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John Driver
by on February 22, 2021
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In a modern cut-throat market, it can often be difficult for some small to medium sized enterprises to compete against each other profitably. ERP systems have always been an option for these kinds of businesses to bolster their performance. But there exists a lot of misconception among organisations around ERP implantations.  This article is aimed at addressing and clearing up these misconceptions to put forward, the real advantages of erp implementation are small and medium enterprises.

The main aim of an Enterprise Resource Planning system is to provide better business intelligence. This inevitably makes the jobs of managers and employees a lot easier. It is also possible to integrate other systems with ERP platforms through an Application programming interface.

Advantages of SMEs using ERP systems

Reporting customisation:

The ability to get custom reports frequently is a useful tool in business. Every organisation relies on reporting to track KPIs. For instance, one cannot simply know how long it will take for materials to work their way through the manufacturing process. In this regard ERP systems put everything into a single environment, making it possible to generate reports on the fly.

Production becomes scalable:

ERP systems can improve the level of scalability to business processes. ERP systems can significantly reduce the impact of any businesses going through a significant increase in volume. The automation itself contributes towards alleviating a large degree of the employee’s work. This frees up any organisation’s greatest resource: It’s manpower.

Customer Service:

Implementation of ERP systems can assist in customer relationship management, billing, physical distribution of goods, invoicing and reporting.  It helps to give the management an overview of the client’s details from prospect to sales, accounting and finance. They can also keep track of activities, communication history, personal information which improves customer handling and customer satisfaction.

Costing:

ERPs can make it possible for companies to increase their productivity by better managing supplies. As operations are related to inventory, products and supplies, ERP systems provide the necessary visibility to see how one problem is affecting the rest of the processes. This increases efficiency and offers a competitive edge.

Integration:

It's almost impossible to find a system which includes all the features required by a business. Howeve, most ERP systems from reliable vendors offer easy integration.  By integration, it means the process of including separate systems under a comprehensive platform with free flow of information amongst each other. Properly implementing this will give any organisation the ability to deliver real-time information to every single party in the enterprise.

Conclusion

ERP vendors now focus more on SME’s due to the close to saturation of ERP adoptions in large enterprises.  Additionally, globalization, partnerships, value networks and information flow across SMEs in the modern market require them to adopt ERP systems. The best ERP system should provide all of the above mentioned key qualities and it should help businesses to automate their core operations and offer better insight into each process.

Posted in: Business, Technology
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