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ERP Software Drives SMB Success

In the Aberdeen Group’s recent report, “ERP in SME: Fueling Growth and Profits,” they found that small to mid-size businesses (SMB) that implemented an ERP system were more likely to be successful.

ERP in SMBs are essential to provide a versatile infrastructure that increases efficiency and productivity within an organization. Top performing ERP deployments in SMBs were shown to cut operating costs by 22%, administrative costs by 20% and inventory by 17%. Coupled with the added benefits of a 19% improvement in complete and on-time shipments and 17% increase in internal schedule compliance, a business can see improvements in the tens of thousands to even millions of dollars with the right ERP system in place.

Cindy Jutras, vice president research fellow and group director at Aberdeen, commented on the current state of SMEs. She said, “As optimism increases for a worldwide economic recovery, small- to mid-size enterprises once again look forward to revenue growth. As a result, SMEs must seek competitive advantages that enable them to contain costs to ensure that growth of revenues is not at the expense of profits. Enterprise Resource Planning (ERP) can indeed be a strategic weapon. Not only does it provide a necessary infrastructure that forms the transactional system of record upon which business is based, but it also serves as a source of cost savings and operational improvements, streamlining and accelerating processes, allowing SMEs to compete on the same stage as larger companies.”

With the use of an effective ERP system SMBs can acquire a competitive edge and find comfort in sustainable future growth for their business.

[Photo courtesy of streetfightmag.]