Understanding the Value of ERP Software for Small and Medium-Sized Businesses

What was traditionally an option limited to large enterprises, ERP systems are now becoming increasingly popular within small and medium-sized businesses. The software automates multiple business functions and facilitates greater productivity. According to the research by the Aberdeen Group, 96% of all growing businesses rely on ERP software to increase their efficiency, support visibility and improve decision making.

Here, we take a look at the value and benefits ERP software provides to small and medium-sized enterprises.

Streamlines Data Flow

ERP system grants small businesses access to streamlined data flow between various business processes. It does this while integrating the company’s financial system with its business transactions all in real time. By posting important transactions to the organizations’ general ledger, financial implications can be viewed by the management whenever necessary.
The software covers all the core processes such as sales order entry, shipping, product pricing, inventory and warehouse, procurement, production, invoicing, and others.

Boosts Productivity

Information is made available to each department and can easily be accessed at any time. This feature eliminates the need to personally contact employees across different departments or go through endless excel sheets in order to collect disparate data.
ERP systems also maintain accurate information regarding all customers, vendors, products, manufacturing work processes, bill of materials, routines, and other data essentially saving time and boosting productivity.

Faster Decision Making

ERP software provides real-time data that proves beneficial for marketing, accounting, management, and enables businesses to make faster decisions reducing deadline overdue. The availability of rich data also allows the management to compare the revenue and sales figures of different months, forecast financial needs, future sales, and make effective decisions that are conducive for business growth.

Improved Flexibility

Perhaps the greatest advantage that SMEs gain from implementing ERP systems is improved flexibility to adapt to changing market trends and consumer needs. Increased agility allows for adjustments to be made that maintain business flexibility.
For instance, canceling orders, making stock adjustments, or creating changes in the sales figures can all be carried out and maintained within an ERP system rather than altering or deleting data in spreadsheets.

Decreased Operating Costs

Effective ERP implementation reduces the number of manual processes needed to be carried out by the employees. This allows them to take on more profitable and innovative projects leading to improved workflows, decreased turnaround time, and enhanced production capabilities.
Although the cost of implementing ERP software may seem daunting at first, the myriad of benefits it provides makes it an essential tool for small to medium-sized enterprises. OpenPro offers enterprise resource planning systems for SMEs that transform business operations and lead to increased growth and profitability. They are a trusted brand that serves clients across multiple industries. Contact them today for more information.

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