Small and medium sized businesses (SMBs) consider using the very large ERP systems that are best used by multi-billion dollar global corporations. Don’t get me wrong; these large ERP systems are packed with features and can support all sorts of complex business processes that the very largest of corporations need to have. But there are serious disadvantages with these systems for those that just want something that can give immediate help in providing visibility and control to their business. inventory management software
Here are 6 reasons why an ERP system designed for small and medium sized businesses is a better choice.
- The most obvious one is cost. Installing a large ERP system can cost hundreds of thousands or even millions of dollars. There isn’t only initial acquisition cost; you also need to consider monthly software maintenance fees, consulting fees, and the cost of your own IT team to keep the system running smoothly.
- It avoids training due to the complexities of implementation, often leading to hiring consultants.
- Many companies end up having to change their existing business processes to fit the large ERP system. Rather than doing that, some smaller ERP vendors will customize the software to how you want to run your business.
- Employee training and productivity may also be better with a less complex system. Modern, next-generation cloud-based systems offer intuitive interfaces so that new employees can learn how to use the system in minimal time, unlike large ERP’s which are usually flooded with never used, complex features.
- Maintenance is always a concern. Luckily, the vendor will take care of activities such as data backups, applying software updates, supplying floor space for the server, and all the utilities.
- Typical installation times for SMB companies selecting a right-sized system are more often measured in weeks, instead of several months or even years. This is primarily due to the reduced complexity.
There is one other caution we suggest when selecting an ERP system. Although we are recommending that an SMB should not choose a system meant for multi-billion dollar corporations, we also would not recommend going too far and choosing a system that has no or limited growth capability. One should look for systems that are scalable and can grow along with your business. Perhaps these systems won’t be a good choice if your business gets all the way to the billion dollar level, but they should allow support business growth of 10X-100X so you would not have to switch to another system in only a few short years.
If you want to learn more about how an ERP system optimized for SMBs can improve your business, My Office Apps has business specialists available who can help you evaluate your business and uncover improvement opportunities. Most of our team have been using ERP systems for many years under all sorts of different situations. Our expertise within the SMB market, can provide insight into choosing the best ERP solution to help you streamline your business operations.