Enterprise Resource Management Software

ERP Management System Software for Businesses

Have you heard anything like this before – “Your small business doesn’t require an ERP management system. It is a complicated software tool that is only useful for medium and large-scale companies. Your small business can neither afford nor needs ERP management system software, you can very well manage without it.”

This is the most common advice that is doing the rounds on the internet. This is also the biggest myth around the purpose and use of ERP systems. But today, we are here to break the news for you, just like any medium or large-scale company, your small business can also benefit from the implementation of an ERP management system.

In fact, ERP systems are even more useful and advantageous for small businesses as compared to larger organizations. This is because as a small business, you can invest one time in deploying ERP systems that will help you automate your daily tasks. This is a better business decision than hiring numerous employees to manually manage everyday work operations and then paying them a handsome salary at the end of every month.

If you are new to ERP management system software and wondering how setting up an ERP tool can change the game for your small business, you are at the right place. In this blog, we will talk all about ERP tools, their features, their benefits, and types of ERP management systems, and also compare ERP and inventory management systems.

Choosing to invest in an ERP software tool can be revolutionary for the growth of your business. Read till the very end to get all information and then make an informed decision for your small business.

Let’s Understand, ERP Management System Meaning

Enterprise Resource Planning abbreviated as ERP is a software suite that is designed to act as a single source of truth for companies.

It is an end-to-end solution for businesses of all sizes to manage their everyday operations and automate repetitive business tasks for increased operational efficiency.

ERP management systems are designed to replace the numerous software tools being used by organizations for different purposes with a single software solution that holds all business data and can be used by multiple departments simultaneously.

ERP tools offer solutions such as people management, inventory management, finance management, supply chain management, customer relationship management, and others.

It is a high-end software program that is designed to reduce manual work, increase work productivity, and save time for businesses to accomplish more without the need of hiring more manpower or deploying more resources.

Most businesses end up mistaking ERP implementation as a business expense whereas setting up ERP is actually a business investment with humongous returns. It helps you stay on top of your game, compete with other players in the market, increase sales and growth, and also offer a remarkable customer experience. It is a one-stop solution to drive more sales and growth for your business.

Top ERP Management System Features

An ERP management system is a software suite. It is a big bundle of multiple small processes that are tied up together to offer a range of features for businesses to manage their daily operations and grow to their next level. Let’s have a look at some of the most common ERP management system features here :

1. Real-Time Data – An ERP management system stores all business data in one central place and this data is shared by all business departments. Whenever any change is made to this data by a department, it is updated in real-time and instantly made available to all departments as well. This ensures there is no ambiguity in data even when it is shared by multiple departments.
2. Enhanced Data Reporting – With real-time centralized data, you can also create multiple business reports to track business figures and growth statistics. These reports come in very handy and can be used by stakeholders at the time of crucial business decision-making.
3. Inventory Management – For product-based businesses, inventory management can be a big hassle especially if they operate from multiple locations. ERP management systems can be set up at all warehouse locations and this offers great ease of inventory management through a single ERP software system.
4. Order Management – The order management process is highly simplified after installing the ERP management software system. You can not only store all order and customer data in the ERP management system but also process all orders from within the ERP tool itself. These days, ERP tools can also be easily integrated with your eCommerce stores to manage all online orders as well.
5. Supply Chain Management – Distributing your products to multiple warehouses in different cities and still meeting all delivery timelines can be a real headache in the absence of a centralized tracking tool. This is exactly where ERP management systems come in handy and ensure efficiency in supply chain management.
6. Vendor Management – Most businesses work with more than a handful of vendors for each of their business needs and process. It can become cumbersome to manage all communication, deliverables, and payments to vendors manually. Using an ERP management system ensures all of this is done in a systematic and hassle-free way.
7. Finance Management – This is a core business process that requires daily management. Setting up an ERP tool for your business ensures that you are not only able to track all payments and receipts but are also able to use this data for tax filing purposes.
8. Customer Relationship Management – Customer is king and the CRM module is the heart of an ERP tool. It helps you store all customer data in one place, create reports for customer orders, and serve them in the best possible way.

Benefits of an ERP Management System for a Small Business

ERP software suite offers numerous benefits for small businesses, let’s look at some of the most important ones here :

1. Increased Work Efficiency – When you set up proper systems and organized workflows for your business processes, you get a lot more done in less time and that too without human errors. This leads to increased productivity and further drives your business to grow. It also helps in reducing the working costs of the business through efficient resource management.
2. Centralized and Secure Data – An ERP management system helps you store all your business data at one central server and also keeps it secure from malicious activity or accidental loss. Data is crucial for any business and an ERP tool helps you keep it stored safely that is also easy to access whenever needed.
3. Enhanced Customer Support – ERP tools also have modules for customer relationship management and this is what brings in all the difference to customer service. You are able to serve your customers better, suggested the right products and services for them, stay connected to them, and also solve their queries better.
4. Business Growth and Development – Systems and workflows are needed for a small business to grow without hurdles and bottlenecks. By choosing the right ERP management system that is both scalable and flexible, you bring in more business development opportunities and prepare your small business for sustainable growth.
5. Accurate Forecasting and Risk Management – With centralized data and advanced reporting, businesses can accurately predict sales figures, future trends, periodic revenue, and other crucial business data. These forecasting reports also help reduce business risks to a great extent.
6. Improved Team Collaboration – As all team members for all departments of the business begin to use and operate from the central ERP tool, there is just one system for everyone and this makes it extremely easy for work collaborations and communication. The processes are faster and there are reduced chances of errors or lapses.
7. Adherence to Compliance – Every now and then, new rules and sets of regulations are announced and it becomes mandatory for businesses to complete all legal obligations and check all statutory rules. ERP management system tool ensures you are able to meet all checks and complete paperwork as needed.
8. Competitive Advantage – To survive in this extremely competitive era, it is non-negotiable for your business to do everything possible to stay a few steps ahead of the competition. Setting up ERP management software solutions gives you everything you need to beat the competition and emerge as the market leader.

