Small and medium sized companies are challenged to keep updated with customer demands and compliance mandates, reduced man power and cost, searching new areas to expand business and effective customer relationship and supply chain management, ERP caters to all of these needs which have increased its importance in SMB sector. Though time, resources required and ERP cost of purchase and implementation have been the biggest disclaimers so far.
With the advent of SaaS model and hosted ERP solutions, the cost and implementation process has been reduced to minimum compared to previous on-premise models which has given small and medium sized companies an economic way to migrate on to the latest technology and utilize it in resolving their problems. On the other hand, most of the large organizations are using ERP software which indirectly pushes small and medium sized companies to come on to the same platform with large organizations to keep up with the pace.
The cost cutting features of ERP has been the biggest lucrative feature for small and medium sized companies as these companies rely on reducing their operational costs to increase their profit margins. Better relationship with suppliers which becomes quite easy to maintain with an ERP has increased the demand for it in the SMB sector. Apart from these, to enhance the supply chain even beyond geographical boundaries without any extra cost also helps small and medium sized companies in getting an edge over their competition and more economical offers.
Improved customer relationships means increased business, more satisfied the customers will be more business they will give and features of ERP helps in doing so immensely. SMB companies are preoccupied with their day to day tasks and special attention for client communication is not possible for them without recruiting special manpower for the purpose, which eventually incurs more expenses. Better and easy front desk management, portals for customer grievances, suggestions, services and price lists resolves this problem to a large extent for better business.
Sales force automation and finding new areas with more demand for their products is another feature which attracts small and medium sized companies to opt for ERP solutions. More informed and equipped sales team with updated information accessible from anywhere helps them in getting new business and closing deals quickly. Taping new areas earlier than their competition gives companies an early arrival benefits which gives boost to their profits.
Apart from above said benefits ERP brings in lot of information and knowledge with it which helps small medium sized companies in increasing their productivity and profitability. Knowledge of standard processes, optimization of processes, latest methods and ways to reduce cost of production are few features of erp which are embedded in the ERP solutions which prove extremely beneficial to such companies. Integration of all the departments and access to information in real time helps in keeping transparency throughout the organization without bringing in any extra cost or involving any extra manpower. All of these benefits have attracted small and medium sized companies to avail ERP software and has also prompted ERP developers to provide more and more economical options to bring down cost of their product within reach of SMB companies.