You might be tired of using an outdated system that complicates your work or even completing your tasks manually. But, one would never know what you have been through. That’s probably the reason why they think investing in an ERP system is not necessary. Besides, the awareness on the benefits of an ERP system in SMEs is very minimal.
Sometimes, it takes months – even years – until an SME finally agrees to implement an ERP system. Unfortunately, the manual works that you pile over the time will complicate you even further. Here are few compelling reasons to implement an ERP system.
The Number Difficulty
Understand the impacts of your difficulty in managing Numbers on the Company’s finance. Is the Inventory Managed Properly? How are Competitors doing better in numbers?
Understand ROI
The ROI in the context of ERP implementation is the metrics that can be achieved after investing and using the system. You can easily explain the cost of the ERP but maybe not with the results. It is because the advantages of ERP is not always in number. There are tangible and intangible benefits. Here are some of them that you can elaborate more to ensure them.
Tangible benefits
- Reduced inventory waste thanks to better control and planning.
- The material cost that lower than previous because of automated and easily monitored procurement.
- Labor cost does not swell because staffs are allocated well.
- Improved production process due to good planning and maintained machines.
- Reduced sales cost
Intangible benefits
- Business operations become efficient, transparent, and effective.
- Inventory stock is accurate with precise predictions.
- Improved customer service and delivery.
- Standardized Procedures.
- Financial management becomes controlled
- Compliance to regulations is easier
Bust the myth about ERP
It is believed that ERP systems are only suitable for large organizations due to complexity and higher cost involved. It is not true because ERP Software like SAP Business One HANA have evolved and proven to be less complex and easily affordable to SMEs.
SkySurge is a Leading SAP Partner in Bangalore with clients spread across India and Middle East providing SAP Business One Implementation Services Successfully since more than a decade.