4 Essential ERP System Modules for Manufacturing Businesses in 2021
The ERP system modules that manufacturing businesses must absolutely have!
Throughout the year 2020, business owners worldwide have been struggling to keep their businesses afloat amid the pandemic. With the implementation of the physical and social distancing policy, business owners soon realized that they will have to turn to technology in order to survive the impact brought on by the pandemic. Thanks to technology, business owners are now able to operate their businesses from anywhere and at any time. With video call applications such as Zoom, Google Meet, and Skype, the culture of employees working from home is starting to become a norm. Businesses are also able to continuously retain their relationships with customers with the help of Customer Relationship Management (CRM) systems. Out of all the systems available for businesses, one of the most common systems that businesses are adopting now is the Enterprise Resource Planning (ERP) system. ERP system is a business management system that encourages the automation of tedious manual tasks and the integration of data/information into one single platform.
Under an ERP system, there will be a lot of other different modules available each serving a different purpose. Some of the basic modules of the ERP system are such as the finance module, procurement module, manufacturing module, human resource management module, CRM module, Supply Chain Management (SCM) module, marketing module, and so on.
There is a wide range of modules available in the market. However, each business will have its own needs and challenges. For example, a trading industry company will have a higher need for ERP system modules such as human resource management, supply chain management, procurement, and inventory management, but not so for manufacturing or project management modules.
Therefore, we will be going through with you some of the most recommended ERP system modules that manufacturing businesses must absolutely have in the year 2021!
· MRP Module
· Inventory Module
· Purchasing Module
· Accounting Module
The Manufacturing Resource Planning (MRP) Module is one of the main important modules that manufacturing businesses should definitely have. (Even the word “manufacturing” is in the name) With the MRP Module, manufacturing businesses can have access to clear and accurate insights on manufacturing plans and reports. Full visibility on work center performances, product quality, manufacturing orders, and more, help to ensure manufacturing businesses a seamless collaboration between departments. Full production traceability can also be achieved when materials used in production are able to be traced in a full upstream report. The MRP Module provides manufacturing businesses the visibility and traceability they need to stay competitive in the manufacturing industry by achieving true productivity.
Manufacturing businesses have to constantly deal with huge loads of materials that are to be used in their production activities. For that, it is immensely important for manufacturing businesses to ensure that they are able to handle their storage and inventory well. To effectively manage and control inventory with large amounts of materials, traceability and visibility will be needed. With the Inventory Module, material movements can be tracked from the purchasing departments to the warehouse then to the sales orders created. Plus, by implementing the Inventory Module, Make-To-Order will be possible, whereby the production of manufacturing businesses will start only when there is a confirmed sales order. This is extremely effective in aiding manufacturing businesses to achieve Lean Manufacturing through inventory optimization and the reduction of wastes.
Manufacturing businesses often have to order materials from many suppliers with different price ranges and material qualities. In order to get supplies with the best of quality at the most affordable price, supplier information should always be made readily available for manufacturing businesses. By implementing the Purchase Module, suppliers’ price lists and suppliers’ Key Performance Index (KPI) can be stored and accessed easily, thus allowing manufacturing businesses to make better purchasing decisions through analyzing and comparing supplier choices. Manufacturing businesses’ replenishment tasks can be tedious if done manually. With the Purchasing Module, replenishment and purchasing tasks can be automated according to their own inventory levels. The Purchase Module of the ERP system can be very useful for manufacturing businesses in many ways. Accurate inventory forecasting, clear RFQ status monitoring, and effective product handling are some other advantages that the Purchase Module has for manufacturing businesses.
Accounting is a very important part of any business as it provides financial information that could help business owners better strategize their future plans. This makes the Accounting Module an absolute necessity for all business industries, including manufacturing industry businesses. The Accounting Module allows manufacturing businesses to have access to clear and accurate financial information such as profit/loss, cash flow, taxes, customer acquisition cost, and so on, thus encouraging strategic planning. Manual data entry tasks that are prone to human errors can also be avoided through the automation function of the Accounting Module.
Additional ERP system modules that manufacturing businesses could implement
ERP system modules can work seamlessly well with each other. With the modular system, it allows different modules to be added to or removed from the ERP system according to the current needs. So, some other modules that manufacturing businesses can integrate into their ERP system alongside the above-mentioned modules are:
· Invoicing Module
· Sales Module
If you ever feel confused or overwhelmed by the idea of implementing an ERP system for your businesses, feel free to contact our team of ERP system experts for a detailed and professional consultation, just for you!