Why SMEs need an ERP System

The effects of the pandemic has led to an increased interest in and uptake of ERP solutions. This has been due to the significant increase in home and remote working, the furloughing and self-isolation of employees leading to smaller teams having to process the same amount of work, and managers having to become more involved at the coalface – exposing them to inefficiencies of previous working practices. Implementing ERP can create new and better ways of working and can improve customers’ experiences. In fact, doing so can amount to nothing less than the digital transformation of a business.

Supply chain problems often stem from not being able to accurately forecast sales and stock levels. To remedy this situation, transparency and visibility of a business’s supply chain and understanding any gaps are key, and this is where ERP systems come into their own.

This is where ERP systems can have a big impact by having features which drive forward the effectiveness and efficiency of a business. These include the integration of previously disparate business functions – such as purchasing, inventory, sales and marketing, finance and HR. ERP also offers the opportunity to input direct pricing from suppliers so minimising the chance of eroded margins, keeping customers up-to-date with price information, and avoiding the need to continuously contact suppliers. These features in turn lead to increased productivity, efficiency, and responsiveness on the part of a business, helping to provide a better customer experience and freeing up local resource.

With ERP software, businesses are able to implement perpetual stock inventories as opposed to annual stock takes, providing greater stock accuracy and enabling the business to increase its revenue and profit, because of the additional trading days freed up as a result of the implementation, alongside efficiencies in picking, organising stock locations, identifying best-sellers and moving stock around to the most efficient location.

ERP systems are no longer the domain only of large enterprises. Small and medium sized businesses are realising how transformative these systems can be in providing better stock control, customer service and ultimately profitability. Cloud technologies, browser-based applications and subscription models are all making ERP systems more accessible and viable for SMEs.

Source: https://supplychaindigital.com/digital-supply-chain/erp-forecasting-helps-weather-supply-chain-pressures-0