Wondering whether ERP Management System is Online or Offline?

ERP systems are available in both online and offline models. You can choose the type of ERP installation you want based on your requirements.

Basically, there are three types of ERP software based on where the server is located –

•   Cloud-based ERP hosts all business data on cloud servers. This data can be accessed from anywhere across the globe. This is an online ERP solution.

•   On-Premise ERP solutions are the ones where local servers are set up on the site of the business and the data can only be accessed from within the company premises. This is an offline ERP setup.

•   Hybrid ERP solutions are the ones where a local server is a setup but this works along with a cloud server. The business data is stored on the local server of the business but can still be accessed through the internet from anywhere in the World. This is a combination of online and offline ERP management systems set up.

As you’ve seen above, there are all different types of ERP management software systems available today. Based on your company size and business requirements, you can choose an ERP tool that feels like a right fit for your organization.

Difference between ERP and Inventory Management Systems

ERP and inventory management systems are both software solutions for businesses. These are somewhat similar but there are some major differences between them, let’s understand them here.

There are many benefits of ERP Inventory management systems. They are designed exclusively for the purpose of managing the business inventory, keeping a track of all available SKUs, the respective stock count of each SKU, the location of storage, and other product details.

The inventory management software is a complete tool in itself that is mostly used by product-based businesses, also the ones operating from multiple office locations and warehouses. It helps them manage their product stock and take orders accordingly.

For a product-based business, there are multiple benefits of the inventory management system. It not only helps keep a track of product count but also ensures the business is able to restock the high-in-demand products before being completely stock-out.

This software also helps businesses to take bulk orders as per the available inventory, and promise realistic delivery times to clients.

ERP management system is a complete software suite that offers multiple business management features and inventory management is one of its central features.

If you are already using an inventory management system but want to also automate other business processes and reduce the need for daily manual work, you can definitely consider installing an ERP management software solution for your business.

ERP management system is available in both online and offline models, you can choose the one that matches your requirements and fits your business budget.

What is the right time for a small business to install an ERP management software system?

If you are a small business and are worried about poor work efficiency or face work challenges due to the lack of a centralized system to manage business operations, this is the right time for you to start thinking about installing an ERP software tool.

ERP tool will help you bring more order to your business, create a centralized workplace for all team members, and help improve overall work productivity which really pays off in the long run.

At first, ERP installation might look like a business expense but it is extremely beneficial for your business growth. You will be able to save on work hours, there will be no need to hire additional manpower, and you will still be able to manage business operations efficiently and drive business growth.

There is no right or wrong time to set up ERP for your small business, the sooner the better it is. Whenever you are ready to take your business to the next level, you can definitely consider going for ERP installation.

Disadvantages to setting up ERP software for a Small Business

There are no disadvantages to transitioning to an ERP management software solution for your small business. However, if proper steps are not followed, it can become very tricky for your business to adapt to this change.

As soon as you decide to install ERP, you must prepare a plan of action. This plan should include change management where you also keep aside sufficient time for team training. This will make them comfortable with using the new ERP tool.

If not planned well, data transfer from your existing tools to the new ERP software can also be a big hurdle. Proper steps must be taken for safe and efficient data transfer.

Also, ensure to speak to your stakeholders and inform them beforehand about this upcoming change. This will help you have a smooth transition.

Choosing the best ERP Management System for my Small Business

Today, there are thousands of options for ERP tools and it can become very confusing for a small business like yours to choose a credible tool.

If you’ve made up your mind about investing in an ERP management software system, you must first create a list of your requirements, where is it that you need help and what challenges are you trying to overcome. These are your goals with the installation of the ERP tool.

After this, you can do quick market research to look for available vendors. You can have a look at their ERP offering and set up a call with them to discuss your requirements and check their ERP software solution features.

Once you receive a custom quotation from all vendors, now is the time for you to choose one of these ERP management system tools. You must take this decision wisely by checking all checkpoints.

Firstly, you must ensure that the vendor and tool you choose to fulfill all the requirements that you had decided on before you have begun with your market research.

Secondly, you can choose the ERP solution based on its type – cloud-based ERP, on-premise ERP, or hybrid ERP.

Another important factor is the business budget and ERP tool pricing. But most importantly, you must choose the one that can not only be customized to your current requirements but is also scalable and flexible to be able to meet your future requirements as and when your business grows to new heights.

Before giving a final heads-up, ensure to check with the ERP tool vendor for their support and after-sale service terms. You don’t want to invest thousands in an ERP tool and then not get timely support for maintenance and regular updates.

Choosing the right ERP tool can look like an overwhelming task but if you follow the above steps, you’ll be easily able to make the right decision for your business.

Ready to experience operation efficiency and witness exponential growth for your business? Invest in an ERP management system today!