10 reasons to invest in small ERP

The investment takes the word immediately think the cost-benefit ratio. First rises and then the cost considering the benefits. If the cost is high, companies often do not analyze the benefits. In this context, the usual alternative for small businesses regarding ERP system is usually good old spreadsheets.

The cost of an ERP system is high and the benefits are not always quantifiable exactly. The cost of the spreadsheet is practically zero, so compare the cost of ERP discourages benefit analysis. For this reason many small businesses to invest in ERP quit without even lifting benefits.

But if a small business afford to honor the investment suiting your cash flow, it’s worth checking up the benefits and returns that this decision might bring. See the main benefits that ERP system can bring to your company:

1 – Centralization of control: Everything in the universe has a center, both in the solar system as in atoms. Multiple centers lead to disorganization. The company must also have a control center. The ERP centralizes information from all different departments and processes on a single database.

2 – Avoid operating calamity situation: The rise in the volume of transactions and the intensive use of spreadsheets, leads to total disarray and even the situation of operational collapse. The end result may be the closure of the company.

3 – Cost of using spreadsheets: What is the cost of using the spreadsheet and its limitations? The answer is the cost of labor spent having to enter the same information in two or more places. Cost of rework due to errors and delays caused by lack of information. The elimination of these costs is one of the major benefits of using an ERP system.

4 – large, Company Overview: The integrated management system gives the manager an overview of the company in one place because they eliminate the various spreadsheets, one for each job or department. Can readily show the most important information for making decisions and planning.

5 – Pour processes: In the manual process, a sale is posted in spreadsheet client. Launches low on inventory control spreadsheet and updates the inventory balance. Then updates the financial spreadsheet, and so on. The ERP system does all these operations automatically and synchronously, giving fluidity to the processes, eliminating waste of time, manpower and material.

6 – Increase sales: For control via spreadsheets, budget is released but it was not determined if confirmation of receipt, if had return, etc, which leads to forgetfulness and loss of sales. In ERP mechanism exists to automatically scan for that not to happen. The system sends daily report proposals, their situation and measures to be taken.

7 – Improves management: Imagine a sale chaining the issuance of invoice, the romaeio for the separation of the product and shipping, low on inventory, verification of minimum inventory, generates a purchase order, updates the financial system to control expenditures and receipts . This allows control spending, plan tasks, manage the schedule and so on.

8 – Flexibility: The great advantage of small businesses is the agility and flexibility to adapt to the market needs or conditions imposed by the buyers. When choosing an ERP is necessary to look for software that would enable making necessary to maintain business flexibility adjustments.

9 – Think long term: ERP is long-term investment. The system supplier will be your partner for too long. Look for a vendor that has tradition, experience, structure and quality support to users. Select the system that will provide the best value through time of use of the system.

10 – Technological Obsolescence: For the system does not become stale and the investment is not lost in the short term, the software needs to be updated constantly to keep up with technological developments. If not, soon you will be a dinosaur in their hands.

Anyway, not all small businesses need all the modules comprising the ERP package. In this context it is interesting to find solutions deployed modularly according to the need and added as business growth. Besides reducing the initial investment, it facilitated the implementation of an ERP system in small businesses starting up a new company culture.

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