ERP Modules: 12 Type Modules and How to Choose

An ERP system is an essential resource for companies looking to increase productivity and optimize processes. ERP systems offer a comprehensive solution that supports decision-making and optimizes workflow by integrating various functions into a unified platform. Understanding ERP modules is important for Singaporean businesses looking to maximize the benefits of their ERP solutions.

ERP (Enterprise Resource Planning) modules are distinct software elements that manage particular business functions within an ERP framework, including finance, inventory management, and human resources. These modules are crafted to enhance integration and optimize operational efficiency.

The ERP software market in Singapore is projected to grow by 3.83% annually, reaching US$188.70 million by 2029. This growth highlights the increasing value of ERP solutions, making it important for businesses to understand and leverage ERP modules effectively.

Each module within an ERP system is designed to manage specific business processes, such as finance, human resources, inventory, or sales, making sure that every aspect of the company is linked and running efficiently. In this article, we will explain the 12 ERP modules list and explore the significant advantages they bring to businesses, helping you make informed decisions about implementing ERP solutions in your business.

Key Takeaways

• ERP modules are designed to handle specific business functions. These also serve to help various departments in a business communicate and share information in one centralized system.
• Core ERP modules listed for Singapore companies such as CRM, HR, SCM, Finance Management, Procurement, Inventory Management, Order Management, Warehouse Management, etc.
• The function of ERP modules is help to secure and centralize finance, increase productivity, accurate forecasting, also better customer service.
• You can choose the right ERP modules with these considerations: assess your business needs, and scalability software, evaluate integration, and user-friendliness, focus on customization, also research vendor software

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What Are ERP Modules?

ERP modules are components designed to handle specific business functions. These ERP modules serve to help various departments in a business communicate and share information in one centralized system. Implementation of these modules can manage the entire business easily and comprehensively.

Enterprise Resource Planning ERP systems are designed with modular elements, each tailored to fulfill a particular business function. Typical modules encompass Customer Relationship Management (CRM), Human Resources (HR), Supply Chain Management (SCM), Financial Management, Procurement, Inventory Management, and Business Intelligence.

Each module can be customized to fulfill the needs of the business, making ERP solutions highly adaptable to different industries and operational requirements. ERP modules essentially function as the fundamental components of an all-encompassing system that promotes improved operational control and decision-making.

Also Read: 4 Major Phases of ERP Implementation for Business Success

Main Function of ERP Module for Singapore Companies

ERP systems with their best modules offer many benefits to businesses by providing a unified and integrated approach to managing various operational functions. Their use will help you control all aspects of your business more easily, in line with the latest ERP market trends that emphasize integration and streamlined processes for improved efficiency. Here are some of the key benefits of ERP modules for businesses:

1. Secure and Centralized Finance

ERP systems provide a consolidated platform for financial management, which enables companies to streamline their financial operations. This includes automating core accounting functions like ledger management, payroll, and invoicing.

The integration of financial data across departments leads to improved financial reporting accuracy, real-time financial visibility, and compliance management, making it easier for businesses to make informed financial decisions and manage expenses more efficiently.

Additionally, having an ERP system in place can be a significant advantage when applying for business grants. The system ensures financial transparency and accuracy, which are often required for grant eligibility, helping businesses present clear and compliant financial records.

2. Increased Productivity

By automating routine tasks and reducing the need for manual input, ERP systems enhance productivity. They integrate various business processes, which helps eliminate unnecessary tasks and streamline operations.

This increased efficiency allows employees to focus on more strategic tasks, which can lead to faster project completion rates and better resource management.

3. Accurate Forecasting

ERP systems are equipped with advanced analytics and reporting tools that help businesses predict future trends based on historical data. Companies can plan for future growth, foresee changes in the market, and make better strategic decisions because of these forecasting capabilities.

Accurate forecasting provides better budget management, demand forecasting readiness, and inventory optimization.

4. Better Customer Service

An ERP system integrates customer data across different touchpoints to provide a single, comprehensive view of customer interactions. Businesses can provide more individualized services, reply to consumer concerns more quickly, and handle client relationships more skillfully thanks to this connection.

More customer happiness and loyalty can be attained by providing better service, which is made possible by easier access to consumer data.

