Pros And Cons Of ERP Software

Author: Raibeart Santo

After an organization chooses new ERP software, in lots of cases the ERP software vendor is not only the firm to provide implementation services. There are some attributes related with different types of Enterprise Resource Planning software implementation service providers. Some of them have good attributes and some have not so good attributes. At the time of implementing Enterprise Resource Planning software, lots of organizations will boost their project team with self-sufficient contractors for application consulting support, software development, and project management.

There are lots of pros and cons of Enterprise Resource Planning software. Firstly, let's explain pros of ERP software.

Any company not using Enterprise Resource Planning software actually finds it intricate to have proper communication between each other business divisions. Even though numerous software applications are present to share the resources efficiently, Enterprise Resource Planning software overtakes all those software with the fact that are centralized service for any type of information available associated with the organization. Some of the major pros of ERP software are discussed below:

  1. ERP systems have lots of software components included within it that can help in predicting data, which cannot be done more competently with other software. Because includes a lot of software that track the past history of information and predicting is done in easy way. This is helpful in managing the inventory efficiently, which ultimately increases the productivity of the organization.
  2. This software enables proper communication between different business units that ensures good efficiency and productivity of the organization. This software act as medium through which proper communication between the business units can be made.
  3. It is also helps in making improved design engineering. It helps in better shaping of the product. It is also one of the major pros of this software.
  4. Other pros of ERP include providing the service of tracking the order and fulfilling the requirements of customer, which is a main task of the organization. ERP software provides this service with simple user interface and orders are tracked competently and delivery is also observed for the fulfillment of the customer requirements.
  5. It helps to track all financial information, from the invoice to the cash receipt. So, you can easily track the revenue cycle by using this.
  6. It can easily manage the matching of costs of the product, purchasing order and inventory.
  7. It can easily handle and eliminate the problem of synchronizing intricate systems such as finance, human resource, sales and marketing.
  8. This software eliminates the considerable amount of risk of losing important data.
  9. It can reduce the production time and delivery time at a high level.

Cons of ERP software:

One of the common cons that companies face after implementing ERP software is insufficient funding for providing training for using the software. Other than these, some of cons of this software are discussed here:

  1. Limited customizations options are available in the this software.
  2. It is very expensive.
  3. After once implementation, migration of the this software might become expensive.
  4. Sensitive data about an organization cannot be shared well with this.

All of these are pros and cons of ERP software.

Read about ERP Software Benefits. Also know Low Cost ERP Software. Read about Benefits of Web Based ERP System