Enterprise Resource Planning, or ERP, has revolutionized how organizations do business. However, difficulties in implementing ERP have prevented small and medium-sized enterprises from utilizing its benefits for years. With the invention of cloud-based solutions, the situation is starting to change. New methods of ERP implementation are allowing an increasing number of businesses to scale and turn a profit. Here are 7 reasons to hop on the bandwagon.
What is Enterprise Resource Planning?
Enterprise Resource Planning is a platform that helps organizations synchronize their processes and improve efficiency. An ERP application can be customized to integrate verticals like planning, purchasing inventory, marketing, sales, customer service, finance, human resources, and more. As a result, companies are able to run their entire business on a single ecosystem.
ERP for small and medium-sized enterprises
For a long time, ERPs were used solely by large-scale enterprises. And for valid reasons-
- The software was expensive.
- Tailoring ERP to meet a business’s specific needs would require extensive work.
- The servers used to host the solution were costly.
- A separate team was needed to maintain the software and keep it updated.
- Enforcing new internal procedures structured around ERP was time-consuming.
For small and medium-sized businesses, the costs of implementing ERP were unreasonably high and did not offer a reasoning ROI.
Enter: Cloud-based ERPs
Cloud-based ERPs are about 30% less expensive than their on-premise counterparts. Businesses need not purchase, maintain, and update their own server to access a cloud-based ERP; the solution providers make the platform available to them via a secure internet connection. This significantly reduces the cost of software and hardware needed to implement ERP.
There are several other benefits of using cloud-based ERP-
- Quick deployment.
- Seamless support and maintenance.
- Easy accessibility.
- Greater scalability.
- Built-in security.
- Easy integration and customization.
How an ERP solution can transform your small business
According to a report by Aberdeen Group, 96% of top-performing companies rely on ERP. While there are several benefits to implementing Enterprise Resource Planning within your organization, here are the 7 most advantageous ones-
- Seamless operation
The primary function of ERP is to provide access to all the processes and every piece of data being recorded by the organization. This allows for streamlined process set-up, improved coordination between business verticals, and increased transparency. This also reduces errors, provides better data access, and helps leaders refine the quality of their decisions and increase productivity within the teams.
- Custom reporting
Organizations rely heavily on KPIs to keep track of their internal processes; it’s necessary to know which teams and employees, if any, are slowing down set processes. Enterprise Resource Planning platforms help businesses measure these KPIs, alerting them as soon as a certain functionality or vertical fails. This is possible because ERPs can store, track, and collect data about all the processes within the organization and use it to create reports in real-time.
- Automated workflow
ERPs can track everything – inventory, production time, specific materials, decrease in resources, and unpaid invoices. They help organizations run like well-oiled machines, pointing out future roadblocks and successes. Automation of data tracking, and smooth communication between departments, reduce human error, providing a memorable product customer experience.
ERPs are designed to centralize data collection. They free employees from performing manual tasks and record-keeping activities, allowing them to focus on the more important aspects of the business. Moreover, as ERPs improve organizational efficiency, the turnaround time for each task is reduced. This leads to increased productivity and revenue. Given how cloud-based ERPs have further driven down implementation costs, small and medium-sized enterprises can also consider increased ROI as a key factor when switching to Enterprise Resource Planning.
- Improved customer relations
Consider Amazon customer service. When called, the organization’s employees are able to tell exactly when an order was placed, what was purchased, if the payment went through, where it was last seen, and several other details. This is possible due to a well-set-up ERP platform. Data tracking and streamlined internal and external communication don’t just help companies run their functions smoothly but also allow for a reliable buyer experience. The result? Loyal customers and exponential profits.
- Scalable production
ERP has the capability to handle the surge of customers its implementation leads to. An increase in volume, however significant, can still be routed through set workflows and checks as centralized data collection and automation remains in place. With ERPs, a boost in demand does not lead to a proportional rise in employee numbers. As a result, organizations can continue to rely on ERP for both maintenance and scaling.
- Accounting standards and regulatory requirements
Enterprise Resource Planning platforms, and more specifically, cloud-based ERPs, help businesses maintain and upgrade their systems. This allows organizations to stay up to date with the latest revenue recognition rulings, invoicing processes, financial and human resource planning regulations, and software feature releases. As a result, businesses can stay ahead of the competition while also ensuring that their systems continue to run smoothly.
Looking to implement ERP in your organization?
It is expected that the ERP market will continue to expand rapidly and reach a market size of $49.5 billion by 2025. Given the multitude of benefits offered by cloud-based ERPs, small and medium businesses are also expected to implement Enterprise Resource Planning.
At Victrix Systems, we help enterprises launch and control their ERP from the cloud, providing seamless integration consultation and dedicated support.
Drop us a quick message to find out more about our ERP propositions. As a certified Oracle NetSuite partner, we can also give you the fast track on NetSuite rollout, maintenance, and support, as our experts smoothly guide you through the entire process.