5. Operational Efficiency

ERP systems integrate important corporate activities including production, distribution, and procurement to increase operational efficiency. This integration reduces the time and effort required to manage these processes separately and helps in detecting inefficiencies.

By providing a unified view of operations, ERP systems enable businesses to reduce costs, optimize their workflows, and improve overall operational performance.

6. Accelerated Reporting

With ERP systems, businesses can generate comprehensive reports with greater speed and accuracy. The ability to access real-time data across various functions enables quicker report generation, which is important for meeting regulatory requirements and for strategic planning.

Accelerated reporting helps businesses to monitor their performance more effectively and make timely adjustments to their strategies.

Also Read: Key Characteristics of ERP System and Their Importance

12 ERP Modules List for Singapore Companies 

In optimizing all aspects of a business, ERP system modules are available in various types. Each of these module types is designed to handle a specific aspect of Singapore’s company business operations from start to finish. Here’s a breakdown of the common 12 ERP modules lists:

1. Finance and Accounting

The financial and accounting management module can manage financial transactions, accounting procedures, budgeting, reporting, and various other financial responsibilities in Singapore companies.

It includes general ledger, accounts payable/receivable, budgeting, and reporting. This module focused on profitability, expenses, cash flow, and credit. Accounting ERP system ensures accurate profit and loss tracking, also helps to optimize operations, and improves business decision-making.

2. Human Resource (HR)

Human Resources (HR) ERP modules can handle employee data, payroll, benefits management, recruitment, scheduling, talent management, and also oversee employee information. HR modules automate tasks and foster collaboration across internal teams, ensuring seamless human resources management operations.

3. Procurement

The procurement module offers the purchasing of goods and services, including managing suppliers and purchase orders, creating purchase orders, managing supplier relationships, tracking invoices, and encompassing everything from requisition to payment.

This module also handles the process of sourcing and purchasing goods and services and ensures efficient operations by securing necessary materials at the desired quality and quantity.

Procurement also can integrated with the inventory system to optimize supply chain workflows and streamline financial planning reporting processes in your businesses in Singapore.

4. Inventory Management

Inventory management can help companies to track and manage inventory levels, ensuring optimal stock levels. It also helps monitor and oversee inventory quantities to maintain ideal stock levels while reducing expenses, including stock levels, purchase orders, and warehouse operations.

It was crucial for tracking goods throughout the entire supply chain, from purchasing steps to production and sales. Inventory management also helps ensure seamless operations in warehouse management, reducing waste and improving efficiency.

5. Order Management

Order management can process customer orders, manage fulfillment, track shipment, also handle monitor the status of orders from receiving orders to fulfilling them. It includes order entry, shipping, and invoicing.

This ERP modules list also can track orders from receipt to delivery and automates tasks such as order entry, status updates, and credit checks. It also enhances customer relationship management through integrated communication tools.

6. Supply Chain Management (SCM)

Supply chain management (SCM) can help you to optimize the flow of goods and materials from suppliers to customers and also enhances the movement of products, data, and financial resources across the supply chain and inventory planning.

This module also enhances visibility and efficiency throughout the supply chain process. Ensuring seamless operation and improving decision-making through advanced analytic and reporting tools.

7. Customer Relationship Management (CRM)

Customer relationship management (CRM) can manage customer interactions and data, and help customer interaction with prospective and current clients. This module ensures a cohesive perspective, is also designed to boost sales performance and establish strong relationships through improved service.

It generates reports using stored data to enhance sales prediction, also streamline financial operations with integrated accounting and budgeting management.

8. Warehouse Management

Warehouse management can help to optimize warehouse operations, including receiving, storage, shipping, inventory control, and order fulfillment. This module encompasses the process of receiving, storing, and dispatching goods in the warehouse.

This module tracks stock levels, organizes product storage, and improves picking and shipping accuracy. With real-time data, it enhances decision-making, reduces stockouts or overstocking, and automates processes like order processing and restocking. Integration with other ERP modules streamlines logistics, reducing costs and improving operational efficiency.

9. Manufacturing

The manufacturing ERP modules can support manufacturing processes, including production planning and execution, and scheduling, quality control. This ERP module list is particularly valuable for manufacturing processes to streamline operations and boost productivity. With ERP system, can improve the production process with financial management real-time budgeting and expense tracking features.

