Did you know that inventory accuracy for small businesses averages only around 63%? This inaccuracy can lead to significant financial losses and operational inefficiencies. Additionally, 43% of small businesses still rely on manual methods like spreadsheets to manage their inventory, further exacerbating these issues. With U.S. retailers losing $1.1 trillion annually due to inventory shrinkage, it’s clear that effective inventory management is crucial. [Reliant Funding]
Many small businesses leverage two key software solutions to grow and manage their product sales and operations: a Customer Relationship Management (CRM) system and an Enterprise Resource Planning (ERP) system. While the #1 CRM in the world, Salesforce, is often chosen for managing customers and sales, it doesn’t include any built in capabilities around inventory management. So how do you determine if you need an ERP system rather than a solution tailored specifically for inventory management?
Benefits of an ERP System
An ERP system helps companies improve efficiency, make better decisions, and streamline operations—benefits every business desires. An ERP system has a centralized database that unifies supply chain data and provides real-time insights. It offers integrated modules across multiple departments such as HR, Finance, Manufacturing, Supply Chain, Sales, and Customer Support. It automates and streamlines workflows and redundant tasks, saving you time and labor. Additionally, it provides reporting and analytics to offer insights into your key performance indicators.
Challenges of an ERP System
However, an ERP system comes with several challenges:
- Cost: It typically costs significantly more than a tailored solution focused on inventory management.
- Complexity: The complexity of setting it up and maintaining it can lead to unanticipated costs.
- Implementation Time: It can take longer to implement and may include features and modules that aren’t needed or used.
When is an ERP Necessary?
Most small businesses don’t need an ERP unless they have complex needs such as intricate supply chains, regulatory compliance, or special financial considerations.
InventoryWorks: A Tailored Solution for Small Businesses
If you are a small business seeking a simple and user-friendly solution that integrates with your Salesforce CRM, InventoryWorks offers a simple and low-cost app that provides a seamless experience for your sales and operations teams. You can manage your inventory through the buy, build, and sell process while giving your sales teams real-time visibility into inventory availability. Get more information about how it can help you manage your inventory by visiting the Salesforce AppExchange or visiting our website at www.sfinventoryworks.com.
