How Small Business ERP Levels the Playing Field

If you are a small to medium size business (SME) you may think that you are not ready for the Enterprise Resource Planning software known as ERP. After all, ERP is a comprehensive system and one that is reputedly expensive to implement. You may be thinking that ERP is a bonus from which only the big league businesses with big IT budgets can derive benefit. If that is what you think…the numbers could be saying you are wrong. It could be that small business ERP, rather than being out of your league, is the very ticket you need to move up in the league.

Make Big Plans with Small Business ERP

As businesses worldwide begin to see a break in the clouds of economic lethargy, it is a great time to plan how your business will move ahead in the competitive market. Many small to medium size businesses are still thinking of themselves as small and planning ahead accordingly and will not be poised to leap out in front as markets reanimate.

Recent studies say something else entirely. While the studies do show that SMEs tend to not be employing ERP (in fact one study showed only 27% of SMEs as doing so), it isn’t a statistic that holds true for all SMEs. Manufacturing (63% currently using) and Distributing (72% currently using), are two industries where small business ERP is helping to streamline processes and boost profitability.

The same study showed that many small to medium size businesses are still using the same limited tools they employed when they started their business eg: spreadsheets and basic accounting. Many have trouble moving from “this is how we’ve always done it” to “it’s time to try something better”, but that is the change in thinking that needs to occur if you want to get out onto the field and be in the game. Small business ERP could be your game changer.

Get Big Benefits with Small Business ERP

To prove the point, here are some of the numbers from a recent study showing results for SMEs who deployed ERP: Operating costs went down over 20%, Administration costs were reduced by 19% and Inventories were scaled back by 17%. Put more simply – large enterprises aren’t the only ones who can reap benefits from ERP. Small business ERP can give your bottom line similar results!

Perhaps it’s time to consider ERP as a component of your business growth plan. ERP can help your business grow indirectly through enhanced efficiencies and accelerated business processes. It can also help control the bottom line through operational improvements and lowered overhead. These are the sorts of performance improvements that can help you compete on the field with the bigger companies. Think of ERP as a business strategy.

Big Commitment

Without doubt, many SMEs have not considered ERP because it usually represents considerable up front financially outlay. The encouraging news is that for those SMEs who took the plunge, the reductions mentioned above were realized in months not years. Yes, small business ERP is a significant investment, but the benefits can come sooner than you thought. And it is a long-term investment. Most ERP benefits your company today and is scalable – meaning it will grow with your company. New technology, new features and new functionalities will be available to your company as you do develop.

Conditions seem to be improving in terms of economic recovery, but as they do, competition will be more fierce than ever. The gap between companies performing at their peak those who are not will be more serious than ever before. Maybe it’s time to make a commitment to something bigger.