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ERP for Small Businesses: Everything You Need to Know
ERP, short for Enterprise Resource Planning, is a type of software that helps small organizations manage different business processes. Financial management, CRM and sales, inventory management, supply chain monitoring, human resources, and the list goes on.
Small business owners may not have to deal with all these processes like the CEO of a large company. Still, as your work grows, you should be equipped with all the tools you need to get the results you want.
Let’s be more specific. The only way to successfully run a business is through enterprise resource planning or ERP. Sound intimidating? Don’t worry. At IMTS Solutions, we have put together a best-in-class enterprise management package to address all of your concerns.
Read on, and let’s see how it can impact small businesses and take their function to a new level.
What Does Enterprise Resource Planning Include
No one will ever doubt that running a business is complicated. There are many aspects to it, and it’s very easy to lose track of things. Moreover, there is a good chance that a business area will remain undervalued due to manual, old-fashioned management procedures. ERP software generally includes
Production & Manufacturing
This is the market’s beating heart. Therefore, it stands to reason to use ERP for every step from designing to engineering and operation management. Some platforms have even attempted to develop an ERP for manufacturing that includes advanced functionality for manufacturing-specific needs.
Human Resources (HR)
Successful human capital management always depends on a functional ERP solution. It also improves internal communication and collaboration. Data transfer is essential for a smoothly functioning HR department in any organization. ERP ensures that data is shared and easily accessible to everyone in the company.
Strategic Planning
Strategic planning in a business works as a structure. It connects all the pieces and points the way forward. In other words, strategic planning is an attempt to set the overall direction of an organization, which is only possible through a unified and monolithic operating system such as ERP.
Inventory Management
Warehouse management, stock tracking, transfers, order scheduling, you name it. Inventory management is a tedious task almost impossible without an ERP solution. ERP software is generally the best tool for creating intelligent reports and analysis, sales orders, B2B E-commerce modules, etc.
Customer Relationship Management
The fact is that CRM and ERP platforms have so much in common that there has been a great deal of confusion around them. They both serve to maximize customer fulfillment and execute business processes. In other words, both focus on increasing the profitability of the business.
The main difference is that CRM is more focused on customer-oriented processes and sale leads. But ERP is fundamentally inward-oriented and deals with product development and improved logistics. Roughly speaking, ERP provides the overall picture of a business and usually also includes CRM.
Marketing
Efficient sales and marketing modules of an ERP software allow executives and sales representatives to realize their potential. Web-based data architecture enables rapid time-to-market to meet growing customer demands. ERP offers more elasticity in pricing, making it easier for sales reps to provide variable pricing in line with each customer’s situation.
Finance & Accounting
Preparing monthly and annual financial reports can be challenging. With proper ERP software, however, you can easily track customer payment schedules, revenue tracking, credit management, etc. That’s why the biggest proponents of ERP integration are always found in the financial sector.
Analysis & Reporting
The decision-making process of any business is based on reliable data and analytics. With customized analytics tools, you can closely monitor market trends, business performance, the effectiveness of sales tactics, and more. Reliability, real-time access, and comprehensive data are critical to making strategic decisions in a business, and an ERP database is undoubtedly a credible foundation for these types of decisions.
Advantages of ERP for Small Businesses
IMTS Solutions offers a winning card for small businesses in all kinds of markets. Still, many may not know what a great advantage it is. That’s why it’s essential to understand the benefits of enterprise resource planning. This is what we’re talking about:
Efficiency
You should expect an ERP service to address the real needs of your business. The best part, however, is that you will not have to spend as much time and effort as before. By adopting industry best practices, you can eliminate the repetitive process and invest additional resources into acquiring cutting-edge technologies.
ERP systems are centered around the idea of interconnectedness. The synchronization and automation processes that come with it reduce redundancies, improve productivity and create a more efficient work environment.
Quality Customer Service
Centralizing client information offers a huge advantage for business support services. Without time-consuming and tedious paperwork, you have access to synchronized data from all areas of your business. This ensures that customer information is easily accessible in all sectors when required.
You also have the peace of mind that all this valuable data is well stored and easily retrievable. Eliminating bureaucratic loopholes and streamlining shipping processes also means faster response, improved communication, and better delivery service for customers.
Cost Savings
ERP for small businesses may not appear as the cheapest option at first glance. According to a 2021 ERP report, an ERP project’s average budget per user is $8,265. Also, there are licensing fees and costs for data conversion and transfer, testing, training, and implementation. Bigger enterprises can expect a total cost of up to half a million dollars to set up an ERP system.
Still, your ROI will fully offset the initial cost in the long run. Just think of how much you can save on service payments, infrastructure, human resources, and, most importantly, TIME. Process exceptions and operational disruptions are inevitable, but they don’t have to cost you a fortune.
Competitive Advantage
Gaining the upper hand over the competition is every entrepreneur’s dream. ERP systems are highly customizable to your personal preferences and needs. That will allow you to provide goods and services at a scale and quality that your competitors cannot match.
In a competitive environment, the ability to anticipate market trends and adopt best practices is crucial. An enterprise’s flexibility is determined by many factors. However, access to accurate, real-time data is always a game-changer in these situations.
Improved Data Security
Every online platform used by an enterprise contains business-critical data about design, engineering, clients’ contact information, and so on. And with daily news of cyberattacks by shady hacker groups and individuals, it’s tough to ignore the security threats.
Although ERP systems can be vulnerable to the same type of threats, data protection capabilities have evolved exceptionally well in recent years. In addition, ERP platforms usually have role-based security that gives employees access to data relevant to their tasks.
Many have offered different ERPs for small businesses. Still considering the importance of this responsibility, it’s time to narrow down the options.
Where to Find Affordable ERP for a Small Business
There is a wealth of technical information on enterprise resource planning. That might be confusing. That’s why IMTS Solutions has done the research and compiled the ultimate packages for you. Contact us, and we’ll help you choose the right platform tailored to your needs.