Why is ERP important for your small business?

Enterprise resource planning, aka ERP, is a holistic software solution that helps you run and manage all the facets of your business, supporting automation, finance, human resources, manufacturing, supply chains, procurements, and much more.

In the most rudimentary sense, ERP is supposed to orchestrate everything and efficiently manage every aspect of business in an integrated way. However, a common misconception about ERP is that they are specially tailored for large enterprises. Yet, ERP solutions for SMEs are known to drive considerable revenues and streamline operations. Being a small shop has nothing to do with driving enterprise-scale business. So, in this blog, we are going to provide some convincing reasons why your small business can also benefit from ERP solutions.


No amount of data is too little for ERP

There is a general misconception that ERP is too much for a small business. Let’s debunk this myth together. Irrespective of the amount of data you have at your disposal, you must optimize and streamline it properly.

Moreover, manufacturing is a data-intensive endeavor, despite the size of your business. You need to have a tight leash over your cash, raw materials, personnel, and production capacity to ensure the optimum throughput.

Having no overarching data collection and optimization system will not only stifle your current business growth but also will nip at the bud every opportunity for future growth.

This is where an ERP solution shines. It gives you comprehensive insights into how all the cogs of your operation are performing. In a nutshell, ERP simplifies the mountainous task of meticulous data collection, allowing you to glimpse your critical performance metrics through real-time dashboards.

The benefits of ERP solutions for small business

The right ERP for your small business can achieve wonders. When tailored for small businesses, it can let you automate key business functions such as order processing, production and finances. Such automation frees up your staff to concentrate their energy on more crucial tasks than painstaking data entry. Let’s take a cursory glance at what it can achieve for you:

  1. It can deliver more jobs on time
  2. It can help reduce inventory costs
  3. It can eliminate all kinds of purchasing errors
  4. It can improve and enhance production efficiency
  5. It can significantly lower operation costs
  6. It can ensure simplified and error-free accounting
  7. It can help you build an effective sales team with more accurate quotes and estimates

ERP is a must for your business operation in today’s world. However, no one-size-fits-all ERP system exists, and it is better to find a customized ERP solution for your business. Today, many ERP vendors in the market provide ERP solutions for SMEs, i.e., solutions that will fit your business and budgets.