Enterprise resource planning (ERP) software is helping businesses all over the world manage their resources effectively and efficiently. If you think ERP solutions are only suitable for big companies, then think again. According to research by the Aberdeen Group, 96% of best-in-class growing businesses have implemented an ERP solution. This shows that ERP systems are critical to the success of growing small and medium-sized companies because they simplify work and scale.
Simplify work – and scale easier – with ERP
An ERP is a single business system that brings together all the core business data to improve decision making. Businesses of all sizes need to support the same kinds of processes: procurement and logistics, manufacturing, customer-facing processes like sales and support, finance, human resources, and more. If you use separate systems that can’t interact with one another to manage all these processes, then you are setting yourself up for headaches as you try to grow your business. An ERP seamlessly integrates all these processes, making it easy for you to generate accurate data for business reports.
For example, when Visual Communications Company (VCC), the largest manufacturer of LED light pipes, implemented SAP Business ByDesign, it grew its revenue by over 300% in just two years. This ERP solution helped VCC manage the increasing size and complexity of its business during this period of rapid growth. VCC was able to automate its material planning and procurement, as well as streamline its production. Production outcomes improved by 500% and VCC was able to manage its inventory much more efficiently due to the ERP solution.
Thousands of growing businesses have benefited from using ERP solutions. A survey of executives at businesses that have implemented these solutions showed they have experienced an 11% reduction in operational costs, as well as a 10% increase in profitability in just two years. Whereas just six percent of executives of businesses without an ERP say they have real-time visibility into the status of all business processes, 48% of businesses that have implemented ERP solutions have this information, which has resulted in a four-fold increase into the ability of executives to forecast and plan for future demand.
In addition, best-in-class growing businesses report that they can easily find and use the data they need, no matter where they are, to make fast, agile decisions. Aberdeen research shows that ERPs reduce the time it takes to make business decisions by 36%. The reason for this dramatic improvement is that ERPs improve visibility so that executives have all the information they need to make decisions quickly.
Have you thought about running your business on an ERP? Or are you still using stand-alone solutions for finance, customer management, HR, and other core operational areas? Given the competitive edge that ERPs provide, the question is not whether you can you afford to implement an ERP, but whether you can afford not to.
Discover what SAP ERP solutions can do for your growing business or connect with a SAP partner. A partner in our network can help you find the right ERP solution for your business and set you on the path for rapid growth.