.