Enterprise Resource Planning, frequently shortened to ERP, is a way for businesses to integrate and streamline many of their essential functions. Yet so many small business owners are either unaware of this resource or simply do not feel that it is necessary for their organization. There is a common misconception that ERP is only for larger companies with big departments and plenty of cash. In reality, ERP can be scaled to fit the needs of just about any business.
Today, we will be going into more detail about what Enterprise Resource Planning truly means, how ERP can help companies operate efficiently, example(s) of how ERP can be implemented, and whether or not ERP services are right for you and your business.
What Exactly is Enterprise Resource Planning (ERP)?
As per investopedia.com, Enterprise Resource Planning is “a management software that integrates a business’ essential departments”. So what does that mean in practical terms? ERP is responsible for taking different elements of a business such as accounting, sales, purchasing, marketing, etc. and enabling that data to be shared freely company-wide.
Additionally, ERP ensures that all of your business systems will be centralized. This solves the problem that businesses of all sizes encounter of harmful “compartmentalization”. In this way, high volume of sales for a particular product will update inventory, which will update purchasing of additional stock. This is just one example of how Enterprise Resource Planning can help your company work efficiently.
ERP Helps Companies with Efficiency and Much More
One of the primary benefits of ERP is that your business will operate more efficiently. When information is centralized, all of your systems are always on the same page. This can improve company efficiency in the following ways:
Business owners and managers can easily access information: without ERP or a similar system, owners and managers rely on their employees for manual updates. ERP allows for all personnel to have immediate and direct access to company information with which they can make informed decisions.
Enterprise Resource Planning allows for easy-to-read performance metrics: want to see how your business is performing as compared to last quarter? Want to see if the trends from last fall are holding up this year? ERP can help with this and much more.
ERP replaces multiple systems: one of the primary reasons business owners shy away from ERP is the perceived cost. Yet ERP can be extremely cost effective as it increases efficiency all from a single software platform (potentially replacing a multitude of other platforms in the process).
Example of a Typical ERP System for Small Businesses
With all of this in mind, how can an Enterprise Resource Planning system truly work for your small business? Here is a very simple example of what that might look like for a small, medium, or even large business.
ERP connects to your payment processing: each sale will be processed and stored within the ERP virtually immediately. This allows for your ERP to be up-to-date with sales and other relevant information in real time.
Sales reconciliation with ERP: the next step is efficiently reconciling receipts, sales, and so forth all within your ERP.
Flexible interchange rates: your transactional rates for credit card payment processing can really add up. ERP works hard to find the best possible rates, saving you money in the process.
Data storage and management: and of course employees, business owners, and business managers will all be able to analyze all of this information for their own purposes. The ERP system can be used to create new marketing campaigns, manage inventory, or even to evaluate employee performance.
Does my Business Need Enterprise Resource Planning?
Every business of every size participates in Enterprise Resource Planning in one way or another. The real question is whether your business needs the help of ERP software to operate at its highest level. At the end of the day, no one can make this decision for you. There is no such thing as a free lunch, and there is no such thing as improving your company without an investment.
We believe that the benefits of choosing an ERP system far outweigh the potential costs. The key is to find an ERP provider who can work with you and your business to deliver the service you truly need. Imagine what you could do with a system that tracked retail, mobile, e-commerce, and order entry sales all in real-time with payment security features, intelligent data management, and much more!
True Merchant Offers ERP Services for Small Businesses
True Merchant is proud to offer Enterprise Resource Planning (ERP) solutions for businesses of all sizes. With our focus on merchant services and secure payment processing, ERP is a natural extension of our other features such as CardSecure, EBT Payment Processing, and much more. With True Merchant, you can rest assured that you will be getting the best available price thanks to our complimentary rate reviews.
If you are considering an ERP system for your business, please feel free to contact us by calling 1-888-770-2018 or through our online email form. A qualified merchant service professional will be waiting to walk you through the process!