This document provides an overview of enterprise resource planning (ERP) systems. It discusses key ERP modules like finance, human resources, supply chain management, and manufacturing. It also outlines advantages of ERP systems like end-to-end visibility, planning and reporting, and data security. Challenges of ERP implementation include finding the right software, gaining management commitment, and providing adequate training. Trends in ERP highlighted are more user-friendly interfaces, increased mobility, greater integration between systems, and demand for cloud-based solutions.

1. Enterprise Resource
Planning (ERP)
ZUBAIR AFZAL

2. ERP
01
ERP Modules
02
Advantages and Challenges of ERP
03
Trends in ERP
04
Contents

3. ERP
Enterprise resource planning (ERP) is a process used by
companies to manage and integrate the important parts of
their businesses.
Many ERP software applications are important to
companies because they help them implement resource
planning by integrating all of the processes needed to run
their companies with a single system.
An ERP software system can also integrate planning,
purchasing inventory, sales, marketing, finance, human
resources, and more.

4. EVOLUTION OF ERP

6. Finance Module
• Purchasing module
ERP purchase module features tasks that are essential for reasonable expenses as well as
correspond to real demand. It covers the estimate of supplies, orders, required
documentation, billing processes, goods receiving and of course integration of the data with
General Ledger. For instance, this ERP component generates the order request
documentation that is sent to the suppliers. In return, the supplier sends the invoices that are
automatically getting to the financial module. It should be integrated with the costing module
to compare the total price in order to request an invoice, and only then sent to the
accounting department for the payment.
• Costing module in ERP
Internal cost control is an inevitable business process since you need to keep track of material
and operations. It requires exceptional document management on every transaction and its
expenses. The business intelligence component uses this data to measure the company’s
expenditure and produces the necessary forecasts. Therefore, the ERP costing module
determines the market cost for products or services to make them profitable for your
company.
• ERP payroll module
Receiving the data from Job costing, the payroll module can produce reports on salaries,
reimbursements, travel expenses, benefits, etc. The latest should be sent to General Ledger
for the next workflow stages. Furthermore, the ERP payroll module collects audit data by
certain periods, tracks the duration of sick leave and vacations, deducts government taxes
and reports them to the taxation authority.

7. Human Resource Module
• Recruitment module
The module’s functionality focuses on the efficiency and simplicity of recruiting
processes. HRs obtain the possibility to post advertisements, support
necessary documentation, track the talent pools including social platforms,
automate the assessment process, analyze candidates’ profiles, schedule
interviews, set up the onboarding process, etc.
• Workforce management module
It is a great way to streamline the management of human resources
in company. Those important ERP modules store such employees’ data as
general information, working hours, attendance, sick leave, vacations, etc.
However, it is not only about the storage, but the overall document
management related to staff performance. Sharing this data with other ERP
modules is inevitable for the work of the whole system. For example, the
accounting department calculates the staff salary based on the reports sent
from this component. HR analytics informs about necessary updates on the
employees’ resources as well as conducts employees’ performance appraisals.

8. Supply Chain Management
Module
• Ordering module
If the company is interested in fulfilling orders without much delay and returns, it
will draw special attention to proper order management. It requires precise and
direct control of each ordering step. It is worth making an effort to meet the
requirements and improve customer relationships. Both the company and
customers can request real-time information on order processing.
• Logistics module
This involves process streamlining for supply, storage, delivery, goods redistribution,
etc. The component organizes the logical grouping of clients in order to establish
the most convenient supply line as well as generating the waybills. It helps to
control the movements of goods both inside and outside the company.
• Warehousing module
The day-to-day operations of warehouses includes inventory preparation, order
planning, and implementation. This component keeps track of real-time information
about the order status including such details as receiving the order, items in stock,
production registration, delay alarms, etc. For example, the sales department
automatically receives the reports from it to know exactly what products they can
offer.

