TOP 11 ERP Modules: The Complete List (2024)
ERP modules boost business by optimizing operations, improving efficiency, and centralizing data, leading to better decision-making and enhanced overall productivity.
ERP Modules
What is ERP?
Enterprise Resource Planning (ERP) is a strategic tool that establishes a robust framework and digital infrastructure to automate everyday business operations, consolidate data across different business departments, promote the free flow of information, and empower executives with tailored reports for high-level decision-making.
An increasing number of businesses across the world are realizing the significance of deploying ERP Software to gain from standardization, process uniformity, and dynamic efficiency. It brings together all the business data and reduces the potential for human errors.
What are ERP Modules?
ERP modules are integral components and essential parts of an Enterprise Resource Planning tool that serve various back-office operations (such as production planning, inventory tracking, human resource management, and accounting) and front-end operations (such as marketing automation, customer support, e-commerce integration, and supplier relationship) with meticulous data tracking and streamlined flow of information.
While purchasing a new ERP, it’s important to carefully choose the modules of your Business Management Software. This will help you completely integrate the new system with every aspect of your business operation and derive your pre-planned benefits. You will also benefit from the reduction in the initial investment cost. As your business expands in size, you can gradually invest in more modules required to fulfill your growing needs.
11 Top ERP Modules 2024
ERP benefits businesses across the world through tremendous growth, solid research, a seamless production cycle, and many other ways. Here are the 11 top ERP modules in 2024:
1. Financial Management
The Finance Module in ERP streamlines various processes related to the financial operations of the company such as invoice generation, accounting, budgeting, financial planning, and reporting. It reduces complexities & discrepancies in financial reporting and lowers dependence on human intervention.
This module helps decision-makers get a complete picture of the company’s financial health and they’re in a better position to forecast & manage risks. It also eliminates manual data entry operations and improves compliance with the latest government rules & regulations.
- Prepare key financial reports such as Profit & Loss Statements, and Balance Sheet
- Perform financial planning and analysis
- Automate billing, cash management, and vendor payments
- Get the current financial state and future outlook of the company’s financial health
2. Customer Relationship Management
Customer Relationship Management acts as the central repository of all the customer data that is required for the smooth execution of the marketing campaigns and managing their complaints. The customer data in the CRM System may contain anything from personally identifiable information, contact numbers, purchase history, past conversations, and complaints, among others.
With easy access to all the required data, businesses can build and maintain strong & meaningful customer relationships, identify cross-sales opportunities, and run personalized marketing campaigns that yield optimum results. They can also route high-value customers through a separate channel.
- Track leads and new sales opportunities
- Create marketing campaigns and track their performance
- Global view of your current sales activities
- Set up appointments, calls, and tasks
3. Marketing Automation
The Marketing Automation module is widely used by businesses to streamline their marketing activities. It helps in various ways from improving the effectiveness of the email campaign and providing advanced tracking to facilitating a smooth sales funnel.
Automating various marketing activities frees up your staff for more productive tasks. It helps you generate faster leads, make smart decisions, and provide maximum customer satisfaction.
- Track and manage leads, and explore new sales opportunities
- Build warm relationships with your existing customers and prospects
- Track the performance of your marketing campaigns
- Find new cross-selling and up-selling opportunities
4. Fixed Assets
The Fixed Assets module enables complete asset tracking and reconciliation, alongside comprehensive asset management from acquisition to retirement for all tangible assets such as land, buildings, vehicles, machinery, and motors. The use of this module enables the business to automate various tasks such as calculating depreciation, scheduling maintenance, asset disposal, fixed asset lifecycle management, and tax legislation, among others.
This module aims to comply with government regulations, eliminate mismanagement, increase asset efficiency & performance, and boost productivity at the workplace.
- Each asset is recorded and documented for taxation and compliance with the legal framework
- Flexible management of capital budgeting
- Comprehensive depreciation calculator
- Simulate the impact of asset disposal
5. Warehouse Management System
The Warehouse Management System is a versatile module that deals with sophisticated warehousing operations such as picking, packaging, and shipping finished products.
