Globally, businesses face tremendous pressure due to increasing competition and the ever-changing demands of customers. It is also necessary for them to streamline processes in the post-pandemic age while optimizing the use of available resources. Here, small businesses' Best ERP system comes into play. An ERP (Enterprise Resource Planning) solution enables you to run your entire company from a single platform.
A robust ERP system can manage all aspects of a business including planning, procuring, ordering, production, sales, inventory, supply chain, accounting, human resources, and customer services. You can leverage the benefits of the top ERP system as a fully-integrated platform for optimizing core processes. What’s more, SMBs can readily integrate financial and customer information into one system with the help of ERP software.
In this article, we will discuss the importance, benefits, and types of ERP and find out which is the best ERP system for your company to fulfill its goals. But before moving ahead, let’s understand the definition and mechanism of ERP software.
What is an ERP System?
Originally developed for large organizations, Enterprise Resource Planning (ERP) software is useful for managing a complete operation from a single platform. Today, ERP systems are based on the cloud which makes them more accessible, scalable, and flexible for small and mid-sized businesses. A feature-rich ERP system has different functionality and modules for meeting the diverse requirements of various departments in your company.
Small business ERP software is designed to improve communication and collaboration across different departments while optimizing processes and increasing visibility. It also helps small and medium businesses integrate data related to the account, inventory, sales, and production for facilitating auditing. You can make informed decisions based on real-time data provided by the best ERP system available in the market.
Let’s understand why companies need ERP systems more than ever.
Why do Companies Need ERP Systems?
Investing in the top ERP software can give high ROI in a short time. An advanced ERP system not only assists enterprises to bring various activities on a single platform but also contributes to streamlining core processes. Here are five big reasons why your company should invest in ERP software.
When it comes to financial reporting, accuracy and real-time availability can be game changers. Cloud-based ERPs like SAP ERP can provide an efficient centralized system for complex transactions. Repetitive data entry work can be managed effectively and companies can get high visibility of operational data using ERP. Altogether, users can get improved accounting with accurate financial reports.
Many startups and SMEs start gaining traction in the market quickly. But then, they need to maintain their reputation by improving customer services and delivery processes over the period. Here, ERP software can assist companies by offering real-time access to the necessary information to the sales team and customer service executives. It enables companies to give faster responses and better services.
Diverse and complex operations in your organization cause issues of data transfer and security gaps along with wasting time and effort. An ERP system, on the other hand, can streamline such operations and bind them for getting actionable insights and accurate reports. Users can easily access data through a centralized dashboard and standardize the entire process with higher data security.
Trends like BYOD have gained ground in the corporate world. These days, companies want ERP solutions that can process multiple functions while allowing access to information from anywhere using smartphones. Cloud-based ERP makes this possible by enabling remote access to the database. As a result, your company can get the advantage of mobility and meet the deadline of every project.
An integrated ERP solution can enable your company to meet compliance-related requirements effectively. You can ensure that back-office-related operations remain in sync with prevalent regulations. Mostly, all reliable ERP solution providers closely monitor regulatory changes and keep on updating their solutions accordingly. As a result, companies can get highly secure data access while following standards.
How do ERP Systems Work?
ERP systems or ERP suits consist of integrated modules or applications. These modules are interconnected and share a common database. Each module focuses on a specific business area and is capable of working in sync with other modules using the same data. For example, there are separate modules for finance, accounting, sales, procurement, logistics, inventory, etc. Top ERP software like SAP ERP enables companies to choose the module they need.
It is also possible to integrate add-ons in the ERP system to increase its capability and get the desired functionality as your company grows. You can opt for a cloud subscription model (SaaS- Software-as-a-Service) or a licensing model (on-premise) to leverage the benefits of an ERP system for your company.
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Here are the key benefits of ERP for your consideration.
Key Benefits of The Best ERP Software
An ERP system with desired features and seamless performance can offer many benefits to modern enterprises. However, it is fair to mention that the benefits of a cloud subscription model are somewhat different than that of an on-premise model. Here we mention the top business benefits offered by all advanced ERP solutions.
