ERP Inventory management System for SME's: Four Benefits


There are two options when searching for stock management software One is inventory management software system, and the other is inventory ERP systems. Let's start by comparing the main differences.

Inventory software is a "point solution," meaning it only handles inventory management. It can track inventory quantities, manage bins/warehouse locations, and more. Distribution companies need these features to effectively manage their most significant asset. What about the rest of your distribution company's assets?

An ERP system can handle all your inventory software needs. ERP systems can also integrate other parts of your business activities into the same system. This can include sales, purchasing, and accounting, among others.

If you can manage your inventory using standalone software, why don't you choose an ERP Stock Management program?

1. ERP offers more advanced inventory planning tools

Despite their claims to provide sophisticated inventory tracking and planning tools, the majority of inventory management tools and applications are relatively simple. To prevent excess stock, stockouts creating stock alerts, you can keep track of item amounts and set reorder points. It is not, however, very sophisticated. Although you won't be able to foresee future trends or gain insight from these point solutions, they can offer some knowledge.

can put you in front of the curve. The demand planning tool MRP (Materials Resource Planning) can be used to forecast and calculate demand. This tool considers the past request, active sales possibilities, predictions, and other elements. These forecasts can be created manually using data and best estimations, but they can also be utilized to manage inventory.

2. ERP makes it easy to efficiently manage inventory data

Inventory software may be made to enhance inventory management. These procedures, including order administration, customer management, money collection, and sales, are purportedly automated by several software systems. Yet how? The crucial query is, "How?" To establish automation that let data flow throughout your business, integrations are essential. Integrations are frequently regarded favorably since they provide more flexibility. But each integration makes things more complicated.

With an inventory ERP system, all departments can collaborate in one system. It is not necessary to create multiple integrations between sales, inventory, and accounting systems. The system handles all of this automatically. This system allows for more automation and less IT effort, which increases efficiency across the company. If your team only has one interface, they will experience a better user experience.

3. ERP gives you more visibility and provides business intelligence

Although an inventory system can provide analytics and reporting capabilities, it is limited to inventory. What about all the other data? You will need to reconcile data from inventory software and accounting software in order to gain insight into your company. This type of reporting can be slow and take a lot of effort.

Consolidating all business data under one roof is crucial for business intelligence and reporting. ERP gives you more data understanding so you can make informed Data-Driven Decisions . Think about the information your staff regularly requires to perform their jobs effectively. Inventory information, including its position, status, and proximity to customers, is readily available to sales and customer service. Because of this, they can serve consumers well and answer requests swiftly. Can you carry this out using an inventory management system?

 4. ERP can help you grow

Small businesses with a limited number of SKUs and a small customer base may find inventory software a good choice. Inventory software will be outgrown by high-growth companies in just a few years. These integration point solutions can increase complexity in your IT stack and operational process. Although a collection of integration point solutions might seem cheaper, they can quickly add up.

Simplicity is key to any company's growth. ERP is the best tool to do this. It is crucial to make the right decision now that will help your business in five, ten, and even ten years. Many ERP systems offer modular functionality, which allows you to add functionality as and when you need it. This allows you to easily adjust your system as your needs change.

Many inventory software vendors will tell SMEs ERP is too costly. It's not. ERP is used by the top 20% of companies that are growing. They have achieved this by using ERP to optimize and outperform their competitors.

We'll be covering

  • What is ERP inventory management?
  • An ERP inventory management system's typical features
  • Are you looking for an ERP system to manage your inventory?
  • Advantages of a ERP inventory management system over an retail-tailored operating system

What's ERP Inventory Management?

ERP stands for Enterprise Resource Planning. ERP inventory management is an integrated approach to business operations. ERP inventory management systems allow businesses to manage all their business complex operations through one platform. This includes inventory management, finance, operations planning, and logistics.

ERP systems provide real-time data that helps businesses manage complex inventory processes across the organization. Although all ERP modules are part of the same platform, each function can be used as an individual piece of software. This allows data to be shared between modules, allowing faster and more accurate calculations.

