Business Restraints
No organization or individual has infinite resources. And when it is about small business they face more resource constraints as compare to big ones. Most CEO from SMEs always deals with equal pressing demand of resources from all the corner of enterprise. When these precious resources are planned for some intangible investment like ERP, such investments sometimes are questioned by some of the stakeholder to prove their worth. Small businesses doesn’t need to go for big ERP’s as they will cover a lot of features that their business will not need instead they can go for ERP software for small businesses which are made keeping the necessities of SMEs in mind.
Why should you invest in ERP Software for Small Business
A tool to implement business plan:
ERP software for small business offers various business functions to implement business strategy across the organization. These business functions get designed comprehensively by keeping various possible scenario in to consideration and provide facility to configure the function to implement business strategy. Further it enables management to measure the effectiveness of plan by various readily available reports and provides sufficient insight to take corrective action if required. It can also be useful for various quality management system related requirements like ISO or Vendor Audit etc.
Better analysis and planning capacity:
ERP works as a digital nerve system for the enterprise and can provide right information at right time, which SMEs can use in making more informed and effective decision. While having complete knowledge about their strength, weakness and bottleneck SMEs can plan better utilization of resources and can achieve competitive advantage. SMEs can define their KPIs for all major business function areas and can measure performance of these KPIs for analysis. They can also realign their plan based on these findings.
Improved resource utilization:
Usually resources are classified in four category viz: man, machine, material and money. And it is one of major core objective of ERP (Enterprise Resource Planning) is to have better utilization of the resource of enterprises. SMEs can use ERP in smart way to eliminate all duplicate work or automate all process where ERP system can apply the logics. This saved man hours can used for more innovative works. Similarly ERP can be helpful in production planning, material planning, consumption analysis, payable management and receivable management. These are few examples where ERP can be helpful in better and improved resource utilization.
Better business performance:
ERP truly epitomize the popular saying ‘The whole is greater than some of sum of its parts’. With significant improvement in all key business areas – like Inventory, Production, Delivery, Finance, Quality, Improved Customer Satisfaction – it can enable major improvement on overall business performance.
Increased confidence & reputation:
Benefits mentioned above gives a kind of certainty to the business organization. All stakeholders whether they are insiders or outsiders like customers or vendors experience this positive change. With this improved confidence and enhanced reputation encourage company to take higher business challenges.
So now you can answer if you should go for ERP software for small business or not
In a nutshell ERP lets SMEs to achieve more with a smaller management team. Like earlier decade was about automation of production in SMEs, now with advancement in computer & IT, time has come for automation in management. A proper ERP implementation planning and careful execution can give phenomenal success to SMEs.
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