Companies can increase productivity and efficiency by streamlining core processes. An ERP system not only streamlines processes but also brings automation to them. As a result, you can enable your staff to accomplish more tasks with less effort. Companies can easily meet the deadlines for projects even with fewer resources.
An ERP system gives detailed reports on business and financial processes in real-time. What’s more, you can easily share them as and when necessary among your team members. The company’s management can make informed decisions and take measures to improve performance based on these reports.
Higher visibility, more control over processes, and automation can significantly reduce the risk of human errors. Companies can readily ensure compliance and predict risks in advance based on accurate data. In a way, an ERP system assists companies to prevent risks more effectively and maintain profitability.
ERP assists companies to eliminate information silos and find the answers to mission-critical questions rapidly. Deeper and more accurate insights make it possible for the company. It further results in improved services and enhanced performance with high-quality products over the period.
Automation brings agility. ERP, with its modules, increases the agility and efficiency of various processes. It gives accurate data that the management can identify quickly to grab new opportunities and expand the scope of business.
The processes of IT and other departments are complex and interconnected. You can simplify these processes and facilitate your employees to work more efficiently with the help of integrated ERP modules. These modules share a common database and enable your company to streamline mission-critical operations.
Types of ERP Deployment
We can classify the deployment of a modern ERP system into three types- cloud, on-premise, and hybrid. Here is a brief on these types with their apparent benefits so that you can identify the right option for your business.
In this type, the software is hosted in cloud-based servers and users can get the subscribed services through the Internet. The cloud ERP software provider takes care of every aspect ranging from maintenance to update and servicing to security. Lower upfront costs, higher scalability, quicker integration, etc. are some of the big reasons for the growing popularity of Cloud ERP in the corporate world.
It is a traditional type of deploying ERP. It gives complete control to the user as the software is installed in your locations. But then, your IT staff has to manage and maintain its operations. It requires careful planning and larger budgetary allocation. When it comes to upgrading your ERP system, it is imperative to make a strategy again considering cost, time, and effort.
It is useful for companies that want to mix the best of both cloud and on-premise ERP to meet their business needs effectively. Here, some of the data and applications remain in the cloud and some remain on the premise. This type is also known as two-tier ERP.
These days, many options are available in the market which makes the selection of the best ERP system difficult for companies. So, let’s understand why you should opt for SAP ERP for your business.
Why SAP is the Best ERP Software
SAP is different than other ERP systems available. Designed for SMBs, SAP ERP is useful for startups and large enterprises also as it can simplify business operations across different departments irrespective of the industry sector. Here are some of the reasons why SAP is the best ERP for your company.
- Global Solution
- Suitable for All Businesses
- Quicker Implementation
- Only Important Functionality
- Requires Fewer Customization
- Regular Updates
- Follows Industry-Standard Practices
- Clearly Defined Roadmap
- High Scalability and Flexibility
- Industry-Specific ERP
- Advantage of Ecosystem
- Low-Risk Methodology
These reasons are sufficient for making SAP ERP an answer to the question- Which is the best ERP software? If you find these reasons worthy of considering SAP ERP as your preferred choice, let’s understand the different modules of SAP Business One (SAP B1).
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SAP Business One Modules
SAP Business One is a robust, reliable, and cost-effective ERP solution for managing all the processes related to finance, inventory, supply chain, human resources, and customer services. Here are the key modules of SAP Business One.
Sales & Customer Management
SAP Business One ERP makes tracking your sales process easy and you can put the effort into developing sales. This module also enables your company to enhance customer relations by managing all customer data in one place.
It enables users to automate accounting processes. As a result, companies can collect receipts and payables in a timely manner. You can generate customized reports for auditing and manage financial processes efficiently.
Business Intelligence (BI)
You can get department-wise data and measure KPIs effectively with workflow-based alerts. Quicker insights and accurate reports can bring intelligence to the processes and you can manage various operations with ease.
Analytics & Reporting
SAP Business One has an interactive dashboard that shows reports in real-time. With accurate analytics and comprehensive reporting, the management can make informed decisions instantly for ensuring growth or resolve issues.
Purchasing & Inventory Control
It streamlines the process of managing the stock by requesting requisitions, creating receipts, and getting purchase approvals. Users can view information trails and improve auditing by matching all related documents for effective inventory management.