9. Manufacturing Module
• Inventory management module
Since ERPs are commonly applied in the manufacturing industry that deals with loads of
merchandise and raw materials, they will handle their storage and managing details. The
inventory component optimizes the production and distribution planning processes.
Moreover, the module’s functionality sets the requirements for materials purchasing
according to the needs of the enterprise and market demand.
• Quality control module
Any management takes control over the quality and its constant improvements. Tracking
manufacturing activities ensures maximum productivity, reasonable expenses and helps
to estimate the timelines properly. Timing and quality should always be carefully planned
and handled in the most efficient ways.
• Materials sourcing module
This area might seem a challenging task, but it can be streamlined by the ERP material
sourcing module. Today’s market is limited by the increased regulations whereas the
companies are bound to find effective ways to reduce time and costs. Therefore, the
sourcing of the raw materials needs to be precisely optimized. Proper sourcing
management helps to avoid supply chain interruptions, control issues, and extra
expenses. For example, the material management module in ERP stores the data about
the cost of each raw material or supply whereas it is collected from the previous orders
completed via the ordering component.

10. Business Module
• Sales module (CRM)
The automated process facilitates the workload of the sales team. It stores structured data like names,
contact details, order history, customers’ preferences, etc. The team members use it to build
communication channels and make sales. Besides basic features related to the client’s data storage,
CRM also can process such order details as inquiries, quotations, order acceptance, invoices, tracking
and be ready to generate requests for the next ordering tasks. Consequently, the common task of any
ERP system is to integrate CRM with the sales module to increase the conversion rate and enable
qualitative and efficient services. In order to provide valuable customers’ experience, even the
smallest details should be tracked, analyzed and considered by the team.
• Marketing module
The key to launching a successful marketing campaign is tracking and analysis of such data as
customers’ engagement, achievement rates, promotion tactics, advertisement, etc. The point is that
marketing should be carefully planned, and investments are long-termed. The marketing module is the
perfect tool to perform all the mentioned tasks. Moreover, the data on sales is integrated with it to
produce possible ways of increasing sales and attracting new customers.
• ERP distribution module
ERP distribution module is firmly connected with the sales one. The data is being processed by unified
performance to handle the inquiry, check the availability, transfer requirements from one department
to another, create the necessary documentation, schedule the delivery, etc. In short, it is a connecting
link between storage and shipping.
• ERP business intelligence module
BI component is capable of forecasting. It touches the business fields like cash flows, revenues, sales
predictions, etc. Depending on its reports, the company is able to set some realistic expectations and
work on the successful service or product delivery.

11. An ERP Example: Before ERP
Customers
Customer
Demographic
Files
Sales Dept.
Vendor
Orders
Parts
Accounting
Accounting
Files
Purchasing
Purchasing
Files
Order is placed
with Vendor
Invoices
accounting
Inventory
Files
Warehouse
Checks for Parts
Calls back “Not in stock”
“We ordered the parts”
“We Need parts #XX”
“We ordered the parts”
Sends report
Sends report
Sends report
Ships parts

12. An ERP Example: After ERP
Database
Customers
Sales Dept.
Purchasing
Warehouse
Accounting
Vendor
Inventory
Data
If no parts,
order is
placed
through DB
Orders
Parts
Order is submitted
to Purchasing.
Purchasing record
order in DB
Order is placed
with Vendor
And invoices accounting
Financial Data
exchange;
Books invoice against
PO
Books inventory
against PO
Ships parts

13. ERP IMPLEMENTATION
COST
• Small to medium-sized businesses can expect to pay between
$75,000 and $750,000 for implementation. Costs for large
businesses range from $1 million to $10 million.
• Companies that can’t afford large up-front implementation
costs should choose a cloud deployment, which doesn’t require
hardware installation and may not offer customization.

