Erp: advantages and disadvantages

1. ERP ADVANTAGES AND DISADVANTAGES

Currently, manufacturers are experiencing drastic reductions in margins, along with increases costumer expectations. Now the manufacturers need all theinformation possible from the supply chain to inventory, production planning, plant control, or even increasing customer information, demographic and preferences and trends. The ability of manufacturers tocollect, analyze and share this information has become a basic requirement for success
Installing an ERP system can get all this. But, in addition, an ERP system has a lot of advantages over.There are tangible and intangible benefits. Tangible benefits involve include reductions in inventory and material, labor, and overhead costs, as well as improvements in costumer service and sales. Theintangible include flexibility, globalization, technology, etc. But now, will be explained some of the most important advantages of ERP with more details (both tangible and intangible).
ERPincludes the best and latest technology. It’s essential to have the latest technology for the development of the business, so suppliers quickly adapt the ERP system in order to get the advantage of thelatest technologies like electronic commerce, etc. This latest technology allows integrating information, which is one of the most important advantages. The ERP system has the advantage or ability tointegrate information between all the different functions or sections of the company (provides process integration which includes supply chain, production and administration). Thus, the company has anintegrated solution for the various functions and departments to work in a more efficient manner. This integration has a big potential in order to improve productivity. Because the ERP system integratesinformation from all sections of the company, many systems for decision support can be used. Moreover, all data can be analyzed from various perspectives, so can make better decisions.
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