How ERP Solves

5 Common Small
Business Problems?
 An Overview 1
 Introduction

 Stat fact

 Challenges faced by Businesses

 5 common problems encountered by small businesses

 ERP solves your business issues

 A quick glimpse to comparison

 Tips to eliminate business challenges

 Conclusion
 Introduction 2

• Many small to medium sized businesses run their day to day operations without being aware of the
difference an ERP could make to their efficiency and productivity.

• They face many challenges in taking right decisions and running their business. What are these common
pitfalls that ruin businesses?

• Here are a few challenges that medium sized businesses face and how ERP can resolve them.
Let us have a look -
Stat Fact 3
 Small and medium scale enterprises hold over 95% of the business market and regulate 60-70 % of
employment. But 50% of the business survives in the market and the rest just don’t remain in the
competition list and are shut down.

 The recent era of advanced technology has drawn the attention of customers towards better quality
and more innovative plus customer centric products.

 So more and more manufacturers are now moving towards ERP implementation for automating their
businesses.

Reference : https://www.business2community.com/small-business/5-biggest-problems-every-small-business-faces-01833365
Challenges Faced by Businesses 4
 Uncertain demand  Strategic planning and problem solving

 Stiffer getting competition  Balancing quality and growth

 Financial Management  Communication and collaboration

amongst various departments and units
 Stringent getting laws and regulations
 Customer Services
 Continuous technological evolution
 Quick and informed decision making
 Bringing innovations
5 Common Problems Encountered By Small
Businesses 5

 Challenges are a constant attribute for any business. However, small businesses own a bigger pie.
One, because they are under their growing phase and strive to establish their name in the market
competition. Two, they have to cope with ever-changing market trends that too with limited
resources to keep their business moving.

 The best way to eliminate the challenges encountered by small business or a start-up company is
by implementing an Enterprise Resource Planning (ERP) system.

 With an ERP, small businesses can focus on core business operations and its productivity that helps
to improve profit margins and reduce operational costs. AA competitive edge is achieved by
streamlining and automating day-to-day activities.
Problem #1: Manual Data Processing 6
 Small businesses rely on manual data entries and get stuck in manual data logging methods.
 Manual entries may lead to data redundancy and time wastage. Also, human negligence results in an
unsuccessful data keeping.
 But an ERP integrates all information into a single system which provides business an immediate access
to key data like financials, sales forecasts, purchase activities, inventory levels. Thus, providing a
holistic view to your business operations.

With ERP, you get

 Increased Accuracy
 Information Empowerment
 Improvement in overall health of your business.
Problem #2: Intense Competition 7
 Competition is everywhere, businesses - small or big are under it’s impact.
 Due to unavailability of all resources/tools and unplanned strategies in the business process, small
businesses lack this advantage. They need specialized tools to deal with big businesses and maintain a
place in the marketplace.
 An ERP, provides important information related to reduction in operational and administrative costs. Also,
helps to monitor and control business operations to execute business plans effectively.

With an ERP, you get

 Better decision making
 Streamlining of overall business activities
 Improvement in quality
 Customer Retention
 Cost reduction
Problem #3: Inaccurate Scheduling 8

 For every manufacturing business, effective scheduling is the most important key and to inculcate better
scheduling, data is the tool.
 In absence of real-time data, a lot of time is spent in preparing schedules for the shop floor which are
erroneous too.

With ERP, you get

 Real time data analysis of demand and supply of the materials
 Efficient production plans based on demand, supply, resource availability, various lead times, etc.
 Accurate procurement plans eliminating the chances of over- or under-supply.
Problem #4: Poor Customer Service 9
 Taking care of customer satisfaction is a prime factor to develop a long lasting business.
 Showing customers a caring approach could help in your business growth but what if you fail in your
deliveries, do not respond back to customer queries, your business will loose customers and eventually
reduction in your sales.
 ERP helps in providing instant data access to your sales staff which helps them in making true
commitments that can be fulfilled in the specified time genre.

