Organization size is an important factor because some ERP solutions in the market are simply too large and complex for a SME. If your organization size is not big then there is no need to take big integrated software. If you will take big software, only 20% - 25% of its features can be utilized. Why should you pay for 100%? There are so many ERP products available in the market for SME segment. The software should be flexible, secure, state-of-the-art platform that can easily integrate with the present business applications.
You should select ERP software for your organization carefully and comprehensively. There are vertical wise or sector wise software available in the market. Before taking any ERP software you should keep in mind some basic things like total cost of software, hardware cost, AMC cost, Implementation cost, customization charges, etc. Implementation process should be carefully planned and much time is required for business modeling. It will reduce the implementation time and money too.
SME are more focused on all required benefits with optimum cost. Before finalization of ERP software, company should visit the similar kind of industry where the same software is running from last 1-2 years. This will help you to understand the ERP software and vendor for similar kind of industry.
- Quality management on the shop floor
- Improve the customer experience and maintain good relationship
- High level decision support capability
- Information based decision making – For any new plan and decision all the information will be available. So based on the information, management can take strategic decisions.
- Provides accurate information to customers, from order to delivery
- Reduce data entry - data entered once and it flows wherever required
- Streamlined process – Information moves between locations and between departments to support not only day to day operations, but also the future planning and growth of the organization.
- It used to take hours to generate an MRP report. The software took about 3 to 10 minutes to run a one-year
- Improve supply chain management – better supplier control and relationship.
- Increase revenue
- Improving on-time deliveries
- Raising product quality
– Well defined parameters for quality on various stages
- Reducing customer service cost
- Expanding into new markets
- Increase production accuracy and manage by exception
- Expansion is easy
- For new location or new product company does not have to invest on software setup and configuration. It will copy all the master data for new products or company. Whatever the standards you have defined in one company they will replicate for other.
These are some of the benefits which I have discussed in this article. Apart from these benefits there are lot more benefits available with ERP software. These benefits may vary with software. Please ensure your all vital requirements and availability of those things in the software.