What Should an ERP System Primarily Be Used For?

There are a wide variety of types of ERP systems. That’s why it’s important to consider your specific product, along with your IT and operational infrastructure, and business goals as you consider your options for a new ERP.

This new ERP system will replace your current business management software, and make it easier to connect your front office with things on the back end. These common use cases demonstrate the way ERP can help address business needs for businesses of all shapes and sizes.

No matter what ERP you choose or why the primary purpose is to streamline operations and integrate multiple systems into one. You can choose to integrate any or all of these systems, based on your needs and what your ERP supplier provides:

  • Inventory managementAlso known as material management, inventory modules help with measuring stock targets, standardizing replenishments, and tracking items in your organization with serial numbers.
  • Purchasing: These modules manage procurement processes and work closely with inventory and SCM modules.
  • Sales and Marketing: These modules handle sales workflows, ranging from inquiries and quotes to sales orders and invoicing. With more advanced implementations, it’s also possible to track shipments and integrate tax rules. This works closely with CRM modules to speed the sales cycle to generate more profit.
  • Manufacturing: Also referred to as Production or Engineering, this module aims to make manufacturing more efficient. It features product planning and forecasting, daily production monitoring, and more. It is integrated with SCM and inventory modules.
  • Financial managementThis module manages capital, allowing you to more easily see the money coming into and going out of the business. It addresses standard accounting transactions including expenditures, balance sheet, tax management, bank reconciliation and more. It can also generate financial reports for any department.
  • Customer relationship management (CRM): This module aims to improve customer service and profit per capita. It manages leads, customer issues, and customer opportunities. In an ERP setup, it works closely with the sales module to speed up conversions.
  • Supply chain management (SCM): This module addresses your supply chain, including areas such as purchase order management, process automation, and production flow from production to consumer, and back again in the case of recalls or returns.
  • Human resource management (HRM): This addresses your staff and includes things like timesheets, employee records, performance reviews, payroll systems, and job profiles.
  • Automated reporting: These modules work with others to make reporting easy across all departments. Staff will no longer spend time pulling reports from each system.
  • Business intelligence (BI): These modules make it easier to use business intelligence to make data-driven decisions for the future of the company. Typically, you’ll only find BI modules in large ERP packages.
  • Project ManagementThis module connects project activities with company financials to make it easy to report on the success or failure of projects. Use it to see how well you’re working on completing projects on time and on budget.
  • Compliance monitoring: This module works to make sure your business stays in compliance with industry regulations. It addresses compliance with local law, security measures, and documentation requirements.
  • IT optimization: This module works to optimize your IT structure, to keep systems running smoothly.
  • Asset management: This module aims to manage your physical assets, such as your building, manufacturing equipment, and more.
  • E-commerceThis module integrates management of multiple online sales channels with other areas of your ERP.

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