With an ERP, you get

 Instant information access for your customers about accurate updates and deliveries of the product item.
 Resolution to all customer queries by gaining real time access to the data.
 Information regarding cancellations or refund procedures.
Problem #5: Meeting Quality and Statutory Guidelines 10
 For every business, meeting quality and statutory guideline is necessary.
 A compliant business can keep the risk of fines, penalties and lawsuits away to function smoothly.
However, the small businesses find it difficult to meet the regulatory needs.

 An ERP helps by providing visibility to the entire product flow, starting from material receipt, production
process, to the supply of finished goods, helping manufacturers to track the product across the supply
chain.

With ERP, you get

 Quick report generation of all materials and their details.
 Bi-directional traceability of products starting from raw material , intermediates to finished goods.
 Easy tracking of faulty materials
 Production tracking on multiple parameters.
How ERP Solves Business Issues 11

 ERP enables to see all assets at one place.

 ERP allows access to crucial business data when you want it n how you want it.

 ERP makes businesses competition ready.

 ERP saves business time by streamlining processes.

 ERP delivers insightful reporting for better business planning and informed decision
making.
With and without ERP 12
Features Traditional Methods ERP Implementations

Ease of integration No integration, seeks out each and every Integrates all business activities in a
business activity individually. systematic manner.

Business Intelligence Scrambling your mind to bring out a decision Allows making informed and data-centric
with no surety of its aptness decisions

Database Management Data managed unsystematically through the Data is kept in systematic records which are
use of manual data logging methods easily accessible with real time visibility

Flexibility No flexibility, sticks to old primitive methods Accepts to all new changing trends,
challenges and laws.

Ease of communication Lacks communication and develops Collaborated workforce becomes the new
misunderstanding between departments. identity of businesses that run on ERP.
With and without ERP 13
Features Traditional Methods ERP Implementations

Cost effectiveness Manual data handling can lead to surplus or ERP maintains optimum inventory levels
deficit inventory level which can cause that help in controlling costs.
increase in overhead costs.
Security The possibility of data theft, manipulations Enhanced security features with role based
or misuse is quite high permissions ensure complete security
keeping thefts, manipulations, forgery, etc.
at bay
Reporting Manual data analysis can lead to wrong Effective reports can be created and
planning which results in degraded business analyzed in order to create effective future
performance strategies
Regulatory compliance A tedious task with traditional Easily manageable with ERP ensuring stress-
methodologies. free audits

Supply Chain Manual methods can lead to complex and Improvises supply chain management by
unmanaged supply chain cycle. integrating all business processes
Tips to create a successful plan and
eliminate business challenges 14
 Take your business decisions wisely considering all the pros and cons of the output

 Be consistent and stick to your business routines

 Implement an ERP software to manage all your day to day operations

 Make innovation your company value

 Manage your employees at every level

 Regularly share information within all the departments

 Understand market requirements and gather information accordingly to create strategy

 Never ignore the sales performance calculations

 Analyze the past pitfalls and plan a strategy to never repeat them again
Conclusion 15

“ Old ways will never open new doors “

To grow your business, implement an ERP and ditch those primitive business
methods that deliver same output.

We, at BatchMaster, understand all your business needs and help you
integrate all your business processes under one platform. We can help you
meet all the changing trends through faster innovation, better compliance,
effective planning, controlled costs, reduced wastage et al.
 About BatchMaster 17
 30+ years of experience  7 offices round the globe

 ERP solutions for small to mid-sized industries
 SAP B1 and Microsoft certified solution
 Over 40,000 users worldwide
 Headquartered in California, with footprints across the
world
 Available in 3 languages- English, Chinese, and
Spanish
 Original developer of formulation system in ERP
 Consistent record of never exceeding
implementation time of 350 to 500 hours

 A global presence with offices in 3 continents- North

America, Australia, and Asia
Resources -

• To know more about our products and services, visit us on : www.batchmaster.co.in

• Refer our guide on ERP for small businesses which answers your queries related to ERP

• For more queries, Email us at : sales@batchmaster.com