When time comes for your organization to evaluate ERP systems, it’s important to clarify the components. Each piece (often called module) of the ERP system delivers different value for your organization. To get the most from the full system, make sure you understand the fundamentals.
At the core of ERP are the financial modules, including general ledger, accounts receivable, accounts payable and fixed asset management.
Other functionalities in the financial management modules will include budgets, cash-flow, expense and reporting. These reports may include; balance sheets and Profit and Loss. The focus is usually on areas that are most important in supporting the strategic plans for your organization.
Supply Chain Management
Supply Chain Management (SCM), sometimes referred to as logistics, improves the flow of materials through an organization by managing planning, scheduling, procurement, and fulfillment, to maximize customer satisfaction and profitability. Sub modules in SCM often include production scheduling, demand management, distribution management, inventory management and warehouse management.
Any company dealing with products, from manufacturers to distributors, needs to clearly define their SCM requirements to properly evaluate an ERP solution.
Human Resource Management
Human resource management ERP modules should enhance the employee experience – from initial recruitment to time tracking. Sub modules can include payroll, performance management, time tracking, benefits, compensation and workforce planning. Self-service tools that allow managers and employees to enter time, attendance and choose benefits are available in many ERP solutions.
Manufacturing modules make manufacturing operations more efficient through product configuration, job costing and bill of materials management. ERP manufacturing modules often include Capacity Requirements Planning, Materials Requirements Planning, forecasting, Master Production Scheduling and work-order management.
Key to the value of an ERP package is the integration between modules, so that all of the core business functions are connected. Information should flow across the organization so that reports on organization-wide results are easily accessible.
ERP is easier than you imagine and very cost effective while creating familiarity with users. If you are thinking about upgrading your systems to a fully integrated ERP system, give us a call.