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What Does ERP Software Do? What Are The Factors To Consider While Choosing It?

What Does ERP Software Do?

Enterprise Resource Planning or ERP software India consists of various modules that can be customized according to the requirements or specified process. The modules that ERP software covers are:

HRM:

The HRM module includes applications like time tracker, job profiles, a database of employee records, timesheet, and skills matrix. It may also include payroll system and performance reviews, as per the requirements of an individual organization.

Financial Management:

The financial management module of the ERP software covers all the cash inflow and outflow of the organization. The financial transactions it covers are balance sheet, tax management, expenditures, ledger, bank reconciliation, payments, and balance sheet. Further, they also generate reports for other business departments or units.

Sales and Marketing:

This department looks after the sales workflow such as sales orders, sales invoices, sales inquiries, and quotations. Additionally, advanced ERP for this module comes inclusive of shipping tracker, and taxation rules. Often, the CRM and sales team work together to earn more profits for the company as well as increase the sales.

CRM:

This department is mostly associated with customer relations and makes sure to maintain them to improve the profits of the company. The department handles all customer issues, inquiries, and takes feedback. Similarly, the ERP software for this module collects all social media activity of the customers, their past interactions, purchase history, and so on and consolidates all the data. CRM module is closely integrated with the sales and marketing module to increase the profits.

Manufacturing:

The manufacturing and SCM modules are often integrated specifically for areas such as product planning and inventory control. This department helps in manufacturing efficient products by using its expertise in product planning, daily production monitoring, product forecasting, and material sourcing.

SCM:

SCM or Supply Chain Management takes care of aspects in the supply chain as well as purchase order management. One of its main aspects is process automation.

Inventory:

This module is also termed as material management module and covers all standardized replenishments, stock targets, and other inventories. It is tightly integrated with the purchase module.

Purchasing:

This module often works along with SCM and inventory modules and takes care of all the purchases of products and other requirements.

What Are The Factors That Are To Be Considered While Choosing ERP Software?

  • The first and foremost aspect to consider is to see if the organization requires a new ERP software or just an upgrade. Since many business payroll software in Hyderabad are flexible and customizable, the required modules can be integrated with the existing version. If the ERP happens to be very old, it is wise to purchase a new one instead of upgrading the old one.
  • The on-site installation of ERP software requires a certain level of technical knowledge. If an organization is lacking the workforce for it, it is better to hire the required team or check with the vendor if they are providing the service. Usually, installation is charged separately; however, some vendors offer all services. 
  • ERP software takes reporting such as PDF or spreadsheets to an advanced level that produces accurate results based on the location or region. The latest versions come with smart filters, in-system query along with real-time data.
  • Integration is a very important factor that is to be considered. If an ERP software India is not accepting other applications, then it would cost the organization a lot. Hence, choosing ERP software that is modular and can be integrated with other modules is essential.
  • The last factor is the customizability. It is best to look for ERP software with customization tools, dashboards, and configurable workflows among other factors that help departments define their targets and goals, and set their targets accordingly.

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