Inside
- ERP modules are different software or features for different departments of the company.
- Examples of modules include financial management, procurement, inventory management, HR software, and supply chain management.
- Modular software is important because it is scalable and can be implemented in stages.
- Types of ERP modules include basic, optional, and vertical ERP.
- These modules allow for the automation and development of specific business activities.
Topics Covered
- What are ERP Modules?
- Why are ERP Systems’ Modules Important?
- Types of ERP Modules
- Top 15 Different ERP Modules
- Choose Your Right Modules in ERP Software
- Final Words: NYGGS ERP System
- FAQs
Introduction
From $43.72 billion in 2020 to $117.09 billion by 2030, this is how ERP’s market size will thrive.
This number proves that ERP Software is proving to be one of the most critical tools of all time. It can automate almost any business process, from accounting to customer management. ERP Systems are increasingly being offered in modular form. A company selects only the ERP modules it needs. This approach allows for information sharing between business units without the organisation facing the drawbacks of a “too big to fit all” approach, such as high costs and an overly cumbersome system. But what modules are available on the market? This is today’s topic to find an answer to!
What are ERP Modules?
We can say the ERP System Modules are the component that makes the complete system. These components are different software or features for different departments of the company. Thus, the ERP incorporates the entire company’s data into one platform, making it an ultimate tool for businesses.
Furthermore, if I name some modules, they are financial management, procurement, inventory management and HR Software. There are many ERP providers, such as NYGGS ERP, that offer IoT sensor integration (if required) to make it an end-to-end business automation solution.
Why are ERP Systems’ Modules Important?
Today, many companies are implementing modular ERP software. This is because modular software is scalable. So if they grow in the future, they can always contract for additional modules.
Another reason why modular software is important for companies is that they can implement it in stages. Thus, they first implement what is essential for their business (and what they need most). After that, they choose according to their needs.
Due to the wide range of ERP modules and the ease of scalability, this type of software can be adopted by all types of companies.
Types of ERP Modules
Depending on their general functionalities, we can distinguish between:
- Basic ERP (also called general or traditional and usually comes standard in all ERPs).
- Optional ERP (they have added features as the user of the software requires them).
- Vertical ERP (developed for a specific activity or a specific industrial sector).
You may be interested in: Vertical ERP vs Horizontal ERP
Top 15 Different ERP Modules
The modules of an ERP are made up of interrelated functionalities. These functionalities allow you to automate and develop specific business activities. The most common modules within the ERP system are as follows:
1. Project Planning & Scheduling
Planning and scheduling are essential for any business to achieve efficiency. Budget planning, resource planning, or machinery requirements are all taken care of in the planning phase. One of the most important ERP Modules for effective planning is project planning. This is particularly important in manufacturing, distribution, e-commerce, and construction. The planning and scheduling of production and procurement are key to the success of your business.
2. Finance & Accounting
The finance & accounting module is the most basic for companies. This is because all companies must manage their finances accurately. Some functionalities that can be found within this module are financial monitoring, invoice generation, purchase-to-pay, and financial reports.
3. Procurement Management
The Procurement or Purchasing module helps the administration maintain financial control over the materials purchased. Two of its most popular features are the supplier portal and purchase-to-pay (P2P). The latter manages the process from the request to purchase an item to its final payment.
4. Inventory Management
With the inventory management ERP module, companies ensure they manage stock. Whether it is raw materials for production or final products for sale. In this way, a company can control neither having too much stock of an item nor too little so that it cannot work. To do this, they use the planning function and an alert system. This alert system is particularly important for some sectors. The food industry, for example, has to take expiration dates into account.
5. Supply Chain Management
Supply Chain Management (SCM) can be understood in two ways. The first is the logistical management of materials. The other way to understand SCM is as management from the raw material purchase process until it reaches the businesses’ stores. Therefore, in this module, we can find functionalities such as supply management, MRP (Material Requirements Planning), etc.
6. Equipment Management
The Equipment Management ERP module is based on functionality that includes scheduling, dispatching, and generating work orders, tracking staff skills, and service invoices. This module also generates appointments for all services with equipment maintenance requirements. Furthermore, this module makes it easy to keep track of warranties, work potential, or energy usage. The result is a more efficient workflow.
7. Sales Force Automation (SFA)
The SFA ERP modules record the company’s field sales and will allow managers to monitor budgets, sales invoicing, and order control. One of its advantages is that you can generate reports and know how much a customer buys or how much you sell in a particular geographical area. You will also have a history of your evolution in the market, returns, etc. This module is essential for FMCG, pharmaceutical, and NBFC companies.
8. Fleet Management Module
Companies that have their transport vehicles use the Fleet Management module. This module is a combination of IoT sensors and a dedicated software dashboard to track or optimise fleet usage. Some of the most common functionalities within this module are vehicle location tracking, trip planning, route planning, fuel consumption reporting, optimal use of resources, fleet health management, and many more.
