Fundamental Technology of ERP:
comes time for your organization to evaluate ERP systems, whether you are
replacing a small business accounting package or an aging ERP, It is important
to clarify the components. Each piece (often called module) of the ERP system
delivers different value for your organization. To get the most from the full
system, make sure your evaluation team understands the fundamentals.
core of ERP are the financial modules, including general ledger, accounts
receivable, accounts payable, billing and fixed asset management. If your
organization is considering the move to an ERP system to support expansion into
global markets, make sure that multiple currencies and languages are supported.
in the financial management modules will include budgets, cash-flow, expense
and tax reporting. The evaluation team should focus on areas that are most
important to support the strategic plans for your organization.
Intelligence (BI) has become a standard component of most ERP packages. In
general, BI tools allow users to share and analyze the data collected across
the enterprise and centralized in the ERP database. BI can come in the form of
dashboards, automated reporting and analysis tools used to monitor the
organization business performance. BI supports informed decision making by
everyone, from executives to line managers and accountants.
Supply Chain Management
Chain Management (SCM), sometimes referred to as logistics, improves the flow
of materials through an organization by managing planning, scheduling,
procurement, and fulfillment, to maximize customer satisfaction and
profitability. Sub modules in SCM often include production scheduling, demand
management, distribution management, inventory management, warehouse
management, and procurement and order management.
company dealing with products, from manufacturers to distributors, needs to
clearly define their SCM requirements to properly evaluate an ERP solution.
Human Resource Management
resource management ERP modules should enhance the employee experience – from
initial recruitment to time tracking. Â Sub modules can include payroll,
performance management, time tracking, benefits, compensation and workforce
planning. Self-service tools that allow managers and employees to enter time
and attendance, choose benefits and manage PTO are available in many ERP
modules make manufacturing operations more efficient through product
configuration, job costing and bill of materials management. ERP manufacturing
modules often include Capacity Requirements Planning, Materials Requirements
Planning, forecasting, Master Production Scheduling, work-order management and
the value of an ERP package is the integration between modules, so that all of
the core business functions are connected. Information should flow across the
organization so that BI reports on organization-wide results.