Use these 6 ERP components to achieve success in your business!

ERP software as an integrated system has various features that you can take advantage of. Each vendor also offers various integration options with other software or applications. However, before you choose this additional integration, you should first understand the ERP components that are most important and needed in your company.

In fact, there are several standard features that must be present in ERP software that can meet the basic needs of manufacturing and distribution businesses. Below, we will provide an explanation of the ERP features that you need to know so that you don't make the mistake of choosing a product and vendor. What are the main components in ERP?


What is ERP Software?

ERP software is a system that makes your company's database centralized and connects various business processes in one place. If so far you are still pulling data manually from different systems, with ERP you can save time. Apart from that, ERP can facilitate you with real time data along with historical data from all departments and business functions, automate and simplify workflow, and increase business productivity and revenue.

The business process efficiency provided by ERP will no longer involve double data input processes or duplication of work and data scalability will become easier.

The company management team doesn't need to bother managing daily business operations, they can focus on business development and marketing to get more customers and build better relationships.


Main ERP Components


Accounting and Finance

Most ERP software currently available is based on an accounting system, therefore the ERP you choose should have this component in it. Every business process definitely involves the flow of money, this can be paying employees (HR), paying for delivery of goods, paying for goods from suppliers, receiving money from sales, and so on.

Accounting features will be used to analyze and track financial data including receivables, payables, budgets and costs. Financial data analysis can illuminate company spending trends, help understand calculated profits and discover where you can reduce the most inflated costs. You also get predictions to project future income.


Supply Chain Management (SCM)

Creating an effective supply chain system in a business is not easy, especially if your company does not have the tools to control business operations.

The solution to make this process easier is to ensure that the ERP component in it has a supply chain module to optimize distribution and manufacturing processes more efficiently by collecting real-time data.

When the data used for business operational processes is real-time, you can immediately fix problems right away, without waiting any longer.

SCM in ERP can also increase business profits by measuring various factors such as which inventory items are usually purchased simultaneously and using this information to place products in the warehouse optimally.

Integrated SCM and CRM data can be used by customers to determine the status of their purchases in the distribution process and estimate delivery dates.


Inventory Management (Inventory Management)

An ERP component that is no less important is inventory management. Inventory management can be integrated with data from the supply chain, sales and warehouse management modules.

The inventory management feature is used to manage purchase orders, maintain warehouse storage functions, track serial numbers and multiple units of measurement per product ID or SKU (stock keeping unit).

This component is useful for manufacturers or distributors because it can increase profits and the functionality of the inventory process. An integrated system can provide an automatic inventory status update feature on the company website, you can display information about items that are out of stock or not available.

Human Resources

Sumber daya manusia menjadi satu hal yang dibutuhkan oleh sebuah bisnis karena menjadi penggerak berbagai fungsi di perusahaan. Modul HR di software ERP harus memiliki fitur-fitur yang berfungsi untuk mengelola manajemen karyawan dari mulai onboarding, database karyawan, payroll (penggajian), pajak penghasilan, pelacakan waktu kerja (time tracking), dan lain-lain.

HR sebagai salah satu komponen ERP sudah pasti akan terintegrasi dengan modul akuntansi, akan memudahkan Anda mengirim pembayaran gaji ke rekening karyawan secara otomatis dengan memasukkan master data karyawan di awal input data.


Customer Relationship Management (CRM)

Without customers, your business cannot survive today. Therefore, it is important to think about how to manage your customers and leads so that they remain loyal and continue to buy your products.

The CRM module in ERP software will be used to store and search for customer and lead data and help develop insights from the data held to increase sales.

One of the main functions of CRM is tracking customer buying habits. You can see which products have poor sales value and when is the best time period for upselling.

In addition, you can use this module to track conversation history with leads to find out which sales staff communicated with clients, when they spoke and what they discussed. This data reduces redundancy (repeated data) and customer irritants (something that bothers customers during a purchase).

If your business sells products online, including in e-commerce channels, you can use CRM data to accurately target audiences for ads and protect customer payment information. This feature ensures customers have an efficient purchasing experience, which will certainly be beneficial for customers.


Business Intelligence (BI)

BI is also found in standard components of ERP systems. BI collects data and performs analysis to provide actionable insights about business processes.

Of course, data is important in making business decisions. Don't let your company make decisions based only on assumptions without data.

The report feature in ERP helps you understand the data being analyzed, generally reports can be in the form of tables or graphs.

When you use an integrated ERP, the data insights in it can help you make the right business decisions for all departments.

One big problem for companies that have not yet used ERP is that information between departments cannot be shared or used solely independently. Therefore, it is easier to see a complete view of the data and know how each aspect of the business affects profits and customer retention.


Also Read: Determining the Choice of ERP System that Suits Your Business.


The software that we manage, SAP Bandung, is ERP software that can facilitate various business processes, from production, purchasing, sales, inventory, finance, employees, assets, taxes, to providing various business reports that are ready to be printed. Even though the investment costs for using this software are relatively high, this is one of the best ways to achieve business goals more quickly, because it can increase productivity and work efficiency.

The ERP software offered by SAP Bandung can be used for more than one company entity at no additional cost. By using a SQL server database, SAP Bandung can accommodate millions of transactions without the risk of data corruption.

To get more information about the software offered by SAP Bandung which will make things easier for your company, please consult with our consultant about the problems you are facing. This consultation is available for FREE! "CLICK HERE"