9. Human Resources & Payroll Management
The Human Resources module is used for the general management of a company’s workforce. Within this module, we can find functions such as the employee and manager portal, recruitment, reports and analysis, and payroll, among many others.
Did you know? HR Software is one of the most commonly purchased items. This is due to the complexity of managing a company’s human capital. There are many possibilities within this type of software. That is why NYGGS created the Payroll & HR system, which groups all HR functionalities in one place.
10. Project Management
This module caters to companies to manage the entire project second by second. Whether it is budget management, proper resource allocation, or machine performance monitoring, the Project Management module allows us to manage it all. Regardless of the company’s industry, this module makes it easy for everyone, from marketing companies to construction companies.
11. Customer Relationship Management (CRM)
CRM allows you to organise all the information about your customers and your interaction with them. You will be able to do your data registration, business opportunity management and commercial activity planning. This ERP module is becoming increasingly important as it provides you with detailed information on your sales conversions and your ideal customer profile.
12. E-Commerce
This module is becoming increasingly important with the opening of the digital market. It is about managing online sales through a digital shop (whether Magento, WooCommerce, or another). Many companies have been 100% digital since their birth. Many traditional companies are going digital and need this module.
13. Warehouse Management
The Warehouse Management module allows you to know the location of your stock within one or more warehouses and its journey. This ERP module’s capabilities make it easy to track stock levels, inputs and outputs, and to quickly locate items within the warehouse. This is important for industries where warehouses are part of the production process. Additionally, the more general features of the warehouse module include route management for fast order picking and barcode scanning.
14. Production Management
The Production Management module helps companies gain better control of their manufacturing processes. Within this module, there are functionalities such as production planning, production order management, production capacity planning, manufacturing execution systems (MES), and others.
15. Management Information System (MIS)
The MIS module is the Document Management module. It is responsible for storing, managing, and controlling the flow of documents within an organisation. This module consists of functions such as version control, real-time collaboration, digital archives, etc.
Furthermore, the MIS module gathers insights into Business Intelligence (BI). This module allows authorised people to access detailed data or reports easily from anywhere. The data is then used to analyse them and make strategic and operational decisions. Moreover, MIS dashboards provide a clear overview so that managers can view relevant data and keep up to date with the status of the project.
Choose Your Right Modules in ERP Software
Companies invest in ERP modules that suit their business model, industry, and other factors. However, some modules are essential for most organisations. For example, finance and accounting are the core functions of every business. So the ERP Finance Module is essential for monitoring financial health and performing accounting tasks.
Further, those organisations that depend on good customer relations and effective human resource management use CRM and HRM modules. Supply chain management modules help product companies—manufacturers, distributors, and retailers—optimise inventory, ordering, warehousing, and procurement. Moreover, construction and service companies find value in project management modules by simplifying resource planning and invoicing.
ERP Systems allow you to start with the basics and then add functionality as your business grows. The ideal ERP solution meets today’s needs and scales to accommodate future growth opportunities. In short, you can choose an Enterprise Resource Planning Software that will give you what you need now and prepare you for the road that lies ahead.
Final Words: NYGGS ERP System
If you want to benefit from the advantages of an ERP module, contact us. NYGGS has developed an ERP with invoicing, production, supply chain, project optimisation, warehouse control, dashboards, and much more. It is a comfortable, effective, and flexible solution that will help you make the most of your company’s resources.
Furthermore, with ERP, you will have all the modules in a single tool that is completely intuitive and easy to use. NYGGS’s different ERP modules allow you to connect to your entire operations and give you a comprehensive view of analytics to make decisions that make a difference.
But if it doesn’t meet your company’s needs, don’t worry; we are experts in creating custom ERP software, and we will find the best solution to get the most out of your business.
FAQs
Q1. How can a company know the most important ERP modules for their specific business needs, especially when they are implementing ERP systems for the first time?
Ans. Typically, companies review business processes, industry requirements, and growth projections before deciding on what modules to adopt. It is the best approach to get guidance from ERP vendors or industry experts regarding module selection.
Q2. What are some challenges that firms might face while selecting and integrating ERP modules, mainly about compatibility issues or integration with existing systems?
Ans. The challenges of selecting and integrating different modules of ERP include ensuring compatibility with other existing systems, data migration, user training, and customisation requirements. To overcome these challenges, companies must conduct thorough research, involve key stakeholders, and work closely with their ERP vendors.
Q3. How do companies assess the return on investment (ROI) or quantity benefits of particular ERP modules in terms of increased efficiency, cost savings, and competitive advantage?
Ans. Generally speaking, organisations measure their return on investment (ROI) after purchasing certain ERP by reviewing elements such as improved production capacity, lower operating costs, better decision-making, and better performance measurement.