Important Things To Look For in an ERP System
A modern ERP system has many capabilities in line with the industry sector they serve. It is, therefore, necessary for you to look for ten basic features in the top ERP software. These features include-
- Embedded Analytics- Features like built-in analytics, reporting, and compliance tools can deliver intelligent insights for your business.
- Data Visualization- Visual representation of your company’s data on an interactive dashboard can assist you to make meaningful decisions.
- Consistent UI/UX- All modules should have the same look and feel along with easy-to-use personalization tools.
- Automation- An ERP system should bring automation in performing repetitive tasks and be ready to integrate with RPA, AI, and ML.
- Common Database- Centralized information with a single version of consistent data in a common database is necessary.
- Integration- An ERP system should be capable of integrating business processes and workflows seamlessly.
- Multilingual Support- It includes support for multiple languages, currencies, and regulations based on the home country.
- Technology Platform- It is essential for an ERP system that it is built on a fast and stable technology platform.
- Choice of Deployment- An ideal ERP system should give options for deployment including cloud, on-premise, and hybrid.
- New Technologies- The best ERP software is that which keeps on updating with new features and technological advancements.
How Much Does ERP Software Cost?
The cost of ERP software largely depends on the factors like modules selected, software vendor, and the method of deployment. For example, a cloud-based ERP needs less cost as compared to an on-premise ERP. As per the recent ERP report, the average budget per user for an ERP integration is $9000.
Larger enterprises have more users and they need various add-ons to meet complex business requirements. In such a scenario, an ERP implementation cost can reach up to $750,000 or even more. A mid-sized business needs to pay anywhere between $150,000 to $750,000 depending on their needs.
How do ERP Systems Support Industry Best Practices
ERP systems support best practices in multiple ways. Every industry sector can get benefit from this capability. ERP brings accuracy and automation to various processes. It also supports innovation and ensures precision while enabling users to integrate other advancements in AI and RPA. As a software application, an ERP system uses a centralized database for saving the data of the entire organization. In other words, various business processes can be embedded in the ERP software to ensure that your company can follow the best practices.
Choose the Right SAP Partner
As a reputed SAP partner, Silver Touch Technologies offers end-to-end SAP services and solutions for businesses of all scales. We offer SAP cloud solutions, SAP mobility solutions, SAP custom solutions, and 24x7 support services. We also provide our esteemed corporate users with SAP Business One implementation, licensing, and add-on development services. You can get high-quality add-ons for quality control, manufacturing, chemical, HRMS, payroll, and sales order processing in a cost-effective way.
As an experienced ERP solutions provider, we serve all major industry verticals including healthcare, manufacturing, logistics, banking & finance, education, public sector, retail, and agriculture. Do you want to know more about our SAP services? Simply drop us a line at email@example.com.
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Concluding Lines: Best ERP System
A feature-rich ERP solution can make your business ready for the future. You can improve services, increase productivity, bring agility, and embrace automation by integrating the top ERP software into your business system. Hope this comprehensive guide will assist you to find the right ERP tool out of all available options, i.e. SAP ERP. All you need to choose the right SAP partner to get the benefits of SAP ERP and take your business to a new level.
Talk with our ERP Consultant and Transform your Business to Achieve Business Goals
FAQs About the Best ERP Software
An ERP software system is referred to as a type of software that companies use to manage and control day-to-day business activities including accounting, procurement, and inventory management.
SAP ERP is better than other ERP solutions available in the market.
SAP ERP has many characteristics including quicker implementation, higher scalability, industry-specific features, low-risk methodology, and regular updates that make it a preferred and popular ERP solution.
SAP ERP offers a global solution and it is suitable for all businesses across various industry sectors. It follows industry-standard practices while offering high flexibility and offers an advantage of the ecosystem to the corporate users. All these factors make SAP ERP better than other ERPs available.
SAP ERP requires less customization than other ERP solutions. Also, SAP ERP has a clearly defined strategy for every industry sector. It is an industry-specific ERP with a low-risk method. These are some of the factors that make SAP ERP different from other ERPs.
Cloud-based SAP Business One ERP is most used in business.
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