Is it necessary for a small company to use an ERP system? Small enterprises differ from large and medium-sized enterprises. In terms of scale, business, and the complexity of enterprise management, small enterprises are relatively simple. This leads some small business owners to believe that ERP implementation is something for large enterprises and has nothing to do with them. In fact,that is not the case. In many foreign countries, there are quite a few examples of small enterprises successfully implementing ERP. So how can we judge whether a small enterprise should implement an ERP system?

  Criteria for judging whether a small company should implement an ERP system:

  The evolution toward scale and specialization has brought enterprises a negative effect, namely the decentralization of management. At this time, no matter how well manual management is carried out, data is still scattered across hundreds of forms. Few enterprises can summarize and count these documents every day, yet almost every owner wants to grasp the various conditions of the enterprise in the shortest time. If the initial state in which an owner can clearly grasp all company data at a glance is called a natural form of centralized management, then the significance of ERP systems lies in enabling enterprises, after achieving scale and specialization, to return to a state of centralized management with the help of computer systems. Therefore, when small enterprises consider whether to use ERP, they need to ask whether the owner can still basically achieve centralized management in daily operations, or whether they can tolerate the ignorance of business conditions brought by decentralized management.

  In enterprises without ERP management, owners usually understand and grasp operating conditions through reports from subordinates. The biggest drawback of this reporting method is that when the volume of data is large, management can only be rough rather than refined. The Yishangle Smart ERP System, however, can realize refined management and provide real-time visibility into the status of every link.

  3. Are you troubled by the lack of real-time data?
  During operations, owners often need to understand various business data. For example, they may want to know the quantity of finished goods inventory. The owner asks the warehouse and may also need finance to confirm it. If the number turns out to be somewhat larger than what the warehouse reported, doubts arise, so the owner then asks sales, only to find that the number reported by sales is even larger than finance's. This is exactly the trouble caused by data inconsistency.