Advantages and Disadvantages of Enterprise Resource Planning

Enterprise Resource Planning advantages: Integration among different functional areas to ensure proper communication, productivity and efficiency; Design engineering; Order tracking, from acceptance through fulfillment. Tracking the three-way match between purchase orders , inventory receipts and costing. Eliminates the problem of synchronizing changes between multiple systems. ERP disadvantages: Customization of the ERP software is limited. Re-engineering of business processes to fit the “industry standard” prescribed by the ERP system may lead to a loss of competitive advantage. ERP systems can be very expensive.