Warehouse Management is an important module in the ERP modules list. This is especially true for manufacturers who want to make timely delivery of their goods to consumers, reduce human errors, lower warehouse storage & handling costs, streamline workflow, and improve customer satisfaction.
- Fewer shipping errors
- Automated handling of customer-compliant documentation
- Shipment planning, dock scheduling, and automated equipment integration
- Improved data accuracy through verification
6. Business Intelligence
The Business Intelligence tools encompass a range of features to perform data analysis, data visualization, and trend identification so that businesses are empowered to make strong data-backed decisions. The use of this module is extremely crucial in today’s dynamic business landscape to effectively fight various challenges and gain a competitive advantage.
This module in the ERP modules list consolidates data from various departments in the company and forms interactive reports, and customized dashboards for informed decision-making.
- Leverage real-time information for improved operational performance
- Access information in the form of customizable dashboards, reports, graphs, and tables
- Data discovery and visualization
- 360-degree visibility into business operations
7. Inventory Management
Inventory Management System is a crucial module that provides real-time visibility into inventory data, and streamlines & optimizes various inventory-centric processes. This involves various processes such as forecasting inventory levels based on historical trends and current market demands.
Effective use of this module helps companies reduce stockouts, and higher inventory costs, and improve timely order fulfillment based on data-driven decisions.
- A central repository that includes inventory information such as serial number, lot, shelf life, and expiry date
- Supports multiple order point and quantity schemes
- Track inbound, outbound, and intrasite movement of stocks
- Automate key elements of your purchasing process
8. AP & AR Automation
The AP Automation and AR Automation modules transform the traditional processes of manually managing the company’s invoice generation, approval workflow, payment disbursement, and many other processes.
Effectively managing the accounts payable and receivable is a key to improving liquidity. By automating such operations, you will save time, and benefit from better financial planning & greater compliance.
- Automate invoice, payment processing, credit memos, and collections
- Automated alerts for overdue payments
- Gain insights into cross-border payments
- Reduce instances of bad debt
9. Sales Management
The Sales Management System is an all-comprehensive module that allows businesses to monitor all information concerning customers or prospects, streamline various sales processes, track sales performance, manage sales force assignments, and record customer interaction. With an integrated Sales Management system, businesses can improve sales performance remarkably through various comprehensive tools.
Its in-house Lead Management System helps you track sales conversions throughout every level in the sales pipeline (lead generation, lead qualification, sales opportunity conversation, and deal closure)
- Monitor prospect-to-customer ratio
- Track Key Performance Indicators (KPIs), lost deals, and employee performance in a specific timeframe
- They get quick insights into customer demand, efficiently forecast sales, and compare historical trends.
- Provides up-to-date information to the sales team
10. Maintenance Management
As the name describes, the Maintenance Management System deals with the maintenance of various organizational assets such as machinery and enables timely repair & maintenance. By reducing manual dependence on repair & maintenance, your company benefits from lower human errors, increased asset lifespan, and minimal downtimes.
It is a must-have module for every manufacturer looking to track, record, and manage a comprehensive record of the organizational assets at a central place.
- Log all equipment, and their usage, and perform inspections
- Effectively develop, schedule, and run maintenance strategies
- Improve asset lifespan, reduce downtime, and improve production
- Configure custom request forms
11. Supply Chain Management
The Supply Chain Management in ERP provides constrained tools for performance management and logistical coordination with external partners such as suppliers, wholesalers, and retailers. This pays off in various ways such as real-time visibility into market operations, reduced holding costs of the end product, and competitive advantage as the business efficiently reacts to market trends, consumer expectations, and demand & supply fluctuations.
SCM Software is an essential module in the ERP modules list, especially for manufacturing firms who deal with supply chain disruptions, transportation delays, cost inefficiency, and abnormal lead time.
- Build a strong and resilient supply chain
- Manage suppliers list and product categories
- Plan & budget orders, track open orders
- Add value to the supply chain from procurement to delivery of finished goods to the final consumer
What are the Benefits of ERP Modules?
Before starting the ERP implementation, be sure to consult with your company’s executives to reap the maximum benefits and ensure it aligns with your organizational requirements.
