8 Core ERP Features Every Business Owner Must Consider
When you think about industry-specific apps and modules, you will discover plenty of ERP features in the enterprise software market that are shifting towards digital enablement. While companies based on a particular industry, like distributors or process manufacturers, will have modules explicitly designed to meet their needs, determining what general ERP features you need can be more difficult.
We’ve listed eight core ERP features for you to consider during your selection process.
- 1. Finance and accounting
Every business revolves around money, regardless of the category. This is true even of nonprofit organizations. Therefore, ERP systems should focus on finance and accounting. ERP systems were initially accounting systems that grew to include sales, purchasing, and inventory components to become today. There are very few ERP systems without accounting capabilities, and those that do will always be integrated with free-standing accounting software.
Many of the features on this list are core ERP features of modern ERP systems. The main difference lies in how they integrate. Today, businesses cannot function in silos based on sales, engineering, accounting, or other functions. Using ERP, all singers in the choir can access the same sheet of music, even when they are in different buildings or on different continents.
- 2. Sales Management
Sales are essential to businesses, whether a small online order for a specific desired item or a more extensive real estate development. Our ERP system integrates sales directly with our accounting system when the sale is completed and a cash or accounts receivable offset occurs.
We link the sale with stock or our production process before it consummates to deliver whatever the customer wants.
- 3. Inventory management
The majority of businesses sell tangible products. Stock consists of those items. Accounting software tracks how many of each item there are in stockrooms, recording the number of each item in the number of locations it occupies. ERPs often record the temperature and humidity of storage areas along with the condition of those items.
Our inventory includes items ready for immediate sale and things that are still being produced and will eventually be sold. We call this the work-in-process category. Material that has not yet been converted into a finished product is referred to as raw material.
ERP also tracks inventory value along with quantity. According to generally accepted accounting principles, this value will be determined according to the specific valuation rules. Accounting values are added together to get the asset we refer to as inventory.
- 4. Purchasing and supply chain
Buying things is a necessity for every business. Paying bills is also a necessity. In addition to creating purchase orders for specific items directed to particular jobs, ERP systems give you the ability to write checks for your business regardless of how small your company is.
In addition to transactional functions, ERP will track which suppliers provide what merchandise and provide qualitative information that helps choose the best suppliers. By connecting the system to accounting, check balances will reflect payees.
- 5. Material requirements planning
Before the systems were called ‘ERP,’ these applications were used as management tools. These applications begin as specifications in a backlog of sales orders. These specific needs are accompanied by projected sales of various products over time. Using the bills of materials for each product, MRP divides the product into the component materials.
As a result, MRP calculates if additional component materials are needed and if other purchase orders should be placed and delivered, based on the volume of the component stock on hand and the expected supplier delivery date.
- 6. Business intelligence (BI)
It is possible to extract, manipulate, filter, and sort every data item in your ERP system to create exactly the report you need when you need it. Top management gets this information to improve their leadership abilities. In addition, business intelligence can aid people at all levels within an organization to make confident and timely decisions at every level.
With business intelligence rules built into the system, we can create dashboards for any user in real-time that indicate what we should do next within narrow limits based on their situation. Often this direction can be combined with hardware or software robotics actually to carry it out.
- 7. Customer requirements planning
A successful business knows its customers well. ERP software with CRM capabilities allows companies to know their customers well. Since when did they become a customer, and what did they buy? CRM also tells you the revenue they generated.
An open quotation will be linked to a new sales order automatically once a successful bid is received. CRM tracks campaign success to give you the information you require to generate more successful campaigns in the future.
- 8. Human resources
A majority of businesses employ some of their workforces. With an ERP tool, you can keep track of who submits applications for different positions and their emergency contacts and tax withholding statements in one place. What qualifications will the company require next year?
What additional training will the current employees need for future jobs? What is your recruitment timeline for the remaining positions? How can you help your employees reach their goals? Was your employee engagement good?
How long is it necessary to keep records for compliance with government regulations? Your ERP system can collect and analyze this data. Our ERP experts will be happy to assist you with all your questions.
