What is ERP Workflow and How Does it Work?

How Does ERP Work?

An ERP software is built to offer a centralized platform to manage all aspects of your business applications. The ERP solutions can automate the ERP workflows as they come with built-in business intelligence and provide access to real-time data with the help of machine learning and AI capabilities. 

ERP software ensures all business applications are connected and sufficient resources are necessary to run the business end-to-end. Here, the business applications are known as enterprise modules that focus on a specific business area that aligns with the company’s needs. 

In ERP, there is no one-size-fits-all approach as each enterprise module will be unique so the company has to choose which one suits them best. The best way to leverage the maximum benefit from an ERP system is by eliminating data silos and streamlining business data into a centralized location.

ERP Modules and Functioning

Key Aspects

There are several key factors of an ERP workflow that make it commendable such as:

Process automation

ERP workflows are designed to orchestrate and automate different business processes, including procurement, HR, accounting, order fulfillment, supply chain, etc. 

Consecutive steps

Generally, the workflow in ERP follows a sequence of steps that defines the tasks to be completed involving different departments and users.

Role-based permissions

Since ERP workflows are implemented enterprise-wide role-based access helps maintain security and control over sensitive information as they can be accessed only by authorized individuals or departments.

Data integration

To ensure seamless data flow, workflows in ERP connect with different modules. For instance, a sales order workflow might interact with financial modules and inventory management. 

Decisive points

Workflows in ERP include several decision points to ascertain eligible criteria are met. This is to ensure that the workflow is flexible and adaptable. 

Reminders and notifications

The automated ERP workflows trigger reminders and alerts to notify stakeholders about the progress of the process and when prompt action is required. 

Effectiveness

ERP workflows are designed to minimize human intervention, eliminate manual data entry, and accelerate the process execution thereby maximizing efficiency. 

Customization

The ERP systems are designed to be customized to suit each business’s unique needs. This adaptability is a crucial factor in getting the most out of the ERP systems. 

Reporting and evaluation

The auditing capabilities of ERP workflows are essential to keep track of the history of activities that allow organizations to study their operational patterns for future performance. Also, reporting tools are essential for documenting the effectiveness of the workflow. 

The basic functioning of an ERP workflow

In an organization, an ERP workflow focuses on orchestrating different departments and their functionalities by streamlining information flow and automating tasks across various ERP modules. Here’s a breakdown of how an ERP workflow functions:

• Planning and procurement 

The process of production planning commences with analyzing historical data and forecasting to optimize material requirements. This information is then relayed to the purchasing module. It takes care of automating tasks involving supplier identification, negotiating prices, and placing orders. 

• Inventory management

The ERP system regularly monitors inventory levels based on sales and production plans. It helps with reordering points, suggesting replenishment techniques, and tracking material usage to ensure there are adequate stocks to fulfill production requirements.

• Sales and order fulfillment

The sales module is responsible for handling orders, scheduling production, and generating shipment information. The system ensures that invoices are generated and payments are made on time.

• Financial management

This is the core ERP module that gathers financial data from different departments involved in the production process from sales to procuring raw materials to final production. This financial data is used to prepare balance sheets, general ledgers, and other essential financial statements to get a clear picture of the company’s financial health. 

• Human resources

This module is responsible for maintaining information containing employee records, contact information, salaries, attendance, and performance evaluations. The centralized system helps with efficiently managing the workforce and optimizing the process as a whole. 

• Marketing and customer relationship management

Some ERP systems include marketing and CRM functions to support lead generation, manage customer base, track buying trends, and provide useful insights for targeted marketing campaigns. 

Challenges in Implementing ERP

Implementing an ERP system is not a simple task to achieve as it comes with its fair share of challenges. The process involves planning, designing,  configuring, deploying, and testing an ERP process. 

ERP systems are generally acquired through mergers and acquisitions which get burdened with add-ons, extensions, and customizations. This affects teamwork as it limits visibility and collaboration from multiple sources and creates silos. 

On the other hand, failure to set up an appropriate system will frustrate the employees, and they will circumvent the actual process and bypass their purchases. This affects the efficiency of the procurement as a whole and complicates spending management. 

Moreover, financial specialists would already be burdened with tasks that create zero value such as responding to supplier and employee requests on incorrect data in a delivery order, pending invoices, and non-delivery of goods, etc. 

Automation and ERP – The Powerful Pair

Automation is the key to the successful implementation of ERP and to overcoming the above-mentioned challenges. ERP workflows combined with automation make it a powerful duo. 

The automated ERP system is a cloud-based software that helps businesses transform from paper cabinets to streamlined digital operations. Automating ERP workflows improves compliance and makes businesses more confident in operating efficiently in today’s competitive market.

