Benefits of ERP for Small Businesses


Enterprise Resource Planning (ERP) has been known to be the backbone for many corporate-scale businesses. The software is a key tool for managing production, order processing and inventory. It also monitors business resources between stakeholders, such as; revenue, materials, orders, staffing and manufacturing capacity. All of this is done in a single interactive database management system with built-in analytics and a dashboard.

ERP or Enterprise Resource Planning tool is not only important for large scale companies, but also for startups and SMEs. In their bid to be very appealing to the consumers, the entrepreneur does often forget that it is not only his product or service but also his operations which will help him to scale up. Lower costs of operations, faster turnaround time, synchronized departments, decisions on the go and better efficiency are some of the benefits of ERP for SMEs and startups.


Let’s understand a few benefits of ERP for startup and SMB:


Synchronized departments:

For industries like retail and eCommerce which have multiple departments and locations, synchronization among the same is very important. Multiple warehouses, multiple hubs and co-ordination among them is very important. An ERP software helps in bringing all the data from all locations together and connects everyone on a single platform. It acts like an end to end business function for an organization. Imagine if you had details like sales order, POs, inventory flow of your multiple warehouses from a single platform which can also be viewed on the go, how much time would you and your staff be saving.



Real-time data provided by the system can be beneficial for marketing, management, accounting, and enables the organization to make vital decisions on time and reduce waste. Teams can detect any potential obstacles or issues that may shake productivity levels. An overall picture of operations allows for business leaders to make effective decisions and respond quickly to a changing business environment.



With increased clarity by streamlined business processes, staff can shift their focus on managing increased volumes of business. This aids in transforming various facets of your business and overcoming the challenges involved in business growth.


Control Over Operating & Operational Cost:

Usually an organization has multiple systems to take care of its various operations. For accounting they may have a different system and for tracking inventory, they may have a different system. The problem with these accounting systems is that though they streamline the processes, they tend to create data duplicity. With an efficient ERP Solution, all the data is synchronized and the company can find out the leakages that are happening in the data and can fix the operations that is causing the company money and time wastage.


Delivery of Business Insights:

When it comes to making decisions for a small business, it’s important to have all the data that’s needed on-hand and being confident that the data is up-to-date. With ERP for small business, there’s never any doubt that this is the case. As a result, decision-makers enjoy greater peace of mind and confidence in the choices they make.

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