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Small and medium enterprises (SME) are increasingly using ERPs in today’s competition, and for a good reason. Statistics suggest that as many as 81% of organizations are either in the process of or have already implemented an ERP system within their organization. More, as many as 20% of these have been cases where an ERP solution has been used to replace a home grown system. So, what is it that makes a successful implementation of ERP important?
Let’s see what makes an ERP essential for a SME.
Convenient Inventory Management
You have to undertake the various hassles related to storing, inventory strategizing, in-house SCM, arranging products for distribution and allocating batches. You can effectively carry out your inventory management through ERP software solutions.
Your business also achieves agile functionality due to well organized inventory which another reason for SMEs to use ERP.
Eliminate Manual Work and Unnecessary Paper Processes
Many of the SMEs still rely on traditional processes which are no doubt outdated and obsolete. You get a redundant and inefficient system and storage of piles files turns to an operational issue. The time taken to consolidate reports and lack of accuracy are common issues faced by SMEs.
Companies won’t be able to thrive and grow in such an environment and you need ERP to streamline operations by cutting out manual labor. As a result, your costs are reduced; operational delays are eliminated and making room for satisfied customers.
Improves Productivity and Growth
SMEs cannot compromise on the quality of their products and always need to strive to improve the production rate. The implementation of ERP software leads to a quick growth enabling you to assess best production processes. You can also optimize the production and use the ERP to adapt to changing market situations.
Consolidate Processes for Improved Decision Making
Lack of communication and coordination creates negative business impacts for SMEs using standalone solutions. Management doesn’t have access to complete and timely information with no real time visibility.
ERP solutions can update consolidated, real time information at the navigation of your computer. The system makes you aware about every aspect of your business as an entrepreneur.
Streamline your Processes
A better growth is a result of improved production processes. But if you have inefficient processes, your SMB is not going to survive in the competition. ERPs tailored for SMB sector are engineered to present important statistics based planning of processes and facilitate business development.
Tackle Complex Tax and Regulatory Guidelines
Legal and tax complexities are a reality even for small SMEs. You can only handle such situations if you have standardized operations. Due to unexpected events you also may have to end up paying significant penalties.
With a professional ERP you can always stay on top of taxation guidelines, currency conversion rules, regulatory changes and so on. That’s why you should go for an ERP solution even if you run a SME.
An ERP can lead the way to international exposure too! All you need to do is to find the right ERP software and know just how an ERP system can help you. Have you started looking for one yet?