1. Organization-wide Visibility
The immediate benefit of the implementation process is that you gain organization-wide visibility. You gain access to all the information in a single place, such as your sales report for the current & past months, inventory reports, and customer interactions.
2. Proactive Risk Management
Other key benefits of ERP include proactive risk management. Modules of ERP automate the process of risk monitoring to gain broader visibility into potential risks and proactively respond to them on time. It includes various measures to protect sensitive business data such as user access privileges, separation of duties, and customer self-service options.
3. Scenario Planning
Evaluate different scenarios and adapt to changing circumstances to effectively deal with market fluctuations, logistical challenges, and regulatory hurdles. ERP provides powerful What-if Analysis and dynamic decision-making.
4. Heightened Efficiency
ERP provides an easy way to manage equipment maintenance repair and overhaul as well as schedule production activity. It helps you lower machine breakdowns, minimize disruptions, and effectively use your organizational resources.
5. Fuel Innovation
With ERP functional modules, your business will be in a better position to run personalized product campaigns to cater to the varied needs of your consumer-base, offer targeted pricing strategies, and resolve issues on time for maximum customer satisfaction.
6. Cloud Accessibility
Unlike On-premise ERP , the cloud type of ERP hosts your data on the vendor’s servers so that you can access it anytime & anywhere. Since your data is hosted on the cloud, there’s nothing to worry about hardware failure and regular maintenance.
Usage of ERP Modules Across Different Industries
According to a research report by Mordor Intelligence, the global ERP market is estimated to be $65.25 Billion in size as of 2024. It is expected to reach $103.95 Billion by 2029. An increasing number of businesses across the world are implementing ERP to benefit from it
1. Manufacturing Industry
Manufacturing ERP Software allows your business to plan and manage manufacturing activities, reduce production costs, impose quality control measures at every level, and improve productivity.
2. Pharmaceutical Industry
Pharma ERP Software helps pharmaceutical companies address their unique challenges and improve compliance through its powerful tools such as document control and deviation tracking.
3. Automotive Industry
ERP for Automotive Industry allows automotive companies to prudently manage auto parts, improve the flow of information, and ensure adherence to the highest Acceptable Quality Level.
4. Food Industry
ERP for Food Industry improves the efficiency in food production, distribution, and reselling activities. It provides powerful quality control measures at every production level to comply with the regulatory norms and industry standards.
5. Furniture Industry
ERP for furniture manufacturing allows furniture manufacturing companies to seamlessly manage customer orders, effectively combat supply chain disruptions, and gain better control of inventories.
How to Choose the Right ERP Modules?
Choosing the right modules of ERP for your business requires a thoughtful and systematic approach. Here are some steps to help you make an informed decision:
1. Assess Business Needs
Conduct a comprehensive assessment of your organization’s processes and identify the areas that need improvement. Involve key stakeholders to understand their requirements and pain points.
2. Prioritize Requirements
Prioritize the ERP functionalities based on their significance and impact on your business. Focus on modules that will deliver the most value and address critical pain points.
3. Consider Scalability
Anticipate future growth and expansion plans for your business. Choose the modules of ERP that can scale and accommodate additional users, processes, and data as your business grows.
4. Integration Capability
Ensure that you can seamlessly integrate the modules of ERP with your existing systems, such as accounting software, Customer Relationship Management (CRM), or Inventory Management tools.
5. User-friendly Interface
Opt for ERP modules that have an intuitive and user-friendly interface. User adoption is crucial for the successful implementation and utilization of the ERP system.
6. Customization Options
Look for ERP vendors that offer customization options to tailor the modules according to your specific business requirements.
7. Vendor Reputation
Research the reputation and track record of ERP vendors. Choose a vendor with a history of providing excellent customer support and regular updates.
8. Cost Considerations
Evaluate the total ERP cost of ownership, including licensing fees, implementation costs, training, and ongoing maintenance expenses. Compare the costs with the expected benefits and ROI.
9. Pre-deployment Testing
Request demos or trial versions of the modules of ERP to understand how they work and if they meet your needs. Involve end-users in the testing process to get their feedback.
10. Expert Advice
Consult with ERP experts, industry peers, or independent consultants to gain insights and recommendations based on their experience.
