The core ERP modules
| Module | What it does | Key features |
|---|---|---|
| CRM | Leads and customers | Pipeline, follow-ups, quotations |
| Sales | Order to cash | Sales orders, GST invoices, dispatch, receivables |
| Purchase | Procure to pay | Requests, RFQs, approved POs, goods receipt |
| Inventory | Stock control | Multi-warehouse, batches, reorder levels, valuation |
| Production | Making goods | BOMs, job cards, material issue, output, OEE |
| Quality | Inspection and control | Incoming, in-process and final checks, holds |
| Accounting | Books and tax | Ledgers, GST, bank reconciliation, financial reports |
| HRMS and payroll | People | Attendance, leave, salaries, PF, ESI, TDS |
| Reports and analytics | Decisions | Dashboards, MIS, KPIs across modules |
Many ERPs add modules such as maintenance, fleet, recruitment and field sales. What makes it an ERP rather than a set of apps is that every module works on the same items, customers, vendors and employees.
Features every ERP should have
- One database: a sale reduces stock, raises a receivable and updates reports, with nothing typed twice.
- Role-based access and an audit trail of who changed what.
- Approvals for purchase orders, discounts, leave and payments.
- Real-time reports and dashboards from live data.
- Mobile access for approvals, the shop floor and field staff.
- Integrations and an API to connect accounting, e-commerce or machines. See ERP integration.
- Local compliance: in India, GST invoices, e-way bills and statutory payroll.
Types of ERP systems
- By deployment: cloud (SaaS), on-premise, or hybrid. See cloud vs on-premise ERP.
- By scope: general ERP for any business, or industry ERP for manufacturing, distribution, retail or services.
- By size: enterprise suites for large groups, and mid-market or small business ERPs priced and sized for SMEs.
- By manufacturing style: discrete (assembled items such as machines or furniture) or process (formulas and batches such as chemicals, food or adhesives).
Which modules should a manufacturer start with?
- Inventory, purchase and sales first. They fix stock accuracy and billing, and everything else depends on them.
- Production and quality next, once items and BOMs are clean.
- Accounts in the ERP, or connected to Tally.
- HR and payroll when attendance and salaries are a monthly headache.
- Maintenance, fleet and analytics once the core is running.
Phasing modules like this keeps go-live fast. See ERP implementation.