Before the rise of advanced ERP systems, business enterprises had no choice other than to rely on manual business management systems. Manual management was challenging, hectic, time-consuming, requiring lots of resources along with the possibility of human errors. Also, taking care of a large heap of inventory files, for instance, was not possible for all organizations over a long period of time. Thanks to Ford Whitman Harris in 1913 who came up with the concept of paper-based inventory management, and kudos to Black and Decker when they implemented EOC principles on mainframe computers in 1964 for the first time. From those phenomenal beginnings, we have reached a stage where advanced enterprise solutions literally take care of all business matters. You name it, and they have it. Sales, marketing, HR, PoS, accounting, finance, e-commerce, inventory, purchase, customer relationship management, procurement, and many other features—all of them are provided by an Enterprise Resource Planning system. Hence, an ERP automates, integrates, and manages all business affairs in a wholesome way. According to the Aberdeen Group, “96% of top-performing, growing businesses rely on an ERP.” The profits for these businesses grew up to 10% in the last two years.
To put it in a simpler fashion for you, following are the four basic and essential benefits that an ERP system brings to Small and Medium Enterprises (SMEs).
Reducing Cost (an ERP always brings the business cost down since it has all business functions integrated in it, so the separate cost for all those operations is saved).
Automation (relying on robust technology brings transparency and efficiency, which eventually saves both time and money. Thus, there is no room for human error and other external inefficiencies).
Scalability (this makes an ERP even more fascinating. There is no need to be nervous about the expansion of business. You have all the tools to assess your costs, profits, and get other analysis beforehand).
Reporting (insightful reporting tools for all business modules make business planning and decision making easier than ever).
Furthermore, an ERP has proven to be even more beneficial for newly emerging businesses, because it provides them with instant cost estimates, marketing plans, and insightful data analysis, etc. beforehand so they can take better decisions. Reach out to Comstar USA for ERP implementation and other queries.
