8 Core ERP Features Every Business Owner Must Consider

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. 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. 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.

  1. 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.

  1. 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.

  1. 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.  

  1. 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.

  1. 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.

  1. 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.

  1. 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.