Advantage of an ERP for Small and medium businesses


When you are running a small or medium-sized business, it is natural that the SME might not be able to afford a high-end proprietary / MRP or Accounting software. This case happens when SME are not able to pay or afford huge Business software, also other cases where SME don’t go for fancy technologies. But after the introduction of different Open source ERP software, the pattern is moving to new technologies by many SMB’s and SME’s.

Let’s start with the brief introduction of one of the most important and common Business Software used in many organization – Enterprise Resource Planning (ERP) –

*An Enterprise Resource Planning (ERP) system is an integrated computer-based application used to manage internal and external resources, including tangible assets, financial resources, materials, and human resource.

The main purpose of an ERP system is to provide you with the information from all the business department/function happening within the organization. All together and ERP is a process of getting information from the different department of the organization and capturing in a repository (system) for the purpose of reviewing, reusing and reporting as and when required.

Proper Management of Time: ERP reduce the wastage of time taken from the purchase order till providing the quotations. It allows the process planning a boost while reducing the errors and mistakes. Small and mid-sized businesses have become one of the most important driving force in today’s economy, accounting for the majority of employment growth. A better-equipped technology can leverage the new market for Small & mid businesses, even in the face of tight credit and a stagnant overall economy.

Low Routine Tasks: ERP reduce the routine tasking or feeding of the similar kind of information every time which can be considered as a huge waste as Human Resources are considered to be the most important cost while running the business, Deploying and ERP for SME (Small & medium enterprises) will provide a good opportunity of Optimizing the output while minimizing the resource. Also low human Error will increase the quality, quantity of the output.

Accountability and Traceability:  The best parts of an ERP system is that it allows you to keep track of every transaction happening in an organization. It answers all your “Wh” type questions who, when, where . . . & so on. An ERP system allows SME to figure out many things with the help of certain clicks. It also allows Traceability of thing in an organization. There is much another advantage such as Transparency which is the most difficult part in any SME to figure out thing for which you zero knowledge. It can help Business to have a check on the Strength, weakness, threats and Opportunities which can consider as an effective management for Small and mid-sized Businesses.

*Source of the Definition – http://en.wikipedia.org/wiki/Enterprise_resource_planning

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