In the current market context - where competition is increasingly fierce, customer behavior changes rapidly, and the pressure to optimize operations and cut costs is increasing - small and medium enterprises (SMEs) implementing ERP (Enterprise Resource Planning) is no longer an "option" but has become an inevitable need for survival and growth.

The following article by Bizzi will analyze why ERP is especially necessary for small and medium enterprises (SMEs) at the present time.

What is ERP software?

ERP Software (Enterprise Resource Planning) is a business management software system that helps integrate and automate core business processes such as finance, human resources, manufacturing, supply chain, sales and purchasing, providing a unified view of business operations and data..

Concept and role

ERP (Enterprise Resource Planning) software is an enterprise resource planning system, used by organizations to manage daily business activities such as project management, procurement, accounting, manufacturing, order processing and inventory. 

The core purpose of ERP for small and medium-sized businesses or larger businesses is to integrate all information and data from all departments into a single computer system. From there, leaders can easily monitor a unified and transparent database for the entire business process.

Outstanding features of ERP system for small and medium enterprises

• Design according to functional subsystems: ERP is formed from the connection of many different subsystems such as accounting, finance, production, sales, human resources, and logistics. Each subsystem undertakes a specialized function but still links and shares data with each other.
• Real-time evaluation capabilities: The ERP system automatically synthesizes reports from departments, analyzes and evaluates business performance in real time, helps to maximize system management and supports the development of appropriate strategies.
• Flexible design structure: ERP is designed to be open, allowing businesses to add or remove necessary subsystems without affecting the operation of other functions, responding to the constant changes in business and market needs.
• Integrated database: All data such as finance, accounting, human resources, sales are stored on a common database, ensuring consistency, easy control and minimizing data duplication.

The need for ERP for small and medium enterprises (SMEs)

ERP implementation is no longer a luxury reserved for large corporations. In a competitive market where businesses increasingly need to operate efficiently, transparently and flexibly, ERP for small and medium enterprises (SMEs) has become extremely necessary. 

Problems SMEs often face without ERP

• Fragmentation in management: Many SMEs have to use separate tools and software for each department, leading to information disruption and difficulty in synchronizing management between departments such as accounting, human resources, warehouse and sales.
• Difficult to control costs and operating efficiency: Using multiple separate tools increases monthly operating costs (users, upgrades, maintenance) but work performance is not improved as expected.
• Lack of IT flexibility and accessibility: Offline or poorly integrated software makes remote working difficult, and many SMEs have not taken advantage of advances in information technology in management.
• Difficulties in data management: Distributed, overlapping, manual data makes it difficult to control information and make timely decisions.

Why is ERP application for small and medium enterprises necessary? 

• Optimize operations: ERP helps automate operations like order processing, manufacturing and finance, reducing errors and saving time.
• Growth Support: As businesses grow and expand, individual software is no longer suitable, ERP becomes an inevitable solution to improve the efficiency of business process management.
• Resource control: ERP helps manage overall resources, creating a strong driving force for sustainable business development, especially important for businesses operating in the financial sector.
• Adaptability: ERP can be easily customized and expanded to accommodate business growth and changes in scale, ensuring legacy data stays in sync.

Outstanding benefits of ERP for small and medium enterprises

ERP system brings many benefits outstanding benefits for small and medium enterprises, help optimize processes, reduce costs, increase operational efficiency and enhance competitiveness. 

Improve productivity and work efficiency

ERP automates repetitive and routine tasks such as data entry, order processing, and inventory management, freeing up employees' time to focus on higher-value tasks, increasing productivity and saving costs in the long run.

Ensuring data transparency and accuracy

Important information and data are stored on a common ERP system, allowing all departments to access and view information transparently, reducing errors due to manual data entry, saving time and supporting better management.

Support decision making based on real data

ERP for small and medium-sized businesses provides a comprehensive view of financial and operational performance through customized reports and real-time insights, helping leaders make more accurate and faster decisions, responding promptly to changing economic and business conditions.

Optimize operating costs

ERP reduces costs by consolidating management platforms into a single system, automating processes, minimizing or eliminating many administrative and operational costs, as well as waste in manufacturing and inventory management.

Improve connectivity between departments

ERP provides a single source of data and a common interface, allowing users from different departments to easily share information, improve collaboration, and help businesses run smoothly and efficiently.

Enhance competitiveness

By optimizing processes, improving performance and quality, ERP helps businesses grow, increase competitiveness in the market and attract customers.

When should ERP be implemented for small and medium enterprises?

ERP software implementation for small and medium enterprises (SMEs) should be done at the right time to maximize efficiency and avoid wasting resources. Below are clear signs and the right time for SMEs to consider ERP implementation:

Signs that ERP implementation for small and medium enterprises is necessary

• Use multiple discrete software simultaneously for different departments.
• Process lacks uniformity, information is fragmented, and work coordination is difficult.
• Inefficient use of resources causes waste.
• It takes too much time to search, check, and compare data between departments.
• Mistakes began to occur more and more in the departments.
• Inventory is too large and difficult to determine.
• Only guesses can be made based on sales reports.
• Having trouble managing order growth with manual tools.
• The business is looking to expand in the future.
• Difficulty in decision making due to lack of unified database.
• Unable to meet customer requirements due to manual operation.

Specific cases should consider applying

• When the business is growing and expanding.
• When you need to manage complex data more efficiently.
• When faced with difficulties in inventory and supply chain management.
• When you want to optimize business processes and increase productivity.
• When you need to improve decision making based on accurate data.
• When you want to create uniformity and standardization in business operations.
• When you want to improve customer experience.

