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You can think of functional requirements as the benefits and experiences an ERP system provides. Below are a couple of crucial functions of ERP:. Centralized modules allow users to manage grouped tasks without switching applications or screens. House all information needed for a particular operation in the same part of the system. Also, every department accesses and receives data in one unified interface.
ERP applications are fully integrated and should work together seamlessly. Applications should freely share information in real time. You can automate anything in the program, from creating bills and receiving quotes to sending invoices and printing reports without lifting a finger.
This trend saves loads of time and money to boost productivity. In addition to functional requirements, you need to look for ERP-specific features that will benefit your business. The following are popular ERP requirements and modules buyers can seek out when searching for their perfect system.
But businesses realized they needed support for their back-office operations as well. Manufacturing functionality has remained a staple to this day. Manufacturing helps businesses manage their product development and production. This ERP functionality gives users the tools needed to manage resources, finances and the shop floor.
Your manufacturing system should assist with planning and scheduling, budgeting, forecasting, procurement and materials management. Additionally, many manufacturing solutions rely on project management tools to keep track of design iterations. These tools should all work together to streamline your manufacturing process.
This integration gives your team more time and resources to dedicate to product creation rather than documentation or addressing errors. As mentioned above, ERP came from the need to combine manufacturing and back-office functions. Accounting, as one of those back-office processes, has long been a primary function of ERP. Accounting tools support accounts receivable, accounts payable and general ledger functions to manage your finances. Accounting software supports additional functions such as payroll, time tracking and tax reporting.
But accounting software works a little differently when incorporated into an ERP. In this situation, your ERP database automatically provides the accounting module with data from company-wide processes, garnering a few benefits.
First, it reduces the time your accounting staff needs to spend on collecting financial information. Second, it reduces the chances of redundant entry and errors. Lastly, it gives your team a fully comprehensive look at your finances. Human resources is another back-office function modern ERPs facilitate. ERP software covers all HR functions an employee goes through during their time with your company.
One vital ERP function is applicant tracking. Applicant tracking allows users to keep tabs on prospective employees during the recruitment process. It enables your HR staff to search for the best candidates according to the criteria your team sets. HR functionality also encapsulates the onboarding process and benefits administration. Additionally, HR deals with functions such as training , payroll and performance management. Performance management is aided in part by reporting and analytical tools.
Thanks to the ERP database, all applications within your system pull data from the same source. This integration helps you recognize patterns in your hiring practices and employee performance. There are also workforce management solutions that manage other valuable employee information such as:. A strong relationship with your customer base is the foundation for all your other business functions.
CRM software makes fostering these connections easier than ever before. CRM functionality helps companies track campaigns, nurture leads and maintain client information.
While plenty of standalone solutions can perform these tasks, an integrated CRM can transform your business. Without a fully integrated CRM, you may find yourself entering customer data into all your applications separately.
Not only is this a waste of time, but it also opens up all kinds of issues. Your current team may be accustomed to accessing multiple sources for purchase history and billing information. But this gets complicated when you hire new team members. Instead of teaching the quirks and workarounds of your current system, you could simply adopt an integrated CRM. It allows users to access customer data for shipping, billing or marketing purposes swiftly. Since ERP systems are predominantly aimed at businesses that manage goods, inventory management inevitably plays a large role in the system.
Inventory management solutions give users more stock control and visibility. But just like the modules above, inventory management works best as part of a more extensive multi-functional ERP system.
When this happens, inventory software exchanges data with manufacturing, distribution, sales and customer records. This information exchange gives greater visibility of the supply chain and helps users predict issues, such as late delivery due to low inventory levels, with greater accuracy.
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