Enterprise Resource Planning
Integrated Enterprise Resource Planning
There are many types of Warehouse Management Systems. However, these systems have improved over the years. Some of the most common types are the following Standalone Warehouse Management System, Supply-Chain Execution System, Cloud-Based Warehouse Management System, and Integrated ERP System.
For this article, we will be focusing on the integrated ERP system and it’s different modules.
If you type ERP in your browser, a lot of results will pop up. ERP is a very broad topic. Websites and experts all define it differently. Some claim that there is a difference between a plain ERP and an integrated ERP. Others separate ERP from Warehouse Management Systems. They do not treat it as a sub-type.
For a better understanding of integrated ERP systems, you have to take a look at how it works.
What is an Integrated ERP System?
First, let’s find out what ERP stands for. It means Enterprise Resource Planning. Basically, ERP helps you avoid wasting any of your resources. A business can actually produce several types of waste. Anything inefficient in handling machines, materials and time leads to waste.
It is also good to understand how ERP works. ERP puts together all important information in a single database. This database is accessible to almost everyone involved in business operations. ERP software detects all updates and changes within the business. In a warehouse, an integrated ERP system can easily keep track of inventory. The workflow becomes easier through real-time information. Not only is it fast and accurate, everyone usually has access to the shared database.
What makes Integrated ERP different?
ERP functions differently compared to other systems. Integrated ERP has a common database that supports all applications. Because ERP is an integrated system, all applications work as one. Think of an integrated system like your phone. It has many applications. They share data with each other if they are compatible. The same thing happens under ERP. Modules in the system communicate with each other. This shared information automates most business operations.
Therefore, information easily travels across the different departments. All departments have access to the shared database of the ERP. Through this, the system updates everyone about all business processes. They don’t have to request information from the other departments because everything would be on the database.
While an ERP system is integrated, other systems are simply interfaced. In an interfaced system, you need a bridge to help software communicate with each other. You need a standard file to move information from one system to another. This isn’t the case for ERP. In an integrated ERP system, the modules function like one product.
Modules for the Integrated ERP System
To understand an integrated ERP system more, it is also important to understand modules. Different functions group together to form modules. They contain the features of an ERP system. There are a lot of ERP modules available. Here are some useful functions and modules that can be useful for warehouse management:
The financial accounting module handles everything related to finances. If you have this in your integrated ERP system, it automates cash management. The module is responsible for handling the general ledger, fixed assets, payables, and receivables in the company.
Management accounting focuses on cost management. This module processes the budgeting for certain activities or projects. It can also handle activity-based costing.
This module focuses on warehouse operations. If this module is available in an integrated ERP system, it automates the bill of materials. It also takes care of other activities such as work orders, scheduling, and product life cycle management.
Order processing is a popular module under ERP. When customers order items, the system can process the order on its own. It can locate the nearest warehouse available. This makes sure the customer receives their order in a timely manner.
Supply Chain Management
Supply chain management is somewhat related to processing orders. However, it handles purchasing goods instead of orders. It also updates inventory in the warehouse. Other warehouse functions including receiving, putaway, picking, and packing. Warehouse managers should focus on improving these warehouse activities for increased efficiency.
There are other modules that can be included in an integrated ERP system. Users can also customize an ERP based on the needs of their company. Additionally, an ERP is deployed in several ways. There are on-premise deployment, cloud-based deployment, and SaaS (software as a service). To help you learn more about ERP and find the right modules, contact Qbasis today!