Manufacturing ERP system also works in conjunction with the ERP modules list, allowing organizations to organize, monitor, and oversee production cycles, keep track of goods in progress, and assess actual production against projections, thereby improving the efficiency and analysis of the overall manufacturing workflow.

10. Sales and Distribution

The Sales & Distribution module manages every facet of sales, pricing, shipping, credit oversight, billing, and foreign transactions, simplifying the overall process. By refining price management, material categorization, and international shipping, the module boosts the efficiency of sales and distribution and guarantees seamless order management from start to completion. This makes the solution highly effective for various types of distribution software, including pharmaceutical distribution software.

11. Logistics

The logistics within an ERP system is designed to streamline and optimize the entire supply chain process, from procurement to product delivery. It manages essential logistics functions, including order processing, inventory tracking, shipment scheduling, and transportation management.

By providing real-time data on stock levels, shipments, and delivery statuses, this module enables businesses to minimize delays, reduce costs, and enhance customer satisfaction. The logistics module is vital for maintaining efficient workflows, ensuring timely deliveries, and optimizing warehouse management.

12. Asset Management

Module asset management assists businesses in tracking their physical assets, including machinery, vehicles, and equipment, throughout their entire lifecycle. This ERP module’s list includes features for asset tracking, maintenance scheduling, depreciation calculations, and asset disposal. By generating detailed reports on asset performance, businesses can optimize resource usage and prevent costly downtime.

For Singaporean companies, this module is especially beneficial in industries that rely heavily on machinery and equipment. It ensures that assets are well-maintained and compliant with local regulations, thereby improving operational efficiency and extending the lifespan of the assets.

There are also several important ERP modules that you can use to optimize the operations of each business, such as ERP analytics, project management, business performance management (BPM), risk management, marketing automation, and business intelligence (BI).

These ERP modules list can help businesses by providing insight for better decision-making, improving project efficiency, monitoring performance, mitigating risks, automating marketing tasks, and analyzing data for strategic growth. With the addition of this ERP module, companies in Singapore can streamline operations, enhance productivity, and drive profitability of business.

How to Choose the Right ERP Modules for Your Business

Choosing the right ERP module is crucial to the success of your business. With so many options available, it can be difficult for you to decide which one best suits your company’s specific needs. An ERP comparison can help you evaluate your options. Here are tips and ways to make the right decision that aligns with your business goals and needs.

1. Assess Your Business Needs: Assess the processes in your business workflow that require improvement or automation. By identifying the most critical areas of your operations, you can choose the ERP modules that will effectively tackle those challenges.
2. Consider Scalability: As your business grows, your ERP system should be able to scale accordingly. When selecting ERP modules, choose ones that will grow with your business and allow for future expansion.
3. Evaluate Integration Capabilities: ERP systems are most effective when all modules work together seamlessly. It’s important to evaluate how well the ERP modules integrate with your existing software.
4. Consider User-Friendliness: If the modules are complex or difficult to navigate, employees may resist using them, leading to inefficiencies. When selecting ERP modules, focus on user-friendly interfaces that simplify daily tasks for your team.
5. Focus on Customization and Flexibility: Every business is unique, so you’ll need ERP modules that can be tailored to meet your specific requirements. Look for ERP systems that allow for customization of workflows, reporting features, and user roles to ensure the system fits your business model.
6. Research Vendor Reputation and Support: The quality of the ERP system vendor can make a significant difference in the long-term success of your implementation. Research vendors that have a proven track record of delivering reliable, efficient ERP solutions.

Also Read: Reasons Why ScaleOcean is the Best ERP Software Singapore

Conclusion

In conclusion, understanding ERP system modules is important for businesses aiming to obtain the full potential of their ERP solutions. Each ERP module plays a role in streamlining various business processes, from finance and human resources to supply chain management and customer relations.

By integrating these functions into a single, cohesive ERP system, businesses can achieve greater efficiency, improved decision-making, and enhanced collaboration across departments.

The right combination of ERP system modules made to meet your business needs can lead to significant cost savings and scalability, ensuring long-term success. As you explore ERP software in Singapore, focus on selecting modules that align with your specific goals, enabling your organization to operate more effectively in today’s competitive landscape.