Different Types of ERP System Modules and Their Uses

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Aniruddh Parmar

Senior editor

Parul Saxena

Chief editor

Last updated: February 11, 2021

Enterprise Resource Planning (ERP) is a system of integrated applications designed to manage business operations. It helps automate business operations that tackle various factors such as technology, services, and human resources to give a better experience in cross-functional department communication.

Allied Market Research recently conducted a study stating that the ERP market is expected to grow at 10.2% CAGR from 2019 to 2026. The market is projected to reach from $35.81 billion in 2018 to $ 78.40 billion by 2026.
Companies worldwide adopt ERP system modules to increase transparency, operational efficiency, and data-driven decision making. All this will bring massive transformation in the workplace. Before we move on to the modules, let us know what ERP is exactly.

What is ERP System Modules?

It is a system consisting of various ERP departmental modules that manage the core business functions in a unified manner. These system modules are designed to facilitate a seamless flow of information between multiple departments such as sales, inventory, customer relationship management, human resources, and finance.

ERP system modules can streamline all the major operations of the business. They also automate the administrative back-office work and increase operational efficiency between departments.

Looking for ERP Software? Check out SoftwareSuggest’s list of the best ERP Software solutions.

Benefits of Enterprise Resource Planning Software

Now that we know what ERP software is mostly used for by many organizations, here are a few benefits of ERP to help you understand the need for the same to manage your company departments well:

#1 Increased productivity

ERP System modules are an asset to the organization. If integrated properly, they can reduce the time and effort required by your workforce to carry out routine activities. The software will eliminate repetitive manual processes and let your team focus on the revenue-generating task.

Also, since all the business functions are managed under a single portal, overall efficiency is increased. Visual dashboards allow managers to have a quick glance at parameters and make better decisions.

#2 Promotes a culture of collaboration

ERP modules break down the walls between various departments of the company by establishing a proper communication method. Such a cross-departmental collaboration ensures a smooth flow of information and helps the team to work in an atmosphere of collaboration which will, in turn, minimize wastage of resources, and boost innovative ideas. 

#3 Data protection

One of the most significant advantages of using ERP system modules is data security. It allows sharing data across multiple functional departments but, at the same time, controls who can see and edit the very same data.

Further, the ERP system provides for a single input system that gives authority to a single repository. Such a process of data protection increases the accuracy and consistency of data input thus avoiding any conflict.

#4 Facilitates regulatory compliance

One of the most challenging things for any business is maintaining perfect financial records and reporting. ERP system modules ensure timely compliance of various regulatory provisions by validated data combined with built-in reporting, which ensures you don’t get penalized for any non-compliance.

#5 Accurate business forecasting

Advanced database and real-time analysis of data are some features of ERM modules that provide accurate business forecasts. They help to calculate expected sales, revenues, and cash flows well in advance that helps an organization to plan well in advance and reduce the wastage of resources

What are ERP Modules and How Do They Help an Organization?

ERP software comes integrated with multiple system modules that are meant to be purchased individually by the organization according to the utility in their business. These various system modules help manage an area of business processes such as human resources, inventory, supply chain management, etc.

Such ERP modules help an organization in numerous ways like –

  • Automating and centralizing business processes
  • Unifying many systems into one system to access data from all the sources at one place
  • Helps in building collaboration between employees
  • Improved resource planning
  • Improved workflow by streamlining the business processes

Now since you know how different ERP modules can help organizations, check out the following ERP modules to manage your operations.

12 Types of ERP System Modules with their Uses

Most ERP systems have several sophisticated modules. These ERP system modules handle a vast and diverse range of organizational functions. They are scalable, meaning that organizations can add more or additional modules as they grow in size or operations.

different ERP software modules

At this point, organizations need to be well aware of their needs to select ERP modules most suited to their workflow. Here are some of the essential ERP modules:

#1 Sales and Marketing

Sales and marketing ERP modules help to store essential sales data, such as customer inquiries, quotations, orders, and invoices.

It can track marketing campaign data measuring client engagement, email campaign success rate, and search engine optimization statistics. This enables organizations to invest in marketing initiatives that will pay off well in the long run.

Sales-Marketing ERP Module

Sales and Marketing Functions:

  • Automation of sales activities such as customer visits and expenses incurred on such visits
  • Setting targets for the marketing team
  • The sales team can track the entire process from dispatch of goods to settling of invoices. It can contact customers for any follow-up
  • Allows sales team to record payments received from customers after rendering services
  • Automatic tracking of lost orders and identify reasons for the same
  • Allows preparation of comprehensive reports on sales and marketing
  • Helps to forecast sales for future planning accurately

#2 Material Requirements Planning (MRP) Module

Material Requirements Planning ERP module helps an organization to plan inventory material investment and improve productivity and customer service by getting the right materials at the right place at the right time.