With cloud ERP adoption exploding in recent years the global market has grown from $64.7 billion in 2022 and is expected to increase to $130 billion by 2027. You can witness exponential growth in businesses adopting ERP systems. 

How? Automated ERP systems enable businesses a wide range of benefits – you can create single, group, or multi-tired approvals and run parallel/sequential flows simultaneously. It comes with automated reminders, triggers customized notifications, and timeouts to keep stakeholders informed. 

Users can easily track progress and managers can set up KPI dashboards with in-built time-stamped audit trails to keep track of all activities in a prowess flow. With conditional logic and rules, you can design dynamic forms, make the flow flexible, and integrate different third-party applications using API. Data management becomes simpler as it is stored securely in the cloud. 

ERP’s Business Value

ERP systems combine ERP data and processes that align with different departments, significantly improving workflows and reducing operational costs. ERP workflows are beneficial in many ways:

• Real-time reporting improves business insight from real-time information.
• Through streamlined business processes, operational cost is significantly reduced.
• A common user experience is established with well-defined business processes that improve efficiency.
• Since everything is managed centrally, a consistent infrastructure is achieved throughout the organization.
• Enhanced user experience leading to higher user-adoption rates
• Improved data integrity and better financial control resulting in reduced risks.
• Uniform and integrated systems lead to lower management and operational costs.

In order to leverage the maximum benefits of an ERP system you need to choose what suits your business best. Below is a curated list of some of the top ERP tools of 2024.

List of Best ERP Tools in 2024

1. Cflow

Cflow is a cloud-based AI-powered workflow automation software designed to streamline all your enterprise operations effectively.  Cflow offers complete comprehensive automation solutions to assist different businesses – manufacturing, asset maintenance, supply chain, and other service-oriented operations. Cflow offers industry-specific functionality through a unified data model by incorporating digital innovations.  

Key features

• No code Form Builder
• Workflow designer
• Visual Drag & Drop Workflow Designer
• External API access and Web API
• Bulk approval
• Industry-specific modules
• Integration
• Fuzzy search
• Kanban
• Routing and notifications
• Customization
• Cloud storage
• SLAs and Escalations
• Reports and analytics
• Custom access permissions
• Native mobile app (Android and iOS)

Pricing

Cflow offers comprehensive pricing plans for enterprises –

Happy at $7/user/month;

Joy at $11/user/month and $16/user/month.  

2. Sage Intacct

Sage Intacct is a cloud ERP system for small and medium businesses (SMBs). The platform allows businesses to optimize key operational processes in HR, payroll, and finance to enhance business efficiency. Sage focuses on improving collaborative relationships through advanced technologies and strategic partnerships ensuring smooth business activities. 

Key features

• Dynamic allocations
• Salesforce integration
• Accounts payable/accounts receivable
• Purchasing
• Contract revenue management
• Inventory management
• Reporting and dashboards
• Spend management
• Accounting
• General ledger

Pricing

Sage offers pricing plans on request. 

3. Epicor Kinetic

Epicor Kinetic is a renowned company offering enterprise solutions for over 50 years. They focus on automotive, manufacturing, building supply, and retail industries. Epicor offers innovative solutions curated to specific customer needs. The platform is scalable to suit the fast-changing industry trends. 

Key features

• Deep manufacturing expertise
• Integrated functionality and modules
•  Real-time reporting 
• Mobile accessibility

Pricing

Epicor offers pricing plans for enterprises based on specific modules and business requirements. 

4. Acumatica Cloud ERP

Acumatica Cloud ERP is a web-based ERP system that is designed for mid-sized businesses. It focuses on streamlining different business processes like finance, CRM, manufacturing, project management, etc. 

Key features

• Barcode scanning feature for warehouse and inventory transactions
• Role-based reporting
• Integration
• Mobile applications
• Integrated document management
• low-code/no-code modification capabilities
• Industry-specific modules

Pricing

Acumatica provides information regarding pricing plans on request. 

5. Infor M3

Infor M3 is a powerful ERP solution that focuses on medium to large manufacturers, distributors, and service providers. It streamlines different operations from finance to inventory and production to sales. 

Key features

• Core business management
• Industry-specific modules
• Scalability options
• Modern user interface

Pricing

Infor M3 offers pricing information on demand for enterprises. 

6. Certinia ERP Cloud

Built on the Salesforce platform, Certinia is a customer-centric cloud ERP solution designed to streamline and automate financial operations. 

