ERP Systems

ERP Modules

ERP, or Enterprise Resource Planning, is software meant to organize all business functions into one central system, making the data gathered easier to use and helping the business run more efficiently. The end goal, of course, is to reduce costs and increase profit.

ERP software consists of ERP modules. Each module is responsible for a different task, and some can be very specialized. There are other ERP modules, however, which are capable of assisting every type of business and so these (inventory, invoicing, order tracking, marketing, purchasing, distribution, report making, etc) are included in all basic ERP packages. Each software module imitates an important function crucial to the business.

Information describing how each ERP module works is arranged in the following fashion: the major functions of the module are described in the introduction section; a functions section lists the various tasks a module can perform; there is a reports piece that registers all the reports a module can generate; another section lists the data tables the module uses; the data exchange section makes it clear which other modules can communicate with it; and, the transaction link describes all operations that happen within that module.

Vendors have designed ERP modules for very specialized tasks, as the role of ERP has expanded. To begin with, modules are available to work with specific size of companies. Under the umbrellas of for-profit businesses, non-profit groups, and governmental agencies, there are modules for accounting, schools, farms, home businesses, manufacturing, and retail. All of these are able to improve the administration of a business.

Businesses in the market for software solutions do not have to purchase all modules. Packages which can be customized to fit individual needs and requirements are available from most vendors.  If a business does not do a lot of shipping, for example, it is not necessary for that company to purchase the shipping module.

ERP software is expensive. Vendors’ prices for a basic package with basic ERP modules tend to fall within the range of $250,000 USD to $500,000 USD. One way to reduce costs is not to purchase any modules a business will not use. Each module not purchased will reduce the initial cost considerably.

Then again, the opposite is also true. Systems can be modified by adding ERP modules, too. Each addition comes at a hefty price, though, so it is key for businesses to examine the benefits to be gained from ERP customization, and whether or not these benefits will translate into enough profit to offset the initial investment.

Written by :

Amy Cruz