An Enterprise Resource Planning (ERP) system is the central nervous system of a modern company. It enables the seamless flow of data between different departments as employees execute shared
The functionality of an ERP system is structured into various modules designed for specific business areas such as finance, procurement, supply chain, and human resources. Teams from
In this article, we want to provide you with an overview of all relevant ERP modules that contribute to a smooth business process.
ERP modules are the various components or business functions of an ERP system. These modules encompass functions primarily intended for a company’s back office, such as finance and accounting, procurement, demand planning, and human resources management. Some companies extend their ERP systems with front-end functions like customer relationship management (CRM) to enable seamless integration across the entire organization.
Others prefer a phased approach. Implementation phases can be carried out by business unit or global region, with functionalities being added as needed.
Despite these differences, all modules are based on well-defined data structures within a single database, thus ensuring a consistent data foundation and user experience. Instead of disparate business processes, there is now order and process control within a single ERP system.
ERP solutions vary depending on business priorities, industry, and individual company requirements. Below, we introduce the most important ERP modules, explain their function, and highlight which companies they are particularly relevant for.
An ERP system in document management, also known as a DMS, refers to a system for managing company-relevant documents. A DMS system functions as a central database and, due to its centralized structure, can significantly facilitate collaboration between different company departments.
While a document management system can be implemented on its own, its full potential is only realized in a comprehensive solution. Therefore, integration into an ERP system is highly recommended.
Within an ERP system, a document management system (DMS) module can be used to improve cross-departmental collaboration. Modern DMS modules offer a variety of useful functions that
Customer relationship management (CRM) is crucial for the success of any company. For a company to be successful in the long term, it needs customers who buy its products or use its services, thus generating revenue. Given rising customer expectations due to globalization and digital advancements, understanding customer needs and recognizing market trends early on is essential.
This is where the CRM system comes into play: The CRM module within an ERP system enables the mapping and management of all customer-specific processes. It collects relevant data along the entire customer journey and stores it in the customer’s contact history. This data provides valuable insights into customers’ purchasing behavior, interests, and preferred interaction channels. Companies can use these insights to make informed decisions about future sales or marketing activities.
Human Resource Management (HRM), also known as personnel management, plays a central role in every company. ERP systems also offer numerous opportunities for the integration of an HRM module, which can contribute to increasing the efficiency of personnel management within the company.
Strategic workforce planning plays a crucial role for many companies. The goal is to tailor working hours to demand in order to achieve optimal employee utilization without risking overtime or idle time.
An integrated HRM module within the ERP system can offer a solution here. While many companies still rely on Excel spreadsheets or empirical data, modern HR tools are capable of predicting customer traffic in department stores, for example. This software analyzes historical customer volume data and even considers weather data, as department stores tend to be busier on rainy days. This allows companies to deploy their staff strategically to avoid downtime and ensure consistent staffing levels.
Financial modules are a core component of ERP software, covering key processes from accounting to controlling. These modules enable companies to centrally manage all relevant processes. The following section will examine controlling and accounting within an integrated ERP solution in more detail.
Controlling is a central function within a company, used by management to manage the various departments. It is part of the management process and its task is to plan, control, and monitor the company’s operations.
The integration of controlling functions with the company’s ERP system is obvious. Modern ERP systems typically offer standardized controlling functions such as the provision of up-to-date key performance indicators (KPIs) and the ability to simulate various scenarios. This enables ERP controlling to make informed decisions and track goal achievement.
Accounting plays an essential role for companies, as it serves to fully document all business transactions. Nowadays, this documentation is often no longer done in physical ledgers, but digitally using accounting software, such as within an ERP system.
Depending on its size and structure, a company’s accounting can consist of various sub-areas, including financial accounting, accounts receivable and accounts payable, fixed asset accounting, payroll accounting, cost and performance accounting, and inventory or quantity accounting.
Benefit from a fully integrated ERP system in your sales department. The connection to your CRM is particularly important here. CRM data provides both marketing and sales with valuable information about the preferences of individual customers and the market as a whole. Sales representatives can use this information to present customers with more targeted offers.
A project management module isn’t necessarily required for companies in all industries. However, in some sectors, the use of a project management system is essential. A project management module allows all project participants to be assigned roles and coordinated within the software. Special guest access allows external parties, such as clients, to be integrated into the system.
In summary, modern ERP systems consist of various modules that handle the tasks and processes of different business units. Linking these modules
When selecting ERP modules, your top priority should be choosing those that best meet your company’s specific needs. There is no one-size-fits-all solution for ERP systems, so a customized selection is essential.
The standard modules included in an ERP system vary considerably depending on the vendor. Core financial functions are typically included, while other areas such as sales or human resources may be offered separately. The costs for ERP modules can also vary significantly, with on-premise vendors generally selling licenses per user, while software-as-a-service providers offer monthly or annual subscriptions.
Some ERP providers offer industry-specific solutions, such as a supply chain module for the manufacturing industry or an e-commerce module for retail. Depending on whether your company primarily offers products or services, you will need different modules, such as supply chain management, order management, or professional service modules for optimized customer support. It is important to choose a system that can be adapted to your industry and the specific challenges and opportunities your company faces.
A top-tier ERP system allows you to start with the basic functions and add further modules over time to gain a competitive edge. Do you have questions about ERP system modules? We are happy to support you with implementation and help you develop the most promising modules for your business. We will assist you with implementation and help you identify the modules that best suit your company’s needs.
