Integrated ERP system is a buzzword especially among ERP vendors trying to sell their software. But do you really know what an “integrated ERP system” means? An integrated Enterprise Resource Planning (ERP) system is a business process management software that allows you to use a system of cohesive business applications to manage your enterprise and automate many functions such as financial accounting, human resources, and more through function-based ERP modules.

What does and integrated ERP system do?

An ERP system essentially brings functions within departments and functions of other departments together to streamline business processes and smoothen workflows. This is accomplished by using interactive ERP modules that allow each department to carry out their own functions more optimally by gaining access to the information they need from other departments to complete those functions. For example, the marketing department can view the sales data from the sales department and judge whether a new campaign implemented by them was successful or not.

What are the different ERP modules that are part of an integrated ERP system?

ERP modules create a seamless flow of information tailored to both department-level and enterprise-level needs. Some of the types of functional ERP modules that can be integrated into one ERP system are Accounting and Financial Management, Human Resource Management and Payroll, Inventory Management, and Customer Relationship Management.

Integrating an ERP system with a Customer Relationship Management (CRM) system

Order to Collection

An ERP system integrated with a CRM system typically means a new customer being created in the CRM module and the same will be added in the ERP software. Once this is done, the salesman can take orders from the end customer on a tablet and later sync the same with an ERP software. During this process the CRM system transfers data to the ERP system to create Sales Order, Sales Invoice, Delivery Note and sends back the invoice and other details to the CRM system. Similarly, when the salesman collects payments from the customer against invoices, the same gets synced to the ERP system and it creates the Receipt Vouchers and matches them against the invoices.

Integration with Dispatch System

Some companies opt for a model wherein sales and dispatch is done by different companies that have a large logistics network. The logistics company sends the daily sales transaction to the ERP system, wherein based on this data the sales and delivery notes are created in the system and it sends back the invoice details to them.

Integration with Warehouse Management System (WMS)

In a typical warehouse integration, when an order is created in the ERP system, the same is sent to the WMS system where the user receives the goods. The system then allocates the positions of the items based on the rule criteria and sends the receipt information to the ERP system, which further creates a receipt. Similarly, in case of any issue of transactions the WMS will issue the stock from the system.

How will the business benefit from an integrated ERP system?<

Originally, ERP systems were created with the purpose of seamlessly merging basic processes like planning, manufacturing, and sales with each other within an enterprise. More recently ERP software encompass marketing, inventory monitoring, order automation, customer service, finance, and human resources as well. As the span of functions covered by an ERP solution has increased, it has also led to increased communication among correlated departments. Every company is a synergistic entity and all the departments must collaborate amongst each other to meet the needs of the entire company. An integrated ERP system enables you to do just that by providing role-based access to information with linked ERP modules.

The advantages of an integrated ERP are numerous and it might be exactly what your business needs right now to accelerate revenue growth. Increase communication among departments, improve workflow and help your employees make informed decisions that are backed by reports with an integrated ERP system.