Biz21 MRP Module involves the purchase, inventory, and production working in sync to avoid all issues applicable to it.

It ensures that a sufficient inventory level is available for production while maintaining the lowest possible inventory levels. This module makes sure that a minimum cost is incurred for the storage of raw materials.

Material Requirements Planning (MRP) ERP Module

Material Requirements Planning Functions:

  • Allows grouping of items with similar demand pattern
  • Automatically generates forecast reports based on parameters set by the user
  • User can manually enter material requirement and the due date 
  • Integration of various operations such as production, inventory for effective planning
  • Enables comparison between different production schedules and their expenses
  • Effective stock management

#3 Customer Relationship Management

CRM module is one of the most widely subscribed ERP system modules. The principal object of the CRM module is to increase sales performance by providing customer support and holistic experience to clients

CRM modules are a great support to organizations and enable team members to give quality service to loyal customers. It allows sales or marketing professionals to develop a better relationship with clients by giving them personalized attention. 

CRM ERP Module

Customer Relationship Management Functions:

  • CRM modules enable the organization to enter and maintain demographic and other information about prospects and customers
  • Multiple phone numbers, email address, and physical address can be stored and accessed easily
  • Allows integration between the sales and marketing team and CRM team. They can gather information about prospective customers
  • Easy access to the quotes and proposals that you have sent to your customers and turn them into a sales order
  • CRM modules are specifically designed to tackle problems and resolve them so that majority customer issues can be addressed proactively

Also, ReadCRM and ERP – What is the Main Difference and Why to Use Them

#4 Finance

One of the essential ERP system modules is finance. It helps to manage all the cash inflows and outflows and assists in other accounting features such as ledger management, bank reconciliation, etc.

Another essential function of the financial management modules is to handle taxation and to follow current government regulations.

Through this module, management can quickly access critical financial statistics to get an overview of the company’s financial status. 

Finance ERP module

Finance Functions: 

  • Most finance modules are equipped with a profit tracker, which enables the company to get an overview of its financial health
  • General ledger helps to record and track all the financial transactions
  • Automating accounts payable to manage and keep track of the money an organization owes to its vendors and creditors
  • Accounts receivable is an important aspect that tracks payments and handles cash and invoices
  • Companies make use of fixed asset management features to manage tangible assets such as land, vehicles, etc.
  • Access to financial data in real-time and prepare financial reports for internal usage

Also, Read: ERP vs Accounting Software – What are The Major Differences?

#5 Manufacturing

All the manufacturing companies require this module in their ERP system. It handles the flow of engineering at all stages and ensures material management, quality control, and expenditures.

Manufacturing ERP module is an automated solution that monitors the day-to-day production activities. It ensures that all resources are well utilized, and the manufacturing capacity of the organization is functioning in an optimum manner.

Manufacturing ERP Module

Manufacturing Functions:

  • It helps an organization to streamline all the procurement activities
  • Establish communication with the sales department to get information on orders received
  • Helps in effective inventory management 
  • It helps to forecast future manufacturing requirements that help to take various essential decisions such as recruitment, training, and payroll
  • Easy forecasting of future data and sales order through which you can easily estimate profits

#6 Human Resource

The human resource module of an ERP system helps to maintain a comprehensive database of all the employees. HR ERP module enables managers to have complete employee data at their fingertips, making sure that the right person is put on the right job.

It handles all activities, from salary slip generation to disbursement, payroll management, etc.

Human Resource ERP Module

Human Resource Functions:

  • Helps to optimize the recruitment process to minimize workload
  • An organization can forecast or analyze human resource cost by integrating relevant information
  • It gathers information from various departments to predict future human resource needs
  • Helps to plans training schedules for employees 
  • Many modules come with a function of payroll management

#7 Supply Chain Management

One of the most popular ERP system modules, supply chain management, helps an organization to handle the entire flow of materials from the manufacturer to retailer and then the final customer.

It helps ensure there is enough inventory stock, so there is no shortage during the production process. 

Supply Chain Management ERP module helps to streamline all the major activities involved in the supply, transportation, and distribution of raw material and finished goods.

Supply chain ERP module

Supply Chain Management Functions:

  • Automatically create demand request when orders are received
  • Create job scheduling and tracking the same in real-time
  • Effectively manage procurement and supply of goods, services and other resources across the chain
  • Manage all the aspects from manufacturing to warehousing including transportation process in a supply chain
  • Once the production starts, record all the resources utilized in real-time, i.e., raw materials and labor 
  • Automatically generate invoice once the goods are shipped to customers

#8 Purchasing

The purchasing ERP module is one of the most requested modules that allow companies to do all the tasks related to the procurement of raw materials.

