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The global ERP market is projected to reach $78.40 by 2026 due to the rising need for operational efficiency, transparency in business processes, and increased demand for data-driven decision-making. Cloud ERP is an integrated management solution that provides a single source of information, minimizes data consistency and accuracy issues, automates business tasks, and encourages collaboration across the organization.
What Are Business Modules in an ERP Solution?
Every ERP module is designed to manage specific business functions to support fundamental processes and help employees seamlessly complete their jobs. Each module collects data from respective departments and stores it in a centralized ERP database.
Cloud ERP software modules manage core business functions and facilitate a seamless flow of information across multiple departments, including sales, manufacturing, human resources, inventory, customer relationship management, finance, and more. Another benefit of cloud ERP software is that a business can add new functionalities without changing its foundation. Let’s review the top seven cloud ERP modules and their business benefits.
Top 7 Cloud ERP Modules and Their Business Benefits
1. Finance and Accounting
This module manages all the financial aspects of a business and tracks account-related transactions like account ledgers, balance sheets, bank statements, budgeting, tax management, payment receipts, etc. It also helps companies understand the current financial performance and the future outlook.
- Helps employees handle taxation and comply with the latest government regulations.
- Automates various tasks related to cash management, billing, vendor payments, and account reconciliation.
- Provides quick access to financial information to get an overview of the financial status of an organization.
- Helps employees prepare vital financial reports such as profit and loss statements, cash flow reports, and board reports and run scenario plans.
- Shares financial data with other modules like sales and marketing.
- Automatically updates real-time financial data in response to transactions in other departments.
2. Human Resources and Payroll Management
This module enables managers to access a comprehensive database of employees at their fingertips. It includes detailed records of all employees, such as work hours, job descriptions, performance reviews, leaves, and benefits information. It also handles payroll activities, including salary slips, disbursements, etc.
- Eliminates inaccurate and duplicate data caused by manual entries.
- Optimizes the onboarding and training process for the workforce.
- Gathers and integrates employee data from various departments and helps predict future human resource requirements.
- Automates manual tasks like leave requests and approvals saving time and effort.
The manufacturing module helps manufacturers plan production activities and ensure they have all the resources required for production runs, like machine capacity and raw materials. In addition, it updates the status of goods in progress and finished goods which helps manufacturers track actual output against planned production. Modern ERP for manufacturers offers functionality such as Material Requirement Planning (MRP), Advanced Planning and Scheduling (APS), and a Manufacturing Execution System (MES).
- Material Requirement Planning synchronizes the entire material flow aligned with the production schedule while focusing on better productivity, cost reductions, and customer retention.
- Advanced Planning and Scheduling helps manufacturers map the resource requirements to fulfill the orders and ensure on-time deliveries. It helps manufacturers balance capacity, demand, and constraints to generate realistic production schedules.
- Manufacturing Execution System collects, tracks, monitors, and controls complex manufacturing systems and data flows on the shop floor. It helps in executing manufacturing operations effectively and improving production output.
- Streamlines the supply chain, inventory, and procurement activities.
- Helps forecast future manufacturing requirements that support essential decisions, such as what training, recruitment, and payroll is needed.
- Ensures that there is an optimum utilization of manufacturing capacity and resources.
- Forecasts critical manufacturing data and sales orders that help in estimating business profits.
4. Inventory Management
Inventory management enables manufacturers to gain real-time information about inventory while managing other business aspects, including logistics, finance, and operations, on a unified platform. Some of the key features of the inventory module include real-time goods receipts, inventory audits, inventory levels, just-in-time inventory, stock utilization reporting, accurate forecasting, and more.
- Boosts productivity with greater control over order management and invoicing.
- Provides accurate valuation of current, incoming, and outgoing inventory.
- Fulfills maximum orders with optimized stock levels.
- Ensures timely deliveries that improve customer satisfaction.
- Maximizes profits by managing inventory costs effectively.
5. Order Management
Managing orders in isolation is challenging as it relies on various departments of the organization. This module tracks orders from receipt to delivery, manages orders from multiple sales channels and ensures on-time delivery. In addition, it prevents orders from being lost and reduces the cost of expedited shipping for the organization.
- Increases process efficiency by automating order management activities.
- Improves the ability to process orders quickly and efficiently.
- Organizes multi-channel sales orders into a central system.
- Maximizes revenues by handling the volume and velocity of orders effectively.
6. Supply Chain Management
This module tracks every movement of goods and supplies across the supply chain, from manufacturers to sub-suppliers, suppliers, distributors, retailers, and consumers. By managing materials, human resources, product refunds, and replacement orders, this module ensures the right inventory is available at the right time.
- Improves the information flow across the supply chain process.
- Ensures the availability of inventory and resources in the right quantity at the right time.
- Helps manage future demands accurately.
- Optimizes the movement of goods and materials while reducing supply chain costs.
7. Customer Relationship Management (CRM)
The CRM module stores all customer information, such as quotations, personal details, sales leads, etc. It helps improve sales performance by establishing healthy customer relationships and providing better customer service. Customer information like calls, purchasing history, meetings, and communication history is integrated with the sales module to send business emails, run marketing campaigns, and enhance sales opportunities.
- Establishes and maintains customer master data by storing all customer information in a centralized database.
- Delivers better customer service by providing quick responses to service calls.
- Manages the customer lifecycle effectively from initial contact to post-sales support.
- Automates marketing and sales operations like feeding information to purchase orders and sending email promotions.
- Drives revenue growth by encouraging better upselling and cross-selling opportunities.
How to Choose the Right ERP Solution for Your Business?
With multiple ERP solutions available, selecting the right one to meet your business needs is challenging. A cloud ERP system can be the best choice if you want to integrate your business ecosystem. It allows users to manage business data anywhere at any time, streamline business information in a unified database, reduce operational and administrative costs, and improve decision-making. Additionally, you can choose the ERP modules you need to take your business to the next level. If you need more suggestions to select the right cloud ERP solution for your business, please connect with us.
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