Enterprise Resource Planning (ERP)
ERP systems comprise various modules, each addressing a specific business requirement. For example, products-based companies typically have modules for accounting, inventory and order management, customer relationship management (CRM), and if they produce or assemble products, manufacturing. Services businesses may turn to modules for accounting, project management, professional services automation, and CRM.
Why Is ERP Important for Businesses?
How Can ERP Improve or Help a Business?
Roles & Users
The accounting team is often the first adopter. This group will track and report on all transactions and other financial information in the system, including accounts payable (AP), accounts receivable (AR) and payroll. With ERP, financial planning and analysis (FP&A) experts — whether a separate role or part of the accounting department — can turn comprehensive financial data into forecasts and reports on revenue, expenses and cash flow.
Employees focused on operations, a group that includes purchasing agents, inventory planners, warehouse managers and senior supply chain leaders, rely on the ERP system to ensure a smooth and continuous flow of goods from supplier to customer. They count on accurate, detailed information provided by the system to optimise inventory levels, prioritise orders, maximise on-time shipments, avoid supply chain disruptions and identify inefficient processes.
Sales and Marketing
An ERP solution can increase the productivity of and drive better results for your sales team by automating lead management and monitoring the interactions prospects have with your company. Reps can document discussions and change the status of prospects as they move through the sales funnel. Using those same records, marketing can automate and manage outreach across all channels, from email to display ads to social media, and measure the effectiveness of those messages and channels to better allocate its budget.
The HR department tracks all employee information and broader workforce trends in the ERP. It can quickly find contact information, compensation and benefits details and other documents for each employee. HR can also monitor metrics like retention by department, average pay by title, promotion rate and other metrics to better allocate its own staff and assist line-of-business managers.
As a rule, ERP business solutions offer the following basic modules