Enterprise Resource Planning (ERP) consists of basic key features to help in effective integration of all the functional units of an organization. The main objective of ERP is to maintain uniform data sharing and communication between the different functional units resulting better quality of work optimizing time and cost. Most of the ERP vendors in the market provide the basic integration features, while some may offer some variations enhancing the domain of its functioning. Tailor made and customized ERP software is widely available in the market to suit different purposes and different organization structure.

In general, most of the ERP vendors provide the key functional modules like Business Intelligence (BI), Customer Relationship Management (CRM), Human Capital Management (HCM), Financial Management (FM), Manufacturing Operations and Supply Chain Management (SCM). A basic ERP architecture must support these key ERP features for effective integration and enhanced data migration.

Business Intelligence (BI): BI has been the latest introduction in the ERP packages that enables the user to share and analyze data from central repository. This effective data analysis enables timely decision making for the users, starting from the mid level executives to top level managers. Varieties of analysis and automation tools help in streamlining the different operations, and the end result is a better overall performance of the organization. Clear data analysis offers real time visibility enabling the organization to align and stretch their operations to achieve the strategic goals.

Customer Relationship Management (CRM): This is another key feature of ERP as the profit margin largely depends on the customer relationship management. This tool improves the customer service by fulfilling customer’s orders within a stipulated time, timely delivery of the products, prompt receiving and attending the customer complaints including marketing of the product. Service management and marketing are other important components of CRM module. Some vendors also provide tools for sales and account management, SFA and e-commerce.

Financial Management (FM): The Financial Management (FM) is perhaps the mostly used module of ERP software. This module helps in easy accessibility of various financial data along with streamlining the regular accounting processes like budgeting, allocation, cash flow monitoring, accounts receivable and payable, billing and managing the fixed assets. Since most ERP packages are deployed in global markets, it is essential that the FM module should support multiple languages and currencies.

Human Capital Management (HCM): Human resource is a vital asset of any organization, and proper deployment of human capital is absolutely necessary for the growth of any business organization. HCM module maintains payroll, tracks performance of the human resource, helps in deploying the right person to the right job. Some ERP software provide extra tools like compensation management, in-house recruitment, workforce planning as per business requirement and special tools for managers and employees.

Manufacturing Operations: This ERP module comes with various tools and features meant for different types of manufacturing organizations. This helps in smooth running of different manufacturing operations starting from the production floor to the manufactured products. Key tools of this module include forecasting, work-order management, PDM (Product Data Management), MRP (Materials Requirement Planning), CRP (Capacity Requirement Planning), shop floor control and Master Production Scheduling (MPS).

Supply Chain Management (SCM): SCM module of an ERP package comes with maximum variations as the requirements by different business organizations are varied. This module helps the smooth functioning of the supply chain of an organization through inventory management, work order management, purchase, logistics management, warehouse management including the work schedule and distribution of the products. Some ERP vendors may again subdivide this module into Supply Chain Planning, Supply Chain Execution and Supply Management modules instead of a single SCM module.

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