Enterprise resource planning (ERP) refers to a type of software that a company uses to organise and manage their day-to-day tasks of business such as accounting, procurement, project management, risk management and compliance, and supply chain operations. This technology helps small to medium sized businesses use a system of integrated applications for managing business and automating several business functions. It streamlines and collects data that is available in several departments into one platform that allows better decisions and increases productivity.

Check out how small and medium enterprises (SMEs) are benefited by ERP:

Integrated information

ERP systems support business to integrate flow of data between various processes in the supply chain of an organisation while connecting the business transactions with the financial system of the company in real time. This allows the management to make more strategic decisions and view various financial implications of it. It will provide information of the core processes that starts from sales order entry to product pricing, shipping/delivery, inventory and warehouse, production, procurement, invoicing, financials and other processes in a business. Increase in productivity
 All the data and key information of different departments can be made available on a single platform at any given time. Therefore, the time taken to contact employees of various departments and get the relevant files will be saved. ERP system maintains a master date for vendors, customers, products/materials and manufacturing work processes, bill of material (BOM), and other data which is critical.  This helps to maintain consistency in the work processes and enhances productivity.

Controlled and Reduced Operational costs

Small businesses often rely on cheaper tools for accounting data such as excel sheets or simple accounting software that is suitable for them as they have a limited volume of transactions. However, with complex business processes and increase in the number of business transactions the need for an ERP system becomes important for further success and growth. The lack of control in a growing business is impacted in the form of lost orders, inventory shortages, poor planning, missed invoicing, missed shipments, and a general lack of control.

Higher flexibility 

The major advantage of ERP software in a small business is its agility and flexibility for adapting to market requirements and conditions that are imposed by customers. An ERP software provides flexibility in terms of making necessary adjustments in data management to maintain business flexibility.One of the greatest advantages of ERP software in small business is agility and flexibility for adapting to market needs or the conditions that are imposed by buyers.  Dedicated ERP software provides flexibility in terms of making necessary adjustments in data management to maintain business flexibility.

Increased sales and long term planning

Business processes via a spreadsheet requires manual input to keep track of sales order could cause error in production and distribution leading to loss of sale. Dedicated ERP software has an automated authentication mechanism to prevent this from happening. It also sends daily report of proposals so that necessary measures can be taken.

Better business decisions 

Effective business decisions require the availability of necessary information and accurate data in a timely manner. ERP system provides data and information which is easily available and constantly updated, the management can take better and informed decisions that are necessary for business growth.


Costs involved in installing an ERP software can be more expensive than a smaller accounting system or a spreadsheet, however the benefits of such a software system makes it a beneficial tool for small and medium businesses. PC Soft is a leading company providing businesses with ERP solutions customised to their needs. Get in touch with their team and they will provide your small and medium enterprise with the best solutions.

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