Small and medium-sized businesses (SMBs) are working hard to maintain their competitiveness and achieve sustainable growth in the fast-paced business environment of today. By putting an Enterprise Resource Planning (ERP) system in place, one of the best methods to improve productivity, streamline processes, and boost profitability may be achieved. Businesses are able to manage and automate crucial activities across many departments thanks to the full spectrum of integrated apps offered by ERP solutions.

However, choosing the best ERP system for your SMB can be challenging given the wide range of systems on the market. Finding an ERP system that complements your particular demands is essential to maximizing its advantages because every organization has different requirements.

We will examine the main characteristics, advantages, and factors of each ERP system in this article, emphasizing their applicability to SMBs. These ERP systems have demonstrated their value and won recognition for their capacity to promote growth and operational excellence from both well-established industry giants and cutting-edge entrants.

Here at Softengine, we are ERP experts and specialize in helping SMBs make the leap from disjointed systems to a fully integrated and streamlined ERP solution. We would love to help improve your business and help you achieve your goals!

What Is An ERP System?

Organizations have the problem of coordinating a number of processes and functions across several departments in the fast-paced and constantly changing business environment. The requirement for seamless integration and effective coordination becomes essential across all departments, from finance and human resources to inventory management and supply chain operations. An enterprise resource planning (ERP) system can be useful in this situation.

An ERP system is a full-featured software package that unifies and controls key corporate operations on a single, centralized platform. It acts as the backbone of an organization’s digital infrastructure, optimizing processes, improving data visibility, and fostering cross-functional cooperation. An ERP system enables businesses to make wise decisions, maximize resources, and promote growth by combining data and automating activities.

What is an ERP System?

Types Of ERP Systems

ERP systems come in a variety of forms, each of which serves a particular industry area, business size, or set of requirements. Here are a few prevalent ERP system types:

On-premises ERP solutions: are installed directly on the servers and infrastructure of a business. For the management and upkeep of the hardware, software, and security of these systems, a specialized IT team is required. On-site ERPs provide more customization and control, but they also come with high initial expenditures and continuous maintenance expenses.

Software-as-a-Service (SaaS) ERPs: also referred to as cloud-based ERP systems, are housed on distant servers and accessed via the internet. These solutions offer flexibility, scalability, and simpler accessibility while doing away with the necessity for on-site infrastructure. ERPs that are cloud-based frequently have subscription-based pricing structures and enable seamless updates.

Industry Specific: ERP systems that are tailored to particular industries include those in food and beverage, manufacturing, healthcare, retail, construction, and hospitality. These sector-specific ERPs provide specialized features and functionalities that are in line with the particular requirements and laws of a given industry.

Tiered ERP systems: are created to meet the requirements of multinational firms and other organizations with several subsidiaries or business divisions. These systems provide centralized control while preserving some operational autonomy for specific business units. ERPs with tiers allow for smooth data sharing and reporting throughout the company.

SMB ERP: ERP systems designed for small and medium-sized businesses (SMB) offer scaled-down features and functions that are in line with the unique requirements and financial constraints of smaller enterprises. These systems emphasize accessibility, usability, and cost in order to promote the expansion of SMBs.

Mobile ERP Systems: Mobile ERP systems enable users to access and update information while on the go. They do this by providing mobile access to important capabilities and data. These systems are made to help personnel who work remotely or in the field and need mobile access to ERP data in real-time.

Key Features Of ERP Systems

Centralized Database: An ERP system offers a single database that houses all pertinent information from numerous departments and functions. As a result, data silos are eliminated and real-time information access is made possible throughout the organization.

Modules for Different tasks: ERP systems often provide applications or modules specialized to several corporate tasks, including finance, human resources, supply chain management, manufacturing, sales, and customer relationship management (CRM). Specific business needs can be met by configuring and customizing these components.

Integration and Data Flow: An ERP system’s capacity to integrate data and promote efficient information flow between various modules is one of its main advantages. For instance, sales data can automatically update stock levels, resulting in a request for a purchase order or a production order.

Process Automation: ERP systems standardize and automate routine procedures, which minimizes human error and saves time. As a result, production and efficiency increase throughout the entire organization.

Reporting and Analytics: Enterprise resource planning (ERP) systems offer strong reporting and analytics capabilities, enabling firms to produce insightful reports, track key performance indicators (KPIs), and acquire useful operational insights. Organizations are able to see patterns, deal with problems, and seize opportunities thanks to this data-driven decision-making.

