Shiv Kaushik is Chairman & CEO of ICCG, a global business provider of Infor CloudSuite ERP M3 & Acumatica Cloud ERP.
Mid-market enterprises face the dual challenge of competing with larger organizations while having to manage growth and operational efficiency. However, the technological tools available to companies at this tier have significantly improved, empowering them to overcome obstacles that once seemed insurmountable.
I think one of the most powerful tools is enterprise resource planning (ERP) software, which can help mid-market enterprises compete on a more level playing field with much larger companies.
With over 30 years in executive roles, I have seen firsthand how ERP systems can transform businesses of all sizes. However, to make the most of ERP systems, businesses must first clearly define their goals and understand the unique needs of each department, such as finance, inventory and sales. Selecting the right ERP solution is crucial.
Competing With Larger Organizations
Historically, larger organizations have had an advantage over mid-market enterprises due to greater resources, staffing, capital and technology. They could afford complex ERP systems that offered comprehensive business insights, enabling them to scale and optimize.
For mid-market businesses, implementing such systems was often out of reach due to high costs or system complexity. They often operated with separate software for essential business functions like finance, HR, inventory management, supply chain, sales and customer relationship management, leading to inefficiencies and redundant data entry. However, ERP vendors have adapted their offerings to be more accessible and affordable for smaller businesses.
Cloud-based ERP solutions have played a key role in this transformation. Previously, mid-market enterprises had to invest heavily in infrastructure, software licenses and IT staff for on-premise ERP systems. Cloud-based ERPs are more accessible, easier to implement and largely subscription-based, meaning companies pay only for what they use, lowering the barrier to entry.
Mid-market enterprises can assess whether ERP is the right investment by evaluating their current inefficiencies and the complexity of their operations. If disconnected systems are causing inefficiencies for you, an ERP could help you streamline processes and support growth. Companies should also consider budget, implementation capacity and long-term ROI to ensure the investment aligns with their needs.
Choosing The Right ERP For Your Business
Your ERP should be tailored to your business’ industry and size, offering scalability and integration with existing tools. Customization plays a vital role in this; adjusting the system to fit specific workflows and automating tasks can significantly boost efficiency and reduce errors. Comprehensive training and ongoing support are also essential for user adoption.
However, ERP systems alone cannot address all the challenges that mid-market enterprises face. While ERPs integrate core functions, they may fall short in areas like advanced data analytics, industry-specific requirements, customer relationship management and workflow automation.
To bridge these gaps, I think businesses should consider incorporating complementary tools like advanced business intelligence (BI) platforms, customer relationship management (CRM) systems and workflow automation tools. These tools can help streamline processes, enhance customer engagement and provide deeper insights.
Features To Look For In ERP
Across distribution, manufacturing, fashion or food and beverage, here are the main features I think you should prioritize with an ERP system:
• Distribution: Look for ERP tools that provide real-time visibility into inventory and order status. This helps reduce lead times, avoid overstocking or stockouts and coordinate more effectively with suppliers and customers.
• Manufacturing: Prioritize features that support production scheduling, track raw materials and monitor equipment utilization. I’ve found that these capabilities help reduce downtime and align production with demand.
• Fashion: Focus on systems that manage the full product lifecycle, from design and sourcing to sales. Effective tracking enables quicker response to market trends and more accurate inventory planning.
• Food And Beverage: Especially in the food industry, you want to choose ERP tools that support batch tracking, shelf-life monitoring and regulatory compliance. These features are essential for managing perishable goods and ensuring safety standards are met.
As touched on earlier, involve stakeholders from across your business early in the selection process to ensure the system meets your operational needs on the ground—not just at a strategic level. In finding the right fit and tailoring these systems, a clear understanding of your business priorities and pain points can go a long way in choosing a satisfactory solution.
Common Pitfalls And Best Practices
In ERP implementations, I find that mid-market firms often underestimate the importance of change management, data hygiene and IT readiness. Effective change management is critical for user adoption, while data hygiene ensures the system operates with clean, accurate data.
While larger organizations may have more resources, I find that mid-market enterprises leveraging ERP technology can often respond faster and with greater precision, gaining a competitive edge. Use your more nimble and collaborative environment to your advantage. In fact, ERP systems can help further break down silos, enabling better cross-departmental communication and data sharing.
A Digital Transformation
In today’s world, I believe digital transformation is a necessity for mid-market enterprises, and I see ERP systems as at the heart of this transformation. By embracing ERP technology, businesses can drive growth, scalability and innovation while competing with larger corporations.
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