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Advantages and Disadvantages of ERP

Advantages and Disadvantages of ERP

In this article, you will learn what are the advantages and disadvantages of ERP systems. ERP is also known as Enterprise Resource Planning, helps to integrate all the business process in one system. The best leading enterprise resource planning software is mySAP ERP. Enterprise resource Planning is a leading enterprise application that helps to integrate all the individual business process into a single system.

The following SAP training guides advantages and disadvantages of ERP (Enterprise Resource Planning) by implementing the SAP software in the organizations.

Advantages of ERP (Enterprise resource Planning) Software

  1. ERP systems helps to integrate all the business functions of every department  in to a single system.
  2. ERP software enables the business process to manage efficiently and improves the organization efficiency levels.
  3. The main advantages of ERP systems is providing a single interface for managing and tracking all the day to day routine activities the performed in the manufacturing.
  4. ERP helps to automate the routine organizations business transactions and made the processes more efficient.
  5. ERP System supports all the business processes, practices and process flow.
  6. ERP Software enables to track the companies financial and accounting and helps to manage, planning, forecasting and reporting.
  7. The New ERP systems offering better user interface for the users.
  8. All the modules in ERP can be integrated and implemented each other, the important modules are like financial accounting and controlling, Customer Relationship Management (CRM), Human resource management (HRM), marketing, material management, sales and distribution, etc.
  9. ERP Systems makes easier for the corporates for tracking the sales order, inventory, costs and forecasting the future sales and profits.
  10. ERP systems is a more secure as the confidential data can not be shared with the unauthorized users, data can be accessed for only authorized users.
  11. It provides better communication and collaboration between global sites.
  12. ERP systems can be integrate with the E- Commerce.

ERP Advantages and Disadvantages - Advantages and Disadvantages of ERP

Advantages of ERP SAP Software

  • SAP ERP System can be integrate with other third party system and performing an enterprise wide services.
  • Standardization of business process in organizations.
  • SAP system enables the business management task that work together in one system by sharing the data.

Disadvantages of ERP

  1. The implementation of ERP for a small organization can be expensive. So it is very expensive to purchase and to implement.
  2. ERP systems are very complex and some organization may not adjust to the ERP software.
  3. It require experts to maintain the ERP systems.
  4. It required training for the employees to work with ERP software, so the training can be so expensive.

Read more for Advantages and Disadvantages of ERP and What is ERP Systems.