Drive Productivity to New Heights Using Sage X3
In today’s fast-paced world, it’s incumbent for businesses to leverage modern technological solutions to stay agile & competitive. ERP modules play a critical role in transforming your everyday business activities from production scheduling, quality checks, warehouse operations, demand forecasting, sales, and customer support, to financial reporting.
Sage X3 is an incredibly valuable investment for your business’s growth and success. It empowers your business with sophisticated tools and algorithms to gain a deeper understanding of your business activities, perform scenario planning, get the most from your marketing spend, reduce overhead costs, and gain a competitive advantage.
Top Industries Leveraging ERP Software
Food & Beverage
Alcohol
Pharmaceuticals
Advertising
IT Services
Furniture
Manufacturing
Auto Ancillary
Pharma Trading
Packaging
Medical Device
Chemical
Plastic
Brewery
Logistics
Automotive
FAQ's - ERP Modules
1. What are the Widely Used Modules of ERP?
The following ERP modules are typically considered the core components of your system and are widely used by businesses across the world.
- Asset Management: Facilitates tracking and managing physical assets (such as machinery, and infrastructure) to boost efficiency, reduce business disruptions, and improve asset lifespan.
- Inventory Management System: Automates inventory tracking, lowers inventory costs, and prevents stock-outs & excessive stocks.
- BI Tools: Analyzes & converts large datasets into small actionable insights through customizable reports & dashboards.
- Warehouse Management System: Tracks inbound and outbound shipments, and improves warehouse efficiency for timely order fulfillment.
- Sales Management System: Enables tracking & forecasting sales performance, and automates sales-specific activities (quotations, invoices, and follow-ups).
- Supply Chain Management Tools: Reduces delays in order fulfillment, improves logistical coordination, and tracks vendor performance.
2. What are the 5 Components of ERP?
Here are the 5 components of ERP:
- Software Application: This is the actual ERP application that contains instructions about what to do and what not to do.
- Hardware Component: These are the computers that host your ERP — either locally or on the vendor’s remote servers.
- Network Infrastructure: Your network infrastructure facilitates the transmission of data from/ to your computer to the remote server.
- Human Resources: These are the actual people who actually use the ERP functional modules. They can be the topmost executives, lower-level managers, or ordinary employees.
- Business Data: This is perhaps the most important component that includes your critical analytical reports, financial records, customer information, and so on.
3. Do I have to Purchase All the ERP Modules?
No, you don’t necessarily have to purchase all the ERP modules. The selection of ERP modules depends on your specific business needs and industry requirements. You can choose to purchase only the specific modules that align with your organization’s processes and objectives. This approach allows you to customize the ERP system to cater to your unique business needs while avoiding unnecessary expenses on modules that you may not require.
4. What are Some Signs that Your Business Needs to Invest in ERP Modules?
If your business is going through one of the following circumstances, it’s time to invest in ERP. You can kick off with a cost-efficient Cloud ERP to save money and leverage modern technology.
- Your business lacks a smooth flow of communication, integration, or standardization across different departments
- You’re facing it difficult to fulfill the increasing customer orders (either on normal days or festive seasons)
- Your business is growing in size and scope, and it needs a highly agile system to manage everyday operations
- Business executives lack access to the most accurate & up-to-date information required for quick & informed decision-making
- Your business lacks integration across different branches operated throughout the country or world
5. How are Modules of ERP Integrated with Other Business Tools?
Best ERP Software in India can be integrated with other business tools such as your legacy Customer Relationship Management (CRM) tool, eCommerce software, accounting software, or data points using any free and open-source APIs available. This integration will benefit your business in various ways from a clear record of customer orders, fewer accounting errors, improved audit trails, and workflow visualization to faster order fulfillment.
6. What are the Advantages of ERP Modules Over Legacy Tools?
Modules of the Enterprise Resource Planning tool offer superior benefits over traditional legacy tools. These benefits are as follows:
- It eliminates data silos and duplication
- It adopts paperless processes and digitalization of your data
- It automates various processes and improves workflow
- It offers remote accessibility and flexibility in the operations
- You benefit from modern technological integration (such as IoT devices, AI & Machine Learning)