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Key Reasons Why SMEs should Prefer SAP ERP

by monalikapadiya

All thanks to advancing technology, even startups or emerging businesses can leverage the benefits of SAP Business One (SAP B1) in this digital age. The word SAP is not new to the corporate world. Since its initial launch back in 1972, SAP software has swiftly gained ground among large enterprises. However, it is still one of the most prevalent misconceptions that SAP software solutions are only for established corporations. The reality is, SAP Business One is a single and cost-effective solution for SMEs. In this post, we will burst this myth with some key factors. 

As a robust ERP solution, SAP B1 assists SMEs to address various challenges and increasing competition effectively. It not only automates core business operations including finance and order management but also enables users to monitor various processes.  

Let’s go through some of the big reasons that make SAP Business One the best ERP for SMEs and emerging companies. 

Top Reasons why SAP is the Best ERP

SAP Business One can increase overall efficiency and productivity over the period. Here are the key benefits that make SAP B1 an ideal solution for SMEs. 

  • Cost-effectiveness

Budgetary limitations weigh heavily on the growth of SMEs and startups. Therefore, it is imperative for them to get an ERP solution that is scalable and cost-effective. SAP offers an ERP system that has the same features used by large companies at an affordable price for SMEs. As a result, these companies can get advanced modules including CRM, analytics, inventory control, production planning, and the like in a cost-effective way. What’s more, SAP Business One enables companies to avoid any upfront investment in IT infrastructure as it is powered by the cloud.      

  • Improved SCM (Supply Chain Management)

The supply chain plays a vital role in ensuring the growth of every company. When it comes to small and mid-sized enterprises, its role becomes even more critical because managing vendor quotes, payments, and supplies remain highly difficult. Here, SAP Business One lends a helping hand by offering greater control over ordering and payment processes. You can easily manage receipts, invoices, and inventory with the help of the SAP B1 solution. With effective supply chain and inventory management, SMEs can easily improve customer experiences while avoiding shortage or overstock situations.   

  • Mobile Accessibility

This is one of the biggest business benefits of SAP B1 for small and medium enterprises. This facility enables your employees to get access to corporate data anywhere and anytime using their smartphones. SMEs can mobilize their sales teams while giving them complete control over the process with mobile accessibility. The management can also make informed decisions while monitoring key metrics using a dedicated mobile app. B2C businesses can get the advantage of mobile accessibility in improving customer relations through effective support services.  

  • Flexible Licensing

SaaS-based SAP Business One can save many bucks for SMEs. It is because SAP B1 is available on the cloud thereby enabling SMEs to get rid of establishing on-premise IT infrastructure. With a flexible licensing model, SAP B1 can enable companies to start with just 5 users. It also facilitates companies to expand the software capacity up to 300 users over the period. SMEs that always deal with changing requirements can find this flexibility useful in business expansion and customer retention with improved performance. 

  • Higher Financial Visibility

SAP Business One enables SMEs to manage financial processes and auditing with ease. It can automate daily accounting tasks while supporting multi-currency transactions and tax calculations. As a result, emerging enterprises can get higher visibility in various processes, salaries, and expenditures. The SAP ERP software for small businesses can also give real-time reports on various operational functions and cash flows. It enables you to make insightful decisions quickly while maintaining trust and transparency among employees. SMEs and startups can make the most of this characteristic moving forward. 

  • Enhanced Decision-making

Real-time reporting and built-in analytics can give actionable insights to the companies as and when necessary. SMEs can configure the settings to get the report on the necessary data in SAP Business One and they can get what they want instantly as well as regularly. It brings more agility and accuracy to the decision-making process. Simply put, SAP ERP solutions are designed to make swift, smart, and confident decisions that are necessary to take SMEs to a new level in a short time. Also, effective decision-making can give an edge to the company over competitors. 

Apart from these benefits, SAP Business One offers scalability so that SMEs can easily expand from 10 to 1000 users and manage transactions from thousands to millions. Easy integration and reduction in training costs on new resources are other reasons SMEs tend to opt SAP Business One solution. 

How SAP ERP Supports Multiple Industries

Core industry sectors including manufacturing and retail are big beneficiaries of SAP ERP solutions. Here is how SAP B1 assists different industries to grow and transform digitally. 

Industrial Manufacturing

The manufacturing sector is evolving with advancing technologies. SAP ERP solutions for manufacturing are designed to assist manufacturers to address the biggest challenge- profitable sustainability. SAP Business One offers smart modules at scale and as a service to ensure compliance and offer more control over key processes. Cloud-based SAP S/4HANA and other ERP solutions can assist the thriving manufacturing sector to create value for a sustainable future.  


Retailers face unexpected challenges in the domains of purchasing, delivering, and marketing goods in this post-pandemic age. Also, a highly competitive marketplace brings hurdles in getting ahead. But, SAP ERP solutions can help the retail industry bring innovative and customer-friendly changes to build loyalty and increase sustainability in business. It results in a large customer base and increased sales figures with high profitability for a retail company. 

Wholesale Distribution

A feature-rich SAP ERP solution enables wholesale distributors to reduce operational costs and explore new revenue sources. It supports new business models while assisting wholesale distributors to improve customer-specific services. Inbuilt modules for supply chain management, marketing, procurement, and customer services are highly useful for a wholesale distribution business. SAP B1 makes it possible to monitor the movement of warehouses and get real-time data on the stock condition. 


SAP solutions facilitate the healthcare sector to improve patient experiences while delivering cost-effective services. Healthcare service providers can increase their efficiency in saving lives. SAP ERP solutions also assist the healthcare sector to implement telemedicine and other value-based care services effectively. Apart from improving patient care services, the healthcare sector finds SAP ERP solutions useful for monitoring equipment and maintaining the stock of medicines as well as surgical items.  

Public Sector

SAP solutions bring digitalization by leveraging cloud technology. Federal, national, and central governments as well as their agencies can reshape their ways of serving citizens with the help of SAP solutions. Government organizations can enhance operational excellence and optimize the usage of available data to improve their citizen-centric services or facilities. SAP solutions also help agencies ensure that all the services have reached citizens who need them the most.  

Concluding Remarks

Coca-Cola, Porsche, and Roche are some of the top names that count upon SAP solutions for streamlining processes, enhancing decision-making, and improving financial forecasting. There is no exaggeration in mentioning that SAP ERP can bring digital transformation in SMEs irrespective of their business models and scales. You can find a reliable SAP Partner to get the advantage of SAP Business One for your company.

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