Enterprise Resource Planning for SMEs: Benefits and Advantages

Enterprise Resource Planning for SMEs: Benefits and Advantages

Day by day, more SMEs seek to be competitive through integrated process management. How do they do that? Through an ERP for SMEs, since it opens up a huge market potential and acts as a competitive advantage over companies of similar size.

Although it is true that the ERP system has been associated with large companies from the beginning, today this service is already available to an SME.

Benefits of implementing an ERP for SMEs

By properly implementing an ERP, various business processes will be automated, which will provide a series of benefits, among which the most important are:

  1. Greater productivity: Allows you to do more work in less time. The information is organized and at the time it is needed, reducing production costs and improving its quality.
  2. It improves the working conditions of the personnel: it eliminates the arduous work and increases the security.
  3. Information processing agility: perform operations that are difficult or impossible to control intellectually or manually.
  4. Improved response time: improves product availability by helping to supply the required quantities at the right time.
  5. Ease of operation: it simplifies operations so that the operator does not require great knowledge to manipulate the production process.
  6. Greater fluidity in processes: having the company’s processes automated generates greater fluidity between them.

The ERP for SMEs are working extensively in all kinds of modern enterprises. The functional departments that are involved in operation or production are integrated into a single system. In addition to manufacturing or production, warehousing, logistics and information technology, they also include accounting, and often include a human resource management system.

5 Advantages of an ERP for SMEs

1- Increase in competitiveness

This results in the accessibility of the information, always having the materials in stock available, the average time of arrival of the next supplies and the reduction of the response time with the client. In addition, an optimization of the processes and reduction of costs.

2- Greater control of operations

All daily data received in real time necessarily goes through data analysis, crossing information from different departments and visualizing in a professional way for better future decision-making.

Thanks to ERP for SMEs, the development of the company is possible without losing control of it.

3- Integration of Information

It is intended that all the people who work in the company have the same information used for different departmental purposes, thanks to the crossing of information between the different areas. In a company of these characteristics, that everyone knows what operations the rest of the people carry out is essential.

Furthermore, this makes it easier to identify errors and redundant data, making it more visual and dynamic to obtain complete information from a customer or supplier.

Particularly, in this type of companies of a more personal nature, this integration of the ERP system for SMEs, allows us the knowledge of the particular specifications of clients or products by all the members of the company.

4- Process automation

With this transformation, an improvement in the processes is sought for greater efficiency. This efficiency is obtained by reducing the necessary procedures and automating those routine ones. With this type of procedure, we refer mainly to administrative procedures such as billing, insertion of customer data and more.

5- Commercial improvements and greater interaction with customers

The crossing of information between internal and external systems should be encouraged. With this, we refer to how to implement a dynamic where customers have at their disposal all the detailed information of the available goods.

In short, one of the functionalities of ERP for SMEs is to facilitate the organizational flow of information between areas / people, obtaining a valuable centralized global vision of the current business situation.

ERP for SMEs = more competitive SMEs

ERP software is no longer exclusive to large organizations. Every day, more SMEs seek to be competitive through integrated process management .

When you get to be more productive, optimize resources, have greater control, integrate information, automate processes and improve customer service, then you will be more competitive.

An ERP for SMEs will give the company the necessary advantages to stand out in the market, regardless of its size.

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