It's this. Some small businesses may be able to use one or two software tools. For larger organizations, however, this can become a nightmare. Businesses can now invest in one platform instead of multiple software tools for managing inventory. This extra level of efficiency is invaluable for small- to medium-sized companies.

Read More: 5 Promising Warehouse Inventory Management Tips for your business

An ERP Inventory Management System's Typical Features

ERP systems are designed to simplify business operations and minimize operational costs. An ERP inventory management system's primary function is to help with order quantity calculations.

It helps businesses plan and replenishes orders quickly and economically, avoiding stockouts or other costly consequences of poor inventory control. Get complete control on inventory management through ERP which help you monitor, calculate and automate stock levels, inventory, and reorder points and set stock alerts When data indicates that a specific SKU is in high demand, an ERP can automatically order the inventory items. 

An ERP system can also be used to automatically place sales orders when prices are low or to troubleshoot problems with surpluses. Each ERP inventory management software will have different features. The majority will include the following:

1. Automation

ERPs automate tedious and time-consuming Manual processes and business tasks like data entry to reduce errors and save time. Because users can input data into ERP systems, it becomes accessible to the entire organization. This data is used to fuel highly efficient, intelligent, and automated processes. Automation that works well saves time and money. You will probably need to hire a system administrator to code and create automation rules for an ERP system.

2. All-in-one system

An ERP's primary function is to connect processes across different departments and eliminate data silos. ERPs gather data from all business units to create a comprehensive view of financial, operational, customer, and business data. This business intelligence enables accurate reporting and insights to help Business owners to make better business decisions.

3. Data management and reporting

ERP systems use data to support better decision-making and provide actionable insights. High-quality, real-time reporting is essential for financial savings, operational optimization, and better services. An ERP will combine data into visual graphs, reports, and charts.

4. Supply chain management (SCM).

Supply chain management is an essential function of ERP systems. This includes inventory and demand tracking, manufacturing processes and logistics, and distribution management. ERPs track supply chain data and suggest an optimal purchase or transfer orders.

5. Accounting & financial management

An ERP system will provide financial data analysis and tracking for all accounts, budgets, forecasting, and other requirements. It is similar to standard accounting software. Additional features may be offered by some ERP systems, such as tax and asset management and, multi-currency recognition, revenue recognition.

An ERP helps businesses plan and optimize their financial spending, financial planning, and decision-making.

6. Customer relationship management (CRM).

Many ERP systems can integrate with CRMs to include customer data in reporting and decision-making. ERP systems will collect data like contact information, prospect status, and order history to make it easy for prospects to reach you.

This allows sales and marketing teams to target high-converting leads and optimize lead times.

7. Management of manufacturing

ERP systems are a tool that helps businesses improve their manufacturing processes. They can help with raw material procurement, product planning, and production monitoring.

An ERP will store and collate precise data about your bill of material, shop-floor controls, and distribution planning. This information can be used to manage your inventory planning operations.

Some other features that might be possible include:

  • Warehouse management systems / Warehouse Operations.
  • Stock transfers/tracking (both in-house and with external fulfillment centers)
  • HR & Payroll
  • Procurement
  • Payment gateways
  • Barcoding(Barcode Scanning) and scanning

Are you Looking for an ERP System to Manage Your Inventory?

Do you need an ERP?

It's a great question. Choosing the right ERP for your business functions depends on which core features are necessary to manage inventory levels effectively. ERPs, like all software tools, have their pros and cons.

  1. ERP systems can be used to improve supply chain transparency, inventory optimization, and data-led reporting. They also allow for more precise counts and quality checks.
  2. ERP systems can be complex to implement, which can make your business operations more complicated. Some businesses may find it challenging to implement an ERP system across their entire company.
  3. ERP systems are not able to be customized for each customer. ERP tools often lack the specialized features that your ecommerce business requires and don't usually offer pre-built integrations to ecommerce platforms or marketplaces.
  4. Due to the complexity of ERP implementation and management, many businesses hire an ERP specialist to help them customize and maintain their system. This comes at a cost and is not flexible enough.
  5. Due to the lack of flexibility, many companies will find themselves growing beyond their ERPs. This could lead to them having to add complicated customizations (potentially from a third-party provider) to keep their ERP system up to date.

