ERP Optimizes SMB Performance
How do you think major manufacturers and Fortune 500 companies got to where they are today? Most of them can thank their advanced software applications for their success, particularly enterprise resource planning (ERP) software. ERP centralizes back-end data into a single solution, where users can manage a range of operations and gain full control over the supply chain. It also automates processes, making businesses faster and more precise. These capabilities promote sustainable business growth.
Small to midsize businesses are missing out on these advantages. SMBs that are familiar with ERP are often under the impression that the software is only available to big enterprises. However, cloud computing and other advances have made the system affordable for businesses of all sizes. SMBs that invest in ERP experience process improvements that open the door to new opportunities and higher revenue. Keep reading to see how ERP software drives growth and profits for small and midmarket manufacturers and distributors.
For SMBs, there’s no room for error. Product quality issues can result in fees and delays that a small business can’t afford. One study found that small manufacturers have scrap and rework rates of 8% of sales and warranty costs of 10% of sales, while large organizations only experience 5% and 5%, respectively. To catch up, SMBs must lower these numbers.
ERP provides businesses with the tools to manage quality, carve out waste and avoid these extra costs. Epicor, a leading ERP vendor, provides granular visibility into your production performance. The system can immediately alert users of quality issues or locate the causes of scrap or downtime. It also closely tracks materials and goods, creating full audit trails and maintaining accurate documentation. These capabilities support multiple industry and compliance standards and ensure you deliver top-notch products to your consumers without generating waste.
SMBs going without ERP software are missing out on actionable insights. Research has found that businesses that utilized data insights experienced 21% revenue growth in a year, whereas businesses that reported limited use of data only experienced 9% growth. Making decisions based on instinct alone can put you at risk and cause you to miss out on real issues and opportunities. Data creates a solid foundation for developing strategies and measuring performance.
ERP solutions provide a central hub for enterprise data, giving authorized users across your enterprise easy access to critical information. An array of metrics and reports reveal your company’s fiscal performance, production efficiency, inventory levels and more to help you locate pain points and identify solutions. This information is available in user-friendly dashboards to provide in-depth insights at the click of a button.
Advanced technology is deepening these insights to make businesses more proactive. For example, IoT devices allow you to monitor equipment inside your ERP dashboard. Predictive analytics increases your forecasting and risk assessment accuracy. BI tools interpret historical and real-time data, so you can gain an immediate understanding of your enterprise performance. These insights empower SMBs to develop the right strategies for expansion.
One way that ERP facilitates business growth is through protecting manufacturers and distributors from setbacks. An unexpected roadblock or problem is costly for companies of any size, but it’s potentially deadly for SMBs. Unplanned downtime, for example, can cost small businesses up to $8,600 an hour. It’s estimated that the average small business can lose $100,000 of revenue in unplanned downtime annually.
ERP includes tools designed to cut down on downtime. Trackers on Epicor’s Manufacturing Execution System (MES) provide alerts of your equipment performance, enabling operators to perform preventative maintenance. Epicor IoT also presents real-time machine metrics around the clock. With automatic alerts and optimal visibility, users can respond to issues before they result in unplanned downtime.
But what if your software shuts down? Cloud computing can help protect you against ERP downtime. Microsoft Azure, a leading public cloud platform, provides 24/7 support and 99.95% SLA, guaranteeing minimal downtime and reliable service. Backup and disaster recovery solutions offer even deeper protection. EverSafe! backs up files as often as every five minutes to get you back up and running rapidly after your software goes down.
With ERP, small and midsize businesses can catch up to industry leaders. Epicor is a scalable, user-friendly solution that equips companies with reliable tools to achieve their goals and increase their profits.
An Epicor Gold Partner, Datix provides a large variety of solutions and services to meet the needs of midmarket manufacturers and distributors. Our Epicor fixed fee implementation is ideal for SMBs that want a rapid, out-of-the-box ERP installation. This solution enables small and midmarket companies to enjoy the benefits of Epicor ERP and gain fast ROI without hassle. Our certified consultants are committed to working with clients from start to finish, ensuring your people, software and processes are all in line to pursue business growth.
Start transforming your business through software. Learn more about Epicor by contacting Datix today!