Enterprise resource planning, or ERP, is a flexible data management solution used to streamline business operations and automate data-based functions. ERP is designed to meet the needs of a range of industries, including the financial sector, healthcare, manufacturing and distribution, retail and many other businesses. There are dozens of ERP systems currently on the market, each with varying levels of capabilities. To best collaborate with businesses, managers and ERP providers themselves, use this list of ERP requirements to help you select the right ERP system:
Accounting and Financials
One of ERP’s greatest strengths is its ability to automate, streamline and analyze the vast majority of accounting operations. ERP’s fast analysis and thorough accuracy reduces errors and allows organizations to properly gauge their financial health. This is important to consider because ERP automates several processes, such as payroll, invoicing and budgeting, that usually take dozens of staff hours on a monthly basis.
ERP to Bank Interfaces and Reconciliation
Cash Flow Management
Automatic Cost Calculation
Cost Calculation Mode Selection
Multiple Currencies Support
Multiple Languages Support
Regulatory Compliance Support
Human Capital Management
Many businesses invest in ERP due to its exceptional ability to manage and analyze human capital resources. Automated Human Capital Management is a valuable solution that manages hiring data and monitors individual productivity. By automating tasks like benefits administration and tax calculations, ERP drastically reduces the potential for human error. This results in increased efficiency and fewer financial losses due to inaccuracy.
Enterprise Compensation Management
Human Resource Management
Employee Performance Management
Personal Income Tax
Employee Self Service
Manager Self Service
Time and Labor/Attendance
Time Card Management
Manufacturing and Distribution
ERP’s ability to manage manufacturing processes saves time and money by maximizing staff hours. It ensures accuracy, gauges organizational productivity, identifies weaknesses and automates much of the supply chain. Manufacturing and distribution process management is especially beneficial because it completes tasks such as production control, quality analysis, and distribution scheduling that often consume many hours of staff time.
Capacity Requirements Planning
Production Cost Analysis
Product Data Management
Engineering Change Management
Master Production Scheduling
Quality Assurance Management
Resource Planning and Management
Materials Management allows businesses to monitor stock, deliveries and orders. ERP also uses historical sales data to predict sales trends, which allows businesses to determine optimum stock levels. These functions give retailers and manufacturers the ability to meet revenue goals, maximize storage space, and eliminate unprofitable inventory.
Availability of Materials
Availability of Stock
Optimum Store Inventory
Looking for the top ERP platforms? Check out this ERP software analyst report.
Sales and Inventory Management
Sales and Order Management tracks and analyzes sales data, automates transactions, monitors performance, tracks expenses and even manages order preparation and customer credit. ERP uses historical data to determine ideal price points and prime inventory numbers, saving businesses a great deal of time by removing the need to manually perform price/profit calculation. It also allows you to immediately locate any item in your warehouse, which streamlines order processing. All of these functions ultimately save businesses time and effort while increasing accuracy and efficiency throughout the organization.
Customer Credit Management
Sales Order Processing
Capable to Promise Inventory
Bill of Materials
Credit Card Processing
Online Transaction Reporting
Sales Order Management
Supply Chain Management
ERP’s supply chain capabilities are particularly valuable for retailers, manufacturers and distributors. By managing such diverse functions as procurement processes, distribution and delivery planning, and materials resource management, ERP’s supply chain management severely reduces the number of tasks businesses must perform, manages complex processes, and eliminates the risk of human error. This results in better accuracy, increased speed, and optimized productivity.
Packaged Integration to Back Office Applications
Manufacturing Execution System
Management of Resources
Dispatch of Orders
Execution of Orders
Collection of Production Data
Production Performance Analysis
Customer Service Management
ERP offers many valuable capabilities in regard to customer service management. Implemented by many of the largest companies in the world due to the fact that its accurate, thorough analytics improve the customer experience and help businesses retain customers. ERP’s customer relationship management also helps businesses achieve satisfied customers and robust sales. Since customer satisfaction is vital to a business’s success, businesses should seriously consider investing in ERP’s comprehensive customer service tools.
Customer Account Management
Customer Account Dashboard
Marketing Resource Management
Pricing and Tracking
Web Storefront Tool
Customer Self Service
Sales Force Automation
ERP integrates seamlessly into your existing infrastructure. This allows for full implementation with minimal disruption to business operations. Once implemented, ERP offers a single, intuitive portal through which businesses can perform tasks, analyze data, generate reports and integrate new applications easily. Ultimately, ERP’s integration ensures that staff will be able to use the system quickly and effectively.
Application and Software Integration
Integration with Handheld Mobile Devices
Integration with portable scanners
Integration with fax server
Integration with barcode generator
Ensure your ERP provider offers the kind of support that will allow you to get the most out of the system. While ERP is an intuitive solution with a surprisingly minimal learning curve, it is a complex system that may require troubleshooting, training, or even repair. Thus, it is extremely important that your ERP provider offers excellent user support.
Ultimately, procuring the right ERP solution comes down to knowing what your business needs. For help determining your organization’s ERP requirements, use SelectHub’s free ERP requirements templates and selection tool.