ERP for Small Manufacturers or Distributors
SAP Business One ERP Solution for Small Manufacturing and Distribution Businesses.
The world has changed, radically, over the last 18 months. The pace of change is faster today than it ever has been and yet slower than it will be tomorrow, so what does that mean for the world’s small manufacturing businesses?
Simply put, we do not know what the future holds, but without doubt, servicing customer’s requirements is becoming ever more important. Customers want timely, cost effective consumption of your services or products. To achieve that, more often than not, opting to invest in ERP (Enterprise Resource Planning) software for their small manufacturing business is the right decision.
Why invest in an ERP system as a small manufacturing or distribution company?
“We’re too small for an ERP system” is an all too common feeling among smaller companies. Many smaller manufacturers run their business on a simple accounting system, while the operations side of business is managed by utilizing some combination of spreadsheets and manual tracking processes. And it often works… to an extent.
The feeling of “We’re too small…” couldn’t be further from the truth. Systems such as SAP Business One are specifically designed for smaller companies that allow you to focus on what matters the most in your company and help you do so much more with your business. An ERP system can help you manage and streamline your account processes as well as manufacturing operations, allowing them to run more efficiently and improve productivity and profitability, thus creating space for your company to grow and improve.
The shortcomings of manual processes and legacy ERP systems
In contrast, manual processes or legacy ERP systems, may not deliver on this, does your business have any of the following issues?:
- Un-auditable system?
- An increase in revenue results in an increase in “headache” and admin costs?
- Inability to receive real time analytics?
- Remote access is costly or indeed, impossible?
- Issues with speed and “locking”?
Then it’s high time to invest or upgrade to new ERP software for your small manufacturing business.
Here at Gauri, we pride ourselves on solving customers’ problems. We work with our customers to establish their goals and the outcomes they wish to receive and create a plan to achieve this together, as a team, whilst removing pains and issues and improving business processes.
Benefits of ERP for small manufacturers or distributors
Regardless of the reason you’re pursuing an ERP system, today there are a wide variety of options available, providing different functions and advantages. The benefits of ERP software for small manufacturers are numerous, acting on several planes of existence.
Replacing older systems
Quite a few small manufacturing businesses often use cobbled together manual systems and/or legacy applications. An ERP system can replace these systems all together, providing increased functionality and analytics enabling accurate and best practice materials management.
Fragmentation occurs when a company uses numerous different software systems throughout the organisation for the initial growth period of the enterprise. The problem arises when the company wants to scale and their product offerings and manufacturing volumes start to exceed the capabilities of the legacy systems of providing control over production processes and back-office operations.
The greatest issue of fragmented software systems is that they often can’t communicate with each other, and all reporting is done manually. An ERP system completely eliminates fragmentation, providing a single platform with real-time data and analytics for managing all your business functions.
Streamlining core business functions
An ERP system for small manufacturing companies provides clear, organised, and automated functionality throughout the whole company to manage essential core business functions and processes efficiently, including:
- Inventory and materials management
- Manufacturing and warehouse management
- Data collection and analytics
- Accounting, finances, taxes, and reporting
- Production management
- Sales, marketing, and operations management
What is the best ERP for small manufacturers or distributors?
Finding the right ERP software for your business is crucial to ensure the efficiency and success of your company. ERP software for small manufacturers can completely transform a supply chain, providing not only visibility, automation, and control like you’ve never experienced before, but also help you rapidly scale your business and optimise existing processes without any major expense.
SAP Business One is one of the best ERPs for a small manufacturing business. But as an SAP Partner, we are often asked the following questions when discussing SAP Business One:
- Is SAP Business One too Complex for us?
- Is it only for Big Companies?
- I have heard that it can be slow to implement.
For an overview as to why these are myths, then please see the following video: SAP Business One Myths.
The strengths of SAP Business One
What does the future hold for your business and industry? Is there going to be a need to offer your service in a different way, such as:
- Customer Portal
- Mobile App
- Something the world hasn’t seen before
“Something the world hasn’t seen before”. In 1992, the world’s first “Smartphone” was released by IBM, combining voice with PDA. This is not that long ago. 2007 saw the first iPhone released. With technology progressing at this rate, next year could see something that we haven’t even considered, therefore having an ERP system in place that is innovative and allows for external interaction is critical.
SAP Business One has a team of developers constantly working on innovation and wish list items, ensuring that whatever the future holds, the solution is extensible to allow this integration.
SAP Business One is one of the best ERP for small manufacturing businesses, providing a fully integrated solution, including:
- Warehouse Management
- Project Management
- Human Resources
With a mobile app for both Sales and Service and browser access as standard, out of the box, staff can consume the service at the office as well as on the road, or from home.
Build your SAP Business One ERP solution with Gauri
ERP implementation is a tedious, time-consuming, and more than anything, a very complex process. An ERP system has a very long lifecycle, possibly longer than any manufacturing equipment. When everything aligns perfectly, your manufacturing company will be able to reap the benefits of increased efficiency and improved customer service. If the wrong ERP software is selected, or if it’s not implemented properly, you can incur major costs and disruptions in your processes.
For small businesses, large investments can be especially critical considering user costs are only a small part of the equation. Additional costs will have to be considered, including data entry, training, software updates, maintenance, support, and other potential cost pitfalls.
Ensuring that you are “future proof” is critical in the new world. For an informal chat about your challenges and how we may be able to help, please contact Gauri today. We provide support in buying and implementing different SAP ERP products with a balance of cost, ease of use, lifecycle changes, and the most important aspect: the unique needs of your company within the manufacturing industry.
We have successfully delivered CRM, ERP and Supply-Chain Management solutions for the UK’s reputed manufacturers.
We do not stop at achieving digitalisation, we harness the power of data through machine leading and AI to make your manufacturing operation from digital-automation to an intelligent manufacturing operation.
Give us a call and let us demonstrate how we can help you to create a strategy for growth, using our state of the art solutions especially tailored for manufacturing businesses.
Director, Strategy and Sales
SAP Sales Director
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