Advantages and disadvantages of an ERP system for companies

The advantages and disadvantages of an ERP system , Business Resource Planning System, being an integrated system, offers numerous benefits that go towards a good development of a business, be sure to read this interesting article that can be very useful . Advantages and disadvantages of ERP

Advantages and disadvantages of an ERP system
An ERP system, means Enterprise Resource Planning, which its translation is Business Resource Planning System, and refers to programs that have the purpose of various internal management within a corporation.

Likewise, EPR is called as systems that provide vital information about these processes, exclusively in activities destined to production, logistics, shipments, inventories and stock, accounting, financial functions, among many others.

Characteristics and types of programs of an ERP system

One of the main characteristics that stands out and cannot be ignored of the ERP system, is that it has its integrated processes, what translates is a program in conjunction with entries in a single centralized database.

As is known, they may have sectorized applications, as is the case with the OnyxERP system, the information obtained or produced always passed through a unified point of control and their access is shared.

Currently there are two types of ERP systems, namely, the well-known verticals that have the function of providing a good number of specific elements that act immediately to solve aspects in companies; and the horizontal ones that its functions are adapted to any type of company, its nature, mission or activities.

Advantages and disadvantages of ERPWhat profit does an ERP system offer?

Seen from the point of view that it is a software program and the solutions it offers, the ERP system has a number of advantages and disadvantages that need to be made known.

Advantages of the ERP system

The ERP system offers multiple advantages that contribute to the proper functioning of a business or corporation, the most relevant are mentioned below:

  • It provides the automation of processes in the corporation where previously large resources, time and knowledge were used, increasing expenses in the different processes.
  • Immediate availability of business information in real time and accurate, as well as the different internal processes.
  • Absolute integration of all systems, programs, including databases of the areas that have a single central platform and also unified.
  • Time savings, immediate response in the delivery of results, and minimization of general expenses.
  • It improves the analysis process about the status of the company, among which financial management, marketing and sales can be pointed out.
  • Provides reliable and accurate results from the system of control systems.

Disadvantages of an ERP system

It is a system that has very few disadvantages, especially when it offers large benefits that are in favor of the development of any corporation that can count on this valuable system, especially because it is integrated.

  • The overall costs of the system are generally not within the reach of many businesses and corporations.
  • The costs after the implementation of the system, which are called hidden costs, and which are related to the process of adapting the system according to the requirements of the company, should be that the more personalized is an ERP system, the higher are the costs for its operation.
  • The preparation of the environment and the start-up of the operation represents a disadvantage, because it is a process that is not always fast, on the contrary, it takes time to adapt to the new infrastructure.

The business must bear in mind an elementary aspect in terms of the preparation of the personnel working in the company, in providing them with adequate training in order to obtain optimal results once the ERP system has been implemented, otherwise it may generate a noticeable delay in the production.

An ERP system is an excellent option that supports the different management and internal processes of the company, even when there are a few and their functions are separated, however, it is one of the main virtues and benefits that it offers, centralizing all the processes in a single, unified database.

Advantages and disadvantages of ERP

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