Top 7 ERP Features Australian SMEs Actually Use (And Which Ones Are Wasted)
Published on 10 October 2025
ERP systems promise to revolutionise how businesses operate, connecting finance, sales, HR, and operations into one seamless platform. But here’s the reality: most Australian SMEs only use 40–60% of the features they pay for.
The rest? They sit unused, draining budgets, creating unnecessary complexity, and frustrating staff who are forced to navigate modules they don’t need.
In a market like Australia, where SMEs make up 98% of businesses and face rising labour, energy, and compliance costs, choosing the right ERP features is crucial. The difference between success and wasted spend often comes down to knowing which modules deliver daily value, and which are little more than expensive extras.
This article explores the 7 ERP features Australian SMEs actually rely on, plus the ones that often go to waste, so you can make smarter decisions when choosing or optimising your system in 2025.
1. Inventory Management ✅ Always Essential for Product-Based SMEs
For industries like wholesale, retail, and manufacturing, inventory is the heartbeat of the business. If stock levels are off, everything else suffers, sales, cash flow, and customer satisfaction.
What It Does Well:
Tracks real-time stock levels across multiple warehouses.
Syncs with e-commerce platforms like Shopify or WooCommerce for accurate online visibility.
Automates reorder points to prevent stockouts.
Supports barcode scanning, serial number tracking, and batch management.
Why It Matters in Australia:
Supply chains remain volatile after years of global disruption.
Logistics costs (especially interstate freight) are high.
Customers expect accurate online stock visibility, one error can lose loyalty fast.
📌 Local Example: Melbourne and Sydney wholesalers report that ERP-driven inventory automation directly improves margins by preventing overstocking and lost sales.
💡 Depth Insight: Many SMEs underuse advanced forecasting tools in inventory modules. Without activating demand planning, they miss opportunities to reduce carrying costs and optimise seasonal stock.
2. Financial Management & Compliance ✅ The #1 Adoption Driver
For most SMEs, ERP adoption starts with the finance team. Managing invoices, accounts, payroll, and compliance manually becomes impossible as the business grows.
What It Does Well:
Automates invoicing, accounts payable, and receivable.
Provides consolidated financial reporting for owners and CFOs.
Tracks GST, BAS, and payroll compliance with the ATO.
Supports audit trails and digital lodgements.
Why It Matters in Australia:
The ATO enforces strict BAS and GST reporting deadlines.
Late lodgements = costly fines.
ERP reduces risk by ensuring automated, accurate compliance.
📌 Local Example: A Brisbane construction SME saved $50,000 in penalties and interest over two years simply by automating compliance deadlines through ERP.
💡 Depth Insight: While most SMEs use basic reporting, they often waste the potential of custom dashboards (e.g. profit per client, job costing, or cash flow projections). These underused features could transform decision-making.
3. Payroll & HR Compliance ✅ Critical in a Complex Labour Market
Labour costs are typically the largest expense for Australian SMEs. With the country’s strictest-in-the-world labour rules, payroll errors can be catastrophic.
What It Does Well:
Automates award interpretation for casual, part-time, and shift workers.
Manages superannuation contributions and Single Touch Payroll reporting.
Streamlines onboarding, rosters, and leave management.
Why It Matters in Australia:
Fair Work compliance is complex, small errors can snowball into large underpayment cases.
Superannuation and leave entitlements add more layers of compliance risk.
📌 Local Example: A Melbourne hospitality group with 150 staff reduced payroll admin by 70% after adopting ERP payroll modules, ensuring award compliance automatically.
💡 Depth Insight: Many SMEs pay for advanced HR analytics (like workforce forecasting, turnover modelling, or skills mapping) but only use the payroll basics. This means they’re leaving valuable workforce planning tools idle.
4. Customer Relationship Management (CRM) ✅ Widely Used Across Industries
ERP-integrated CRM is far more than a contact database. It links customer data directly with operations, giving a 360-degree view of each client.
What It Does Well:
Tracks customer orders, service history, and preferences.
Enables personalised follow-ups and loyalty programs.
Connects sales, marketing, and customer service into one view.
Why It Matters in Australia:
In saturated markets like e-commerce, hospitality, and professional services, customer retention is cheaper than constant acquisition.
