Why Small Businesses need ERP more than the rest?

  • Why Small Businesses need ERP more than the rest?

    When it comes to the working environment of a small business or start-up, multi-tasking from employees is a normal expectation these days. In such an environment, it becomes tough for employees to find the time and manually process multiple spreadsheets and tons of data. In the nascent stages, all small businesses make use of a basic accounting software, spreadsheets and rely on document-based processes. But once the business starts to gather momentum and spread its wings, processes such as updating inventory, processing invoices, and keeping track of client interactions become more tedious. Moreover, some of them tend to use dedicated software systems for different aspects of their business at the outset. What they don’t anticipate is the hampered flow of information, which is inevitable when there are systems that don’t share information between themselves. With such a mechanism in place, disruptions in the Supply Chain Management are bound to occur as different departments end up sitting on different versions of data.


    We won’t be spilling the beans if we say that an ERP System can bring that much-needed ease, integration, and transparency into the working ways of a small business, or any business for that matter.  The best part is that it doesn’t require rocket science to understand the basic principles of ERP Software and of course the concerned people just need to be proactive and flexible to adapt to ERP which will help them make their business operations more seamless.


    To understand how an ERP System lets different departments like Sales and Purchasing share and access relevant data among themselves, here is a simple example. Suppose someone from the Sales Department closes a Sale and intimates his colleague so that he can raise an invoice. However, someone in the Purchasing Department fails to notice an email having the details of the product which needs to be purchased to fulfill the Customer Order. This ultimately leaves the order fulfillment incomplete and the customer discontented.


    So, the crux is, when there is no integrated system in place, it can be problematic to seamlessly funnel information between two departments. Just put in place an ERP System to be used by all personnel of an organization for fetching and dissipating information, and the instances of information going missing or being overlooked can be greatly reduced. In the practical example scenario given above, current day’s ERPs like ebizframe can easily generate automatic alerts for the Purchasing Department once a sale has been registered. This would lead to in-time Order Fulfilment and a happy customer. A happy customer means more customers and more business.


    This is just one example and there can be much more to explain how automation can completely overhaul the Supply Chain Management. Any Production process, be it of any scale, is not monolithic in nature as different business units have to come together to get the job done. In the end, it is about putting all the fragments together which an ERP can easily achieve. The only thing small enterprises need to understand is that ERP implementation needs correct configuration of the ERP System to meet their business’ needs.  They should put their heads together to identify their business priorities and the extent to which they need to automate their operations. Such thorough homework on their part can eliminate all the potential hiccups, thus leading to a successful ERP implementation.


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