What are the common problems for ERP in SME'S?

Enterprise Resource planning helps S.M.E.'s to enjoy unimaginable benefits. Nevertheless the problems of ERP in S.M.E.'s remain unsolved. There are still ups and downs in it. There are some problems for S.M.E.'s in the ERP market .They are not only from the addressed in the company's perspective but also in the vendor's perspective.

The problems of ERP in S.M.E.'s are as follows:

Cost

The small size of the companies proves to be another challenge to the vendor. Since there are too many S.M.E.'s in the market they demand a very low price from the vendor. It becomes practically impossible for the vendor to offer at such quotations as he would not even be guaranteed of a return in the costs. Small business erp is not expensive software but still requires lot of work.

Another issue is that there are a large number of companies in the segments and the vendors are few in numbers. Hence the former is able to exercise a considerable influence over the later. This issue also makes things difficult for the company. At times they have to comprise on quality due to unfair demands. There has been no full stop to this as the companies have failed to change their attitude in this regard.

The companies can definitely claim cost advantages due to the competition .But if they are bound to be unreasonable they cannot expect the vendor to deliver the best. They need to keep in mind that the vendors have come a long way after exploring their segment which was untouched for quiet a long time. The companies are not able to avail the best business erp small software due to these difficulties.

Choice

Companies have to exercise adequate care in choosing their ERP vendor and Small business erp Software. This is a big dilemma for companies because they are unsure of choosing software offered by a branded player or a small player. That really makes no difference as long as the software and vendor suits all the requirements.

Some companies debate that only a branded player can satisfy the requirements even though the recipient is a small concern. While the other argues that only small vendors are flexible when it comes to customizations. Each argument has its own merits and demerits. However companies tend to select the wrong option on the basis of these prejudices. As said earlier the companies need to take care of their requirements as the first priority before deciding on the software or vendor.

Customization

The bigger players have a trouble when it comes to offering solutions for S.M.E.'S. The level of customization and the work demanded by the S.M.E.'s some times appear to be too much for a bigger player. Moreover their businesses have always been focused to corporate giants. So when it comes to the question of S.M.E.'s it takes a great deal of time for them to understand the business and design software programs based on modality.

Even if they are able to meet the requirements the companies always demand more. Branded and big vendors don't even yield to the first level and the software programs supplied by them prove to be of little use to the company. On the other hand companies also find that small ERP vendors are not competent enough to match the requirements of the companies. So they approach the bigger companies. Finally they land up in understanding that no one can help them to the desired extent.

Confidentiality

Big vendors don't even offer the source code when it comes to S.M.E.'s. This has resulted in lots of functional errors and the very purpose of ERP has been questioned by and large. On the other hand when it comes to the companies they hesitate to disclose confidential information because they are well aware of the fact that the vendors are limited, few and far between in the S.M.E.'s market. This means your vendor and the company's vendor could be one and the same. The apprehension of the companies look natural but it stops the vendor in restructuring the minutest detail in the software to match the company's needs for lack of adequate details.

Conclusion

S.M.E.'s market still continues to be a "bed of opportunities" for ERP Vendor in spite of the above mentioned drawbacks. Equally promising is the demand for ERP from Small and Medium enterprises. Some proposal should be put forward for the welfare of both parties to counter the problem of ERP in S.M.E.'s.

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