With rising marketing costs, ERPs with integrated CRM help SMEs protect margins.
📌 Local Example: An Adelaide digital agency improved client retention by 25% after moving from disconnected CRMs to an ERP-based CRM, giving account managers visibility of project history, invoices, and support tickets in one system.
💡 Depth Insight: Many SMEs continue to run separate CRMs (like HubSpot or Zoho) while paying for ERP’s built-in CRM, duplicating costs unnecessarily.
5. Supply Chain & Logistics 🟡 Valuable, But Industry-Specific
ERP supply chain modules shine in industries where moving physical goods is critical.
What It Does Well:
Monitors supplier performance and lead times.
Optimises freight costs, warehousing, and delivery routes.
Tracks imports, exports, and trade compliance.
When It Matters:
Essential for manufacturing, wholesale, logistics, and construction supply SMEs.
When It’s Wasted:
Service-based SMEs (law firms, consultancies, creative agencies) rarely need it
📌 Local Example: A Perth-based construction supply firm reduced freight costs by 12% after implementing ERP logistics modules.
💡 Depth Insight: Many SMEs overpay for global supply chain modules (ocean freight, multi-border customs, multi-currency logistics) when their operations are 100% domestic.
6. Advanced Analytics & AI Tools 🟡 Often Oversold to SMEs
ERP vendors love to push advanced analytics, AI, and machine learning as “future-proofing.”
What It Promises:
Predictive insights on demand, churn, or workforce.
Machine learning-driven recommendations.
AI bots for customer or HR queries.
Reality in Australia:
Only SMEs with large data volumes benefit meaningfully.
Many SMEs don’t have enough transactions to generate accurate predictive models.
📌 Local Example: A medium-sized Sydney retailer trialled AI-driven demand forecasting. Results were skewed because the dataset wasn’t large enough, forcing manual corrections.
💡 Depth Insight: For most SMEs, standard analytics and KPI dashboards deliver more value than half-baked AI add-ons that add complexity and subscription cost.
7. Multi-Currency & Global Operations ❌ Wasted for Domestic SMEs
What It Does Well:
Supports businesses trading internationally.
Tracks FX rates, overseas tax, and compliance.
Manages multiple entities across regions.
When It’s Useful:
Exporters, international e-commerce brands, or companies with overseas branches.
When It’s Wasted:
For the 80%+ of Australian SMEs operating purely domestically, multi-currency modules are dead weight.
📌 Local Example: A Sydney-based wholesaler unknowingly paid AUD $12,000 annually for multi-currency features they never used, because it was bundled into their ERP package.
💡 Depth Insight: This waste happens because SMEs fail to customise modules during setup, leaving them stuck with bloated bundles.
Key Takeaways: What SMEs Should Prioritise
Essential Features:
Inventory (if product-based).
Finance & Compliance.
Payroll & HR.
CRM.
Conditional Features:
Supply Chain (if logistics-heavy).
Often Wasted Features:
Advanced AI tools.
Multi-currency modules.
📌 ROI Insight: The value of ERP doesn’t come from how many features you can tick off a list. It comes from alignment with your business model and daily operations.
How to Avoid Paying for Wasted ERP Features
Audit Your Workflows Before Signing
Map out processes to see which modules genuinely support your operations.
Choose Vendors with Modular Pricing
Avoid “all-in-one” bundles if you won’t use half the features.
Start with Essentials
Focus on finance, payroll, and inventory first. Add others as you grow.
Challenge Sales Pitches
If you can’t see immediate value, don’t pay for it.
📌 Tip: The smartest SMEs phase ERP adoption, starting small, proving ROI, then expanding features over time.
Final Thoughts
ERP isn’t about having the most features, it’s about using the right features.
Australian SMEs that succeed with ERP focus on:
Core modules that impact daily operations.
Avoiding “shiny extras” that add cost but no value.
Partnering with vendors who allow modular growth.
By being selective, you’ll not only save money but also ensure your ERP system becomes a tool your team actually loves to use, rather than one they avoid.
Not sure which ERP features your business really needs?
👉 Book a free consultation today to cut through the noise and design an ERP that fits your SME, no wasted modules, no wasted money.
