Enterprise Resource Planning Advantages And Disadvantages

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Manufacturing companies to find an edge in this current competitive environment have to take proactive steps to improve operations. In the quest of profitable growth in a global marketplace, industries are looking for new strategies to improve the quality, cut costs, respond swiftly to changes in customer demands and vagaries in raw material supply position, expand globally, develop new distribution channels and forge new value-added relationships with suppliers and customers. With the increase in competition and quality awareness within and outside India, no developing and progressive industry would be able to survive for long without application of Enterprise resource planning (ERP) [1]. Enterprise Resource Planning is Software for running …show more content…

A customer gives a sales order to the company and this form the basis for production planning. Raw material is purchased and dispatched to the mills. Receipts and payments are made through banks. Before the ERP deployment, most of the work was done manually resulting in inaccuracies both incorrect and missing entries. ERP has enabled accountability, accuracy, and transparency without breaking the existing workflow [6].

BENEFITS OF ERP:
The major benefits of ERP are improved coordination across functional departments and increased efficiencies of doing business. The implementations of ERP systems help to facilitate day-to-day management as well. ERP software systems are originally and ambitiously designed to support resource-planning portion of strategic planning. Various benefits of ERP are: [5]
• Single Point of Entry - Data only entered at the source of that data
• Reduction in paperwork because of online formats for entering and receiving information
• Everyone has the same data
• Historical and authoritative data
• Immediate …show more content…

It is a composition of software modules assisting company owners to achieve their goals at a faster rate. Implementation of ERP for an organization is done on the basis of company requirements. Today, ERP is a widely applied software system in all types of industrial fields including small and medium sized companies. Inventory control, better human capital management, customer relationship management and order tracking are some among the key benefits of implementing enterprise resource planning. Proper implementation of ERP package according to business needs is benefited with lots of advantages. ERP implementation is the customization and introduction of an ERP system in textiles. ERP software was designed with the concept of the benefit of seamless integration to streamline transaction-processing tasks across an enterprise

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