ERP (Enterprise Resource Planning) software was once considered a luxury reserved for larger businesses. Reason? The complexity and scale of operations.
However, today’s small and medium businesses deal with the same set of challenges. Juggling growing competition, operational challenges, and evolving customer demands is just as daunting for them as well. Thus, ERP software for small and medium businesses isn’t just good-to-have anymore. It has become imperative.
Now, at the core of every ERP are its features. They simplify various business functions and help companies generate more value from their efforts. Hence, selecting an ERP with the right features is crucial for your business’s success.
If you are a small and medium business new to ERP and unsure about the features you must consider, this blog is for you. It discusses the top seven features an ERP must have.
- Inventory Management
Inventory availability is instrumental for a business’s success. Understocking can lead to missed opportunities. Overstocking can lock up your capital. Therefore, managing inventory is critical. It helps you optimize stock levels, reducing the risk of understocking and overstocking.
For example, a boutique can use ERP inventory management to track in-demand styles and sizes. Real-time tracking prevents understocking, ensuring customers get what they want and precisely when they want it. On the other hand, it also avoids overstocking so that businesses don’t engage excessive capital in slow-moving items.
- Production Planning and Scheduling
Production planning and scheduling are complex aspects of manufacturing businesses. It can make or break their output. ERP software for small and medium businesses enables real-time visibility into resources, materials, and production timelines. Such clarity helps reduce bottlenecks and downtime that can cost time, money, and reputation.
For example, small and medium furniture manufacturers can plan production operations more effectively with ERP. It can help them align material availability with customer orders. Synchronizing all these elements helps reduce delays, ensure optimal machine use, and expedite delivery. The result? Improved customer satisfaction.
- Financial Management
Working with manual spreadsheets can be time-consuming and error prone. ERP lets you upgrade, helping you manage your finances better. It enables you to integrate accounting, budgeting, expense tracking, and financial reporting in a single platform.
For instance, a small and medium-sized consulting firm can efficiently track its billable hours, manage client invoices, and monitor cash flow in real time within the ERP system. It can increase billing accuracy and give decision-makers a clear view of project profitability.
- Customer Relationship Management (CRM)
CRM is another essential feature to look for while choosing ERP software for small and medium businesses. A robust CRM module, integrated with CRM, helps you manage customer data, sales pipelines, and marketing campaigns. These efforts can help you engage in more personalized and consistent customer interactions.
For example, a small and medium food distributor can use ERP’s CRM tools to track client orders, analyze buying patterns, and follow up on leads. These capabilities can translate into more targeted promotions and unlock long-term customer loyalty.
- Supply Chain Management
As a small and medium business, you may find it challenging to cope with supply chain complexities. But ERP simplifies supply chain management. It helps you manage supplier relationships, logistics, and procurement more effectively. These aspects can help you reduce costs and streamline supply chain operations.
For instance, an online beauty product dealer can automate supplier POs and track shipments in real time through the ERP platform. The system can flag supplier delay risks early, enabling the business to pivot to alternatives promptly.
- Order Management
Managing orders effectively is vital from the moment a customer places an order until you deliver it. An ERP system with efficient order management covers multiple features like order entry, processing, fulfilment, and shipping. Managing orders smoothly ensures timely deliveries, reduces errors, and enhances customer experience.
For example, an electronics item distributor can handle complex orders easily from multiple retailers through an ERP system. It can help them optimize delivery routes, deliver it on time, minimize delays, and ensure client satisfaction.
- Reporting and Analytics
Often, small and medium businesses lack data-driven insights. As a result, they make instinct-based decisions. The approach doesn’t work amidst an uncertain business environment. This is where comprehensive reporting and analytics come into play. These factors help you make informed, data-driven decisions that lead to better planning, forecasting, and predictable outcomes. Thus, the ERP software you choose must be able to generate custom reports, visualize data via dashboards, and provide actionable insights into your business’s performance.
For instance, a small and Medium online bookstore can use an ERP system to analyze sales data to identify best-selling genres, peak sales times, and customer demographics. The store can use the insights to tailor market campaigns, offerings, and optimize inventory.
Empower Your Small and Medium Business Operations and Strategy with SAP Business One!
As a small and medium business, you have a great growth trajectory ahead of you!
So, why struggle with routine operations? Power up your operations and strategy with SAP Business One. It is comprehensive ERP software that caters to the growing needs of micro, small, and medium-sized businesses.
The platform offers features, including CRM, procurement, inventory, finance, and analytics, to help small and medium businesses become more agile and competitive.
Want comprehensive SAP Business One support to make the most from your ERP investment? Partner with Accelon. Email us at sales@accelontech.com.
