What is an ERP system? What are functional modules?

In information age, digital transformation is a challenge many businesses face. In this process, ERP system has become an indispensable professional tool for transformation of modern enterprise. What is an ERP system? What are functional modules?

ERP generally refers to Enterprise Resource Planning, which is a management platform that can provide decision-making tools for enterprise employees and decision makers. It is mainly used to improve business processes of an enterprise and increase its core competitiveness. .

What is an ERP system? What are functional modules?

The ERP systems currently on market usually include core functional modules such as purchasing management, sales management, warehouse management and production management.

1. Procurement Management Module

Purchasing is an important aspect of cost control for businesses. Purchasing management includes servicing material suppliers, submitting a purchase requisition, tracking purchase order after submitting requisition, and entire process of communicating with receipt of final order. With an ERP system, businesses can determine reasonable order quantities, suitable suppliers, and best safety margins, dynamically track purchasing costs and control profits, and reduce unnecessary waste.

2. Sales management module

Sales are link through which company directly makes a profit. Sales management includes tracking and managing sales plans, quotations, sales orders, commission sales, and other processes. With help of an ERP system, enterprises can not only improve management of sales process, but also facilitate work of sales staff, standardize business process, and reduce risks caused by manual errors.

3. Warehouse management module

Warehouse management is a small module that plant managers usually ignore, but careless management will also have some impact on enterprise. On one hand, ERP system can fulfill inventory requests in real time and know latest inventory situation at any time to ensure that there are enough materials for production and avoid inventory backlogs. On other hand, it can generate comparisons in procurement process to help companies choose more appropriate channels.

4. Production control module

Production management is an advanced management method focused on production planning. After enterprise determines overall production plan, it is subdivided and distributed among different departments for implementation. During this period, production progress can be understood through ERP system, such as approximate capacity calculation, production capacity calculation, finished product cost budget. , order processing, order acceptance, etc. In addition, according to software level and professional tools provided by ERP system, inventory can be effectively reduced, production management capabilities and production efficiency can be improved, and resource allocation can be optimized.

In an era of great change, challenges and opportunities coexist, but with increasing uncertainty, it's time to think about how to stay on cutting edge of sustainable development and implement integrated governance. ERP system is a professional tool forboard to transform modern enterprise, which can integrate enterprise business processes, facilitate internal information exchange, promote communication and cooperation between different departments, and truly help enterprises achieve "improving efficiency and reducing costs."