What are the most common business processes automated by an ERP system?

I feel Sales, Procurement and MRP are the most automated processes. Finance comes next with rest of supply chain functional areas.

From my 25Years of Experience in implementing ERP, I would say that pretty much everything can be automated, but it depends on the the industry and their priority, for example it could vastly differ from a Retail to Manufacturing sectors. Having Said that Automated Planning,System driven procurements, Accounts Payable & compliance are in frontline. And with Integrations like IOT, Credit card and ecommerce, Manufacturing pricesses like scheduling & Batch Manufacturing records , Travel expense mangement are also most common requirements.

In my journey with ERP software, I've seen its transformative power, especially in accounting and finance. Before, our team was swamped with manual tasks—reconciling accounts, processing invoices, and generating financial reports. Instantly with an ERP, our workflow changed. Accounts payable, accounts receivable, and even complex financial reporting became automated tasks. What used to take us days, now took mere hours or even minutes. The system also provided real-time visibility into our financial health. It was like adding a new team member who was incredibly efficient. The ERP didn't just simplify our work; it elevated the entire department. We could focus on strategic tasks and make data-driven decisions.

P2P : Procure to Pay and O2C : Order to Cash While the rest of the world thinks what they are doing, bottom line and benchmark is that what we sold and what we purchased. Finally what profit margin we made.

ERP can automate anything you need but - the we should use ERP as automation for the activities which business does repeatedly consumes time like And which needs no control Like Automating something to print when we have a trigger point .. Think of a situation if automation is not there - what would be happening.. Automation means no Manual intervention involved and make system intelligent enough to perform tasks.. Like automation using batch jobs - defining system to perform a task at certain time on certain days.. I have automated things like creating a notification or generating a report or lets sending mail to someone at certain time like customers… Choosing a automation task is very critical descion to be taken …

Before our ERP system, managing our warehouse felt like navigating a labyrinth. Stock levels were unpredictable, and shipping was a manual headache. Then we implemented ERP. Suddenly, we had automated alerts for stock replenishment and streamlined order processing. The impact was immediate: fewer errors, reduced costs, and happier customers. Now, we even use historical data to predict future inventory needs. The ERP system didn't just simplify tasks; it revolutionized our entire inventory management.

A few ERP's now provide Advance warehousing capabilities that empower the warehouse personnel to not only perform mundane pick and put operations but also take decisions regarding over / under quantity, printing labels, overriding pick / put locations in case of unforeseen scenarios, inquire status of any item / location in the warehouse, perform cycle counts, etc all on their finger tips - in their mobile device.

An ERP typically includes an integrated inventory management system that interacts with various modules such as sales, procurement, manufacturing, maintenance etc., impacting stock management. Mature ERPs also offer advanced warehouse management features: -Multi-dimensional location addressing. -Barcode and RF integration. -Handheld device compatibility. These systems not only store part addresses but also facilitate processes like part picking in shipment processes, material allocation for manufacturing. We fully utilize these inventory management functionalities in our IFS projects. Some companies may require a robotic-supported warehouse system, such as KARDEX. We had IFS integration projects with these type of systems also.

An efficient ERP will do its job in keeping the process clean and robust with all sorts of validation. Business have evolved with changing times a business needs to evaluate this data at various levels for future decisions.

With thousands of products stored across numerous warehouses, tracking inventory manually would be impossible. Here, an ERP system automates inventory and warehouse management tasks. It tracks product quantities, their locations within warehouses, and movements between facilities. Through data analysis, it optimizes inventory replenishment and allocation, ensuring products are restocked before running out and placed strategically for efficient order fulfillment. Additionally, the ERP manages warehouse layout and operations, suggesting the best storage spaces for different products based on demand patterns. We have been currently working on the automation of most of these processes with the organization such as the integration of bots or RPA

Supplier invoice processing is one of the main process that requires a lot of human effort. This can be considered as a low-skill task where invoice clerk has to look at the soft copy/hard copy of the invoice sent by the suppliers and enter into the ERP system. Automating this process (invoice verification) will give a lot of benefits to the business. Invoice extraction from emails and posting them to the ERP system can be automated. Some of the ERPs provide there own tools and technologies for automation. For example automating invoice processing of SAP S4 Hana cloud ERP can be done using SAP BTP Digital process automation suite.

