The Benefits of Small Business ERP Software Can't Be Ignored

The implementation of an Enterprise Resource Planning (ERP) solution by a small-to-medium sized business (SMB) provides advantages that can only be ignored at the risk of losing market share to your competitors. The fastest growth market for ERP vendors is the SMB sector. While it is estimated that less than 20% of SMBs have implemented ERP, most have done within the last 5 years.

Refusing to instigate ERP best practices into your business now could leave you hopelessly behind in the near future as other companies decide to implement small business ERP software and utilize it to their advantage. Benefits such as better information, more streamline data, and improved personal services are easy to see and apply to almost every type of business.

Streamlining and Revision of Data

The implementation of an ERP program can be complex; yet, it provides companies with the opportunity to reassess the strengths and weaknesses of their current practices. That operational review also provides the perfect time to review other, non-transactional data, such as information on different products, customer account information, supplier profiles, and other similar areas. This data can be used within the ERP system to streamline and revise data important to an enterprise.

Better Information

The analysis of the company’s cost structures that are possible using an ERP system’s reporting functions will also prove to be very beneficial. The ability to assess different profiles and information allows an enterprise to see areas that require improvement and enables optimized resource re-allocation. For manufacturers, small business ERP software allows goods to be tracked from the beginning to end of production.

The ability to see the process from raw material to packaged delivery will provide multiple opportunities to discover better workflows and transaction processes, as well as provide more accurate information about product costs and production lead times. Inventory can be optimized 15%-20%, which will free more cash-flow for investment elsewhere, reduce the product’s total costs, and increase profit margin.

More Beneficial Data Systems

As previously stated, the streamlining of data is a huge benefit of implementing small business ERP software that is derived from the use of a centralized database within the core system. Keeping all of the information available to the business's executives for instant access and updating is one of the key components of using an ERP system. Real time information at the ready enables them to make better informed decisions. Creation of valued reports can be reduced from hours or days to just minutes.

Finally, because all the modules are tightly integrated, information flows freely between the applications and human errors due to redundant data entry are eliminated. If a user enters incorrect information, the software will reject that data by providing an error message and information for required corrections.

Personal Services