A business is like a machine that needs a consistent and optimized performance of every part to derive the best results.
If any part malfunctions, then that machine will either stop working or provide incorrect output, thereby impacting that machine’s purpose.
ERP or Enterprise Resource Planning is a system that ensures that the machine runs effectively and efficiently, coordinating every part of the machine for optimized results.
In this article, we will share what is ERP system, and what are the benefits of ERP system. We will also share the advantage of ERP for a startup and early-stage enterprise, and will share some tips and tricks for selecting the best ERP for your business.
And lastly, we will share how you can get expert help and assistance, when it comes to ERP for your business.
What is an ERP System?
ERP or Enterprise Resource Planning is a set of tools and software that helps run critical business processes and co-ordinate data and information.
A typical ERP will help businesses to manage and optimize important and critical processes such as manufacturing, HR, supply chain, project management logistics, workflow, IT, financial management, and more.
Advanced ERPs will also help businesses automate business operations under these business processes and help the management save time, save resources, and ensure error-free results and output consistently.
The keyword here is effective coordination and communication between different business processes and business operations, and here comes its biggest and more important advantage.
5 Important Benefits of ERP
1. Seamless Coordination Between Business Processes
One of the significant importance of ERP is seamless coordination and communication between different business processes. If the HR Dept is not aware of human resources’ exact requirement for the next quarter, it creates an information vacuum. It can negatively disrupt the key process of recruitment.
2. Cost Savings
A robust ERP system provides complete visibility and transparency for the management, related to expenses, revenues, current project status, resource usage, and more. This translates to better control of the business, and this results in cost savings for the management. For example, suppose you are aware of the exact inventory position and aware of the market demand in the future. In that case, you can plan your purchases better, get better deals from vendors, book more profits, and save more money.
3. Enhanced Customer Service
A typical ERP system will provide management with real-time and accurate data related to customers and their preferences, which translates to enhanced customer service. If you are aware that a particular customer is keen on purchasing a specific product from you, you offer them better options and a better price.
4. Optimized Operations
Optimized business operations are one of the biggest USPs of an ERP for business. Since every critical business process is mapped, linked, and exchanging information, you can be assured of optimized business operations on a consistent basis. For example, if the project manager is aware of the financial data related to an ongoing project, he/she can plan the project in a better way, hire better resources, and deliver the project on time.
5. Data Security & Integrity
Be it Open Source ERP or a customized branded ERP, data security and integrity are key ingredients of the system. With ERP system, you can be assured of optimized data security and safety; the management can embed critical security aspects into it. Only authorized personals can access the data, and no external entity is allowed to fetch data from the system.
Benefits of ERP For A Startup
One of the most critical questions for a new business, a new startup or a small business is that, should they deploy an ERP?
What are the benefits of ERP for a Startup?
Since we shared the Advantages of ERP in the above section, it’s clear that all businesses need ERP for optimized results.
But when it comes to startups, then ERP can be a gamechanger.
Since startups are financially strained and low on resources, an ERP system can help them save money and optimally utilize their available resources for maximum ROI.
For startups, it’s recommended to use Cloud-based ERP, because this can help them save on a lot of IT costs. A Cloud-based ERP can be remotely deployed, and there is no need for installing expensive hardware and networking equipment to run it.
Besides, Cloud-based ERP can be accessed using a web browser, and the centralized data is available 24*7, 365 days a year from anywhere, anyplace.
All you need is the internet and a device like a laptop or mobile to access the ERP.
Team collaboration and seamless data exchange are other big Benefits of ERP systems when it comes to startups and small businesses.
How To Select The Best ERP For Your Business?
Choosing and finalizing an ERP system for your business is a mammoth task and requires a close deliberation on all pros and cons, including a cost-benefit analysis.
The small business needs to plan out the expenses for an ERP, and calculate the time and money saved if that ERP is deployed.
Besides, the current needs and requirements of the business should also be considered. If the new business has only 3-4 staff members, and there is no requirement for inventory management or supply chain or HR, then a low-budget ERP with limited features can be selected.
If you need more professional help and assistance for selecting an ERP system for your startup or business, then we at MSMEx.in can help you out.
We are a micro-advisory platform, which provides expert help and assistance from business veterans, as and when required.
Thus, you can book an expert on Enterprise Resource Planning and take their help in choosing the best ERP for your business. You can find MSME experts, marketing ninjas, Sales veterans, Business Funding experts, Venture Capital experts, Business laws experts, and more at MSMEx.
All you need to do is book an appointment with the business expert, and take professional help right away.