Today’s small business owners need agile and change-ready Enterprise Resource Planning (ERP) systems to grow and thrive in such a competitive business market.
In a nutshell, ERP software integrates the flow of information between several business processes and integrates that data and information in real-time. It also enables improved business decisions by making information from several parts of the business (silo departments) available to others within the organization.
If your small business lacks proper integrated business software, you may start to feel a negative impact in ways that impact your bottom line, like lost orders, inventory shortages or missed shipments. Implementing ERP software is the solution to these issues. An ERP can also enable businesses to have better visibility and insight into their supply chain operations.
Below are a few more ways an ERP solution can benefit small businesses.
1. Increased Productivity
A great benefit small business owners see from implementing an ERP solution is the boost in productivity, not only from their employees, but as a whole. This is important for every company’s bottom line. With an ERP solution, data is easily accessible to all the departments of the organization, as a result, employees are freed from the hassle of contacting multiple team members from various silo departments for the data they are seeking. This boost in productivity saves time, which is extremely valuable.
2. Improved Collaboration
Lack of collaboration and poor communication are usually a result of employees lacking availability to the information they need. By giving them access to data from other departments, collaboration is encouraged and facilitated, as the employees are given the ability to see the company’s “big picture.”
3. Lower Operating Costs
This could easily be considered the most important benefit for small business owners: you can reduce operating costs by implementing an ERP solution. ERP systems steamline data into a single software platform, and as a small business owner, you can save money on other individual software and management systems that you typically pay for in each department of the organization.
4. Business Insights and Improved Decision-Making
As mentioned previously, ERP systems encourage better decision-making by allowing information and data from several parts of the business effortlessly available to others within the organization (in real-time). It’s much easier to make a smart decision when you have all the information you need on hand. This helps the decision-makers of your company have peace of mind and increased confidence in the decisions they make.
5. Streamlined Flow of Data
Another benefit of ERP systems for small businesses is a more efficient data flow. ERP software provides all information in a single place and all of this data is readily obtainable to each department.
Read even more benefits of an ERP solution here.
Not sure which ERP solutions are best for your small business? Download our ERP Buyer’s Guide for free to compare the top 24 ERP software vendors head to head! The guide also includes 4 key capabilities to consider while selecting a new ERP solution and 10 questions to ask yourself and the software vendor before purchasing.