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In today’s changing environment, building supply chain resiliency is more crucial than ever. Wise technology selection and implementation choices will support the capacity to withstand interruptions, continue business as usual operations, and expand. The smooth operations of a firm, its agility, and its profitability all depend on effective supply chain management. Supply chain management requires a high level of resiliency. Most sectors have been impacted by Covid-19 supply chain problems. During Covid-19, a large number of businesses throughout the world suffered issues that affected shipping time, prices, efficiency, and revenues in significant ways. A supply chain with the ability to withstand storms and recover quickly is critical to the success of businesses. This necessitates the use of technology. Supply chains may benefit from a wide variety of cutting-edge technologies. Let’s look at today’s global supply chain and how you can build strength and resiliency into yours. Post-pandemic supply chain challenges Supply chains may be challenging to manage since even a small failure in one connection can have a ripple effect across the whole network. Because of the supply, demand, and ability-to-service shocks, Covid-19 has, unfortunately (or happily) revealed a lot of supply chain fragility. Labor and equipment shortages remain an issue, even as restrictions are being eased and borders are reopened worldwide. Despite all of this, consumers’ needs are constantly changing. With the rapid growth of eCommerce, consumers have become used to (and demand) speedy delivery and flawless service. Increasing supply chain resilience and competitiveness have necessitated process transformations at many companies. As a result of these disruptions, many businesses have begun to regionalize their supply chains. They also look at supply chain technology to improve operational efficiency and decrease risk. Transforming the supply chain with digital technology Supply chains must be future-proofed as organizations adjust to the new normal by minimizing complexity and uncertainty. Increased digitalization and innovative technology will play a vital role in the future management of supply chains. Several advantages may be gained by businesses undergoing digital transformation, among them being: Increased visibility: The use of blockchain, sophisticated track-and-trace technologies, and enterprise resource planning (ERP) helps to improve supply chain visibility. This gives you the ability to take preemptive risk mitigation steps if anything goes wrong with your inventory. Improved collaboration: Establishing tight ties with suppliers leads to improved transparency throughout the supply chain. You can react rapidly to changes in the supply chain by engaging with all parties involved. This necessitates the use of technology to gather and exchange data continuously. Predictive capabilities: Supply chain risk management may be better managed using data analytics, artificial intelligence (AI), and machine learning (ML). Inventory choices may be altered by forecasting potential interruptions, for example. It’s time to figure out how to make your supply chain more resilient. If you haven’t modified your procedures yet, now is an excellent moment to do so. These are some of the most effective methods for strengthening the resiliency of your supply chain. Assess your vulnerability Start by assessing your current supply chain for weaknesses and gaps. Vulnerabilities such as the following are possible outcomes: Consider the hazards associated with your suppliers while doing your due diligence. Develop a diversified network of suppliers or manufacturers Make sure you’re not too reliant on medium or high-risk partners by diversifying your supply chain. Companies have been forced to move production to Southeast Asian nations like Vietnam and Indonesia because of the trade conflict between the United States and China. Diversifying your network and altering your logistical techniques will require time and money. However, by reducing your dependence on a single site, you may increase the resilience of your supply chain. Buffers should be created for inventory Creating inventory buffers is another common method for enhancing supply chain resilience. Shipping dates have been affected by Covid-19. As a result, inventory buffers may prevent clients from abandoning you due to out-of-stock items. Predicting inventory needs may be made easier with the use of planning and forecasting tools that use your sales history and inventory levels to provide automatic forecasts. Some planning tools even predict production schedules and component goods ordering. Scalable technology solutions Monitoring and optimizing supply chain resilience necessitates the use of digital technology. Here are a few ways you may integrate technology into your supply chain: Big data may assist with the following tasks: Future technologies Emerging technologies that boost efficiency and automate processes will remain an essential part of a successful supply chain management strategy. Here’s what I see happening in supply chain management in the near future: Building supply chain resilience is more crucial than ever. Wise technology selection and implementation choices will support the capacity to withstand interruptions, continue business as usual operations, and expand. Cooperative Computing consists of supply chain solution experts that’ll gladly help you with all your supply chain management challenges.
