As greater technology becomes more accessible, smaller businesses are acquiring tools previously available only to large corporations. Nowadays, small and mid-sized companies are working in steps with big-league players, creating a wider pool of competition and an added level of urgency for those lagging behind.
As businesses of all sizes are proliferating, managers are increasingly expected to utilize and offer technologically advanced service, and the need for implementing new tools and methods is a must.
Enterprise Resource Planning (ERP), is an increasingly popular trend among small businesses for the variety of benefits it offers. If you’re on the fence about whether or not your business is ready for ERP, we’re breaking down what you can expect from this technology.
Enterprise resource planning is a business process management software that enables organizations to use a system of integrated applications to manage a businesses-process and automate various functions.
Depending on your software, everything from customer relationship management, human resources, and entire accounting infrastructures can be managed by ERP systems. Here comes the importance of ERP.
Increased Productivity
Profitability in business stems from productivity. With ERP software, important data and information from all of your business departments can be made available on a single platform, exactly when you need it.
Eliminating the need for numerous documents and excel spreadsheets, or having to seek out individuals from each department. The organization of data in a central location, clearly demonstrates where you’re team is succeeding as well as areas with room for improvement.
These sorts of simplifications are part of the reason, 96 percent of top-performing businesses rely on ERP.
The housing of data in one place can also improve employee collaboration for small businesses. While poor communication is often the result of employees not having access to the data they need, a central location can eliminate that.
ERP solutions can facilitate better communication and collaboration through data access, allowing employees to see the big picture of a businesses’ goals rather than just their confined department.
Improved Decision Making
ERP systems’ ability to provide real-time data can simplify management, marketing, and accounting teams’ decision-making process. With easy access to important information, business leaders can make vital decisions efficiently and thereby reduce the risk of overdue deadlines.
Reduced Error
Automation has been a buzzword this year for numerous technology developments. In terms of ERP solutions, automating data capturing and organizing makes for far less human error occurrences, such as missed orders, inventory mistakes, or miscommunications.
With a more reliable system, you can expect your customers to receive consistently positive experiences and a boost in your employee’s confidence and satisfaction.
Going hand-in-hand with reduced error is ERP’s impact on reduced company waste. Providing a real-time insight on where workflow improvements can be made, expiration date tracking and automated inventory refills, the chances of over-ordering are greatly reduced.
Reduced Costs
While implementing an ERP software solution may require more money upfront, the long term savings are significant. Improved accuracy and automation powered by an ERP software platform can benefit operations management and efficiency.
This, in turn, can bring unprofitable areas to attention resulting in reduced control and inventory management costs. Additionally, with ERP’s assistance in reducing the number of manual processes employees are expected to complete, they can spend more time on more important, profitable projects.
All in all, improved workflow results in decreased turnaround time and increased production, resulting in more profit.
There’s no better time to start exploring the possibility of ERP for your small business. As competition in business continues to increase, utilizing technology that can assist in all management solutions can keep you at the top of your game.
With this information, we encourage you to find your preferred software and experience the benefits of enterprise technology.
This guest post is written by Maddie Davis.
Great Article. Thanks for sharing the info about the importance of ERP. It was very helpful to me.