Advantages and Disadvantages of ERP Systems

Advantages

May provide strategic advantage 

Integrates the supply chain 

May provide reduced costs 

Off the shelf coding 

Creates a common data base 

Helps integrate a multi-site organisation 

Can standardise information handling 

Can standardise business processes across the organisation

May require fewer support staff 

Can replace legacy systems at one time 

Creates a method of training staff in a single approach 

Can be used as a business simulator 

Disadvantages 

Is very expensive 

Commits the company to a single supplier 

Is complex and requires highly experienced staff

May create an ongoing process of upgrading 

May be very difficult to replace 

May be difficult to implement

May alienate staff if required to adopt a 'standard' non-tailored approach

ERP expertise may be difficult to source

May be difficult to manage if supplier goes bust

May be difficult to access prior to implementation

Implementation process may be difficult - business may suffer

May be vulnerable to pressure from skilled staff