What is ERP ? Advantages, Disadvantages of ERP

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ERP is fully written as Enterprise Resource Planning, which is a software that is used in the management of business processes in general. Today, ERP is not necessarily a ‘software’, instead it is called a ‘solution’ because it integrates many functions of departments in a single system and the tools of interoperability in the transmission. Quick information, ensuring that the work is processed throughout.

What is erp ? It is odoo erp
The ERP system is gradually showing its multifunction

1.The Advantages of ERP

To easily analyze the advantages of ERP, let’s start with a simple case: the customer orders a phone.

  • Prior to purchase, customers will refer to information about the product and have the process of asking questions, referrals between customers and customer care staff (via email, meeting or telephone). So whether the customer agrees to buy or does not agree to buy, the manager can not know the productivity of the customer care staff, how to contact the customer, how. Expertise when the product information to reach the customer is full or not.
  • For cases where the customer agrees to buy, the customer care staff will transfer the content of the order such as: product name, quantity, price, shipping cost … to the order form In the enterprise, each department will use different software that will lead to erroneous and time consuming data entry, data linking between The software is very difficult, not to mention the large data volume, the constant access to connect to each other is not feasible.
  • With that, ‘remote working’ is unlikely when the process is split too much in a sequence of separate software, one can not simultaneously know how to use all the software of the Department. Moreover, members of the process are unaware of the progress of the work.

ERP was created to replace all software, separate systems. However, there are applications for each department but the data is more focused, the process from there will be faster and reduce the costs related to technology, manpower, time due to investment only. Into a single system, fast operation minimizes processing time. One important detail is that managers can view all data in one place and assign supervisory responsibilities to each employee. ERP today is not at the wrong time, it has overcome many of its disadvantages as: Flexible deployment functions as required by customers – Reduce the cost of buying a pre-programmed system with too many unnecessary functions, online / local systems, as needed, integrating more and more applications (including email). Applicable for almost any type of business model.

2. The Disadvantages of ERP

In fact, no single product can be perfect because of the many factors involved and the ERP system too, and there are some ‘non-direct’ restrictions from the users themselves:

  • All parts are linked links, all information must be updated directly and instantly. For example, if you do not enter the amount of stock in the product, the product is still in the status of no goods, the seller does not know that the product is actually in stock. Many, customers just see the product is empty and ignore it. So, ERP puts all the work into process, each process is the participation of many members.
  • Not to change for improvement, this is one of the biggest reasons for turning ERP into a waste when applied in practice by its employees who use it too rigidly, insist on finding the old way, the way they work. old.
  • In addition, clarity (internal management) is also a major barrier when all actions and data are aggregated when staff members handle the task.

In addition, ERP is always cost-conscious, high cost, not understand the advantages of investment because most business owners are not technically savvy. That may be true in some cases where ERP pays royalties, but there are also commercially available ERPs to address most of the typical limitations such as Odoo. Learn more about Odoo.

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