4 Reasons why SMEs & MSMEs must have a good ERP System
It is undeniably true that 'Business is more complex today than it has ever been'. This is especially the case with companies having a small or mid-level presence in the market or which are planning to expand in the near future since the more the business sets its branches out the more complex its operations go. Fortunately, this is just a problem and not a fact; and every problem comes with a solution. Well! The solution that comes to a mind is dedicating a 'System' to each business area essential for the growth of a company.
What could be better? Introduction of an integrated Enterprise Resource Planning (ERP) system to your global business – a software utilized to manage all your business processes efficiently into one system. This centralized system is able to manage all the core business processes at local as well as global levels, offers real-time information and is easily adaptable to changes that might occur in future.
Now, if you cast your eyes on the pointers given below you will get to know why global companies must invest in an ERP system.
1. Centralized ERP system:
ERP system sees business as a whole. Instead of storing information related to different business areas in small chunks at different places, it stores it all at one single place and brings ease of access of the big picture showing the status of the company. Global companies tend to perform their core business processes at different locations instead of one. For example, a global manufacturing company manages the complete production process at one office in one part of the world and manages its order, packaging and delivery from a different office at a different location. Here, arises the requirement of an ERP software with which irrespective of the location, both the departments can access the real-time information about orders placed, products in stock, supply chain, packaging of a product, shipment and delivery, etc.
2. Effective cost management:
Calculation of profits garnered by the company can only be done by knowing what their actual costs are. A good ERP system essentially is also a smart billing software that shares all your financial data along with other essential data, including the cost of raw material used, cost of final products, costs at which products are sold, and others. This real-time financial information can help an organization to make better strategies for company's growth.
3. Break down language, and currency:
Communication plays a vital role in growth and expansion of a global company and inadequate language is a barrier to effective communication. Thus, an organization should use an ERP system that supports multiple languages.
On the other hand, global companies handing their business in different currencies and exchange rates require an ERP system for translating currencies across the globe, while allowing other users to access the financial record in the currencies known to them.
4. Foster adaptability and growth:
Continuous growth and expansion of a business overseas depend on the efficiency of the system we use. The more efficient the system, the more our business will grow. By efficiency we mean, a system that is capable enough to manage data and modify itself according to the latest trends in technology. Good ERP systems can handle complex global operations and are easy to update according to the requirement fostering the growth of the company.
Ishaan is a technology graduate and has a keen interest in ERP Software. Currently working as trainee with a mid-size FMCG wholesaler as a Trainee Support.