ERP (Enterprise Resource Planning) has been recognized as a necessity for many enterprise-scale businesses. Many SMBs (Small and Medium Businesses) claim they are ‘too small’ for ERP, mistakenly believing that the number of users is the key driver for on boarding an ERP solution. The reality is no business is too small for an ERP solution in today’s business landscape.
Modern ERP helps each of the major functional departments such as finance, inventory, operations, and sales and marketing, stay on track within an organization, no matter the size.
The value of having every department work from the same set of data is what drives the design of a robust ERP system. If everyone can trust that information, every department can stay updated, anticipate potential issues, quickly respond to changing needs, and identify opportunities for the future of the organization.
Order to Cash Processes
Many SMBs view sales as the primary driver for most major business decisions. Modern ERP software, like Deskera, provides an integrated platform to sales, billing, finance, and delivery teams. This improves quote accuracy, eliminates billing errors, and strengthens revenue recognition processes. Accelerate core purchase processes – from quotations to invoices, goods receipt notes to returns and payments – all within one seamless ERP software. When taking sales orders, the users can ensure that the ERP system instantly checks for component availability and creates purchase or production orders to satisfy their needs.
From the perspective of inventory management, a robust ERP system ensures that an organization’s warehouses have what they need exclusive of too much stock. Inventory managers can integrate their material planning with production order scheduling via the system. An order recommendation lets them view requirements and run ‘what if’ scenarios around material requirements by adjusting item numbers, quantities, and due dates.
It’s critical for SMBs to understand how efficient their operations are, both overall and product-specific. Modern ERP delivers the insights necessary to produce operations feasible for all businesses. The ability to clock on and off production orders means you can compare/contrast the various products you make and how much labor and machine resources each consumes.
The advances in financial reporting in modern ERP software are so vast. A modern ERP system handles IFRS (International Financial Reporting Standards) with ease. Modern software provides the reports for creating financial statements that adhere to IFRS standards. It enables to adjust exchange rate differences or fluctuating exchange rates. Items can be viewed in foreign currencies and manipulated based on the corrective action.
Modern ERP brings many benefits to SMBs by forging stronger connections across departments. Transparency, Quick Decision Making and Better Productivity stand out as the key achievements through the right ERP.
- Transparency: All relevant data can be shared and accessed by all the departments. This eradicates the need to export data, which result in increased productivity and reduced expenses.
- Decision-making: Real-time data provided by the modern ERP can be beneficial for accounting, management, and marketing, and enables the organization to make crucial decisions on time. Teams can detect any potential obstacles or issues that may shake productivity levels.
- Productivity: With increased transparency by streamlined business processes, staff can shift their focus on managing increased volumes of business. This aids in transforming various aspects of your business and overcoming the challenges involved in business growth.
Each department can do its job more efficiently and more accurately and with minimal inter-departmental interaction. Formerly, people from different departments would manually double-check the data to ensure they were doing their jobs properly. A modern ERP eliminates the need for such checks and streamlines the ways departments manage their tasks.
PS: This article first appeared on Better Business Blog.