ERP's when implemented tuned to organizational goals in Purchasing and Procurement space can have long term impacts in the below core areas: Supplier Selection and Onboarding Supplier Contract Management Requisitions & Purchase Order Management Commodity Management Receipts & PO Matching (2/3/4 Way) Invoice Management & Tax Validation Automated Payment Processing An integrated system can provide spend analysis, supplier performance management, contractual v/s non contractual spend, early payments and dynamic discounting. This provides the management strategic inputs on the areas of optimization while ensuring efficient functioning of the business.

In my consulting experience, I've seen how manual purchasing and procurement can be a bottleneck. One client had invoice clerks tediously entering supplier invoice data by hand, a process ripe for errors. Then we implemented a generic ERP system. Overnight, tasks like creating purchase orders and processing supplier invoices became automated. The system even had built-in tools for extracting invoices from emails. The outcome? Fewer errors, improved supplier relationships, and reduced costs. The ERP didn't just automate; it transformed the entire procurement workflow

Automating Purchasing and Procurement processes is a dynamic challenge that demands innovation beyond the capabilities of ERP systems alone. While ERP systems effectively streamline procurement procedures, they do not entirely eliminate the need for human intervention. One common observation is that organizations tend to allocate more personnel to manage expenses compared to those involved in revenue recording.To address this, a forward-thinking approach involves integrating Robotic Process Automation (RPA) or Electronic Data Interchange (EDI) alongside ERP systems. This combination empowers organizations to take a significant leap towards true automation.

3-way matching is a process that removes the bottleneck of manually processing purchases and procurement, ensuring that the following three documents match before an invoice is scheduled for payment: 1) the details of what was ordered - via a purchase order 2) the supplier’s invoice - ensuring it is legitimate and ready to be paid 3) the delivery receipt / goods receipt note (not included in two-way matching) The AP team investigate any discrepancies in the matching process - saving time and money by: capturing discounts for on-time payment, avoiding late fees for missing payment deadlines, preventing fraud, and enabling staff to focus on higher-value activities. 4-way matching adds inspection reports to the process for quality tolerances.

Production process is also handle by ERP System. There are multiple factors are involve in production process like production order, check availability of raw material and resources as per order, job card/routing, manage of WIP process, machines, resources etc. To cover all these elements manually is very tedious and time consuming. ERP helps this important factor to automate and give hassle free environment on production floor. It also provide MIS to analyse production process and ensure timeline adherence to complete all WIP process to deliver finished good to customer place on committed time duration.

In my consulting journey, I've seen businesses struggle with disjointed sales and marketing efforts. I remember one client where the sales team would manually enter customer data, create quotes, and process orders. The marketing team had their own set of tools, making it hard to measure ROI or align strategies. Then we introduced an ERP system into the mix. Instantly, the landscape changed. The ERP system automated everything from lead management to quote creation and order processing. It even had built-in analytics to measure sales and marketing effectiveness. The ERP system didn't just automate tasks; it acted as a catalyst, aligning sales and marketing efforts and driving growth

In an ERP system, the automation of sales order processing and the input of customer data, including contact details and automated pricing, contribute to a significant reduction in manual errors.

SAP? Job Scheduling and Workload Automation Replace or enhance various SAP job schedulers that either lack functionality or are no longer supported by SAP now or in the near future Schedule jobs on both SAP NetWeaver or SAP S/4HANA simultaneously Power your transition from on-prem to the cloud by centrally managing jobs in a hybrid IT environment Create sophisticated workflows that run jobs across both SAP and on other third-party applications

Marketing campaigns via EDMs, SMS & social publishing are frequently automated by marketers for lead generation, promotion, invitation to events & customer retention. The automation can be time-based or event triggered. Specific audience can be targeted & customer journey ie automatic workflow can be designed for every campaign for the best customer experience. Personalisation & dynamic content can be included and are important to attract the specific audience with specific interest to act, such as signing up for a newsletter or registering for an event. Marketing automation is helping enterprises large & small to scale and run omni-channel marketing campaigns effectively and efficiently with only a small team & measuring ROI in real-time.

