ERP Features vs. ERP Functions

Why the Difference (and Synergy) Matters for Your Business

An ERP system is designed to give businesses a competitive edge, but what truly sets successful companies apart is their ability to fully harness their ERP’s potential. By leveraging its capabilities to streamline operations, make data-driven decisions, and fuel growth, they turn the system into a powerful tool for driving efficiency and innovation.

The key to unlocking these benefits often lies in understanding the difference between ERP features and ERP functions.

At Precise Business Solutions, with 25+ years of experience helping businesses implement and optimise ERP systems, we’ve seen firsthand how crucial this understanding is for success.

When businesses clearly grasp how ERP features support and enhance ERP functions, they’re able to make more strategic decisions about which tools to use, how to configure their systems, and how to drive greater efficiency across their operations.

In this article, we’ll take a closer look at the distinction between ERP features and ERP functions, plus we’ll explore how this knowledge has empowered businesses to maximise the value of their ERP system.

What’s the Difference?

• ERP Features: These are the specific tools or capabilities built into an ERP system designed to make it easier for users to perform their tasks. Common and customisable features include real-time reporting, automated workflows, analytics dashboards, mobile access, and AI-driven decision-making tools.
• ERP Functions: These are the core business processes that the ERP system supports. Functions include managing finances, human resources, procurement, supply chain operations, manufacturing, and inventory control. These functions are what the ERP system is fundamentally designed to manage and optimise, driving the day-to-day operations of the business.

Why the Distinction Matters

Understanding the difference between features and functions enables businesses to fully harness the power of their ERP system. Let’s explore why this matters:

• Alignment of Tools with Processes: When features are aligned with key business functions, ERP systems become more effective. For example, a manufacturer facing production scheduling issues (a function) can benefit from workflow automation (a feature) to improve efficiency.
• Customisation and Flexibility: Not every business needs every ERP feature. By focusing on core functions, users can choose features that optimise them. For instance, a data-heavy business might prioritise advanced analytics to improve decision-making, avoiding unnecessary features.
• Scalable Growth: As businesses grow, needs change. Understanding features and functions helps scale ERP systems strategically. Expanding into new markets, for example, might require new supply chain features like supplier management or inventory tracking.
• Effective User Training: When teams understand both ERP functions and features, training is more efficient. For example, a finance team familiar with automated invoicing can streamline the AP function, reducing manual work and errors.

Case Study: Milne Agrigroup’s Business Transformation with ERP

Precise customer, Milne Agrigroup operates through several key arms of business, including the production and supply of high-quality livestock nutrition solutions, raising and managing livestock, and the provision of a range of services that support farmers and agricultural enterprises.

Milne’s integrated business model was designed to help them adapt to industry shifts, manage risks, and leverage their strengths for long-term competitiveness. However, their outdated business management system had led to systemic inefficiencies that compromised the effectiveness of this model.

While Milne’s transition to Epicor ERP was crucial in overcoming these inefficiencies, their success heavily depended on their ability to leverage the system’s features to meet their business goals. By recognising how real-time reporting features could enhance their financial management function, Milne optimised the way they track and manage finances.

This transformation not only improved Milne’s financial visibility but also streamlined processes, enabling faster, data-driven decision-making and boosting profitability.

As CIO Patrick Laitt noted, “The benefits of putting Epicor in are unbelievable. We’ve been able to increase our efficiency, understand our costs, improve our business processes, and really revolutionise the whole business, and our understanding of the business.”

Watch Patrick’s full interview to learn more about Milne Agrigroup’s digital transformation with Epicor ERP.

Unlocking the Full Value of ERP

Implementing an ERP system is a big investment, and it should do more than just function—it should drive real, measurable value for your business!

At Precise Business Solutions, we understand that ERP implementations are far more successful in driving business outcomes when companies have a clear understanding of how to align ERP features with their specific operational needs. By combining technical expertise with a deep understanding of business processes, Precise helps companies achieve this alignment to maximise the system’s impact.

The Role of Root Cause Analysis

At Precise Business Solutions, root cause analysis plays a critical role in helping customers fully leverage their ERP systems.

The relationship between root cause analysis and understanding the distinction between ERP features and functions lies in the ability to identify and address underlying business issues effectively. Root cause analysis helps pinpoint inefficiencies or bottlenecks within an organisation’s processes, ultimately ensuring that the right features are applied to address specific root causes.

When used effectively, this approach can dramatically enhance overall system performance and operational efficiency.

For example:

• Steel Blue leveraged real-time reporting and robust material requirements planning (MRP) features to improve their financial management and production planning Along with logistics and shipping integration features to connect with 3PL providers, they optimised shipment tracking, route planning, and cost management – cutting shipping costs by an average 50%.
• Hypex Electronics leveraged real-time inventory tracking features to optimise their inventory management function, improving stock control and reducing errors, leading to a time saving of 96% to process changes to an order fulfilment. Automated workflows applied to the resource management function resulted in a 20% reduction in overhead costs for the same output, while logistics automation features were leveraged to optimise supply chain management, reducing shipping costs by 60%.
• KLINGER leveraged Epicor’s product configurator feature to streamline their quote-to-order function, significantly reducing the time taken to process customised orders by 300%. While the packaging control feature aligned with functions like warehouse management and order fulfillment led to 50% time savings in locating and picking completed manufactured products.

Aligning Features with Functions for Business Success

Each of these cases demonstrates how ERP features, when aligned with the right functions, lead to significant operational improvements.

By knowing how to align the features of your ERP with your core business functions, you too can unlock new levels of efficiency, improve decision-making, and set the foundation for long-term growth.

Ready to Unlock the Full Potential of ERP?

Whether you’re already using Epicor ERP or exploring a new implementation, we can help you maximise the impact of an ERP on your business.

Inspired to Act?

Book a Discovery Call with our ERP expert in the Benelux region to learn more about how an ERP system can transform your business.

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