Just think of Enterprise Resource Planning and the image of a giant multinational corporation with thousands of employees comes to mind. That was true until recently, because the cost of implementing a typical ERP system was many times more than the annual turnover of a small business. But things are changing fast. ERP systems are now being customized for small businesses, with the result that small businesses are also able to benefit.
Here’s what small businesses can gain from ERP:
- Improved stock management: ERPs provide a better method of inventory management, and at any time the business is able to look at the exact picture and make corrections. This results in reduced write-offs for stocks and increase in operating profit.
- Analytics and reporting: Modern ERP systems excel at providing insights into business data, as well as generating lucid and comprehensive reports. For small businesses, which need to minimize expenditure and take the right decisions, this functionality is indispensable.
- Accounts management: With the right system in place, managing invoices and receivables becomes easy. This means improved productivity and near-zero margin of error in accounting.
- ERP on cloud: Perhaps the best thing about ERP today is that the system is available on cloud. This is particularly suitable for small businesses, which have to be on the move and can access all the information from one central repository.
With many custom-made solutions being released by various players, ERP is a great option for small businesses today. For a fraction of the cost, it’s now possible to enjoy all the benefits of a full-fledged ERP system.