Advantages and Disadvantages of ERP System

The optimisation of business processes is one of the main challenges that a company has to face. This is why, many companies decide to use software such as ERP to facilitate the management of their business. Discover in this article the advantages and the disadvantages of using an ERP system.

13 February 2023

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Enterprise Resource Planning also known as “ERP” is an information system that automates the management of a company. It covers all the needs of a company through a series of business modules (accounting and financial management, sales management…)


What are the advantages of ERP system ?

Adopting an ERP system allows you to optimise the performance of your company.

This optimisation is achieved through the automation of business processes. With an ERP system, your teams will be freed from time-consuming daily tasks.

The ERP system saves time on a daily basis, allowing your teams to focus on their core business while limiting the risk of errors.

In addition to automating your business processes, the ERP system plays an essential role in homogenising your data processing. Indeed, this tool allows you to unify you information system. Your data will be collected, processed, and stored in a homogeneous way to guarantee optimal quality.

The ERP centralises your data in a single environment which make communication and information sharing between employees easier. Available in SaaS mode, the ERP is accessible at any time and can be adapted to different media (computer, smartphone…)

This software package provides you with a global view of your company’s performance. In other words, it is a real decision-making tool.

Scalable and modular, the ERP system adapts to your needs and to changes in the market in order to best respond to the different problems of each company.

Deploying an ERP system can be very beneficial for your business. However, there are a few drawbacks.


What are the disadvantages of ERP system?

Implementing an ERP system is expensive. Indeed, an ERP system requires a significant financial investment. The financial aspect plays a very important role in the choice to implement this type of software in your business. Make sure you have the financial resources to support the costs involved.

The implementation of an ERP is long and complex. It is often time-consuming to set up, as it must meet the needs of every function in your business. It is thus necessary to have a clear idea of your business processes and the needs of your teams in order to facilitate the implementation and configuration of your ERP system.

Adopting business management software has an impact on a company’s activity, but also on its employees, as they are the ones who will be using the tool on a daily basis. It would be better to involve them in the project in order to reduce the resistance to change. Training costs will also be incurred in order to prepare for the introduction of the software package.

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