An enterprise resource planning system is like the "brain" of a small- or medium-sized organization: It serves as the central clearinghouse for accounting, budgeting, planning and many other custom operations. From the assembly line to the back office, an ERP solution helps shape what a manufacturer knows about itself (e.g., business intelligence, reporting, etc.) as well as how its different departments collaborate and communicate with each other.

However, SMBs face unique challenges in finding and sustaining ERP platforms that fit within their relatively limited budgets while still offering superior functionality to manual processes. Many outfits still rely on QuickBooks and Microsoft Excel to handle essential tasks, but at some point, their operational complexity and/or growth necessitate a search for a more efficient alternative – i.e., actual ERP software. But what should an ideal ERP system include?

It should, at a minimum, address these common stumbling blocks in SMB ERP implementation:

1. Visibility into processes

A Software Advice survey once revealed that 59 percent of SMBs pursue ERP systems because they need to integrate data from multiple business processes. This goal far outpaced even "company growth" (27 percent) as a primary rationale for upgrading from predominantly manual processes.

There are several keys for adequate visibility:

• Real-time insight: Decision-makers should be able to drill down to information from all relevant processes as it comes in, allowing them to spot and address any inefficiencies right away.
• Support for planning and forecasting: This real-time data is particularly useful for assessing past failures and successes, which can be analyzed to improve key procedures and make better forecasts about cash flow and margins.
• Integration and customizability: The unique requirements of manufacturing require an ERP solution that can easily interface with other applications and be adjusted to incorporate custom processes.

2. Affordability and ease of use

ERP systems have a reputation for being expensive and unwieldy to implement. A 2016 Panorama Consulting survey, with 26 percent of responses from companies with less than $25 million in annual revenue, found that 35 percent of respondents spent up to 3 percent of revenue on ERP implementations, while another 20 percent spent between 3 percent and 5 percent.

SMBs can reduce their exposure to these costs by avoiding custom in-house ERP systems and instead pursuing more accessible and broadly supported alternatives such as Microsoft Dynamics NAV. Options for on-premises or cloud setups give SMBs options for finding something that aligns with their respective budgets and priorities.

3. User training

Sometimes, the biggest challenge to ERP success is getting buy-in from end users who may initially balk at the design of the new system. After all, reliance on QuickBooks and Excel is often as much about familiarity as it is about cost.

Having a trusted partner that can provide ongoing training and support is therefore essential. Accent Software is a member of the Microsoft Partner Network, with more than 15 years of industry-specific experience. Learn more today about how we can help you get started on your ERP journey.