In today’s business environment, Small and Medium Enterprises (SMEs) are looking beyond cost cutting strategies to increase the bottom line (LeGrande, Vandermere 2006). Enterprise Resource Planning (ERP) today is more than a necessary technology by being the potential source of operational improvements and cost savings, which will help them to sustain and survive in the volatile economy. A study on the performance of ERP in Indian SMEs revealed that SMEs was using some computerized application to reduce cost had switched to an integrated application such as ERP to reduce data redundancy. Most of the SMEs studies had benefited through ERP implementation in reducing inventory, improved customer service, reduced planning cycle time and improved communication in the order of priority. However the study also revealed that the SMEs were not extracting the benefits from ERP to the fullest extent (Kale, Banwait, Laroiya, 2010).