This can be avoided. Arion Ecommerce Enterprise Resource Planning software are a great choice for businesses that need highly scalable software, easy implementation, exceptional flexibility, configuration, and customization. It enhances Business efficiency.

Want More Information About Our Services? Talk to Our Consultants!

Advantages of a ERP inventory management system over an retail-tailored operating system

Two options exist for retail businesses when it comes to inventory management. The first is back-office software that can do everything. ERPs can be used in all industries and offer a fixed, full-stack solution. ERP inventory management systems, however, are not specialized retail tools. The retail operating system is, by nature, retail-oriented.

Arione offers comprehensive, retail-tailored functionality to Arion merchants for managing their post-purchase operations. It is also more flexible than ERP systems regarding expanding your tech stack. An ERP may not have certain features that are relevant to retail business and offer other features that you need. You can also choose a retail-focused operating system instead of an ERP to ensure that your software includes all the features your business needs.

On the other hand, tailored retail operating systems are configurable and not customizable. Major integrations have already been developed and can be easily plugged in via API. This allows you to create and customize any integrations that you need. This makes implementation much simpler and faster.

Additional benefits include:

1. Integrations for e-commerce already built

Arione, a retail-tailored operating system, offers a variety of high-performance ecommerce integrations and connectors to third-party apps and services. Our partner network can quickly create other customized sales channel integrations.

Arion offers complete integrations and flexibility with key workflows, processes, and applications through an open API.

2. Cost-efficiency

ERPs are extremely robust tools. An ERP can be used in all industries. While this may seem convenient, it is cost-effective.

 ERP software has a low price tag. You pay for the features you use and the ones you don't. You can require unique retail services not part of the pricing plan, as we already indicated. Customizations may entail additional fees.

 Instead, specialized ERP can be configured to match the unique requirements of your business. This translates to only paying for what you use. You'll save money on both the initial cost and ongoing upkeep by staying away from costly mistakes and pricey adjustments.

3. Implementation is faster

 ERP management software can make business processes more efficient, as well as be implemented more efficiently.

Arion has an short implementation time of few days, on average. The entire implementation project is scoped prior to the contract being signed. This ensures a 97% success rate.

4. Flexibility and scalability

An operating system designed specifically for retail needs, like Arione, is exceptionally adaptable. Your current retail IT stack can be simply merged with a tailored operating system like Arione.

Complex coding, process re-engineering, and coding will be necessary for an ERP system. In particular, this is valid if your business model changes.

5. No programming effort is required.

Arion offers a rule-based automated engine that automates critical operations such as inventory management, order processing, and shipping. 

To ERP or not ERP?

There is no right or wrong way to choose a software solution. All it comes down to your business's needs. Which software option will help you reach your key goals?

ERP inventory management systems can be beneficial, but they must provide everything you need to scale and grow. These ERP systems are not meant to be universal and can't cater to all industries. An ERP may not have the specific features or functions your enterprise requires. ERP users also often discover that certain features are not used as intended.

A more adaptable method to run your company is with an operating system designed specifically for retail. It has connectors and features designed specifically to fulfill industry requirements. A dedicated retail platform delivers everything rising online retailers need, especially those using several channels.

Retail-focused operating systems like Arion offer greater operational flexibility and flexibility while still providing the core functions and features that ERPs are known for.

Want More Information About Our Services? Talk to Our Consultants!


The numerous benefits connected to adopting ERP software for inventory management have been lucidly outlined in this article. Therefore, the deployment of an ERP programme is advised for any expert looking to maximise their business operations.

Are you interested in learning more about ERP software? Arion provides you with individualised service to assist you in selecting the best option based on the characteristics of your business, company, or organisation.