What is extended ERP?

Organizations leverage enterprise resource planning ERP systems to help management with faster decision making and also to automate common business processes and functions. This helped save a lot of money and time for a company.

The prime purpose of core ERP is to focus on internal business operations such as human resources, finance, and accounting, while the main purpose of extended ERP is to focus on external operations in order to easily manage relationships with the transport of suppliers customers as well as other types of parties. 

What is extended ERP
What is extended ERP?

Table of Contents

The Core Purpose Of ERP

Basic enterprise resource planning ERP modules include functions that can streamline the core processes of your business while making it simple for organizations for easy decision making. Some of the common but core ERP modules in organizations include production, marketing, finance, accounting, purchasing, human resources, and more. Some advanced ERP systems might also offer security modules that can manage data access. 

In the case of extended enterprise resource planning modules, they focus on the basic functions and offer additional models that support the external operations of a business. The common extended ERP elements revolve around customer relationship management, supply chain management scm, business intelligence, e-commerce product data management, and data mining as well. However, you can get this module from the same software vendor or you can also buy them from a third party in order to access compatibility by the managing heads.

What is extended ERP?

Let us see the different features offered by extended ERP systems.

1) Product lifecycle management

PLM stands for product lifecycle management. Its software intruder manufacturing distribution regulation design as well as field service activities that deal with how a product transforms according to its life. However, according to the respective Industries product life cycle management software may even cover additional business functions. In some cases, it may also restrict to engineering and design only. 

2) Customer relationship management

CRM customer relationship management software is most probably related to the business processes for all types of call centers and sales teams so that they can function autonomously. CRM software and ERP system needs very minimal integration and can come in a package or as a part of an extended ERP system.

3) Supply chain management

Supply chain management might deal with software for controlling and planning a specific step in the distribution and manufacturing process which includes monitoring external companies that are handling a particular product. There are a lot of processes involved in this development that specifically deal with the collaboration of supply chains throughout various businesses. 

Most businesses make use of supply chain management models to manage global supplier networks as well as to monitor the inventory and track orders in the supply chain. Also, they can perform full-scale manufacturing planning while optimizing logistics to a greater extent. The extended ERP module integrates with the accounting and Finance ERP component in order to track and manage the receivables and payables of finance accurately. 

A number of channels are involved in the delivery and production of services and products. But before the product reaches day customers they undergo a chain of processes that include anything from logistics, procurement, warehousing, or IT. However, supply chain management can be defined as the most significant and integrated way of monitoring supply chain tasks.

4) Data Mining 

Data mining is also called knowledge discovery in databases. It is all about getting new information in a heap of data. In most cases, the data is stored so that it can be utilized for other business processes. For example, suppose a business wants to save every information about the sold items. They can use this data to estimate how many additional products they should buy in order to sell more. Once the information is saved then it creates a heap of data which is basically saved in a centralized database. 

This way, the same information or data can be used to access other information apart from the previous data. On the other hand, the store might need information about the product bought by people together whenever they visit their store. For instance, people who buy Maggi may also buy frozen peas from the store. So this kind of information is usually saved and proves to be useful for the store.  In general terms, it is also known as product data management.

5) BI Modules

Even though the basic ERP systems can be helping businesses make quick decisions business intelligence module offers extended functionality to the system so that the managing heads can quickly access and analyze complicated data. Business intelligence modules are one of the extended ERP models that run complicated queries, access industry data, sort data, and provide suggestions as well. 

6) E-commerce and E-Procurement Modules

As a number of companies are selling their products online and have been using the internet to procure inventory and supplies, the extended ERP modules for the e-Commerce and e-procurement domain are becoming really popular. This is one of the best extended ERP modules that gets easily integrated with the ERP software having online sales platforms such as Amazon and Flipkart while efficiently tracking clients’ payments and orders.

This module also comes with the setup to get a custom online store and track online inventory. However, few ERP systems may also allow mobile sales so that the companies can physically sell different items and can make payments flawlessly.