A competitive benefit is a condition that allows a business, company, or country to produce a good or service at a higher price than the rest. These conditions allow generating more sales and, of course, a much higher profit margin compared to its rivals in the market. In general, competitive advantages are attributed to factors such as brand, advertising, distribution network, intellectual property, customer service, etc.
Now, it is necessary to remember that just because a company is a market leader now does not mean that it will be forever. Therefore, market leaders must strive to find a sustainable competitive advantage; that is to say, that they are lasting over time and that they also go in tune with the objectives, strategies, general operations, and culture of the collaborators.
One question that many companies ask themselves when they are considering implementing an ERP system or software is: Will it give us a sustainable competitive advantage? The answer is short: yes.
The use of a well-implemented ERP system can help you gain a competitive advantage in many ways, with this technology business can become much more efficient, be more flexible, adaptable, save money and, therefore, offer better products, services, and prices than its competitors.
Let’s look in a much more detailed way the reasons why an ERP is an example of a competitive advantage for SMEs.
Three reasons why an ERP is a real example of a competitive advantage for SMEs –
- An ERP provides greater accuracy and efficiency
The implementation of an ERP system means that processes can be automated, and a higher level of accuracy can be achieved. All this leads to efficiency and cost savings that can lead to greater profitability or competitive advantage through savings that can happen to your customers in the form of lower prices.
The centralization of all data allows the business to be better managed without relying on both paper and spreadsheets. When all this information is stored in one place, leaders can identify and calculate costs easily and offer more accuracy. Also, the ability to automate all procedures saves time, money and reduces the margin of human error.
- An ERP allows you to have more information and make better decisions
Another of how an ERP can be a clearer example of competitive advantage for a small or medium business is thanks to the large amount of data it provides. The real-time data and reports provided by ERPs mean a real breakthrough for business. Leaders or decision-makers have crucial data at all times to work in a much more strategic and planned way.
Access to this accurate and reliable data means that the business can react quickly to change and make informed and timely decisions.
- An ERP allows you to implement agile manufacturing
Another growing trend in small and medium businesses is agile manufacturing. Agile manufacturing allows companies to react to market changes and customer needs while controlling costs. More and more companies believe that agile manufacturing is a prerequisite for competitiveness and that ERP solutions are essential to implement an agile strategy.
An ERP has features that help improve the entire manufacturing and manufacturing process, provide certainty in the management of inventories, have better control in the sales process and production process, and operate under the best business practices.
Ready to gain a competitive advantage with an ERP system? An ERP software is the ideal system to ensure that your company has the competitive advantage it needs to face the competition, save costs and eliminate the barriers of time and place that do so much damage to companies. If you feel that your company is experiencing accelerated growth but still cannot develop strategies that allow it to make a significant difference in the market, it may be time to acquire an ERP software.