Advantages and disadvantages of ERP

An ERP system is the integration of the different processes that take place in a company. Before purchasing a platform like this, you should consider the advantages and disadvantages.

The main advantage is to increase the productivity of the company and that this system has access to information in a simple and time invested in analyzing situations and seek solutions quickly.

The benefits of an ERP system are:
• Increased productivity
• business decisions better and faster
• Strong stability
• Cost control
• Inventory reduction
• Increased revenue by customer response time.
• Store information for all processes, for later analysis.
• Customer follow from acceptance to complete satisfaction.

The major disadvantage of an ERP system is its high cost and installation complexity.

The disadvantages of an ERP system:
• They are complex systems and some companies do not know how to adjust to them.
• The cost of implementation is high.
• Employees must be able to control the system.
• When setting up the system, the changes are very costly in time and money.
• If not made a communication plan and implementation will not be completed to implement, getting a waste of money.

To successfully implement an ERP has to have good communication and implementation plan. Any change of system within a company which has been working in a way is a big change. If this change does not adequately informing staff to understand the benefits it will bring to the company system and them, which leads to poor workers see how this change and reluctant to put it.
To avoid this you have to work in parallel with good monitoring strategy, placing a group responsible for implementation with milestones that are controlled by the area director of the company.
If this is not met, a year the system will be installed and there will be a lost opportunity cost of the money invested.
You have to keep in mind that if you follow a good plan and milestones are met all the system control will bring great benefits to the company. It would all areas of the company communicated in real time thus achieving increasing revenues and decreasing the time in making decisions.

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