14. ERP IMPLEMENTATION
COST
• Many vendors in the market don’t offer
pricing details publicly, so company need
to contact them directly for a quote.We
have researched on in market on
different ERPVendors, are: -
• Aquilon Software,
• BizAutomation Cloud ERP,
• Dolibarr ERP & CRM,
• ECOUNT ERP,
• ERPNext,
• Microsoft Dynamics 365
• SAP Business One ERP,

15. • Aquilon Software offers both on-premise and cloud-based licensing options, and all
licensing is quoted by the number of users. The on-premise license is typically from
$1,500 per user to $3,000 per user, depending on the modules selected. The cloud
licensing option is typically from $75 per user per month to $150 per user per month,
depending on the modules selected.
• BizAutomation Cloud ERP costs $79.95 per user, per month and requires three users
minimum. The subscription price includes all ERP modules, except for e-commerce,
which costs an additional $149.95 per month.
• Dolibarr also offers cloud-based deployment in two subscription tiers: Basic and
Premium. The Basic package starts at $9.74 per user, per month and has 5 GB of storage
and the basic features of Dolibarr ERP & CRM. The Premium package costs $32.46 per
month plus $12.98 per user, per month and has all of the features of the Basic package,
plus 25 GB of storage and priority email support.
• ECOUNT ERP’s pricing is straightforward: $55 per month or $600 per year. This
subscription includes all functions, unlimited user IDs and groupware access for 10 users.
The solution also includes iOS and Android apps, a barcode app, multilingual support and
an e-commerce module.

16. • ERPNext cloud deployments are offered through two pricing plans. The Standard plan costs $20
per user, per month and includes 10 GB storage, 5,000 emails per month, tracking of three
companies, 30 custom fields, 10 custom forms and integration to payment processors. The Pro
plan costs $50 per user, per month and includes 25 GB storage, 15,000 emails per month, tracking
data for unlimited companies, and unlimited custom fields, forms and scripts.
• Microsoft Dynamics 365 allows companies to purchase individual modules based on their specific
business area. For example, the sales professional module costs $65 per user, per month, while
the sales enterprise module costs $95 per user, per month.
• SAP Business One ERP doesn’t disclose pricing on its website. However, third-party
implementation consultants say perpetual licenses cost $3,213 for professional users and $1,666
for limited users. Bug fixes, upgrades and patch releases are covered through a separate annual
maintenance fee.
• Subscription licenses cost $94 per professional user, per month or $54 per limited user, per month. The
subscription price includes annual maintenance and requires a one-year commitment.
• A Starter Package designed for start-ups and small businesses costs $39 per user, per month with a one-
time fee of $1,357. It includes accounting, sales orders, item management and purchasing, but not service
or manufacturing.

17. Advantages of ERP
• Reality check
When enterprises consider ERP systems, it forces a reckoning in several ways. First, they must account for the
hardware and software systems that are already in place. As many enterprises discover, different business and support
units throughout the organization may have circumvented central IT protocol and acquired their own applications and
systems. Purchases made in such a disorganized fashion by what is known as shadow IT result in inefficiency and lack
of interoperability. Once enterprises see the weaknesses and the redundancies in their software strategy, they can plot
a course to set things right. The best aspect of this reality check is that it affords enterprises the opportunity to better
link IT and business units. Some enterprises will go so far as to embed full-time IT workers within the business units so
that they better understand how that unit functions and where the inefficiencies are.
• Lower IT costs
To be clear, these don't come immediately. A new ERP system is a major investment, and its implementation is always
time consuming. However, one unified ERP system is less costly than disparate systems for human resources, financial
management, and supply chain management. Ultimately, you may save on software licenses, training, and support.
But your mileage may vary.
• End-to-end visibility
One of the sexiest features of ERP is that it allows high-level decision makers real-time snapshots of business
operations. This includes an integrated view of areas such as inventory, shipping, supply chain management,
manufacturing, sales and financials. All this data provides actionable business intelligence. If daily inventory levels are
showing a pattern, then the supply chain can be adjusted so the right levels of the right products are in the right place
and at the right time. The availability of this data on a single dashboard can also encourage collaborative efforts and it
gives great insight to workflow efficiencies and employee productivity.

