Enterprise resource planning (ERP) systems manage, control, and organize daily business operations and workflows. Employees in production, manufacturing, accounting, finance, HR, and supply chain use ERP systems to support process automation, control input data, and optimize business operations to save resources. Some examples of ERP systems are Oracle Netsuite and SAP ERP.
ERP implementation helps with account payables (AP) automation, advanced reporting, and management for financial companies. In the healthcare sector, ERP enhances patient care by automating records and storing accurate data for each patient. Human resources uses ERP for payroll processing, time tracking, and employee benefits. Retail industries might use ERP to automate invoices, run customer discounts, and increase sales productivity.
The organized structure of ERP software combines data from different departments and breaks down silos to help every team access necessary data and metrics securely. Real-time reporting and analytical dashboards keep you updated on each department's performance and productivity.
Daily workflows, customer relationship management processes, inventory management and procurement, demand forecasting, and strategic decision-making join under ERPs to keep you up-to-date about team agendas and notify you of task progress. This way, you better understand which teams need resources immediately and which can wait.
ERP software covers a wide range of functionalities. Still, if you find gaps, you can integrate it with other tools like CRM software, professional services automation software, or project-based ERP systems to achieve a magnified view of product manufacturing and distribution.
ERP systems provide a variety of modules, and while each business has unique requirements, most ERP systems offer the following:
Accounting features like general ledger, accounts payable/receivable, budgeting, and cash management
Human resources (HR) functionality such as recruiting and payroll, or integration with HR and payroll solutions
Basic sales and customer management features or integration with CRM solutions
Functions to create different types of quotes, sales orders, and returns
Purchasing workflows and purchase order management
Inventory and warehouse management software including picking, packing, and shipping
Advanced supply chain modules like demand planning and transportation management for distribution companies
Production modules that include bill of materials (BOM), manufacturing resource planning (MRP), and quality management features for manufacturing companies
Reporting and analytics for all the modules included in the ERP solution
