The Benefits of ERP Software to SMEs in Singapore

Whenever small and medium enterprises hear of Enterprise Resource Planning (ERP), the assumption usually is that large enterprises benefit more from it. However, it is never too early to invest in ERP software. If anything, a company that invests in the software early enough has a greater chance of reaping the benefits at an early stage. ERP software could be the one thing between where your business is now and where it can go next. Consider the ERP solution here as you find out more about ERP through the article:

Helps to cut costs

Although investing in an ERP software may seem like an unnecessary expense for a startup, it is a cost that is going to be worthwhile in the long run. If you are wondering if an ERP software is beneficial to your business, it will help if you looked at how many people you would need to employ to perform these duties.

This automated system can be integrated with the rest of your company’s network, so you get to see what is happening in every segment of your business, without creating departments and employees to meet your business demands. Recurrent expenditures such as salaries tend to cripple new companies with limited financial capital. An ERP software will help SMEs plan without worrying about meeting the operating costs.

Fast Response to attract more clients

The challenge all SMEs face is meeting customer demands in the shortest time possible. Many businesses concentrate on providing products and services at the lowest price but forget that customers are impressed by more than the cost of an item. How fast you respond to their inquiry matters. When clients place an order, they expect to receive the items in excellent shape as quickly as possible.

ERP software is involved the moment a client places an order to the moment the item is delivered. All the departments are notified once there is an order. The product is then immediately removed from the inventory. This way, there will be no mix-up, especially when it comes to a client placing an order for an item that is not in stock.

Optimal utilization of time

When setting up a business, often you organize your business based on ways you expect it to function. However, some departments are more demanding than others. For example, instead of having people taking orders and sending this information to the warehouse for packaging, you may opt to automate this section of the business, and have more people involved in more demanding areas such as marketing, packaging, and delivery.

All data and information are stored in one place

One of the challenges entrepreneurs, especially those with new companies, many business owners discover when it is too late that they do not have sufficient inventory, and if they do, most of what they have in stock is not selling as well as they would wish. This usually affects the performance of the business. This data also helps the management to determine the most profitable products to invest in and the most rewarding marketing strategy. The use of ERP software is likely to reduce the number of SMEs that close shop a few years from when they were incorporated due to poor management.

ERP software should not be looked at as only beneficial to established large scale enterprises. It is essential for companies, especially SMEs, to realize there is much to be gained from the integration of the ERP software in the business to ensure the company has the right foundation.