{"id":1048,"date":"2020-06-19T10:19:39","date_gmt":"2020-06-19T04:49:39","guid":{"rendered":"https:\/\/www.trendstechblog.com\/?p=1048"},"modified":"2021-09-21T14:10:33","modified_gmt":"2021-09-21T08:40:33","slug":"profitability-of-an-erp-for-smes","status":"publish","type":"post","link":"https:\/\/www.trendstechblog.com\/profitability-of-an-erp-for-smes\/","title":{"rendered":"How To Measure The Real Profitability Of An ERP For SMEs"},"content":{"rendered":"<p>ERP in SMEs, establishing as a starting point the measurement and identification of costs, since in the process of selecting an ERP different suppliers will quote the total cost of the project based on very different factors.<\/p>\n<p>These factors can occur according to; the cost of licenses or the cost of the subscription, the adaptation of technical infrastructures, the costs derived from the implementation itself, or the management of change that includes training, communication, and many times, relocation of resources, among others.<\/p>\n<p>An <a href=\"https:\/\/en.wikipedia.org\/wiki\/Enterprise_resource_planning\"><span style=\"color: #0000ff;\"><strong>ERP<\/strong><\/span><\/a> will only be useful for SMEs if its implementation brings not only benefits in terms of agility and flexibility, but from an economic point of view. Establishing workflows and systems that automate processes makes day-to-day easier. But, from a profitability point of view, managers of small and medium-sized companies demand figures. The system is also prepared to provide this information.<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-transparent ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-655de6521a446\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-655de6521a446\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.trendstechblog.com\/profitability-of-an-erp-for-smes\/#How_To_Identify_The_Best_ERP_Profitability_In_SMEs\" title=\"How To Identify The Best ERP Profitability In SMEs\">How To Identify The Best ERP Profitability In SMEs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.trendstechblog.com\/profitability-of-an-erp-for-smes\/#Shorter_Sales_Cycles\" title=\" Shorter Sales Cycles\"> Shorter Sales Cycles<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.trendstechblog.com\/profitability-of-an-erp-for-smes\/#Improved_Supply_Chain\" title=\"Improved Supply Chain\">Improved Supply Chain<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"How_To_Identify_The_Best_ERP_Profitability_In_SMEs\"><\/span>How To Identify The Best ERP Profitability In SMEs<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Once all costs have been identified and accounted for in detail, organizations should measure, in the most objective way possible, the benefits associated with using the new application.<\/p>\n<p>There are several ways to measure this value, however, there are some guidelines that are common to most companies. Some of the most relevant can be summarized in the following points:<\/p>\n<p>Operating costs refer to both the basic costs related to the activity itself, those that have to do with the day-to-day running of the business, and the expenses that other additional services entail, although necessary. To do this, SMEs can identify other cost categories that will allow them to define those operating costs more accurately.<\/p>\n<p><strong>Automation:<\/strong>\u00a0That is the tasks and processes that required manual work and that an ERP can be simplified and automated.<\/p>\n<p><strong>Centralization Of Information:<\/strong> The normal thing is to bet on a modular ERP that allows integrating and centralizing all the information of sales, purchases, production, and accounting, in a single application.<\/p>\n<p><strong>Services<\/strong>: Moving from a local system to a cloud solution, costs also decrease. Without the obligation to have physical space for the servers, or the dependence on IT teams to do maintenance and updates, costs will decrease.<\/p>\n<p>An ERP will only be useful for SMEs if its implementation brings not only benefits in terms of agility and flexibility, but from an economic point of view.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Shorter_Sales_Cycles\"><\/span><strong> Shorter Sales Cycles<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>After implementing ERP, companies will notice a significant reduction in their sales cycles. It is a matter of efficiency and of applying the optimal resources to the execution of each task. Many ERPs also allows integration with other <strong><a href=\"https:\/\/monday.com\/blog\/marketing\/crm-software\/\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">applications for customer relationship management (CRM)<\/a><\/strong>, which makes the sales process even shorter and much more efficient.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Improved_Supply_Chain\"><\/span><strong>Improved Supply Chain<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Another element to consider in calculating ROI has to do with streamlining the supply chain. An ERP allows you to manage all this information very easily and thus obtain better commercial agreements.<\/p>\n<p><span style=\"color: #0000ff;\"><strong>Also Read: <span style=\"color: #0000ff;\"><a style=\"color: #0000ff;\" href=\"https:\/\/www.trendstechblog.com\/iphone-without-ports-could-be-a-reality-in-a-year\/\">IPhone Without Ports Could Be A Reality In A Year<\/a><\/span><\/strong><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>ERP in SMEs, establishing as a starting point the measurement and identification of costs, since in the process of selecting&#8230;<\/p>\n","protected":false},"author":1,"featured_media":1051,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[199,200],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How To Measure The Real Profitability Of An ERP For 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