ERP COMPONENTS

P.Hrithik
 CONTENTS
o What Is AN ERP Software

o ERP Software components

o Human Resources

o Customer Relationship Management

o Business Intelligence

o Supply Chain Management

o Inventory Management

o Accounting/Financial Management

o Some Secondary Components

 W H AT I S A N E R P
S O F T WA R E ?

ERP software is a solution that centralizes and connects various

business processes in one place. It’s beneficial because it’s a hub
for real-time and historical data across business departments and
functions. This centralization reduces time spent manually pulling
data to send to business partners. Automating processes
simplifies business workflows, saves time, boosts revenue and
enhances productivity.
E R P S O F T WA R E C O M P O N E N T S

Human Customer
Relationship
Business
Resources Management Intelligence

Supply Accounting/
Chain Inventory
Financial
Management Management
Management
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H U M A N R E S O U RC E S

Managing employees is the highest priority and a

prominent component of ERP. The HR ERP module in
your software solution should handle employee
management tasks such as onboarding, offboarding,
timekeeping and benefits administration. Payroll
Software automates payments, including tax
deductions. Hourly workers receive automatic payments
using time-tracking software modules.
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C U S T O M E R R E L AT I O N S H I P
M A NAG E M E N T ( C R M )
Your business can’t survive without managing your
customers. A CRM tool stores and tracks generated
customer and lead data, helping you develop helpful
insights for sales and marketing improvements. One
primary CRM use is tracking customer buying habits.
With eCommerce software, you can integrate your CRM
process to target ads accurately and preserve customer
payment information. These features guarantee that
customers have the most streamlined buying
experience possible.
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BUSINESS INTELLIGENCE (BI)
BI collects data and performs analysis to provide
actionable insights about business processes. As
businesses rely more heavily on data-based decisions BI
software becomes indispensable. BI enables you to make
sense of the analyzed data and spot trends at a glance.
When you use an integrated solution, actionable insights
allow you to make informed business decisions across
departments and processes. Therefore, it is easier to see
a complete view of data and how various business
aspects affect profitability and customer retention.
4 S U P P LY C H A I N
M A NAG E M E N T ( S C M )
SCM applications optimize distribution and manufacturing
processes to create a more efficient supply chain by
collecting real-time data. Real-time data allows you to find
and fix issues as they happen instead of after and makes
predictive analytics possible to help with demand planning.
SCM also assists in boosting profitability by measuring
factors like inventory items purchased and then using that
information to optimize the best placement for items on the
storage floor. SCM coupled with CRM can help keep
customers updated on the purchase status within the
distribution process and estimate a delivery date.
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I N V E N T O RY M A NAG E M E N T
Monitoring inventory is a vital components of ERP solutions as
it’s highly collaborative. It woks with SCM component while
involving in processes like warehouse management and sales.
Inventory Management Systems‘ main features include managing
order fulfillment and maintaining a warehouse’s stocking
functions. These features may possess revision level tracking,
multi-level serial number tracking and multiple units of measure
per product ID or stock keeping unit. It’s beneficial to companies
with distribution centers because it assists in the profitability and
functionality of inventory processes. An integrated solution could
update your company website that an item is out of stock to avoid
making orders for unavailable items.
6 AC C O U N T I NG / F I NA NC I A L
M A NAG E M E N T
The final main component of ERP is accounting, aka financial
management because every business process involves money
flow , this tool works with other ERP system components.
Accounting Tools analyze and track financial data. Financial
data analyses can reveal trends in your spending, helping you
better understand calculated profits and discover where you
can reduce costs. You also obtain predictions to project future
revenue. These platforms maximize revenue by integrating
sales, customer relations and distribution practices. The
software ultimately increases productivity and frees
employee time to work on non-automated tasks.
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S O M E S E C O N DA RY C O M P O N E N T S
• Risk Management
• Marketing Resource Management
• Sales Order Management
• Advanced Planning System
• Event Management
T H A N K YO U
P.Hrithik