HR solutions in mature ERPs like IFS provide a wide range of functions. These include: - Person Management - Employee Management - Organization Management - EmployeeDevelopment - Onboarding - Training - 360 degree Performance Management - Jobs, Qualifications - Self Service Portals - Surveys Payroll is a complex topic due to varying calculation methods and frequently changing legal regulations in each country. In multinational ERP systems, local country offices and partners typically handle the development of these solutions. There are also specialized payroll solutions capable of calculating payroll for multiple countries. Some multinational organizations prefer to use one of these dedicated solutions and integrate it with their ERP system

In my consulting career, I've often encountered HR departments drowning in paperwork and manual processes. One client was particularly overwhelmed with manually calculating payroll, tracking attendance, and ensuring compliance with labor laws. The team was stretched thin, and employee engagement was suffering. That's when we decided to implement an ERP system. The transformation was immediate. The system automated everything from recruiting and onboarding to payroll and benefits management. Compliance reporting became a breeze. The ERP system didn't just automate HR tasks; it redefined the entire employee experience, from recruitment to retirement. It's not just a tool; it's a strategic asset for any organization

HCM SaaS is critical for most companies. Business processes like Hire-to-Retire, Payroll-to-Payment, Recruit-to-Onboard are crucial for enterprises that would like to ensure a smooth experience for new hires as well as existing ones. A HCM SaaS should expand the value of your data with pre-built and customizable HCM analytics to quickly monitor, align and act on critical workforce insights.

ERP can help in automating employees time entries, Leave applications, travel requests, reimbursements, Investment declarations, Tax proof submissions etc. In this way, employees and employer both have single source of truth which is ERP system. This also provide seamless experience to view payslips and statutory reports like Form-16 etc. Employees performance appraisal can also be automated using ERP.

Streamlining operations related to payroll, employee onboarding, and performance evaluation to optimize workforce functioning.

Project management is critical and the require automation and streamlined process are viable via these collaboration techniques and viability .

For standard manufacturing or service industries, project management typically involves the ability to define resources, track activities, and create Gantt charts within your ERP system. It serves as a valuable project management tool within the ERP. However, in Project-Based Industries, this functionality falls short, and the significance of project management becomes paramount. This is where ERP solutions like IFS, with a dedicated focus on project industries, shine by offering industry-specific solutions. These encompass crucial elements such as project-based manufacturing, budgeting, WBS-CBS capabilities, performance tracking, KPI'S, project-based (inventory, finance, accounting, procurement, manufacturing and planning like P-MRP)

ERP excels in project management because it links sales, planning, Timesheet, task distribution, management, and project analysis in a powerful and effective way.

Actually Project management one of the critical business model in managing any business projects so the automation of project management processes the soul of successful project and to deliver the project in the expected quality and on time within the actual budget assigned.

Set project budgets and track expenses in real time. This helps project stakeholders to monitor project costs and make necessary adjustments to stay within the allocated budget.

ERP system, is not just about automating invoices or streamlining the accounts department. It's about achieving a 360-degree transformation by seamlessly integrating every facet and process within organisation. ERP have the remarkable potential to bring together every department, from the smallest operational tasks to the larger strategic initiatives. What's important to remember is that ERP implementations are not static; they should be seen as dynamic endeavors. There's always room for improvement and innovation. New and smarter ways of conducting our daily business processes should continuously be integrated. This adaptability ensures that we stay ahead in a constantly evolving business landscape and maximise the benefits.

Following process should be automated in my perspective: 1) Procurement : inventory management, replenishment , order management, fulfillment 2) Financial reporting and reconciliation 3) HR and Payroll 4) customer (CRM)

One of the most important processes I personally like to automate in any organization is the decision making process, that allows most of the decision making people get involved in taking the right decision based on the desired destination and the submitted information.

RPA can handle repetitive, rule-based tasks, reducing manual effort and error rates. Meanwhile, EDI facilitates seamless communication between systems, suppliers, and customers, expediting order processing and reducing data entry overhead. This will bring the actual automation to the entities.

Modern ERP projects demand modern approaches to implementation - many consultants will tell you that “you cannot implement ERP using an Agile approach - it does not work”. This is simply not true! It just means that they do not have the experience and knowledge to do so. Agile/Scrumban/hybrid approaches can and do work - many consulting organisations have successfully used these approaches for years! Consider carefully whether you want to engage with consultants who say otherwise!