Why SMEs Should Adopt ERP Systems If They Need To Stay In The Market

by Prashant Sharma, Sr. Manager – IT, , Fresenius Kabi

In today’s world many of the companies are going towards implementing ERP system in their company. Every big organization is already using or in process of implementing ERP system for their need. It looks like that the ERP is now the need, base and backbone of the business. If we look at now the way organizations are doing business in this competitive world, getting information as quick as possible is the key to success. Whoever is quick enough in getting information will definitely get the benefit in market.

Therefore, in order to survive in market and competition, SMEs also have to implement the ERP system in their business either by opting for on premise or on cloud. Today it is very easy for SMEs to afford such a costly system by making use of cloud, software as a service etc.

Following are some of the advantage any SMEs can get with the help of ERP if available.

Enhancement of Business Processes:

Looking as example for the many companies who have implemented ERP already, ERP helps them to define and setup the business processes in right manner. As it seems setting up the business processes is basic need and pre-requisite of any ERP system. It has been observed that during implementation of ERP, business process of the company gets streamlined automatically considering the successful implementation of ERP. That is the reason any SME can reap the benefit of ERP implementation which help automate and streamline processes as well. It also helps SME’s to put controls in place for many processes.


As today’s world seems like ERP is having 360-degree cover of the business, e.g. HR, Production, Material, Sales etc.

By implementing the multiple module or moving business processes to ERP, the most of the process gets automatic which makes any SME to get the error free accounting, reporting or any other work.

With the help of ERP implementation for all business processes, the information is readily available for next business process. E.g. Inventory is maintained automatically for raw material once the purchase is done using purchase order process in ERP.


Implementation of ERP comes with many benefits specifically in SME as it helps for some savings for the company. Resources optimization can easily be done by adding processes in between two processes which also help to get the process completed being pre-requisite of the next processes.

Business managers can look at the information very easily and can save lots of time and efforts doing something here and there.

Central Database:

One of the major advantages, why SME's should focus on implementing ERP, is the central database. After implementing ERP, it helps to save all the information in one place which ensures that there is no duplication of data. On one hand it reduces the cost of storage and on the other hand, the information you get is latest and updated. It avoids all the possibilities of conflicts and duplicity.


Reporting is very useful for SME’s as the information can be gathered very quickly. This feature help SME’s to reduce the cost of staffing to prepare and send these reports. In addition, one can get his/her own report with minimal customization. This helps make the decision easier with true and real information. Being real time is also one of the best things in terms of report which is possible only when we have system like ERP where all the information from all the business functions have been updated. SME’s can also use the reporting and can be utilized for statistics, analytics across all functions.

Customer Service:

It is easier for SME’s to provide best quality of customer services using an ERP system. Sales and customer service can interact with customer better with dynamic real time information and improve relation with them using fast and accurate dynamic information for the customer.


Using ERP, the information can be given on need basis. SME’s can define whole eco system with less resources as who all can access which information. ERP help make the information confidential at the same time providing access up to the needed level. ERP is very useful for finding out who did what in case something went wrong or in case of any audit requirement as it records all the transactions and provide complete history.