Advantages Of ERP Systems

Streamlined Operations: An ERP system streamlines operations by centralizing and automating corporate activities, which reduces waste, boosts productivity, and eliminates redundant tasks. It streamlines intricate operations, minimizes human data entry, and makes sure that accuracy and uniformity are maintained throughout departments.

Enhanced Visibility and Reporting: An ERP system gives managers and decision-makers access to correct data whenever they need it by providing real-time visibility into crucial company information. Making decisions is made easier and more quickly as a result.

Improved cooperation and Communication: An ERP system encourages cooperation and communication among many teams and departments by integrating data and standardizing processes. It is easier to share information, which facilitates improved teamwork and coordination.

Growth and Scalability: ERP systems are made to facilitate business expansion. The system can handle more users, transactions, and data as an organization grows without sacrificing stability or performance.

Regulatory Compliance: ERP systems frequently come with tools and controls to assist firms in adhering to rules and regulations relevant to their industry. They are able to produce audit trails, uphold data security, and support compliance standards.

Cons Of ERP Systems

Although ERP systems have many advantages and are quite successful at streamlining business processes, it’s vital to take into account some potential difficulties or issues that businesses can face. ERP system providers can proactively address these issues to guarantee a successful implementation and client satisfaction by being aware of these factors. The following are some drawbacks or difficulties that businesses may have when putting in place an ERP system:

Cost of Implementation: There may be considerable up-front fees associated with ERP implementation, such as those related to software license, hardware infrastructure, customisation, data migration, and training. Organizations need to make sure they have the resources to meet these expenditures by carefully evaluating their budget.

Complexity of Certain Solutions: ERP systems are inherently complicated since numerous modules and procedures are integrated into them. An ERP system can be time- and labor-intensively customized to meet unique corporate requirements. Providers of ERP solutions must offer direction and assistance in customizing the system without sacrificing its basic functions.

Time Consuming Project: Depending on the size and complexity of the company, the implementation of an ERP system can be a time-consuming procedure. It’s possible that routine business operations will be disrupted during the implementation phase. ERP system suppliers should collaborate closely with their customers to create a thorough implementation plan, reduce hiccups, and guarantee a seamless transition.

User Adoption and Training: When a new ERP system is implemented, staff members may need to pick up new procedures and adjust to a new style of working. If staff members are averse to change or find the system challenging to use, user adoption issues may develop. To encourage a seamless user adoption, ERP system suppliers should provide thorough training programs, user-friendly interfaces, and continuing support.

ERP solution providers can offer proactive solutions and assistance by addressing these possible issues, guaranteeing a seamless adoption, and increasing the value of their ERP systems for their customers. The key to overcoming these obstacles and creating lasting relationships with clients is openness, clear communication, and constant collaboration. Here at Softengine, we provide our clients with 24/7 ongoing support throughout the entire ERP process. 

ERP System Examples For Small Businesses

There are many ERP systems on the market that are made expressly to meet the requirements of small enterprises. These are a few instances of ERP systems that are appropriate for small businesses:

• SAP Business One: Specifically created for small to medium size firms, SAP Business One is a user-friendly and reasonably priced ERP solution. It contains modules for inventory, production, sales, purchasing, and finance, offering a comprehensive perspective of business activities. Small firms can develop and expand with SAP Business One without having to make major system modifications because to its scalability.

• NetSuite: A cloud-based ERP system called NetSuite provides a full range of applications for financial administration, inventory management, order management, customer relationship management, and e-commerce. Small businesses seeking for a reliable ERP solution will find it to be the perfect fit because it offers scalability, flexibility, and real-time visibility into business processes.

• Odoo: An open-source enterprise resource planning (ERP) system that provides a number of integrated apps for accounting, inventory control, project management, sales, and more. It offers modules that are modifiable, enabling small firms to customize the system to meet their unique requirements. Odoo provides solutions for both on-premises and cloud-based implementation.

• Microsoft Dynamics 365 Business Central: A cloud-based enterprise resource planning (ERP) solution that works with other Microsoft products, including Office 365 and Power BI. It provides features for customer support, sales, supply chain management, and financial management. Small firms who already use Microsoft products and seek seamless system integration can use Business Central.

