How to use ERP software to grow your business

Many more UK businesses are now using ERP (enterprise resource planning) software to streamline their operations, reduce their costs and grow more efficiently. 

Whether managing your cash flow, people, stock, orders or customer relationships, ERP software allows you to conveniently integrate your core business functions, make best use of your resources and maximise the efficiency of your systems. Ultimately, ERP software can make your business more profitable.

ERP software reveals critical data in real time, so that you can make smarter business decisions based on current information. It can support your regulatory compliance and help you mitigate a wide range of operational risks.  

The significant amount of effort, time and money that you save by using ERP software can be used to grow your business. Read on to learn how ERP software could help you make your business more successful.

What Is ERP software?

ERP software can enable a business to run more smoothly and efficiently by centralising management of all its key operations, including finance, stock, HR and customer relationship management (CRM). You can think of ERP software as like having a central digital control panel or dashboard for your key business functions.

Did you know? Large companies were enjoying the benefits of ERP software in the 1970s. Some 20 years later, ERP software became available to smaller businesses, with cloud computing fuelling more widespread adoption in the 2000s. 

ERP software business benefits

• ERP software enables businesses to remain well-organised, more efficient and better-informed in real time about their health and performance.  

• ERP software automation can bring significant time and cost savings on business admin and management. 

• ERP software enables people in various parts of a business to access and share critical data, which can deliver efficiency gains. 

• ERP software enables owners and managers to make smarter business decisions – sooner and guided by real-time data. 

• ERP software can enable a business to provide superior customer service, for example, by allowing better customer relationship management and more personalised communication with customers.

The dangers of not using ERP software

Businesses that do not use ERP software can be hamstrung by operational inefficiencies. Manual processes such as data entry, inventory tracking and invoicing can take much longer, while human error can be more likely. Lack of automation can mean having to repeat tasks time and again, which damages productivity and adds an unnecessary additional cost burden. 

Without ERP software, data is usually stored in disconnected systems, making it much tougher to get a reliable overview of operations, which is key to effective management, decision-making and planning. Incomplete or outdated information, especially regarding finance and sales, can lead to poor decisions. 

There can be security and compliance challenges, too. Data security is more difficult to manage across several platforms, while regulatory compliance (eg GDPR) can become much more challenging.

Without ERP software, you and your people may struggle to share information efficiently, which can lead to duplicated effort and misaligned goals. ERP systems centralise data and workflows, facilitating better collaboration. And as your business grows, not using ERP software can lead to bottlenecks, as your systems start to get overwhelmed. 

Key considerations when thinking about ERP software

• “Modules” are specific components or capabilities within a larger ERP system. 

• Focus on modules that will directly support your operations and growth. Accounting and finance are key, of course. Your ERP software should save you time by automating repetitive financial record-keeping tasks.  

• Inventory management is key for businesses that sell products in volume. If that includes you, your ERP software must help you track stock, manage orders/reorders and warehouse operations efficiently. 

• CRM digital tools can enable you to manage leads, track sales, build strong customer relationships and improve your marketing success.  

• HR and payroll ERP software modules can make managing staff records, payslips and compliance with employment regulations easier.  

• Reporting and analytics are key to making informed decisions. Your ERP should offer reliable real-time insights into how your business is performing, so that your key decisions are based on reliable data.  

• Mobile access can be important, too, because it can allow your people to work wherever they are. 

• Integration with your other digital tools is a key consideration, too. 

• Cost is another important factor, of course. ERP software pricing varies widely, influenced by number of users, modules, implementation and training costs, and your customisation needs. Expect to pay between £50 and £500+ per user/month. 

  
  

Did you know? 

Most small businesses choose cloud-based ERP software, which offers lower upfront costs, subscription-based pricing, automatic updates, remote access and scalability. On-premises ERP may suit businesses with strict data control needs or larger organisations, but it requires more IT resources and greater upfront investment. 

Examples of ERP software for small businesses

• Microsoft Dynamics 365 Business Central: A cloud-based ERP that integrates finance, sales and operations with strong mobile access and scalability. Ideal for businesses seeking a unified platform with Microsoft ecosystem compatibility. Find out more. 

• NetSuite ERP: Consolidates finance, inventory, CRM and e-commerce into one system, eliminating data silos and manual duplication. Could help you make better informed decisions and better manage your cash flow. Find out more. 

• SAP Business One: Integrates core functions such as finance, sales, inventory, purchasing, CRM and production planning. Strong on inventory and production management, so could be a good fit for businesses in complex supply chains. Find out more. 

• Zoho One: Created to help growing small businesses win more customers, manage their people, track their cash flow and manage their operations on one unified system. Find out more. 

• Odoo: An open-source ERP that offers more than 30 core modules including accounting, CRM, inventory, manufacturing, HR, project management and eCommerce. Highly customisable; install only the modules you need. Find out more. 

• Many other ERP solutions are available, so, guided by your specific needs, research your options thoroughly. 

  
  

Tips on choosing the right ERP

Start by identifying your top “pain points” and focus on key problems you need your ERP software to solve. Carefully consider your processes/workflows and think about where ERM-enabled automation could save you time and money. 

Also think carefully about whether you need industry-specific features or would a more general small-business ERP would provide the benefits you need.

Seek ERP software recommendations from other businesses. Find out the pros and cons of their ERP software. Research good options online and consider whether the costs are in line with your budget.

Contact ERP sellers and ask them to explain why you should choose their software. Take advantage of free demos, so you can try before you buy. Focus on key modules first, then expand to others. Also find out what support and onboarding is available, so you can get the most from your new ERP software from the start.

CRM key takeaways

• Many more UK businesses are now using ERP software to streamline their operations, reduce their costs and grow more efficiently.  

• ERP software allows you to integrate your core business functions, make best use of your resources and maximise the efficiency of your systems. 

• ERP software shows critical data in real time, empowering you to make smarter business decisions based on current information.  

• ERP can support regulatory compliance and help you mitigate a wide range of operational risks.