Should Small Business Use ERP Software?
Tags: ERP   CRM  
26/08/2011 12:00 AM

If you don’t know what ERP stands for or what it does, allow us to fill in the gaps for you. ERP stands for Enterprise Resource Planning and it allows business owners to integrate all the aspects of running their company into a single, centralised software solution. Sounds great, right? However, the observant among you may have noticed the word ‘Enterprise’ standing majestically at the front of the abbreviation, and that may be giving you pause. You may be thinking to yourself that ERP Software sounds like something that ought to be utilised by larger enterprises, not small to medium business (SMB) owners like yourself.

In fact, there was once a time when this was true. In the early days of ERP, it was designed purely for larger enterprises and corporations who needed a way of streamlining processes between departments. ERP software allowed these businesses to integrate and centralise their data, increasing efficiency and uniformity. and ultimately reducing costs. In fact, the cost benefits of ERP were so profound that SMBs, who were generally unable to afford the initial setup fees associated with ERP, quickly found themselves on the wrong side of a widening gap between large and small businesses.

Obviously there was a need for a type of ERP software that was affordable enough for SMBs to utilise, but still all-encompassing to the point that it was much more useful than basic accounting and bookkeeping software such as MYOB and QuickBooks. Luckily, this gap has bee filled, and these days SMBs can experience all the benefits of an ERP that is fully tailored to their needs. While the initial setup fees are still high, when implemented correctly ROI can be seen in a matter of months.

Some of the ways ERP can benefit a small business include:

  • Streamlining of customer billing, eliminating the tedium and resulting costs associated with manual invoicing
  • Serial number tracking, which leads to reductions in stock write-offs that can be as high as 90 per cent
  • Reduction in leakage and a reduction in errors, leading to an overall increase in revenue
  • Reduction in redundant data entry, reducing costs associated with administrative tasks, and allowing you to focus human resources on areas more pertinent to achieving your business objectives

The answer is yes. These days companies with as little as five employees have seen successful implementations of ERP software. Whether it’s through maintaining customer and product data, managing customer orders, managing inventory, or a huge array of other benefits, ERP software is no longer something that can only be of benefit to larger enterprises.

If, like many small businesses, you’re currently utilising only basic Business Software, then take a look at how your business is progressing. If you’re finding that the accounting software is no longer enough to save you time associated with the multitude of administrative tasks, then ERP software is most certainly for you and can do wonders for the progression of your business. Processes will be centralised, streamlined and easily accessible by all staff. The ultimate result is savings in both time and money, allowing you to focus on achieving market objectives and improving your business performance even further.

16/01/2012 2:00:05 PM
ERP was earlier available for large business and now it is available for small business. ERP software integrates and centralizes business data, and increases efficiency. It is nice to hear that it is affordable for small business! Thanks.
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