ERP Solution for Small Businesses

ERP is a business management solution for businesses struggling with operational issues. It helps manage and control all the functions, including planning, production, purchasing, manufacturing, sales, distribution, accounting, and customer service.

ERP for small businesses is a boon to stay competitive in the market. It collaborates across all the business departments making data visible to all. ERP software has a centralised database which integrates financial information and customer information.

Types of ERP systems

Businesses widely use enterprise resource planning software across the world. There are three types of ERPs used by all types of companies.

On-premise ERP

In this type, the hardware is maintained and supported by the IT professionals of the company. The software is installed on desktops or devices that can be only used only in the office location. Large organisations prefer using an on-premise ERP.

Cloud ERP 

Cloud ERP is the best and most cost-effective solution for all businesses. The ERP vendor provides the software and the support. Cloud can embrace all the latest technologies, and the vendor offers support and updates. Companies have to pay each time to renew their license. The payment is subscription-based.

Hybrid ERP 

A hybrid ERP system is a combination of ERPs, it can be two cloud systems or an on-premise and a cloud. This type is also known as Two-tier ERP. Large organisations avail these systems as the processes can be operated with ease. The only complexity is that the two ERPs should integrate well to share data easily.

Benefits of ERP for small businesses

It is a misconception that you believe that ERPs were created for only large-scale industries. Earlier, when ERP was invented, focusing on the requirements of large enterprises. But the truth now is that modern ERP systems can fulfil the requirements of both small and large businesses. It can integrate all business functions in a single place.

Even if you are a small business, take advantage of this brilliant solution to successfully run your business and stay competitive in the market. It helps small businesses in the following ways. 

Share information across departments

All the business processes are connected to a single system, so data sharing across departments is simple. ERP streamlines all business operations efficiently, making them accessible to all users. 

Increase productivity

Automate all processes by avoiding unnecessary work, reducing operational costs, removing all bottlenecks, and maintaining a smooth workflow.

Acquiring Business intelligence

Business intelligence enables executives to use accurate data and reporting to track progress, performance and productivity. It gives precise insights into the business for better decision-making.

Easy management

After installing ERP for your company, it’s easy to plan and schedule tasks on time. ERP is the backbone of the business, so it should ease management responsibilities. This will enable strategic planning and a healthy budget. And a healthy budget will improve the financial health of the organisation. 

The most significant part of the business is data. ERP helps to collect, analyse and organise data with ease. Any user can access data from a centralised database. This improves communication and collaboration across the business departments. Plus, all the data is stored in one place.

ERP helps track the latest regulatory standards and helps the company adhere to all those compliance. The workflow is well organised with real-time visibility, which helps in easily complying with the standards. 

If you have invested in the right ERP system, it will help in identifying new opportunities. And it will assist in the right way to stay competitive.

Risk management

Real-time visibility of data is a rich feature in ERP. When all the operations are clear and visible, it will be easy to identify any future risks and eliminate them in advance. 

Forecasting demand and supply

Demand supply can be analysed by a blend of statistical analysis, business reports, business sense, knowledge of events and evaluating sales reports. ERP solution helps in getting all this information. 

Error-free accounting

ERP easily and completely integrates with all the core modules like purchase, manufacturing, inventory and sales, making accounting and financial reporting simplified and accurate.

Better customer support

Customers are the priority of any business. Happy customers enable your business to be successful. ERP system stores all the customer information like their purchase history, the number of times they purchased, the time they made a purchase and much more information. With all these details, it will be easier for the customer executives to give them the right support and make them loyal customers.

ERP gives access to the customers also to track their orders, like the location and where their product is coming from.

Do small and large businesses use the same ERP?

Logically everyone in the business knows this answer. It’s a no. ERP for large companies is more advanced and longer. Larger enterprises have complex daily functions to deal with, which is impossible to do manually. 

ERPs were introduced for small businesses when the software price came down. Plus, ERPs were widely implemented during the pandemic covid 19, as companies feared shutdowns. Small businesses generally do not require complex systems such as highly advanced with multiple functions level software. And the cost of the large ERPs are unaffordable for small companies. It is a fact that small businesses can easily adapt to any changes. 

ERP for small businesses is designed differently in contrast to the large ones. Even their documentation and implementation methodology are distinct. 

In the current scenario, modern ERP or cloud has made the software accessible to small and large firms. Plus, its customisable options are a boon to small businesses.

How does ERP for small businesses facilitate growth?

ERP is an advanced and innovative solution for businesses to gear up their growth by automating all business processes. The current innovative software can help small businesses in multiple ways to achieve growth and stay competitive.

• Simultaneously performs multiple functions.
• Accurately completes tasks on time.
• Eradicate all purchasing errors.
• Boost production efficiently.
• Minimise operational costs.

Conclusion

Enterprise resource planning software will boost the operational efficiency of small businesses. Choose the right vendor and do all the research before investing in an ERP. Even though you are a small business, you will be organised and will be looking forward to the expansion. Cloud technology is an efficient business management system for small businesses. It is a suite of rich features helping to run the business seamlessly. Customisation is also an enriched option for helping your business. Make the right choice and implement the best for your business.

Author’s Bio: 

Ishant is an SEO expert with a rich and long history of helping companies across industries to rank high on multiple search engines. Currently, he’s working with Sage Software Solutions, a leading ERP, CRM, and HRMS provider in India.