Business Loans

10 reasons why SME owners should use ERP software

Belinda Wan
July 22, 2021

What a breeze: The right ERP software enables employees to access company systems and perform their duties remotely, no matter where they are. Photo credit: Pexels


Often mentioned along with topics to do with the digitalization of a business, ERP is an acronym that many SME owners may have come across at some point when pondering how and when to start their company’s digital transformation.

For SMEs that still have not adopted digitalized operations, ERP can be a daunting prospect (perhaps even more so than the common bane Electronic Road Pricing).

But there is no better time to start your digital journey, especially now that Singapore has reimposed Phase 2 restrictions in the light of a sharp spike in cases, and working from home remains the default mode.


What does ERP stand for?

The acronym stands for Enterprise Resource Planning, which refers to how business owners make use of various systems and technologies to manage and integrate key components of their business.

As such, ERP software enables a company to manage a myriad of business processes using one common platform or interface.

The integration of multiple business functions on a single system allows the access and sharing of information across various departments, as well as cross-functional collaboration.

These days, ERP solutions have evolved. No longer just traditional software that runs on physical client servers, ERP software has become increasingly cloud-based.

Cloud-based ERP software allows business owners and employees to access company systems remotely from anywhere – be it through a web-based application from a laptop at home or a mobile device.

In the past year and a half, ERP software gained even more traction when the pandemic caused widespread and global disruption to the way businesses operated.

As a result of the work-from-home mode of working that had to be quickly adopted, along with other seismic shifts, the need for ERP software became more pressing.


Why is ERP software important?

One of the first goals of any start-up or SME is to grow.

But before a business can grow, a business owner needs to ensure the business model is scalable – in other words, able to support growth.

The next step involves delving into what can be done to prepare the business for future growth.

A big part of achieving this lies in automating processes and using efficient, modular technological tools that can be monitored and adjusted easily to adapt to real-time needs and challenges… like ERP software.

This means ERP software is worth considering if you are looking to make your business more scalable, and help it achieve meaningful and significant growth.


Common business processes used in ERP software

There are many business functionalities that can be integrated into ERP software. Here are a few.

Bear in mind this list is not exhaustive. You need to consider the functions that your business needs most before making a decision.

  • Accounting
  • Customer Relationship Management (CRM)
  • Customer service
  • Finance
  • Human Resource Management System (HRMS)
  • Inventory
  • Invoicing
  • Marketing
  • Quotations
  • Sales management

Here are 10 reasons why ERP software can be a good bet for your business.


1. Increases productivity

ERP software allows multiple business functions and processes to be accessed using one single, unified system.

Although different departments still retain specific and different systems, data and information for each of them is easily accessible through one interface, improving productivity and eliminating redundancy.


2. Lowers operating costs

The integrated platform of ERP software means that outdated, ineffective and incompatible technologies can be phased out, resulting in cost savings for the company.


3. Streamlines processes

Using one single system to manage a range of business functionalities means that redundancies are removed.

This optimizes business efficiency, making a streamlined and structured system and workflow possible – even between departments.


4. Helps employees work more efficiently

Real-time information, reports and data can be accessed quickly through the ERP system. Employees can keep track of sales orders and billing, and make payment automatically through the system.

With less time devoted to menial tasks such as manual tracking and follow-ups, employees can spend their time doing more meaningful tasks such as building relationships with clients.


5. Improves communication

Since employees are able to use one integrated system to manage their respective business objectives, they are likely to be on the same page.

This makes it easier for employees from different departments to communicate and collaborate for a shared business objective – without having to figure out how to get specific information from another department.


6. Allows employees to work on-site or off-site

Pandemic or not, working from home or the office – all types of working modes are possible with a cloud-based ERP system that enables staff to work on-site, or off-site remotely on a device.


7. Reduces the possibility of errors

ERP software can be configured to keep track of invoice billing and inventory tracking more accurately. This frees up employees’ time and also makes it less likely that mistakes will occur.


8. Can be used as a planning tool

At a glance, the core functions of a business and how each department is faring are readily accessible through an ERP platform.

Business owners can make use of this real-time information to plan ahead in case of contingencies.


9. Secures your data

Data is backed up in the cloud for cloud-based ERP systems, which helps to keep it safe – provided the appropriate security measures are taken.


10. Customizable and flexible

The modular structure of ERP software allows SME owners to tweak the software to find the most suitable configuration for their business needs.

For instance, the software can be set up to send timely reminders or indicators if necessary.


Leading digital loan marketplace Lendingpot connects SMEs to its network of 45 lenders comprising relationship managers from banks, financial institutions, and private and peer-to-peer lenders in Singapore. It aims to help SMEs overcome the information asymmetry problem and lack of transparency prevalent in the SME financing sector by offering SMEs financing options such as business term loans, property loans, revenue-based financing, credit lines, working capital loans, bridging loans, invoice financing, and more.

About the author

Belinda loves thinking about random stuff, and collecting useless bits of facts and trivia. She often roots for the underdog, and believes the world needs more happy endings.

ERP
ERP software
Enterprise Resource Planning
platform
remote working
working from home
integration
accounting
HR management system and payroll
HR
billing
inventory
cloud
cloud-based systems

You may also like

Business Loans
5 ways to scale your business effectively
Belinda Wan
October 22, 2021
Business Loans
5 questions to ask your business loan broker
Belinda Wan
July 21, 2021
Business Loans
What is information asymmetry and how does it affect SMEs?
Belinda Wan
July 1, 2021