Enterprise Resource Planning (ERP) is a process-oriented methodology that integrates systems used across different departments of a company, enabling the easy and uniform flow of information under defined controls, aided by the use of software applications and defined best practices. 

This article describes the tools used in ERP and their characteristics for the various functions they cater to. To better understand the tools, let’s begin with the functional requirements.

What Is Needed from an ERP System?

Any ERP system basically needs to fulfill the following functional requirements.

• It must be a unified system, with easy-to-use applications and interfaces, that works seamlessly across multiple departments with the necessary controlled access
• A common database (or multiple but shared databases) accessible through different applications
• Search and reporting utilities to generate reports based on various parameters (like “all unshipped orders as of yesterday in the 'toys' category”)
• Scalability, customization, and easy integration of ad hoc modules, as neededTo meet the needs of the above-mentioned functional requirements, the following tools and applications are mandatorily integrated into the ERP system.
   

  Information Management Tools

  Data storage and information management with established workflow across different departments and functions are the backbones of any ERP system. Multiple solutions and tools are available for data storage, which include relational databases from companies like Oracle, Sybase, DB2, and open source free offerings like Microsoft MySQL, PostgreSQL, Apache Derby, etc. Other information management tools may include Content Management Systems (CMS) and repository applications.

  Depending upon the industry and required functions, an appropriate one needs to be selected. A manufacturer may find a transactional database like Oracle or MySQL to be more relevant as transaction-based data moves through different statuses (from manufacturing to inventory to order capture to sale to supply status). On the other hand, an online content writing company may find a CMS repository system with version control a better fit for their needs.The database or repository can be either a single centralized one, or multiple with automatic data flow from one database to the other. The defined workflow ensures seamless data movement. Databases can be hosted locally or remotely, or even in the cloud.

   

  Applications and Interfaces with Suitable Permission Control

  Data storage and management require read-only or editing access to process the data. Once items are manufactured, they need to be marked as ready inventory. The stock management department then updates it as ready for sale. Following a purchase, the item should be updated to sold status and so on.

  To accomplish this, easy-to-use applications and interfaces make an integral part of any ERP system that also has defined controls and permissions. For example, once an item is marked as sold, only logistics department operators should be able to update it further, while the ones from the manufacturing or inventory department should get view-only access.
   

  Similarly, for a content writing ERP tool, once a writer submits the content to the editor for review, only the editor should be able to modify it, to avoid any duplication and content conflicts.

  To enable such permission-based controls, applications, and interfaces to be built in, any ERP solution that may be browser based, desktop installations, or tablet/mobile apps. A manufacturing team at a stationary location will prefer a desktop-based interface, while a sales team constantly on the move will benefit from a browser-based interface or mobile app.

   

  Workflow Management Tool

  An ERP system constitutes of multiple modules and data repositories where data updates and actions follow a logically defined sequence based on the business needs. This constitutes the workflow. Workflow can be thought of as the mind-controlling the various body functions (flow of blood, air, food and other supplies, body parts movement, etc.). A clearly defined workflow with appropriate access at various levels is a necessary part of any ERP solution.