The purchase module works in integration with the inventory and supply chain management module which helps to ensure that the entire data related to movement and purchase of inventory is centralized and accessible to all departments. The purchasing ERP module will reduce duplication of data and notify the timely availability of raw materials.

Purchasing Functions

  • Streamline the entire purchase and process cycle
  • Prepare raw material requirement as per the anticipated demands
  • Systematically record the quotations received from suppliers
  • Provides for Management Information System for vendor evaluation based on quality, price and delivery time
  • Helps to generate purchase orders in domestic currency as well as foreign currency
  • Order tracking to have centralized control over the procurement cycle
  • Integration with the finance team to streamline the payment process
  • Establish a system of supplier relationship management

#9 Project Management

ERP system modules are a great tool to manage the project by tracking all the activities and ensure that they do not exceed the expected time limit.

Project management module monitors the resource allocation and adjusts the workflow pace to get maximum productivity. It helps to track real-time costs as the project moves along and compares it with estimated expenditures.

Centralized information can help management to track project progress and take corrective actions.

Project Management ERP Module

Project Management Functions:

  • Helpful for effective allocation of resources needed for the completion of a project on time
  • There are various changes during the implementation of a project. A useful ERP system module will help to track these changes and reschedule and adjust the workflow as per the revised version of the project
  • Lets you record the costs incurred in real-time and compare the same with estimated costs and find out the reasons for deviation if any
  • Management and executives can access real-time and up-to-date information for any particular project
  • Automatically generates alerts in case of late completion of a project
  • Automatically creates incentives for early fulfillment of the plan (if the project promises incentives in case of early completion)

#10 Bulk Email & SMS Module

In this digital world, it is vital to market your products and services in the right way. Only with the help of proper marketing, you will be able to ensure the sustainable growth of the business.

Bulk Email and SMS marketing is one such tool that allows you to send bulk messages to several recipients. So, it is easy for you to educate your customers about your products and services. 

Several ERP systems provide bulk email and SMS modules that are a robust and secure platform to fulfill all your marketing needs.

Bulk Email-SMS ERP Module

Bulk Email & SMS Functions: 

  • Automates email communication by scheduling mailers
  • Helps to send an immediate response to end-users or route it to respective staff to ensure accurate and timely correspondence
  • Track users who might be interested in your products and send them marketing emails and SMS
  • Generate comprehensive reports such as trend analysis and export these reports in various formats
  • Helps to maintain a communication channel with prospective buyers

#11 Inventory

ERP Inventory modules are designed to automate highly complex inventory and sales order processes. Inventory is one of the most significant investments made by the organization, so it is vital to manage it effectively.

A right ERP solution will help you provide up-to-date information on what is in stock, where it is located, and how long it will last. Without this information, you are at risk of running out of stock or overstock inventory which can either reduce customer service or result in increased costs due to high storage costs.

Inventory ERP Module

Inventory Functions: 

  • Direct integration with production, work orders and purchase department for advanced planning
  • Classify items into various groups for improved reporting
  • Clone, rename and merge different inventory items
  • Assign serial number and track the products information in real-time
  • Warranty tracking of multiple inventory items
  • Effective quality management 
  • Assign cost methods to different inventory items. It can be standard, average, FIFO, LIFO 
  • See quantity in hand after checking multiple parameters such as quantity allocated to orders in process, outstanding purchase orders
  • Management of inventory in case of numerous warehouses
  • Enables seamless transfer of stock between two departments

#12 Purchase Order Module

An ERP purchase module will help you maintain data for various suppliers and their contacts and track purchases. It systematically records all the data of multiple suppliers, purchase orders, quality checks, returns, and invoices settled.

The entire purchase order system is optimized by linking inventory to purchase accounts. This saves time and resources for any organization. It also helps to keep a constant check on stock levels and generate alerts for replenishment.

Purchase Order Functions: 

  • Maintain centralized records of all the purchase orders
  • Creates centralized data of all the vendors including their name, address, price list, tax identification number, payment terms
  • Easy integration with accounts payable to streamline the payment process
  • Helps to conduct supplier audits based on support and quality
  • Integration with inventory department to notify them when order is received and the inventory required for same 

Final Word

ERP software can make a business more efficient than ever by managing a wide range of business functions. It is a highly cross-functional solution that has impressive and innovative modules. Each ERP system module is tailor-made for a specific business function.

ERP modules are the future of business technology. Investing in good ERP software is a way to increase efficiency and profits and gain a competitive edge.

Which modules do you utilize in your organization? Let us know in the comment section below which ERP modules work well with your organizational departments.

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Aniruddh is Blogger and Digital Marketing Specialist at SoftwareSuggest. Ready to grab a cup of coffee anytime if you want to talk about tech, cars, businesses or cricket.

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