Guide to choosing the right ERP software for small and medium-sized businesses

Choosing ERP software for small and medium-sized enterprises (SMEs) is important, as the wrong choice can be costly, disruptive, or leave you with underutilized features. Here is a detailed and easy-to-follow guide:

Identify business goals and needs

Businesses need to thoroughly understand their needs and challenges, clearly define their business goals and specific management needs (finance, production, sales, warehouse, human resources) to make requests to suppliers.

Select the necessary features

The features of ERP software for small and medium enterprises are very diverse. Enterprises should clearly identify the features they need to manage business operations well, and prioritize basic features when first implementing to control initial investment costs.

Consider cost and scalability

• Expense: Compare the prices of different ERP solutions to find the one that best fits your budget, taking into account financial costs and implementation time, as well as additional costs such as infrastructure investment, customization, and training.
• Scalability and Flexibility: ERP software needs to be flexible and customizable to suit the specific needs of the business, capable of being accessed by a large number of users and adaptable to changing business models.

Security and post-implementation support

• Security: Software needs to have high security to avoid being hacked and having data stolen.
• Support Services: Research the vendor's support services carefully, ensuring they have implementation experience, industry reputation, and the ability to stay on track to provide consistent technical support.

Specialized solutions for financial and accounting management of enterprises

Combining Bizzi with ERP software brings many outstanding values to businesses, especially in financial and accounting operations.

Bizzi Solution Overview

Bizzi is a specialized platform focused on automating back-office financial operations, acting as an AI assistant for the finance and accounting department in automating the revenue and expenditure process.

Bizzi's Role in Financial Process Automation

Bizzi helps digitize and automate financial processes, from invoice processing, expense management to debt control, to improve financial efficiency, accuracy and control.

Bizzi's core features include:

• Automatic input invoice processing and management (IPA + 3way): Use RPA and AI technology to upload, check, and reconcile invoices. Capable of automatically matching invoices with purchase orders (POs) and warehouse receipts (GRs) in real-time to detect discrepancies. Includes valid supplier verification, automatic invoice capture and storage (10-year validity), and risky invoice alerts.
• Business Expense Management (Bizzi Expense): Allows you to set up and allocate budgets by department/project, monitor spending against budget in real time and alert when it exceeds. Supports automatic spending approval system, generates detailed expense reports, sets up and enforces spending policies. Employees can submit spending requests, track status and attach spending to each project/task.
• Business Travel Management (Bizzi Travel): Integrate with budget-driven automated flight booking service. Track and manage all business expenses such as flights, hotels, transportation, meals, set spending limits and approval process. Provide comprehensive business expense reports and alerts when exceeding budget.
• Electronic invoice solution (B-invoice): Create electronic invoices according to regulations (XML/PDF), with customized templates according to the brand. Support for mass invoice issuance, directly connect to the tax authority system for authentication. The system stores invoices for at least 10 years, allowing easy lookup and management of invoice status.
• Accounts Receivable Management (ARM): Automatically remind debt according to scenarios via email and text messages. Monitor and reconcile debts, indicators such as DSO (days of sales outstanding), debt aging report. Alert when debt is due or overdue, reconcile debts with customers and suppliers.
• Other financial facilities: Providing corporate credit card solutions with spend now, pay later incentives (0% interest rate up to 45 days), integrated with expense management applications. Facilitating access to capital through supply chain finance and working capital financing options.

Bizzi's ability to integrate with existing business management systems

Bizzi focuses strongly on Seamless integration with multiple ERP systems leading ones such as Oracle NetSuite, SAP, Microsoft Dynamics 365 Finance and Odoo,… The platform is flexible and easily configured to fit into a business’s existing purchasing and accounting processes, allowing businesses to enhance specific financial processes without replacing the entire existing ERP infrastructure.

Benefits of applying Bizzi in financial operations

Combining Bizzi with ERP software brings many outstanding values to businesses, especially in financial and accounting operations. Below is an analysis of the specific benefits when integrating the Bizzi platform - Accounts Payable Automation (AP Automation) with ERP systems such as SAP, Oracle, Odoo,..

• Optimize accounting processes and minimize errors

Bizzi automates invoice processing, extracts data quickly (under 30 seconds/e-invoice), significantly reduces the need for manual intervention and minimizes errors in invoice processing and cost management.

• Improve control of costs and cash flow

With budgeting features, real-time spending monitoring and debt reminder automation, Bizzi helps businesses proactively manage finances, control spending, detect overspending early and improve cash flow by speeding up the collection process.

Conclude

Investing in ERP for small and medium-sized businesses is an important strategic step to break through in the digital era. Although the implementation process can be challenging, the benefits of ERP in terms of productivity, transparency, cost control and competitiveness are enormous. 

By understanding their needs and choosing the right solution, which can be complemented with specialized platforms like Bizzi for financial processes, businesses can build a solid foundation for sustainable growth in the future.

In a volatile market, the winner is not the largest enterprise, but the one that operates most flexibly, accurately and transparently. Combining ERP with Bizzi – a specialized solution for financial and accounting management of enterprises will help SMEs “Grow with control – Expand systematically – Compete with advantage.”

• Link to register for a trial of Bizzi products: https://bizzi.vn/dang-ky-dung-thu/
•  Schedule a demo: https://bizzi.vn/dat-lich-demo/