Key features

• Unified customer view and KPIs
• Automated workflows
• Real-time reporting and multi-dimensional business analysis
• Salesforce integration
• Role-based 360° views

Pricing

Offers user subscription and customized pricing plans. 

7. IFS Cloud

A cloud-based ERP solution focusing on streamlining operations for various industries especially those asset-intensive like manufacturing and aerospace. It offers deep functionalities for managing the entire asset lifecycle. 

Key features

• Centralized integration of different processes in a single platform
• Advanced asset management
• Specialized modules for industries like energy, aviation, and construction
• Customization and flexible integration with third-party business tools.

Pricing

IFS offers pricing plans on demand. 

8. Odoo ERP

Odoo ERP is an open-source software offering a wide range of functionality that comes with features to manage CRM, inventory, and much more. It’s user-friendly and easily scalable for businesses. 

Key features

• Modular design
• Scalability
• Open source
• User-friendly interface

Pricing

Odoo offers three pricing plans – 

• Free plan ideal for small businesses
• Standard plan starting at $6/user/month
• Custom plan for $10/user/month with advanced customization and on-premise hosting

9. ERPNext

ERPNExt is regarded as the best value ERP system as it’s completely free and open source. The platform comes with tools to optimize process flows related to CRM, content management, order management, payroll, human resources, and inventory management.

Key features

• Comprehensive modules (accounting to manufacturing to asset management)
• Custom fields and forms
• Role-based permissions
• Scripting and integrations
• Responsive design
• Customizable dashboards
• AI
• Auto-generated invoices
• Lead analysis
• Training and support

Pricing

• Free version 
• Paid hosting options start at $50/month for unlimited users. 

10. Katana Manufacturing ERP

Katana offers unique ERP solutions for manufacturing companies. Katana enables automating material reallocation and product planning based on tracking resource availability thus uncovering any unforeseen risks. It offers purchase order management features to let businesses know when they need to buy raw materials from suppliers, track supply chain delays, and keep employees informed. 

Key features

• Real-time coasting tools for informed decision making
• Contract management workflows
• End-to-end traceability
• Real-time inventory management
• Planning and forecasting
• Warehouse management
• E-commerce and accounting integrations
• Barcode scanning

Pricing

Katana offers three pricing plans – a starter plan at $179/month billed annually ($199 billed monthly ); a standard plan at $359/month billed annually; a professional plan at $799/month billed annually and a professional plus with custom pricing for large which is best for large scale enterprises. 

Cflow’s ERP Use Cases

Cflow with 100k+ users has been used globally by some renowned organizations to streamline their operations and improve organizational efficiency. Here are some of the use cases where Cflow has transformed some of these enterprise processes. 

Cflow and Godrej

Godrej Capital, a renowned financial services company was facing difficulties with slow and inefficient purchase orders and invoice approval process. This is due to the manual handling of these processes via emails and spreadsheets. They turned to Cflow, an AI-powered no-code workflow automation solution to streamline these processes. 

Implementing Cflow resulted in a significant reduction in approval time which improved identifying bottlenecks and helped improve inefficiencies. Automating POs and approvals improved onboarding resulting in effective partner integration. 

Cflow and NutriAsia

NutriAsia, a renowned producer, marketer, and distributor of condiments and quality sauces in the Philippines experienced a phenomenal surge in demand that required rapid expansion. In order to manage the increasing number of capital expenditure (CapEx) requests, they implemented Cflow. 

Cflow with its AI-powered workflow automation streamlined CapEx approval processes, reduced cycle times, and improved information accessibility resulting in increased productivity and employee satisfaction. This encouraged NutriAsia to automate their other workflows with Cflow.  

Cflow and Metier Food

Metier Food founded in 2017 is a fast-growing health foods company that struggled with manual approvals for processes like inventory transfer and order fulfillment. This led to delays affecting productivity and low visibility over requests as they were manually handled by employees using spreadsheets and emails. To address this problem, they implemented Cflow, an AI-powered no-code workflow automation solution.

Cflow helped Metier Food by automating those processes which eliminated redundancies and reduced bottlenecks. Over 25 of Metier Food’s processes were automated which reduced labor-intensive approval-based tasks. This resulted in significant time savings, improved efficiency, and streamlined approval workflows. 

Conclusion

ERP facilitates managing and streamlining organizational functions, workflows, and processes with automation and integration. The current dynamic business world needs enterprise infrastructure to support critical processes. As business processes are the building blocks of organizational success, technology has always been the deciding factor in helping to fulfill corporate visions and improve competitive advantage. This is why it is essential to have the right ERP system for your business. 

Ready to transform your enterprise processes? Try Cflow. Talk to our experts today by signing up for a free demo today!

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