The Limitations of ERPs

A wide variety of companies in different fields depend on software to ensure smooth flow of their business on a daily basis. Enterprise resource planning software, with its integrated modules that cover the verticals of a company has proved to be an effective way of managing the company’s resources and improving overall efficiency. But there is always two sides to a coin and ERP comes with its own set of limitations. Let’s look at some of them.

1. Cost The software, as such is expensive, especially fro smaller companies. Adding to the basic cost will be customization requirements but one cant forego the customization either as every company’s requisites from the ERP is different.

2. Implementation Time FrameBringing in an ERP software over the breadth of the organization is a challenge. So many different functions have to be integrated into the software and the staff have to educated on the proper usage of the software. There are many instances in which the staff find it difficult to migrate to the new environment, thereby causing huge, unsustainable time delays in implementation.

3. FlexibilityERP software is seen as a fixed and rigid program; once the program s built, it is extremely difficult to usher in changes in terms of functionality, options or additional features.

4. ReturnsIt is also difficult to quantitatively measure the benefits reaped from implementing an ERP software.

Benefits of ERP

Ensures Efficiency:Business processes are streamlined, made more efficient and easier to collect the required data. ERP system reduces manual processes of entering information or data.

Collaboration:Departments in the food industry will work together when ERP systems are consistent. Centralizing the systems enhance interdepartmental and collaborative efforts. This ensures effectiveness in the industry. It also touches on most aspects of a business such as sales and marketing and how to reach a customer.

Forecasting:Accurate forecasts by managers and other users in the food industry are given by enterprise resource planning. The system gives accurate information and data. This help the business to make very realistic estimates and minimizes errors.

Saves on Cost:To minimize operation and administrative costs in a business, ERP software is necessary. It prevents the business against delays and disruptions and users are able to decide quickly.

Streamlined Processes:

Complex operations by a growing business require ERP software. It automates the operations of a business in all the departments hence giving accurate information to the users. Productivity and delivery will increase as data re-entry will be prevented.

Customer Service:

With enterprise resource planning, the business will consistently communicate with customers. The software provides more accurate and faster access to customer’s history and any other information. Automated marketing enables the business to maintain good relationship and contact with customers.

About

In general, enterprise resource planning (ERP) has come a long way in the world of technology. But, like all other technology software currently on the market, there is always room for improvement. Because of this, enterprise resource planning (ERP) also could gain a lot more by adopting new trends. With many companies and corporations becoming IT dependent today, a huge amount of data has become underutilized. If a company combines analytical tools to their enterprise resource planning, the organization can make predictions that are accurate based on their data. When using the data their business strategy will also become more intelligent.

By using a concept known as the Internet of Things provides the capability to use a network to transfer data with no human assistance. Pairing this with enterprise resource planning allows devices to be utilized with different tools including vehicles. It does this by feeding data to the applications that the cloud is holding. This allows easy access to vital information such as performance, usage, and location. Having this information also allows companies to track assets that are unused or when they require maintenance.

Lastly, a great trend that could easily change the future of enterprise resource planning involves context. By integrating a context aware function on PCs and apps, you can easily anticipate the needs of the user thus efficiently improving daily tasks. A great example of this is once a technician arrives at your location, they will automatically receive the data, history of their customer, and instructions for the job.