18. Advantages of ERP
• Planning and reporting
Improved visibility means that accurate reports, reflecting activity across
the enterprise, can be generated quickly. Because multiple business
units can see the same data, managers are literally on the same page.
That reduces communication errors caused by duplicated spreadsheets
and emails, as well as pointless finger-pointing. Reporting tools,
particularly those for financial reporting, are typically baked into ERP
software. Many ERP systems also offer business intelligence applications
that let organizations take a deeper dive into their data. ERP
systems, because of their business intelligence and automated reporting
capabilities, are also a boon to corporate compliance.
• Data security
Data security can be a blessing or a curse. While having a central
repository for your data can be nerve-wracking, ERP systems and service
providers that host them often have better data security in place than
enterprises that host their own on-premise ERP systems.

19. Challenges of ERP
• Finding the perfect software
There are a vast number of ERP systems available, so it is can be confusing choosing
which one to invest in or what is best for the business. The first step is to have a thorough
understanding of the needs and challenges of the business and then give this to a
selection of ERP providers for a response. The ERP provider chosen should have
experience within your industry, take the time to understand the business and be able to
help you meet your business goals. Otherwise, you could end up making a very costly
mistake. It is important to ensure to gather enough information about overall
requirements and have open conversations with potential providers.
• Commitment from managers
It is imperative that those who lead from the top are fully committed to the ERP
implementation. Actively communicate with key personnel and ensure they understand
the need for them to be fully involved. Also involving them in the decision-making process
will increase the likelihood of commitment. The better the communication, the more
likely you will have complete buy-in from not only your managers but also the rest of the
team.
• System training
The ERP system will only ever be as good as those who are using it, so one of the main
challenges business will face is to ensure adequate training is provided. The successful
implementation of ERP system will be much more feasible if business offer employees full
training and ensure they are motivated to use the system.

20. Causes of ERP Failure
• Poor software fit /inaccurate requirements
• Business leadership is not committed to the
implementation
• Insufficient team resources
• Lack of accountability to make timely, high quality
decisions
• Lack of investment in change management
• Insufficient training/support
• Insufficient funding
• Insufficient data cleansing
• Insistence on making ERP look like legacy
• Lack of testing

21. Trends in ERP
• User-friendly ERP Systems
What makes any ERP the most successful? The number of users who start
using it, and hence adoptability is the key.. ERP vendors will focus towards
making user-interface more friendly and intuitive. Attractive dashboard,
easy-to-use ERP features and mobility are key factors that will motivate next
generation workforce to adopt ERP solutions. mobility are key factors that
will motivate next generation workforce to adopt ERP solutions.
• Mobility
Mobility—anytime and anywhere access on any mobile device—will be no
more fad but a fixture. The complete back office and front office operation
will be available on smartphones and tablets. Managers, executives, and
workers can seamlessly manage key business operations on-the-go. Mobile
ERP will render unparalleled flexibility to organizations. Mobile-first or
mobile-only approach will be a key feature of post-modern ERP solution.

22. Trends in ERP
• Integrated ERP
One of the prominent emerging trends driving the ERP market growth is the
demand for seamless integration—across several applications and platforms.
For instance, ERP integration with CRM will be hassle-free and automated,
offering a host of benefits, such as access to real time data and tracking
of customer orders. Furthermore, the integration with existing or new modules
can lead to significant reduction of hardware and software costs.
• Demand for Cloud-based Solutions
Over the next decade, many emerging vendors will offer tough competition to
IT stalwarts such as Oracle and SAP by launching out-of-box cloud-based ERP
solutions. The prominence of SaaS solutions will be driven by numerous
benefits: automatic updates, patch management, universal accessibility, and
heightened security. In addition, demand for multi-tenant version of the ERP
software will offer momentum to the market growth..
• Internet ofThings
Internet of things (IoT) provides seamless network connectivity to all the
connected physical devices or sensors and enables these devices to exchange
data over a specified network without human intervention. Adoption of IoT
along with ERP will open up vistas of possibilities which will make ERP solution
intelligent, real-time, and flexible.