• Sage Intacct: An ERP solution for small and medium-sized organizations that is cloud-based and focuses on financial management. It provides capabilities for financial reporting, cash management, accounts payable and receivable, and general ledger. To help small firms automate, scale, and adapt their financial operations, Sage Intacct offers these features.

• Acumatica: A cloud-based ERP system for small and medium-sized businesses across a range of industries is called Acumatica. It provides modules for client administration, project accounting, distribution, and financial management. Because of its adaptable and configurable platform, Acumatica enables organizations to customize the software to meet their own requirements.

Cost, scalability, ease of use, industry-specific functionality, and integration capabilities should all be taken into account when selecting an ERP system for a small firm. Selecting the best ERP system to support the company’s operations will be aided by evaluating the particular requirements and growth objectives of the organization.

SAP Business One

ERP System Examples For Medium-Sized Businesses 

Many ERP systems are offered in the market nowadays and work well for medium-sized businesses. Here are a few instances of well-known ERP systems:

• SAP Business One: Specifically created for small and medium-sized organizations, SAP Business One is a comprehensive ERP solution. It provides functions for production, sales, inventory control, and finance. Real-time analytics, support for transactions in several currencies, and system integration capabilities are all features of SAP Business One.

• Microsoft Dynamics 365 Business Central: A cloud-based enterprise resource planning (ERP) solution that provides a variety of features for accounting, sales, and customer service. It connects with other Microsoft products, including Office 365, and offers a single picture of corporate activities.

• Oracle NetSuite: Oracle NetSuite is a cloud-based enterprise resource planning (ERP) system that offers a number of apps for manufacturing, inventory control, financial management, and order administration. It allows multi-location and multi-subsidiary businesses and offers scalability and customization options.

• Infor: Medium-sized enterprises in a variety of industries can benefit from Infor ERP, a comprehensive ERP solution. It offers features for managing finances, the supply chain, human resources, and customer relationships. Both on-premises and cloud-based deployment options are available with Infor ERP.

• Epicor: The manufacturing, distribution, and retail sectors are served by the industry-specific ERP system known as Epicor ERP, which is designed for medium-sized firms. It has features for managing the supply chain, the production process, the finances, and sales. Tools for process automation, real-time data analysis, and system integration with other business systems are provided by Epicor ERP.

• Sage X3: For medium-sized organizations with intricate processes, Sage X3 is a scalable ERP solution. It provides features for production, distribution, inventory management, and financing. Sage X3 is appropriate for firms with international operations because it supports many languages, currencies, and legal systems.

In order to choose the best ERP system for your medium-sized business, it’s crucial to consider your unique demands, industry requirements, scalability, and integration capabilities. To make sure the chosen ERP system is in line with your business objectives and long-term growth plans, take into account variables like simplicity of use, implementation support, customization possibilities, and continuous customer support.

Implementing An ERP System

The process of implementing an ERP (Enterprise Resource Planning) system can fundamentally alter how businesses function. To ensure a seamless transition and optimize the advantages for the business, the effective introduction of an ERP system requires a number of crucial stages and considerations. Let’s look at the procedures for setting up an ERP system:

Define Goals and Objectives: Clearly state the aims of putting an ERP system into place. Determine the precise problems and difficulties that the system needs to solve. This will help direct the choice and customization of the ERP solution to satisfy the particular needs of the firm.

Choose the Proper ERP Solution: Based on their industry knowledge, scalability, functionality, and compatibility with your business processes, compare and contrast various ERP suppliers and solutions. Take into account elements including the system’s adaptability, usability, and vendor track record for support and updates.

Plan and Prepare: Create a thorough implementation plan including timetables, resource allotments, and milestones. Create a project team with members from the critical departments that the ERP system will affect. Make sure the team is aware of its roles and responsibilities at all times during the implementation process.

Analyze: Conduct a thorough analysis of the current business processes to find any areas that could use reengineering or enhancement. This is an opportunity to improve workflows, get rid of duplication, and match processes to best practices. To acquire insightful observations and viewpoints, make sure that all stakeholders are involved in this evaluation.

Data Migration and Cleansing: Assess the data in the current systems, clean and validate the data, then establish a plan for migrating it to the new ERP system. To ensure data accuracy and integrity during the transfer process, this may comprise operations like data mapping, data transformation, and data validation.

