Advantages and Disadvantages of ERP

The advantages and disadvantages of ERP is an interesting Study. The foremost advantage of an ERP system is bringing down the costs and saving the valuable time which would have otherwise been wasted in procedural maneuvers and unwanted delays. Different software programs maintained in the departments were proving to be a great hurdle. Since ERP is a uniform platform it ensures that there in no discrepancy in the information that is processed.

Industry wise advantages

Manufacturing Sector--------------------Speeding up the whole process.

Distribution and retail Stores-----------Accessing the status of the goods

Transport Sector---------------------------Transmit commodities through online transactions.

Project Service industry-----------------Fastens the compilation of reports.

The advantage and disadvantage of ERP is best understood by studying them under different categories. Hence the next paragraph presents information on corporates as a whole because the advantage of ERP systems in a company is different when compared industry wise.

Advantages in a corporate entity

The accounts department personnel can act independently. They don't have to be behind the technical persons every time to record the financial transactions.

Ensures quicker processing of information and reduces the burden of paperwork.

Serving the customers efficiently by way of prompt response and follow up.

Disposing queries immediately and facilitating the payments from customers with ease and well ahead of the stipulated deadline.

It helps in having a say over your competitor and adapting to the whims and fancies of the market and business fluctuations. The swift movement of goods to rural areas and in lesser known places has now become a reality with the use of ERP.

The database not only becomes user friendly but also helps to do away with unwanted ambiguity.

ERP is suitable for global operations as it encompasses all the domestic jargons, currency conversions, diverse accounting standards, and multilingual facilities .In short it is the perfect commercial and scientific epitome of the verse "Think Local. Act Global".

ERP helps to control and data and facilitates the necessary contacts to acquire the same.

Disadvantage

Inspite of rendering marvelous services ERP is not free from its own limitations. ERP calls for a voluminous and exorbitant investment of time and money. The amount of cash required would even be looming on the management given the fact that such an outlay is not a guarantee to the said benefits but subject to proper implementation, training and use. In the ever expanding era of information theft ERP is no exception. It is alarming to note the time taken to implement the system in the organization. These means large amounts of workers have to shun their regular labor and undertake training. This not only disturbs the regular functioning of the organization but also runs the organization in the huge risk of losing potential business in that particular period. There are great benefits rendered by the system. On the other hand when one thinks of this information reach in the hands of undeserving persons who could do more than misuse ,it is evident that there is no way of ensuring secrecy of information and larger chances of risk will be generated as long as they are in the public domain.

Conclusion

ERP is recommended in an organization not only because the advantages outnumber the disadvantages but also by keeping in mind the ways to overcome the disadvantages. An organization has to correctly weigh the advantages and disadvantages of ERP before going for them.

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