Moving to Midsize

Abstract

This article elaborates the benefits of an enterprise resource planning (ERP) system for small-to-midsize businesses. A large number of small-to-midsize engineering and manufacturing operations are now bringing enterprise resource planning systems into their operations. ERP software is distinct from a product lifecycle management application, which is where engineers store information about the product they’ve defined. ERP systems link design and manufacturing with business processes such as new orders, purchasing, credit, accounting, supply chain management, and planning. They stretch from business headquarters across production facilities, warehouses, and sales offices. By linking these operations, ERP helps executives understand and forecast all the factors—from sales and purchases to asset utilization and hiring—that might affect profits. An ERP system offers control over all areas of the business in one centralized place. Several developments are now helping smaller companies make the transition: costs for ERP systems are coming down, implementation is becoming easier, and systems are targeted to smaller players.