Whether you already have an ERP system in place or are still in the process of selecting one, the question of whether or not to add more modules to your ERP system is likely to come up. After all, there is the possibility that additional modules could enhance your system. Of course, there is always the chance that these modules could cause more problems than they are worth.
To help you decide if adding more modules to your ERP system is the best way, here are the top factors you should consider.
1. Does your ERP system have the following essential modules?
Researchers have found that there are five common ERP system modules that businesses not only find useful but also provide the most significant value. If your system is lacking one of these modules, adding it may be very beneficial.
Financial management: Almost every department has a financial link, from your marketing department to human resources, which is why it is so important. Payroll is also usually located within the financial management module.
Supply chain management: Supply chain management can be complicated, but a good ERP system simplifies this process by keeping real-time data and allowing for demand forecasting.
Inventory management: Knowing how much inventory you have on hand is critical to ensure order fulfillment, determine how many spaces you have for incoming stock, and even tracking outgoing inventory.
Human resources management: HR deals with all of your employees and every department. As a result, this module contains plenty of valuable information that is necessary for an accurate and efficient ERP system.
Customer relationship management: This module is necessary for managing customers, leads, and sales processes. It also contains information that is very valuable in regards to marketing and sales.
2. How large or small is your business?
Typically, larger businesses have a greater need for modules that allow for advanced functionality, are more industry-specific, or a combination of the two.
3. Does your business have an international presence?
If your business attracts customers from overseas, you will likely need more advanced accounting functionality to help you deal with multiple currencies, as well as complex tax situations that may arise.
4. Does your business manufacture products?
If your business is involved in the manufacturing process, you will need an ERP system that includes a robust manufacturing module that is designed to meet the needs of your specific industry niche. You will want modules that can do everything from recognize production bottlenecks to forecast production requirements in the future. If your ERP system modules do not have these capabilities, it is time to consider an addition.
5. Is there a specific reason you need more than just the basic modules?
The best way to understand this is by use of an example. If your business has a substantial social media presence that you plan to amplify even further, you will benefit from a module that has strong built-in social media tools that allow you to track analytics and measure the ROI you are getting through social media.
In other words, is there some aspect of your business that is of vital importance that the basic modules do not touch? If so, you will want to add modules that will.
Just as selecting an ERP system is a decision that shouldn’t be made lightly, so is the decision to add modules. Using the information above, determine if adding modules will enhance or hurt your business. Not sure what modules will work? Talk with us! Panorama Consulting specializes in helping companies identify the right modules that fit your business.