Small and medium-sized businesses (SMBs) are usually seen struggling with routine operations, strategy, and decision-making.
Often, they don’t have the technological muscle to modernize their business functions. Many others think technology and software are for the bigger players.
If you are one of either, it is time you think differently.
Enter Enterprise Resource Planning (ERP) software for small and medium businesses!
ERP adoption is growing worldwide. Eight out of ten small businesses have started using ERPs. On the other hand, small companies with an ERP can make decisions 35-40% faster than those without it. Besides, many SMBs report achieving RoI after 5-7 months of implementing an ERP!
These statistics aren’t merely numbers. They signal a paradigm shift. But what exactly is driving it? There isn’t one answer but many. Let’s explore them.
7 Reasons ERP Software Makes Small and Medium Businesses More Competitive
From automation that drives efficiency to achieving a competitive edge, these factors make it evident why SMBs need ERP to stay competitive.
- Automating Manual Tasks and Enhancing Productivity
ERP software automates repetitive and laborious tasks like inventory updates, invoicing, and order processing. It frees up employees to focus on bigger, better, and more crucial aspects like strategy, process improvements, customer satisfaction, etc.
Automating manual and rule-based tasks helps enhance productivity by 25-30%!
- Making Informed Decisions Based on Real-Time Insights
Running a business on outdated information is like walking blindfolded. Your company would be directionless and vulnerable to mishaps in such a situation.
ERP systems unify multiple sources of information to provide a single, centralized source of truth. It offers real-time visibility into each aspect of your business.
Therefore, from raw material purchase to final delivery, you would have real-time information on everything. Such end-to-end visibility can help you make quicker and better decisions, while also enhancing your agility.
- Improved Financial Management
SMBs often struggle with a real-time, unified view of their finances. This results in inefficiencies and inaccuracies across multiple areas like accounts payable, receivables, cash flows, etc. ERP automates various tasks and provides real-time, comprehensive visibility into finances. It enables SMBs to control their finances better, enhancing financial decision-making and reducing 40-50% of the time spent on financial task. Besides, with increased accuracy, businesses can stay more compliant.
- Better Customer Experiences
Customer experiences are paramount for every company, whether small, medium-sized, or an MNC. ERP systems help you manage all customer interactions in a single place. Therefore, from sales orders to order fulfilment and customer service, they provide businesses with a unified view of each transaction. Using ERP for customer experience and service refers to an integrated approach. It ensures customers receive the right items and enables your team to provide a more personalized support.
- Optimal Resource Utilization
Under or overutilization of resources is another crucial concern for SMBs. The reason? Manual processes and management that don’t provide full visibility into resources.
However, ERP drives the change. It provides a transparent view of the resources you are using. This includes everything from human to raw material resources.
Speaking of the latter, ERP provides real-time visibility into inventory. A clear view of the available resources and those required helps you stay optimally stocked.
Therefore, you don’t lose orders due to understocking, nor lock up your capital or deal with dead stock due to overstocking.
- Scalability
Small and medium-sized businesses usually scale quickly. But manual systems and approaches often hamper their growth endeavors. An ERP solution scales as your business grows. It enables you to add new users, locations, or business units without requiring a complete system overhaul or switch. Therefore, implementing an ERP in the business ecosystem proves to be a long-term solution for SMBs.
- Competitive Advantage
ERP systems allow SMBs to punch above their weight and operate like the bigger players. Comprehensive insights into business operations help them plan operations better, forecast more accurately, stay agile, and make quicker decisions.
Besides, modern ERP software for small and medium businesses often comes integrated with AI, mobile access, and IoT. When leveraged with ERP consultants, these technologies help enhance business operations, reporting, and decision-making. These factors can translate to a stronger competitive edge.
Level-Up Your Competence with SAP Business One!
Built to empower, SAP Business One is one of the most trusted ERP software solutions for small and medium businesses worldwide. It is a cutting-edge ERP system that helps SMBs compete more effectively and grow more confidently. Thanks to its numerous features that cover various crucial areas like inventory, finance, strategy, business intelligence, purchasing, CRM, and more.
However, optimizing SAP Business One and its benefits demand implementing it through a certified partner. This is where Accelon steps in. We are a proud SAP Gold Partner in India, helping SMBs grow through effective SAP implementation. Our proposition encompasses everything from initial installation to ongoing support. Therefore, we are trusted by some of the best in the industry from various domains.
Want to know more or connect with our experts? Please email us at sales@accelontech.com.