Since the pandemic, more than 25% of brick and mortar stores launched an eCommerce store. Experts now predict that by 2040, 95% of online purchases will be done via eCommerce. Source: WordStream The bottom line? Whether you have an online store or not, eCommerce is here to stay. If you don’t adapt to the eCommerce trends quickly, it will become challenging for your business to survive. 2020 was a year of survival and foundation-building for most companies’ eCommerce businesses. eCommerce offered new avenues for companies that wanted to remain as in-person store visits drastically decreased. It was only in 2021 that they had a chance to come out of their shells and embrace modern kinds of commerce and invest in eCommerce platforms. To scale in the eCommerce market, companies must be prepared for the inevitable changes that will take place. This year’s most important trends are outlined in the following paragraphs. While 2021 marked a turning point in the business, encouraging more people to purchase online, 2022 will witness even more progress and change. It is possible to identify several trends in the present market. Direct-to-consumer rivalry is on the rise. There has been an increase in direct-to-consumer (DTC) companies fighting for consumers’ attention, even while traditional business has begun to reopen. The price of advertising is soaring across all channels. A rise in the cost of digital advertising is threatening the viability of performance marketing approaches. It’s more complicated than ever to acquire and retain customers. Finding new clients is becoming more difficult as more firms move their operations online. The cost of paid advertising is skyrocketing. Building a company’s brand is and will continue to be the primary method of luring and keeping consumers. Investing in a strong brand may help a company stay ahead of the competition. The essential thing to remember is what may be gleaned from these patterns. 1. A Positive Customer Experience is Worth a Thousand Ads A positive consumer experience never goes out of style. Because customer service is not a one-time event, the most successful firms have realized that it is an essential component of their culture. 84% of people say that a company’s customer service is equally as important as the goods they’ve bought from them. For a business to be successful, it must ensure that its consumers are treated with respect and appreciation. 2. Social media channels provide new economic options For the next generation of eCommerce titans, social media has helped pave the way. Video, photography, and social media have all impacted how people purchase online in this contemporary age. Every critical contact in eCommerce is being conducted through social media platforms. This graph shows how US customers regularly purchase on social media. As more and more people log into their social network accounts to shop online, eCommerce businesses should be aware of this movement and be ready to integrate it seamlessly into their existing systems. Experimentation is encouraged by a wide range of platforms and quickly growing capabilities that allow marketers to reinvent customer engagement. 3. The Rise of Q-commerce Consumers appreciate quick delivery. Social media and other digital platforms are critical components of ‘Quick commerce’ or Q-commerce, a cutting-edge method of interacting with customers. The success of Amazon’s internet storefronts has inspired Q-commerce, which is now drastically altering the norms of interaction. In the sales ecosystem, there are many different tools. When it comes to providing these kinds of tools, Amazon has seized the lead and reshaped how we do business online. Likewise, Amazon-owned companies must put equal effort into maximizing Q-commerce’s potential. 4. Bonding With Your Community I’m sure that companies ought to do more to connect with their neighbors. “Always be connected with your audience” is a concept that will be around for a while. In addition to attracting new consumers, social media helps generate buzz about a product or service or soliciting client feedback. Find out what your consumers enjoy and dislike about your items by talking to them. They may have ideas on making your service better. Every customer’s input is essential. While it’s free advertising for your company, it’s also valuable. 5. Word-of-mouth Marketing It’s human nature to want to share new experiences with the people we care about. Because it’s free and can happen anywhere, word-of-mouth marketing is superior. There is just one thing left for you: make a client so impressed that they will tell others about their experience. According to Deloitte, family, and friends are the most reliable sources of information about a product or service. Customers’ buying decisions are influenced by a wide range of circumstances. Here is a graph to show the top six factors that showcase the buying behavior of consumers. Source: Deloitte 6. Sustainability We’ve seen a dramatic change in our clients’ environmental consciousness over several years. Companies must comply with the notion of climate change prevention and act by the new sustainable economy, according to this group. An organization, with a strong focus on environmental stewardship, has an advantage in attracting customers. One of the most crucial aspects of keeping up with current eCommerce trends is to ensure that company procedures can withstand public scrutiny. Users in the United States have been keeping a close eye on Amazon to determine whether the firm is running sustainably. 7. TikTok Brands may use TikTok to interact with their customers, market to them, and educate them on helpful information about their goods. When it comes to issues like product features, TikTok allows marketers to communicate with customers throughout the globe. You can also use it to engage with influencers. Having influencers on your side may benefit you in a variety of ways. To begin with, they often have a sizable fan following and may expose your goods to a whole new market. Second, influencers tend to sow seeds of trust in the minds of their audience members via their content. Customers are more likely to purchase a product if they see it used by a celebrity.
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