Benefits of ERP within small businesses
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Benefits of ERP within small businesses

Efficiency in the business operation is crucial in ensuring the productivity and customer satisfaction. Regardless of the size of a business, measures and systems have to be set up that will ensure that the business operations are as smooth as possible.

The ERP System which stands for Enterprise Resource Planning System is a business management software comprising of a collection of application functions used to collect, manage, store, and process data from the various activities that a business engages in, and automate most of the back office functions that are related to human resource, services and technology. This system proves to be very beneficial to the small, and more independent businesses.



The ERP System has always been associated with the big businesses. But looking at the small businesses, they deal with the same tasks as the large businesses only at a smaller scale. Therefore the ERP System is also favourable for these businesses.
Here are some of the benefits drawn from integrating the ERP System to a small business.

Increased Productivity

The main purpose of running a business is to make profits, and profits can only be made if the productivity of a business is at its best. The ERP System brings together all business data to one point and the same can be accessed easily by the employees from their points of work. The hustle of having to go to various departments to get information is eradicated.

Also, from one system, management of the business finances, tasks, stock, and the fleet is made possible.



Better Collaboration

Poor collaboration among employees in a business is often as a result of the inability to access data easily when needed. The system allows access to data from all departments facilitating better collaboration.

Improved Management of the Business

With the ERP System, the business manager gets an overview of all business departments from one central point. The important and most relevant information is easily singled out and used for decision making and business planning. It also allows for checking of inventory, generating of purchase orders, plant tasks and control the business schedule.

Reduced Operation Cost

Reduction of the cost of operation is very important, especially for the small businesses. The integrated functions that the ERP System provides allows for the business operational cost to be reduced significantly. The system grants more control and monitoring of the assets owned by a business. As opposed to streaming data in different applications for the same business, the ERP system integrates all those systems and the money that was previously spent in paying each individual department is saved.



Also, the costs and limitations that come with the use of spreadsheets are reduced. At times several copied of the same data may be required at two stations. With the ERP system, the cost that was to be spent on the two data entry clerks is saved. Also, there is the aspect of time management as the errors can be easily corrected when the data is being keyed in. the information required is available at the right time and in the correct format.

Clearly, the benefits drawn from the ERP System have far-reaching benefits for small businesses that will have them scaled to greater ranks. With these benefits, perhaps the ERP System is the missing piece that will have your business operate at its maximum potential.
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