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ERP Modules. Dr Celeste Ng 吳思佩. Source: Lawrence F. B., Jennings D. F., Reynolds B. E. 2005. ERP in Distribution . Thomson, South-Western: Mason, Ohio; pp. 347. ERP modules (from the Distribution Perspective). Sales order processing

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Erp modules

ERP Modules

Dr Celeste Ng


Prepared by: Celeste Ng, YZU

Source:Lawrence F. B., Jennings D. F., Reynolds B. E. 2005. ERP in Distribution. Thomson, South-Western: Mason, Ohio; pp. 347.

Prepared by: Celeste Ng, YZU

Erp modules from the distribution perspective
ERP modules (from the Distribution Perspective)

  • Sales order processing

    • Customer info., billing instruction, order processing options, different order types, quoting, shipping, invoicing

  • Distribution system planning

  • Warehouse operations

  • General ledger and financials

    • including human resources

  • Executive information system

    • Generate report on company’s success in reaching its goals

Prepared by: Celeste Ng, YZU

The structure flow in this textbook
The structure/flow in this textbook

  • Sales order processing

    • Chapter 7: Automating sales and marketing

  • Distribution system planning

    • Chapter 8: Replenishment

  • Warehouse operations

    • Chapter 9: Operations Management

  • General ledger and financials

  • Executive information system

    • Chapter 10

Prepared by: Celeste Ng, YZU

Sales n marketing or crm tools
Sales n Marketing or CRM tools

  • Contact management

    • Customer interaction, request, opportunities, follow-up (for future reference)

  • Sales order processing

    • lost sales and backorder tracking, sales force data entry, customer data entry

  • Customer pricing and billing

  • Quoting

  • Technical data (product spec.)

  • Catalog

  • Call center

  • Data warehousing


Prepared by: Celeste Ng, YZU


  • Forecasting

    • Customer demand, reorder point

  • Lead-time tracking

    • To forecast supplier’s performance

  • Setting reorder point

    • Calculate/select fill rate

    • Select an approach (guess, educated guess, supplier, ERP system)

    • f (safety stock, demand during supplier’s lead time, supplier lead time variability, forecast error)

  • Buying decisions (coordinated replenishment)

  • Inventory classification

    • Based on gross margin ROI, sales volume, or hits

  • Automating purchase order

  • Aggregate planning

    • Needs and placement of resources


Prepared by: Celeste Ng, YZU

Operations management
Operations Management

  • Inventory tracking

  • ABC layout

  • Automating part identification

  • Pick slip

  • Cycle counts

  • MRP and work order processing


Prepared by: Celeste Ng, YZU

Executive information systems
Executive Information Systems

  • Set strategic goals (based on supply chain goals)

  • Connecting strategic objectives to financial measures

  • Connecting financial measures to tactical objectives

  • Connecting tactical objectives to operational metrics

  • Aggregate measures for executive decision making

  • Information sharing


Prepared by: Celeste Ng, YZU

Source:Norris G., Hurley J. R., Hartley K. M., Dunleavy J. R., Balls J. D. 2000. E-Business and ERP: Transforming the Enterprise. John Wiley & Sons: New York; pp. 194.

Prepared by: Celeste Ng, YZU

Erp modules1
ERP modules

  • Finance

  • Manufacturing

  • Logistics

  • Sales and marketing

  • Human resources

Prepared by: Celeste Ng, YZU

Erp module finance 1
ERP module – Finance (1)

  • Reduce the cost of financial record keeping

  • Provides improved information for analysis and a seamless reconciliation from the general ledger to subledgers

  • Data is updated in real time

Prepared by: Celeste Ng, YZU

Erp module finance 2
ERP module – Finance (2)

  • A basis for linking operational results and the financial measures

  • Provide decision support to

    • Corporate leadership

    • Create strategic performance measures

    • Engage in strategic cost management

Prepared by: Celeste Ng, YZU

Erp module manufacturing 1
ERP module – Manufacturing (1)

  • Provides a consistent set of product names in a central product registry

  • A consistent way of looking at customers and vendors

  • Integration of sales and production information

  • A way to calculate availability of product for sales, distribution, and material management

Prepared by: Celeste Ng, YZU

Erp module manufacturing 2
ERP module – Manufacturing (2)

  • Enables better order-to-production planning by linking sales and distribution to material management, production planning, and financials in real-time

  • Real-time visibility of customer orders and customer demand

  • Modeling of anticipated orders

  • Identify sales opportunities based on past performance information

  • Stock can adjusted nearly instantly

  • Detailed manufacturing resource planning can be performed daily

Prepared by: Celeste Ng, YZU

Erp module logistics
ERP module – Logistics

  • Integrates distribution with manufacturing, sales, and financial reporting

    • Enhance reporting of future performance indicators and past performance measures

  • Supports the distribution environment necessary to met customer demands

Prepared by: Celeste Ng, YZU

Erp module sales and marketing
ERP module – Sales and Marketing

  • Perform profitability analysis, showing profits and contribution margins by market segment

  • Design sophisticated pricing procedures that include numerous prices, discounts, rebates, and tax considerations

  • Project much more accurate delivery dates for orders

Prepared by: Celeste Ng, YZU

Erp module human resources 1
ERP module – Human resources (1)

  • Supports human resource planning, development, and compensation areas

  • Provides an integrated database of personnel

  • Maintains salary and benefits structures

  • Supports planning and recruiting

  • Keeps track of reimbursable travel and living expenses

Prepared by: Celeste Ng, YZU

Erp module human resources 2
ERP module – Human resources (2)

  • Does payroll accounting

  • Records individual qualifications and requirements used for

    • Resource planning

    • Enhances career and succession planning

    • Coordination of training programs

Prepared by: Celeste Ng, YZU

Source: Olson D. L. 2004. Managerial Issues of Enterprise Resource Planning Systems. Mc-Graw Hill: Boston; pp. 180.

Prepared by: Celeste Ng, YZU

Erp supported functions sap
ERP Supported Functions (SAP)

Prepared by: Celeste Ng, YZU