How ERP Software Can Help Solve The Problem of SMEs?

How ERP Software Can Help Solve The Problem of SMEs?

SMEs are the foundation of an economy and they are constantly confronted with significant challenges. There are numerous challenges to overcome such as market competition, strict budget compliance, resources and so on.  To cater to the needs and challenges of SMEs is pivotal and hence ERP is the ideal solution and its implementation has a significant impact on operational improvements and cost savings. 

What is an ERP?

An acronym for Enterprise resource planning, which includes a variety of critical business processes. An ERP software is known for its modular system that includes features such as invoicing, payment management, inventory management, purchase module, accounting and human resource.

All of these processes are consolidated into a unified system that can be shared and managed through a centralised database, thereby streamlining your business operations under one roof.

Cloud-based ERP for SME is a solution which can remarkably transform the operations of any company, from providing centralised data storage to improving collaboration across all departments. Let us dive a little deeper into understanding how ERPs can help solve the problem of SMEs:

1. Integration of all the information under one roof

SMEs have multiple functional areas and accumulating data from all the functional departments and getting insights is quite challenging. ERP software helps to reduce manual data entering of information by providing automatic workflow and faster process completion ensuring all activities are accurately tracked and not overlooked. 

2. Streamlined processes for better insights

ERP for small businesses is the approach if you want to have total visibility into all the crucial business operations across the whole spectrum. ERP offers a centralised platform for engaging in real-time statistical analysis across all functions. Information on all organisational operations and those of its departments are gathered in one location, which is highly important, especially for senior management. This will provide you with a better understanding of your company and can help you make better decisions for future operations.

3. Sales & customer relationship management

ERP for small businesses can help you manage and execute your sales order, manage customer relationships, physically distribute goods, bill customers and create invoices. It enables businesses to save all types of consumer information they require. 

With the information stored, you can get a thorough understanding of your customer’s details, from a  prospective client to sales and provide them with after-sales support. 

Businesses can also track clients’ accounting & finance which aids in a better understanding of your client’s requirements, communication history, order invoices, bills and personal information. 

ERP implementation definitely helps in customer handling and satisfaction which will help SMEs to grow and create goodwill in the market.

 4. Cost savings & better management of supplies

For SMEs to grow their business, savings and managing their supplies in the most effective manner are imperative. For greater efficiency, inventory, customer service and sales operations should be in sync.

ERP is the solution that enables managers with the ability to analyse, gain a greater understanding, and make effective decisions. It delivers real-time financial data and visibility into how one issue is affecting other processes. This gives you a competitive advantage, boosts productivity, and substantially lowers costs.

5. Measurement and Reporting

It is very important for SMEs to measure their operation and gain insights from it to make sound decisions for their business in order to better their performance. With ERP implementation, better reporting & business analytics are available. It offers us two types of reports, basic and customised reports to simplify the work of managers and employees. The reports are a great tool to increase productivity and reduce delays. It is very helpful for financial reporting and everyday accounting. 

Reports are made with a simple dashboard with data analytics of the organisation’s key performance indicators (KPIs) and other metrics. Some of the common reports include invoice reports, stock reports, stock storage reports, profit summary reports and many other custom reports as per the need of the business. This data is also available in the form of graphics and tables which makes it easy to access the data. 

Sourcepro offers cloud-based ERP software in India, that allows you to manage your business at your fingertips and access it anytime and anywhere.  New Horizon is a fully integrated end-to-end ERP solution for SMEs with all the features that will simplify work and aid in better performance & utilisation of resources.

To understand and know more about ERP implementation for SMEs in India, contact us! Sourpro is an established and experienced choice.

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