Customization and Configuration: Adjust the ERP system to match your unique business needs by customizing and configuring it. Working closely with the ERP vendor or implementation partner can help you make sure the system meets your specific requirements. Refrain from making unneeded customizations that could complicate the system or require more upkeep.

Testing and quality control: Thoroughly test the ERP system to find and fix any problems or faults. To assure the system’s functioning and dependability, fully test it using various business scenarios. Performance testing, data validation, and system integration testing are all included in this.

Go-Live: Plan a go-live approach that causes the least amount of disturbance to business operations. After go-live, carefully watch the system to fix any urgent problems and guarantee smooth operation. Create a procedure for continuing system optimization, feedback gathering, and continual improvement.

Support After Go-Live: Engagement with the ERP vendor or implementation partner is necessary to assure ongoing support, system updates, and maintenance. Regularly evaluate the system’s scalability, security, and performance to prevent problems from developing in the first place.

How To Choose The Best ERP System For Your Business?

In choosing an ERP system for your company, it’s crucial to take into account the following factors:

• Business requirements: Examine the unique needs of your firm and list the essential features and functionalities you need. Think about elements like scalability, industry expertise, and compatibility with current systems.

• Total Cost of Ownership: Consider the ERP system’s up-front costs, ongoing maintenance costs, training costs, and any customization or integration costs. Take into account your long-term return on investment (ROI) and the system’s capacity to accommodate your expansionary goals.

• Research: Look into  the reputation and performance history of the provider of the ERP system. To learn more about their implementation procedure, customer support, and post-implementation services, look for customer evaluations, case studies, and testimonials.

• User-Friendliness and Training: Take into account the ERP system’s usability and learning curve. To ensure a seamless transfer and user acceptance, make sure the vendor offers thorough training and support.

Final Thoughts

To sum up, choosing the appropriate Enterprise Resource Planning (ERP) system is essential for small to medium-sized businesses (SMBs) to succeed. Operations can be streamlined, efficiency can be increased, and overall business performance may be improved with the correct ERP system. We have looked at some of the best ERP system examples that are tailored specifically to the requirements of SMBs throughout this blog.

When choosing the best ERP system for your SMB, it’s crucial to take into account aspects like your company’s unique needs, scalability, usability, capacity to integrate systems, and financial limitations. Making an informed choice can also be aided by considering client feedback, asking for suggestions from others in the field, and doing thorough demos and trials.

Never forget that there is no one method that works for all ERP system implementations. The ERP system must be customized to meet the specific needs of each organization. SMBs can enhance efficiency, acquire a competitive edge, and set themselves up for sustainable growth by devoting time and effort to choosing the best ERP system.

At Softengine, we approach ERP as Client-First. We take the extra time to truly grasp and understand your business processes to help tailor the leading solution, SAP Business One, to perfectly satisfy your requirements. 

With solutions for:

 Food & Beverage,

Coffee Roasters

Warehouse Management

and more, we are leading the industry with our innovative solutions and approach to ERP. 

FAQs

What are the 3 common types of ERP?

The three most common types of ERP are: On-Premise ERP, Cloud ERP, and Hybrid ERP Solutions.

What is the most common ERP system?

It is impossible to pinpoint the most prevalent ERP system because it varies depending on the sector, region, and size of the firm. Some ERP systems, on the other hand, have grown significantly in popularity and are frequently used by companies across numerous industries. Following are a few well-known and often used ERP systems: SAP ERP, Oracle ERP Cloud, Microsoft Dynamics 365, and Infor ERP.

Who are the primary users of ERP systems?

Executives, managers, financial and accounting experts, production and operations teams, sales and marketing experts, human resources staff, and IT administrators are among the main groups of people who utilize ERP systems. ERP systems streamline corporate processes and give users access to real-time data, enabling them to handle a variety of business functions, including finances, operations, sales, HR, and IT.

Is ERP a software or a platform?

ERP stands for a class of software products that manages and integrates multiple business activities. The software program and functions that may be implemented on several platforms, such as on-premises servers or the cloud, are what are important, not a particular piece of software or platform. Some ERP suppliers could provide whole ERP platforms with extra features.

What is the difference between ERP and database?

While ERP is a comprehensive software system that employs a database to integrate and manage numerous business operations and processes, a database is a foundational technology for storing and managing data.