ERP eazy System Articles
ERP System with 6 components
The 6 main components of an ERP System are as follows:
1. Manufacturing Resource Management System (MRP) in ERP System
An ERP system helps manage production resources and track product inventory, including planning the raw material needs within a business organization. Its introduction has become crucial, especially for large manufacturing industries, where precise and systematic internal management is needed.
The ERP system assists with controlling purchase plans, product delivery, inventory management, and raw materials used in production. It also helps with production planning, showing the amount of raw materials required, tracking the expected usage of materials, and providing an up-to-date list of materials in the warehouse.
2. Financial Resource Management System (FRM) in ERP System
In business, one of the most critical factors is cash flow. The Financial Resource Management (FRM) system focuses on financial and accounting management in compliance with the regulations of each country.
FRM is a key component of the ERP system, allowing all financial data to be accessed in a single lookup. It generates various reports, including operational reports, executive summaries, and reports for external agencies such as the Comptroller General’s Department and the Revenue Department. These reports help analyze the financial efficiency of investments, determining whether a particular product is over- or under-invested.
3. Customer Relationship Management (CRM) system
No business can succeed without customers. Building and maintaining long-term customer relationships is essential for any organization.
A Customer Relationship Management (CRM) system helps businesses understand customer behavior, interests, needs, and challenges. By analyzing this data, organizations can better meet customer expectations, offer relevant products, and improve service processes. Additionally, CRM enhances after-sales support, reduces customer churn, and lowers marketing costs by targeting the right audience more effectively.
4. Supply Chain Management (SCM) System
Supply Chain Management (SCM) connects and coordinates all processes involved in purchasing, production, distribution, and data exchange among suppliers, manufacturers, distributors, and customers. These entities work together within a business network.
The main goal of SCM is to streamline operations by minimizing time, effort, and costs associated with repetitive tasks and inventory management. Efficient supply chain management enables businesses to operate smoothly, expand, and sustain long-term growth.
5. Human resource management system (HRM)
Human Resource Management (HRM) is a vital component of an ERP system, responsible for managing personnel within an organization. It covers key functions such as recruitment, employee training, payroll management, benefits administration, and job role assignments.
HRM also plays a crucial role in evaluating employee performance based on organizational standards, ensuring efficiency, minimizing errors, and fostering professional growth. By developing employees’ skills and potential, HRM contributes to both individual success and overall organizational growth.
6. Other systems that can be customized to suit all types of businesses (Customisation)
In practice, every business operates differently based on its unique needs and structure. Each company requires a system tailored to enhance employee efficiency. Due to these differences, ERP systems are essential for adapting and optimizing business processes to meet specific organizational requirements. This customization helps improve efficiency and deliver clear, measurable results.