The top reasons for implementing an ERP are increasing efficiency (35%) and cost advantage (29%).
Enterprise resource planning (ERP) systems have become an essential part of all businesses irrespective of the vertical, business size, or target audience. Be it finance, accounting, or risk management; an ERP can help you streamline all your operations.
Looking for ERP Software? Check out SoftwareSuggest’s list of the top ERP software solutions.
While large enterprises and established companies will need to be able to micro-manage every aspect of their business, startups need an ERP solution that is affordable, scalable, and can be easily implemented.
Implementing an ERP can take a lot of time, and unfortunately, you can’t take weeks to understand what makes their solution tick. Thus, you need a solution that can help you sail the boat and provide ample opportunities to improve and scale as time goes by.
Before we move on to the benefits of ERP for startups, let us understand why startups actually need an ERP.
Why Startups Need An ERP?
ERP is a business management tool that gives you a holistic view of the entire business process. These tools use a modular approach by addressing aspects of business management via pre-packaged and pre-integrated processes.
Besides, you can use it to manage data via customizable processes and from a central location.
Reasons Why Organizations Need an ERP System for Startups
Here are some reasons why you need an ERP system for startups.
1. Financial Management
ERP financial management lets you save time and reduce costs. You can use it to track everything from accounts payable/ receivable, income, expenses, billing and invoicing, cash flow, budgets, and much more.
Besides, ERP for startups can help you boost integrations with banks, fintech services, and credit card processors. This, in turn, will help you optimize the finance process for users.
2. Project Management
Managing projects is a must in the startup world. ERP systems for startups will help you manage product launches, marketing campaigns, customer service, employee training events, and much more.
The best part is all these processes can be streamlined with just a few clicks. It is particularly important for startup owners who are short on time and wish to automate and organize the project management process.
3. Inventory Management
Regardless of size, inventory is an important aspect of every business. ERP for startups lets you track the movement of inventory through the supply chain. You can even choose to automate the documentation process while keeping a tab on your inventory levels and costs.
4. Quality and Compliance Management
Quality is one thing no business can overlook, especially when it comes to compliance. ERP systems for startups will help you with quality management by providing supporting documentation and facilitating critical documentation. Moreover, ERPs can help you automate all aspects of quality control, including audits and SPC (Statistical Process Control) management.
5. Customer Management
Customer management is important for startups as they are key to their profitability. ERP for startups has everything you need to manage customer service effectively. From offering a customer portal to lead management and analyzing marketing trends to generating reports, an ERP does it all!
6. Human Resources Management
ERPs are an excellent tool for HR management. It can help you store, organize and maintain all the information on your payroll. If the ERP security issue is a concern, you can say goodbye to all your worries, as these systems are highly secure and will keep employee data safe.
7. Order Management
Handling customer orders and fulfilling them fast is one thing that can make or break a startup. ERPs help you keep track of orders, manage workflows and deliver orders on time and well- within your budget.
With ERP manufacturing capabilities, you will be able to coordinate and optimize your entire supply chain. These include production, quality control, planning, scheduling, customer service, and inventory. For example, if your startup sells vaccines, you can try out an ERP for a vaccine manufacturing facility to achieve operational efficiency.
9. Customer Relationship Management
An ERP is not just for managing the backend of your business. The right ERP solution can help you coordinate your sales, support, and marketing teams by automating sales, marketing processes, and distributing information.
Benefits of ERP for Startups
Here are some of the benefits of using ERP systems for startups.
1. Smoother Operational Flow
Much like other enterprise software, ERP solutions can automate much of your operational flow. Thus, helping your startup save a significant amount of time, energy, and money.
It will optimize your business process by allocating jobs to specific individuals and even encourage the use of optimized processes to reach goals, track and assign resources to achieve milestones, and much more.
2. Acts as A Single Source of Truth
ERP for startups offers three things– streamlined processes, better operations, and information. Besides, you can use it to manage
- Manufacturing accounting
- Inventory management
- Standard Work
- Material Requirements Planning (MRP)
ERP systems allow these areas to function as a single unit and help you achieve all your business goals. So, it is time you say goodbye to your excel sheets to track payroll, accounting, and inventory when you can use a single platform to manage it smoothly.
3. Streamlines Communication and User Experience
Startups are constantly hustling in order to achieve their goals but lag due to poor communication and inefficient processes. The result? Wasted time, resources, money, and manpower.
An integrated ERP system will streamline information flow by automating repetitive tasks. Besides, if you are a resource-strapped startup, you will find ERP solutions particularly helpful for tracking and distributing resources.
4. Facilitates Decision Making and Strategy-Building
ERP is a solution capable of handling purchasing, manufacturing, sales, production, and distribution. Thus, you must make it a point to include it in your business strategy. ERP database design and management can also help you streamline your data resources and develop the best business solutions.
5. Enables Cost Transparency
No matter what your business is, you will need to analyze your costs at some point. ERP for startups makes sure you pay your employees, vendors, and cover up all expenses related to your startup.
6. 360- Degree Business View
You can get the big picture of what is going on in your organization with an ERP. From resource allocation to taxes and third-party integrations to marketing analytics, ERP helps you with all sorts of data.
7. Promotes Growth
ERP can help you grow by providing an integrated approach and make it easy to delegate responsibilities. Besides, it will also empower your business to move past the idea stage and jump into the implementation stage.
At the heart of every startup and business lies expansion and making profits. An ERP for startups can be one of your best investments as it will help you find solutions to all major business issues.
You will no longer need to go from pillar to post when you plan to sell at multiple locations and will save thousands of dollars when you implement an ERP system for startups.
Have you tried out an ERP for your startup as yet? Then, boast about it in the comments below!