Do you know what ERP Software is? Do you know if you need ERP Software?
ERP stands for enterprise resource planning and is a comprehensive business management system that handles all aspects of a company’s operations. ERP software has you covered from inventory management to order processing, accounting and more. Some systems are even designed with light warehouse management capabilities. ERP software solves the problem of managing disconnected systems by storing all enterprise data in one place.
For small businesses, it is common to rely on introductory software such as QuickBooks for accounting needs. Other operations such as inventory management are typically managed manually through spreadsheets, which is fine for businesses dealing with small volumes. However, as your business begins to grow you will run out of time to input orders or count inventory overnight. You will want to automate these tedious tasks and if you are already experiencing a surge in business, it’s time to consider implementing ERP software. Let the software take care of the small details so you can focus on what matters – growing your business.
ERP Software Functionality
ERP Software is not a one-size-fits-all solution. There are industry-specific systems that include specialized functionality for industries such as pharmaceuticals or food and beverage, to ensure compliance with government regulations.
On the other hand, there are more versatile systems that offer general functionality suitable for a wide range of industries but at the same time offer extensive customization capabilities. During the software search, it is important to ask about functionality specific to your processes and if they are not already built into the base software, confirm with the software vendor if they are willing to customize those functions for you.
Small businesses also have the advantage of seeking out local ERP Software vendors who understand their unique needs. Big-name, global vendors like NetSuite or SAP are designed for large enterprises but the local vendor like Blue Link ERP will offer solutions tailored to small business processes and provide benefits such as quick, personalized in-house support where you can build a genuine partnership with the experts assisting you.
Ultimately, as you compile a shortlist of vendors, conducting thorough research and speaking to current customers will help you gauge levels of satisfaction.
ERP Software Cost
You may notice that it is hard to get a solid pricing strategy for ERP Software and due to the unique nature of each industry, business, and vendor, it is difficult to provide a general estimate. The cost of ERP software is based on factors such as the number of users and level of functionality. Additionally, there are license fees, implementation and maintenance costs, support and finally customization to consider. Many ERP Systems are now hosted on the Cloud eliminating the need for IT maintenance and associated salaries. Large enterprises may still be opting for on-premises solutions where they do need to manage the IT side of things at their own expense, although this is not as common as it was a few years ago. If you delve into the different software tiers you will find that SMBs can expect to pay around $10,000-$150,000 for an ERP Solution.
Benefits
There are countless benefits of implementing ERP software that cannot all be listed here but allow me to highlight a few that will pique your interest.
Enhanced Reporting
ERP Software offers real-time reporting tools that allow you to seamlessly create customizable business reports. You can also automate the entire report generation process including email distribution to the right employees. With ERP Software you can make data-driven decisions that launch business growth.
Automation
The all-in-one aspect of ERP software means that all business departments can benefit from automation including the sales team who maintains customer relations and the warehouse team who picks, packs and ships orders.
Reduced Manual Work
By leveraging ERP Software, employees have clear and direct access to vital information enabling them to assist customers and conduct their tasks with minimal disruption or duplication. As a result, happy employees pave the way for satisfied customers, ultimately boosting sales.
Recap
Searching for and consolidating a list of potential ERP software vendors can be a long and daunting process. While there are consultants available to assist you in identifying the best ERP solution for your business, it is highly recommended you conduct your own research and speak to current customers as previously mentioned.
Ask about the sales process, implementation, and support while you get a sense of partnership. An ERP software system is instrumental in managing your business, encompassing all your financial and critical data. Since it is not likely that you want to switch systems frequently, it’s important that you find a vendor that views you as a partner rather than just a customer.
“Investing should be more like watching paint dry, or watching grass grow. If you want excitement, take $800 and go to Las Vegas.” Paul Samuelson, American Economist.
About the Author
Danielle Lobo:
Danielle is the Marketing Manager at Blue Link ERP. Blue Link provides inventory and accounting ERP software to small and medium-sized businesses. Danielle can be reached at [email protected]
