29.2 Enterprise Resource Planning (ERP) Systems >> Modules of ERP

ERP systems are modular in design, allowing organizations to choose and implement components that best suit their operational needs. Each module focuses on a specific business area, ensuring that various departments and functions can seamlessly integrate and share data. Here’s a breakdown of some of the core and supplementary modules typically found in ERP systems:

Core Modules of ERP Systems:

1. Financial Management:
   • Handles accounting and financial operations.
   • Manages general ledger, accounts payable, accounts receivable, fixed assets, and cash management.
   • Facilitates financial reporting, forecasting, and budgeting.
2. Human Resources Management (HRM):
   • Manages personnel-related tasks.
   • Facilitates recruitment, payroll, benefits, training, and performance evaluations.
   • Handles time tracking and employee self-service portals.
3. Supply Chain Management (SCM):
   • Manages the flow of goods, information, and finances.
   • Handles procurement, order processing, inventory management, logistics, and vendor relationships.
4. Manufacturing & Production:
   • Supports manufacturing processes and production planning.
   • Manages work orders, production scheduling, bill of materials (BOM), and quality control.
5. Customer Relationship Management (CRM):
   • Manages interactions with potential and existing customers.
   • Supports sales, marketing, customer service, and after-sales support.
6. Inventory Management:
   • Tracks product quantities, movements, and locations.
   • Manages stock levels, order points, and warehouses.
7. Project Management:
   • Facilitates the planning, tracking, and execution of projects.
   • Manages resources, budgets, timelines, and task assignments.
8. Purchasing:
   • Manages procurement processes.
   • Handles purchase orders, supplier evaluations, and negotiations.