How ERP plays a vital role in SME’s?

Importance of Open Source ERP in SME’s Enterprises

Companies have been experiencing cut-throat competition for a long time now. The demand from customers is getting higher day by day and it is forcing the supply to get higher. For some time, there was a demand for sophisticated systems to integrate multiple aspects of a business to better serve the customers and streamline the processes. Software developers like Odoo, SAP, Oracle, Microsoft, etc have been developing and improving the solutions for these problems. The system that eventually evolved from these solutions is known as Enterprise Resource Planning. It is a tool that helps navigate a business all its activities in one place and it makes the information available to everyone at all levels.

ERP helps integrate different processes of an organization which involves workers, materials, machinery, etc. It gathers all the data and makes it available at a single platform. Initially, ERP worked around in manufacturing but it gradually covered all the business functions of an organization. ERP provides a holistic software solution in which all the functional departments are involved. From manufacturing, logistics, and warehouse to HR, accounting, and marketing it works on every level and makes all the data available to access to everyone.

Now there are a lot of reasons why an organization needs to opt for an ERP system. Gradually, when a company gets bigger, the complexity of processes increases. The already installed software can not handle it. The back and front end systems may not be integrated yet. The data available might not be quantifiable or accurate. All these things may seem insignificant at first but slowly chip away the productivity and lead to confusion and inefficiency. ERP improves performance with the data available in real-time and with the quick response time.

Let’s take an example of how ERP improves the finance department. ERP assists an organization to maintain its financial information like accounts, cash flow, budget, etc.

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This way it saves a lot of time and money which in the long term improves the organization’s productivity. ERP eliminates the use of paper which is time-consuming and unsustainable. It enables an organization to study and improve its processes when all the operational data is merged with financial information. The organization becomes more and more productive as the data connects among itself. The very concept of combining all the processes is at the core of an ERP and it is helpful for the organization to be successful.

Another feature of ERP is a comprehensive Business Process Reengineering. It is a tool of in-depth study and transformation. It uncovers the flaws of the system and attempts to eradicate them by restructuring. It helps recreate the core processes with a goal in mind of improving output and reducing cost. It helps reorganize the processes and increase overall productivity in all the departments. The process is very risky and time-consuming. The chances of failure increase with every step taken. An ERP helps manage it with ease and efficiency.

ERP nowadays is relentlessly working towards what one can call the future of management. Everybody is starting to realize the important relationship between ERP and the Internet of Things (IoT). IoT is a technology where an object is connected to the internet for gathering information. It enables the object to have an active role in the information wagon. The object can be lights, speakers, cars, electronic appliances, etc. It is supposed to have features of a smartphone and it can carry out actions as they are ordered. For example, a refrigerator can understand that it is running low on vegetables if it is programmed to do so. The information is managed by software that is integrated into the management system. This system is ERP. The IoT helps ERP in a substantial way because it is proficient in data gathering. With IoT, an organization can use sensors in the warehouse to calculate the amount of material it has and it is needed. It is hoped that soon every organization can be automated on this level.

Change is never easy. It is especially not easy when the whole organization’s management system is uprooted. But it can be better when one understands the benefits it is going to give after implementation. When an organization understands the demand of its system and commits to making it better, there is no other way except upwards. ERP has the ability to make the organization profitable via automation. It helps streamline the processes to make it more productive. It is time to act and sign up for Odoo ERP.

Caret It is an Odoo Silver partner and has a team of well qualified and experienced professionals, schedule a meeting with us for your business consultation.

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