In this fast-paced domain of manufacturing, businesses have begun to realize the importance of ERP platforms. They now know how cloud ERP solution for SME allows smoother operations and helps them shape and scale their business and industry.
As people shift to more digital platforms, the demand for ERP solutions will increase. The Indian ERP software market might grow by 10.01% between 2024 and 2028, according to a report by Statista.
In this blog post, we will understand modern ERP solution features and their importance. Further, we'll go over the process of choosing an ERP system for your business and the ways you can unlock efficiency with the best operational software selection.
What Is ERP Software?
An Enterprise Resource Planning (ERP) software takes care of operational tasks related to any business. ERP software for a small business can help in production planning, development, sales, and supply chain management. ERP systems automate routine tasks and simplify production processes. This reduces the risk of human error and increases efficiency. It also helps in managing the inventory, quality control, and compliance.
Importance Of Feature-rich ERP Software For Modern SMEs
Having an ERP is very important for small to medium-scale (SME) manufacturing businesses. Modern ERP software can adapt to the demands of the industry and improve efficiency. If you choose ERP software in a hurry, you may regret it in the future.
Let's learn the importance of feature-rich ERP Software and see if you need them or not:
- A Feature-rich ERP Software meets industry needs and provides better administrative efficiency.
- Modern ERP software excels at work delivery than traditional accounting methods.
- A cloud-based ERP software provides accessibility without system failures and performance lags.
- Security is a priority for modern ERP software. It safeguards data against breaches and ensures constant protection.
- An ERP Software with required features takes care of supply chain operational tasks in the best possible manner.
Must-have Features Of ERP Software
An ERP streamlines operations, improves efficiency, and drives growth. However, not all ERP solutions are the same. Let us look at the seven important features of ERP Software.
1. Cloud-based
An SME should look for a cloud-based ERP Software. Cloud-based software can adapt and improve the accessibility of data. They also provide better expansion and flexibility to business operations.
2. Effortless Integration
In today's time, many SMEs have to use e-commerce services. You should look for a cloud ERP solution for SME that offers eCommerce integration. This will help your business reach a wider audience with ease when using this feature.
3. Vendor Collaboration
An ERP solution with effective vendor management will be useful in the long run. This is because you need to collaborate with individuals at every stage of the supply chain. For example, when you have to purchase raw materials for your business, you will have to connect with your vendors.
4. Analysis & Reports
Your modern ERP software should have a live dashboard that gives you data with analytics. This will result in a better performance for your business. An ERP will also provide you with custom reports and financial statements. This will help you make improved decisions for the future.
5. Inventory Management
An ERP solution for SMEs should have large-scale inventory management capabilities for cost-effectiveness in the business. This feature is particularly important for management and distribution enterprises.
6. BOM & Kitting
Businesses have to organize and pack inventory items and services efficiently. For this, an ERP solution promotes multi-level Bill of Materials management and Kitting while working with customized user needs.
7. Accounting
For a small business, you should look for an ERP solution to achieve accounting excellence. The software should have features for general ledger, account payable and receivable summary, etc. This is to make a company's financial management powerful.
What To Look For In A Good ERP Solution For SMEs?
When looking for a reliable ERP solution, SMEs should look for a tool based on their business type and requirements. Here is a list of factors that you should keep in consideration while getting an ERP:
- Look for a system designed for your sector and niche. For example, a logistics SME would find an ERP with a dependable supply chain manager.
- Look for a Cloud-based ERP with added flexibility and remote availability. This makes data accessible from anywhere.
- Find a mobile-friendly interface for convenience.
- Look for a system that allows multiple employees to work with efficiency.
- Some ERP providers for SMEs offer initial training and uninterrupted support. Such platforms help you with working time and solve issues as soon as they arise.
- A good ERP solution may cost more than the average one. You should also create a budget for your enterprise resource planning software.
- Find an ERP system that customizes itself according to the customer and business needs. Such ERP software is adaptable and can assist with operational changes.
- Finally, look for software that provides detailed reports. It should help you create an intelligent business with profitable decisions.
How To Choose The Best ERP Software For Small Businesses?
Selecting the perfect modern ERP software for SMEs can become a tough task, especially if it is your first time. There are many ERP solutions today and you need to pick the one that suits your needs the best. Here are some things you should keep in mind before selecting ERP software for small businesses:
1. Defining Business Needs
You should have a thorough understanding of your business process. You should learn about the company's objectives and the challenges that may arise. This would help you know what exactly are your requirements.
2. Interface and Dashboard
Usually, ERP software is very complex and tough to understand. This can make it difficult for small to medium-scale businesses to teach the software to their employees. An ERP solution for SMEs offering a user-friendly interface can make operational tasks easier for you.
3. Platform Integration
Look for an ERP solution that offers integration with multiple platforms. This will improve your operational efficiency and make it easy for you to work on the many aspects of operations at the same time. ERP solutions should also be capable of integrating with other useful software.
4. Cost And Savings
The cost of available ERP platforms changes with different subscription models and license fees. Cloud ERP solutions for SMEs work on a 'pay as you go' policy while covering maintenance and support. You should get a platform that falls into your budget bracket and provides the required features.
5. Vendor Reliability
You should also consider a vendor's reputation, track record, reviews, and feedback from fellow SME owners. Consult with professionals for niche networks to make an informed decision about your ERP system.
Unlocking Efficiency And Simpler Operations with TranZact
Finding the best ERP system for your business is an important decision. Small to medium scale (SME) businesses need tools that are easy to use. They need tools that can grow with them. Low cost, customizability, easy implementation and ease of use are very important for Indian SME manufacturers. An ERP solution may not offer all of that.
TranZact is a software solution that is made for these needs. It offers you features like automated operations, real-time reports, and 24×7 chat support. Do not miss this chance to use TranZact and become the business market leader. TranZact makes sure that you have a software solution that fulfils your operational needs at every stage of your business journey.
FAQs
1. What is modern ERP software?
Modern ERP software is a collaborative system to manage business processes and analyze data for all operational tasks of a manufacturing business.
2. What is a cloud-based ERP system?
A cloud-based ERP solution operates on a remote server. Users can access this platform remotely and gain the required scalability and flexibility.
3. What are the features of an ERP System?
Some of the most important features of ERP Software include accounting modules, inventory management, supply chain management, planning, purchasing, etc.
4. What are the main functions of an ERP System?
Task automation, data flow facilitation, better collaboration, and real-time insights are the main functions of an ERP system.
5. What are the 5 components of the ERP System?
The 5 components of an ERP system are:
- Software
- Hardware
- People
- Procedures
- Data
6. How do I choose the best ERP for my small business?
While choosing the best ERP for your small business, you should look for user-friendliness, specific features, integration capabilities, and cost transparency.
7. Which ERP is best for small businesses in India?
While ERP systems offer solutions that simplify your operational tasks, they may not be ideal for small businesses in India. This is because of their high costs, complexity, and lack of customization. Instead, Indian SME manufacturers should look for cloud-based software, which provides a more flexible and customizable solution. They should look for a solution that allows them to pay for only the features they need. It should be user-friendly and be implemented within 15 days. TranZact is one such cost-effective solution that is made for small manufacturing businesses in India.
