A common misconception in the business domain is that Enterprise Resource Planning (or ERP) is only designed for large corporations or those with global operations. The reality is that no enterprise is too small to implement an ERP solution. Small business enterprises, including manufacturers, require ERP systems that can cater to their specific business needs.
An ERP for a small business is designed to grow and scale along with the company. Small enterprises can implement the ERP solution in phases and add more modules (or functionalities) based on their specific needs. As an example, an ERP for a manufacturing company can provide real-time visibility into its various operations, including procurement, inventory control, and production.
Here’s our perspective on how an ERP for small businesses can boost efficiency, cut costs, and drive growth.
How an ERP for small businesses can boost efficiency
With their in-built scalability, an ERP for small businesses can help enterprises improve operational efficiency. Fast-growing enterprises can add more ERP modules and users, without compromising on speed or performance.
Similarly, an ERP for manufacturing company can automate business processes, such as order processing and inventory management, thereby reducing both manual work and operational costs. For example, by integrating sales with inventory processes, ERP systems can automatically update inventory levels after each sale, thus effectively eliminating any human intervention.
As a centralized enterprise software, an ERP system can boost operational efficiency by integrating various processes on a single unified platform. For instance, small manufacturers can integrate their procurement cycle from creating the purchase order to validating the receipt of the ordered goods.
Besides removing operational silos, an ERP solution can create a seamless workflow that saves both time and effort. Instead of working in individual silos, business departments can now share real-time data, thus helping build a collaborative environment for effective decision-making.
How an ERP for small businesses can cut costs
Small enterprises often incur hidden, recurring costs due to manual processes, including human errors and delayed product deliveries or returns. By automating manual processes, an ERP for small businesses can cut operational costs – as well as free up human resources to focus on high-value tasks. For instance, by automating inventory management, ERP systems can deliver immediate alerts whenever the available stock level goes below a preconfigured threshold.
Additionally, cloud-powered ERP solutions can reduce upfront infrastructure costs for budget-conscious small companies. This means small enterprises can run their ERP systems at full potential, while minimizing their spending on on-premises servers and networking systems.
As a centralized enterprise solution, an ERP system can integrate critical business functions like procurement, supply chains, and payroll processing. Companies no longer have to spend money purchasing multiple, fragmented tools for each business function, thus effectively reducing their overall enterprise software budget.
Driving growth with an ERP for small businesses
Traditional ERP systems were previously inaccessible to small enterprises due to their high costs and complexity. This is beginning to change with the emergence of cloud-hosted ERP solutions. From enhancing business operations to customer relationships, cloud ERP solutions are empowering small businesses to thrive in today’s competitive market environment.
With AI-enabled ERP solutions, small businesses can optimize their workflows and enhance their decision-making capabilities. Real-time analytics can empower business owners with deeper insights into daily operations, thus helping them make decisions using data instead of “gut instincts.”
An ERP for small business enterprises in highly regulated industries, such as manufacturing and healthcare, can help in complying with regulatory standards and tracking any regulatory changes.
Why every small enterprise needs a robust ERP solution
In today’s unpredictable business environment, an ERP for small businesses is the right solution for small enterprises to achieve operational efficiency, lower costs, and business growth. Small companies can leverage the range of ERP capabilities to streamline and integrate their disparate business processes on a centralized platform.
As an ERP solution provider based in India, Praxis Info Solutions delivers a successful track record of enabling small enterprises to achieve their business objectives. Here’s our insight into how SMEs can achieve digital transformation using our cloud ERP solution.
Looking for the right ERP solution for your small business. Get in touch with us today.