Businesses, either small or big, have one thing in common.
They all involve managing at once the multiple aspects of a business process. For example, managing a manufacturing or distribution business involves taking care of production planning, procurement, inventory management, order fulfillment, and shipping.
To maintain and align these complex processes across an enterprise, one needs proper planning and tracking. This can be achieved using an Enterprise Resource Planning (ERP) solution.
ERP solutions are software or applications used to manage all the core processes of an organization, such as invoicing, inventory management, sales, marketing, accounting, procurement, customer relationship management, supply chain operations, risk management, etc.
An ERP solution offers the integrated management of all these processes in real-time and automates the individual activities across an organization.
‘But we are too small for an ERP solution,’ is the common response among many small businesses.
However, considering the current business landscape, no business is too small for using an ERP solution. On the contrary, a small business needs to have an edge in order to compete with the big boys. They need to be quicker and well-aligned with the changing market conditions. And this can be done using an ERP solution.
A good ERP solution can help small businesses operate and act as a large-scale business.
As an old saying goes, “There’s no time like the present.” So that’s why now is the time for small businesses to invest in an ERP solution.
Let’s take a look at the various reasons why small businesses should invest in an ERP solution now.
Reasons why small businesses should invest in an ERP solution
Among the many benefits that adopting an ERP solution can offer, the following are the most significant ones:
In the past, when things were done manually instead of using an advanced solution like ERP, human errors were quite common. This used to create efficiency gaps in organizations. For an organization in the growth phase, even slight improvements in efficiency can bring huge differences.
Automating the workflows using an ERP solution can help reduce potential human errors. This ensures that the orders are delivered on time while avoiding any inventory mishaps. Adopting an ERP solution can help your small business operate like a well-oiled machine. This also gives a boost to customer and employee satisfaction levels. All these small improvements can have a big hand in the growth of your organization.
Boosting productivity and efficiency
Having an ERP solution offers quick access to the right information at the right time to all the business stakeholders and decision-makers. This helps save a lot of time and enhances efficiency. Having a streamlined business process aids the employees in focusing on their individual tasks and thus increases productivity.
A majority of administrative costs can be cut by implementing an ERP solution.
Since there are fewer manual tasks for the employees to perform, they are free to focus on more profitable projects. In addition to this, ERP helps decrease turnaround time and increase production.
An ERP solution also makes it easier for businesses to get an idea about the supply-demand gap to adjust their processes accordingly. A well-run supply chain helps in cost reduction.
Centralization & transparency
ERP gives organizations the capability to control and store all the business-related information in a centralized location. This gives all the departments easy access to relevant information with just a single click.
The centralization helps eliminate the need to re-enter data and thus reduces errors. It also brings transparency and accountability throughout the organization as there are no data silos, and everybody looks at the same latest information.
Moreover, it helps reduce logistical issues when accessing data and can save a lot of time.
Scalability & flexibility
A robust and configurable ERP system can help small businesses easily adapt to changing market demands and needs. To evolve and expand in size, small businesses can easily make adjustments to their ERP software to adapt as per need.
As a small business, you should definitely look for a future-proof and flexible ERP solution.
For a small business, it’s crucial to manage their costs. Since these businesses already operate in smaller budgets, it becomes essential to utilize the available resources efficiently.
Analyzing costs can help do that. But in manual processes, it’s overly complex. Implementing an ERP system simplifies this cost estimation process. It enables you to analyze, plan, and figure out actual production costs.
Improving customer relationship
A lack of proper infrastructure to handle customer relationships can harm a small business. Tracking customer communications when dealing with multiple orders, requests, invoices, etc. can be a tiresome process. It might also lead to a loss of customers, both existing and potential.
That is why having a streamlined customer relationship management protocol can be key to the success of small businesses. An ERP solution can help small businesses handle all aspects of customer relationships in an efficient and streamlined manner.
An ERP system can also help monitor customer behavior, customer needs, and areas of improvement to help get new customers and retain existing ones.
As highlighted above, the benefits offered by implementing ERP solutions easily outweigh the investment costs. Instead of thinking about the cost limitations of an ERP solution, small businesses must think of the potential return-on-investment an ERP system can bring in the form of new clients, increased efficiency, increased productivity, and reduced costs.
Once businesses realize this, the short-term expenses will start seeming minuscule as compared to the benefits offered by an ERP solution.
In fact, ERP solutions like Odoo ERP, which is already being used by 5 Million users, offer the most modern functionality at an extremely low cost.
So, are you ready to gain a competitive advantage over your competition?
At Benchmark IT Solutions, we can help you easily set up an ERP solution for your small business.