Best ERP System Must Have These 6 Components
ERP System – Enterprise Resource Planning system, in general, referred as a business process management software that allows the organization to use a set of integrated applications to collect, store, manage and interpret data to enhance business development strategies.
There are various ERP systems available in the trend that differs by the innovative and interesting features offered for various business requirements. So, while obtaining an ERP service from the service providers, reviewing it for its suitability and applicability for your business is a must. Helping you find that, here we provide the 6 main components of Enterprise Resource Planning you must look-on for before making a choice..,
1. The HR ERP service you are looking for must be flexible enough to handle the stream of employee management which involves onboarding, offboarding, incentive administration and timekeeping. Another incredible feature you must look out for in HR component is the payroll software. Overcoming the traditional method of direct depositing, this HR component automates payments including taxes and excluding deductions and so its a must.
2. Customer Relationship Management (CRM) is precisely the second important component of ERP service you need to eye on. As CRM functions on tracking your customer’s data, the analyzed input it gives would help you in planning to accelerate marketing and sales efforts. With the data of customer’s shopping interests and purchases, it’s easy to upsell the product according to his/their time of search for it thereby reducing irritation and resulting in a successful sale.
3. Out of all other components, Business Intelligence has become a major tool to check-in for a standard in ERP systems. As Business Intelligence provides you with insights that are worth performing through its data analysis component, companies relying on such analyzed data based decisions make BI indispensable for them.
4. An efficient Supply Chain Management (SCM) optimizes both manufacturing and distribution process based on its collection of real-time data. Useful for fixing issues spontaneously, real-time data also helps in creating an absolute in-time production plan to meet the demands.
5. Operating along with the SCM component, Inventory Management component of ERP functions on order fulfillment and stocking management in a warehouse. These functions work on multi-level serial number tracking and multiple units of stock keeping unit (SKU).
6. A Financial Management component is a kind of grid where the system saves and analyses all the data that includes payable-receivable accounts, costs, and budgets of the business. As the business process is meant to have a flow of money, FM works simultaneously with all other components of ERP system. Providing with the detailed data of the expenditure spent on trends, FM helps in planning for better profits.
Although different ERP systems aren’t much in contrast comparatively, you may require some other add-on components or might have to defy the existing ones. So, keeping your business models and objectives in mind, research on the components and features your ERP system needs or you’ll have to end up replacing a new ERP system sooner than you planned to. Just remember that these 6 components should be your primary requirements and the rest should be chosen according to the business requirements.