What Are The Advantages And Disadvantages Of Enterprise Resource Planning?

Enterprise resource planning (ERP)

Is a software used in business management, consists of number of applications that a company can use for more than one matter, examples: for(collecting, storing, managing.

It can also interpret the data that comes from the activities that a business undertake, activities such as

• Product planning, cost

• Manufacturing or service delivery

• Marketing and sales

• Inventory management

• Shipping and payment

Also it tracks the businesses resources such as (cash, raw materials, the production capacity, and the status of business commitments: orders, purchase orders, and payroll. This system is made by applications that share data across the various and different departments in the company.

Departments such

ERP systems give E-business by utilizing the web reconciliation ability it encourages get closer to clients. It gives advantage to business to business intelligent client administration, for instance through client coordinates criticism it can enhance item plan, and in particular give continuous and dependable information enquiries. Likewise with the coordinated and standard application structural planning in ERP system it give foundation support business adaptability to future changes by reaction to interior and outer changes and give scope of choices in respond, reduced IT costs and ‘expanded ability for brisk and monetary usage of new applications.

Disadvantages of ERP systems The main disadvantage of the ERP systems is the installation and implementing process and cost. The implementation process costs an arm and leg. Small businesses would not afford it at all. The second drawback is the long processing time of implementing the systems overall. Summarizing the drawbacks of the ERP systems can be listed below:

1. ERP organization is a long term procedure which means that projects spend around a whole year or even more to be completely