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Do Small Businesses Use ERP Systems?

An ERP system manages all aspects of a business—it integrates workflows and data into a single platform. They are often used by large corporations, but also frequently adopted by small and medium enterprises (SMEs) aiming to streamline their processes and scale their business.

What Is ERP?

ERP, or enterprise resource planning, refers to a business management software that merges all the fundamental processes needed to run a firm into a single platform. This includes planning, purchasing, manufacturing, production, sales, distribution, finances, and customer service.

One of the best ERP systems is provided by SAP, which powers multiple Fortune 500 companies. They also offer SAP Business One for SME, a more cost-effective version designed for small businesses. There are how to migrate an ERP from on-premise to the cloud, but SAP is the superior platform.

Do Small Businesses Need an ERP System?

The services provided by an ERP system aren’t only useful to businesses that deal with millions of customers, but are also instrumental to the functioning of businesses with smaller annual turnovers. In fact, the same benefits that large companies enjoy from ERP systems can often be maximized by SMEs. 

If you don’t employ an ERP, the first thing to do is learn how to migrate an ERP from on-premise to the cloud, which will enable you to transfer your processes and data to a fully-integrated platform.

Benefits of ERP for Small Businesses

No business is too small for an ERP solution. Here are some advantages that you can expect when you use something like SAP Business One for your SME:

Integrated Data Systems

Businesses today deal with a lot of information. To accurately understand how your business is performing, you must have access to exact and real-time data. An ERP integrates all this information into its system, as it moves through workflows and pipelines.

Better Visibility and Transparency

An ERP system gives management and teams better visibility of what’s happening in the company, and improves accountability among departments.

Increased Productivity

With all data and workflows integrated into one system, companies that employ an ERP see increased productivity, consistency in workflows, and saved resources. Employees no longer need to sort through paperwork or disjointed files, sit through long meetings, or wait days to move forward with work.

Improved Decision-Making

An ERP system like SAP Business One comes with business intelligence tools and reporting and analytics features that can give team leaders better insight to drive their decision-making. Steps can be grounded by facts and numbers, making it easier to drive growth and achieve goals.

Reduced Operational Costs

Using multiple apps, programs, and manual tools means more expenses. An ERP is a cost-effective, all-in-one solution. Additionally, the automation capabilities of an ERP system ensure that you are always in control of your processes and data, which lowers the risk of costly mistakes like lost orders or missed shipments.

Flexibility and Adaptability

An ERP system is customizable and expandable. It can change as your business pivots and can grow as your business scales.

The Best ERP System for Small Businesses

SAP is a leader in ERP, but since it famously caters to large corporations, many businesses hold the misconception that it can only service Fortune 500 companies. SAP Business One is a management software specifically designed for SMEs, equipping small businesses with powerful business management tools through an easy-to-use platform at a cost-effective rate.

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