What are the functions of an ERP?

AlexJames
AlexJames
erp

The functions of an ERP are an important part of the process of acquiring an enterprise resource management system . Each company will be interested in specific business applications, according to internal processes. However, the large number of ERP programs  on the market causes many doubts regarding the functions available. In addition, the different internal configurations of each ERP mean that the options change depending on the provider or system. How can they be added? What types of functionalities for ERP exist?

How can more functions be added to an ERP?

To answer this question, you must first ask yourself the following: what type of ERP (Like Business Central , Dynamics 365 Finance)am I using? Not all enterprise resource management systems allow you to add features in the same way and they fall mainly into two categories: modular and configurable .

Modular features

Those who by inserting modules they can add functionalities or, in some cases, much more than the basic ones. For this reason, there will be modules that include functions that are not entirely necessary but that will appear together in the same package with those that interest you. In order to be able to use those ERP functions that interest you, you will have to purchase the complete module, which may entail a higher price.

Configurable features

This type of ERP gives the user the possibility of adding their own functions through programming and code. They normally take longer than modular ones to install. This is because you have to become familiar with the ERP programming environment , learn the different languages, or hire an outside vendor to add features on demand . However, by having a personalized development, the adaptation to the company’s processes is more specific. In this way, greater depth is achieved by covering all the workflows and processes that exist in the company.

These two categories of customizing ERP functions cover most of the ERPs on the market. However, there are some others that include both options, allowing you to acquire modules as well as make your own configuration through programming. In the ERP 2022 Guide you can find a comparison of different systems by sector, price or reference functionalities for the most popular ERP programs

What kind of functionalities can be added to an ERP?

The number of ERP functions that can be added is quite extensive. Some open source ERPs  allow much more extensive modification of the internal architecture of the system. In this way, you can add virtually any ERP function you want. It must be taken into account that some of these characteristics can also be fulfilled by an independent program and that it does not have to be included in the system. It will be up to those responsible to decide if it is worth using a specialized program or incorporating functions within the ERP to meet the needs.

Most common functions of ERP systems

  • Warehouse Management (WMS)
  • Production management
  • Supply Chain Management (SCM)
  • Projects management
  • Product Lifecycle Management (PLM)
  • Financial management
  • Commercial management and sales
  • quality management

Functions that have specialized software

There are other functionalities for an ERP that can also be added, but they normally have more specialized and used independent programs . Some of these programs and applications are:

  • Document Management (DMS)
  • Human Resources (HR)
  • Customer Relationship Management (CRM)
  • Business Intelligence (BI)

Additional ERP features

Some companies are looking for certain functionalities that are specifically directed to the sector where they operate, or to a business activity. Not all ERP systems offer these types of options. The most relevant are:

    • Price settings
    • Product configuration (the customer can compose the ideal product with a product configurator based on a series of variables, such as color, material, size, etc.)
    • project planner
  • Inventory or asset management
  • Management of the distribution process
  • Maintenance and inspection management (for example, inspections and controls of machines).

Companies orienting themselves to an ERP system often have a number of important choices to make. Due to the wide range of ERP software and its corresponding functionalities, it is not always easy to have an overview. The ERP 2022 Guide  provides help in making balanced decisions and learn more about which features are really useful to support your business processes.

  • ERP providers
  • ERP programs
  • ERP cost
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