Every small business as well as midsized business struggle to obtain many assets and any equipment that will enable it to increase production and maximize profit. They will always try hard to expand their businesses. This explains why some small and midsized businesses spend huge amount of money on advertising. Unfortunately, most of these businesses pay little attention to information technology. They do not invest on various software applications such as ERP that will help them to manage their businesses effectively. They still manage their inventories and accounts manually using spreadsheets. But they do not know that the success of their business depends to a greater extent on how effectively they are able to manage orders, inventories, invoices and accounts. Enterprise Resource Planning is one of the software applications that will enable them to manage these aspects of their business successfully.
What is ERP?
Enterprise Resource Planning which is normally abbreviated as ERP refers to various software systems created for easy management of business and decision making. With the software system, small and midsized businesses can store and manage data coming from various phases of their business operations like production, product planning, inventory management, production, marketing and distribution of products, customer relationship, shipping of orders and payment. This software makes it possible for these operations to be automated. The automation of these processes reduces error, increases efficiency and demands accuracy for material management.
If you are a small or midsized business owner, you should consider using ERP for the management of your business. Here are some of the reasons why you should consider using ERP in running your business.
Easy execution of business operations
ERP makes the execution of business operation easy for small and midsized businesses. These businesses do not have enough capital to maintain a large number of staffs. They have only few employees. But if they are using ERP, it will still be easy for the few staff to complete every business operation on time. What will take hours to execute can be done within seconds just at the click of the mouse.
ERP will help small and medium size business to increase production. This is a natural corollary of the point made above. The automation of the business operation will naturally cause increase in production since a lot of work will be accomplished within few seconds.
Defining and complying to your business process
ERP system helps small and medium sized business not just to define their business process but also to comply with the process. Lack of business organization makes it difficult for SMB to define and comply with their supply chain and business processes. But with the software, they will be able to do so.
ERP system will help small and medium businesses to achieve the following as well.
· It makes the integration of various disparate processes of business operations easy.
· It helps them to have a detailed and accurate report and performance analysis.
· It engenders quicker decision making.
· ERP system protects sensitive data of the business.
Indeed, with ERP small and medium business will achieve a lot. In the light of the above, you should consider buying an ERP system. It is a good investment of money and time.