Five Business Benefits of ERP for Small to Mid-size Enterprises

Aritcle link:
http://www.erpsoftwareblog.com/2010/09/five-business-benefits-of-erp-for-small-to-mid-size-enterprises/

By: Stephanie Mayes

Summary:

·         ERP’s help small and medium size businesses to grow

·         It is an essential element

o   Cost saving

o   Improves operations

o   Transaction based

·         Out of 578 small/mid size business surveyed, results were:

o   80% growth in revenue anticipation

o   22% operating cost reduced

o   20% reduced administration cost

o   17% reduced inventory

o   19%  improved on time delivery

o   17% improved scheduling

·         Companies that do not use ERP create a performance gap and create risk compared to those that do use one

Impact on business:

                This article supports the use of Enterprise Resource Planning. It has strong facts that are supported by research (survey). Small/mid size businesses that use ERP will benefit by three main reasons; cost saving, operation improvement and transaction ease. These are very strong reasons to convince small/mid size companies to convert to using ERP. The article also explains this by emphasizing the performance gap that is visible between users and non users. This tool is very important during economic downturns.  The benefits of ERP are very evident and this article encourages businesses to use ERP.

                We support the author as it gives small/mid size businesses a competitive edge by improving their business process. ERP will help the “little guys” to increase their revenue and performance. ERP helps to reduce expenses (administration/inventory/operating). This is very important during economic down times. Also, it is important for businesses to be constantly improving their processes.  An ERP will strengthen small/mid size businesses.