Enterprise Resource Planning (ERP) software acts as a backbone for both large and small companies alike. An ERP system coordinates all of the information that flows between divisions of your company, whether there are three or thirty. It manages all kinds of day-to-day business information, including information about customers, production, and supply lines.
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The reason that an ERP is so scalable and viable for diverse industries is that it is a modular system. Companies are able to pick and choose the components that they want, leaving the others behind. These modules, also known as add-ons, can be used to coordinate any number of departments. The regions that an ERP software can bring an immediate business success. Here are three add-ons that tend to make businesses run easier.
Supply Chain Management (SCM)
Getting what you need to run your business can be a very complicated process. SCM module can make your supply chain more visible. It lets you see where things are running smoothly, and more importantly, where the chain might be developing a few kinks. Companies dealing in retail and high-demand fields need this kind of add-on to ensure that inventory is flowing at a steady rate. Too little inventory and too much inventory can both hamper these types of businesses.
To some extent, the supply chain management module is able to predict the customer’s actions and prompt businesses to take action. Through the information in the SCM module, you can make clearer communications with vendors, distributors, customers, or transporters so they know what is going on with your business. Even your competitors can be incorporated the supply chain into ERP data, giving you a full picture of what you’re up against when something goes wrong with your supply chain.
Supplier Relationship Management (SRM)
Folding in neatly with supply chain management is Supplier Relationship Management. This add-on allows for real-time collaboration with your suppliers. With SRM, you can keep track of delivery schedules, capacity planning, quotation, quality, inventory, credit, and any number of other aspects important to coordinating suppliers.
SRM functions give you the capacity to build schedules and plans with your suppliers, privately conduct trade exchanges on the web, and track all of your incoming goods via GPS. It also provides a dashboard for you to view how your suppliers are doing in real-time. If a supplier has a delay, a properly configured SRM add-on could tell you about another supplier that could take up the slack.
Warehouse Management System (WMS)
ERP systems often offer a warehousing module. These systems allow you to monitor and arrange the storage and movement of goods within your company. The rise of automated warehouses and tracking of goods through RFID (Radio Frequency ID) means the standard warehousing capability of an ERP system is no longer enough. Thus, the Warehouse Management System add-ons were created. WMS is essential to optimize both storage and distribution. WMS has a number of functions incorporated into its overall suite including:
- ERP in inventory management help to Keeping track of a large number of Stock Keeping Units (SKU), even for hundreds of thousands of items.
- Controlling and coordinating forklifts, conveyors, and other automated equipment in the warehouse, allowing you to store and move your goods with optimal efficiency.
- Tracking cross-docking (immediately placing incoming goods into an outgoing vehicle) to increase the movement of inventory.
- Support for high volumes of zone picking or wave picking.
- Electronic generation of ASN (advanced shipping notification).
- Automatic collection of data gathered via barcodes and RFID.
- The coordination of labor, including scheduling, assignments, and monitoring.
ERP systems are built broadly because they have to cover the business basics. Your business may require something more. The add-ons listed above are great additions for many businesses, but there are many more ERP enhancements available that could make your business run easier. If you’d like more information about the industry-specific solution, you can ask our ERP Software experts at SoftwareSuggest.