The Pros and Cons of Implementing an ERP for Your Company

Many big companies would agree that enterprise resource planning (ERP) systems are the cornerstone of their daily processes. From managing employees to issuing receipts, ERP systems streamline multiple business operations and boost company performance and productivity.

Considering how functional ERP solutions are, you may be considering implementing one for your own business. It is important to note, however, that integrating an ERP system is a weighty endeavor. It requires a lot of work, time, capital, and dedication to accomplish the process. Hence, before you start looking for a reliable SAP Business One partner, it is crucial to first take a look at the pros and cons of implementing such complex software.

To start, take note of the points below.

Pros of ERP Implementation

Deploying an ERP solution can offer your company several benefits. They include:

Data Integration. An ERP solution uses a centralized database to consolidate all the information across the company. This prevents siloed departments and makes data distribution faster. Moreover, with data entered into the system only once, ensuring data accuracy becomes easier. This leads to more reliable reports for company management to use in directing the company.

Remote Accessibility. ERP makes it possible to conduct business anywhere. Whether it is accessing company data while on a business trip or linking remote employees around the world, an ERP system (especially the cloud-based type) will ensure that your team will be able to access the company database anywhere at any time and finish their tasks.

Automation. Several manual business processes, such as data entry or stock counting, take too much time and don’t gain enough profit. An ERP program streamlines these time-consuming processes through automation, processing multiple transactions at a time. Consequently, employees can focus on more profit-generating areas of the business, such as data analysis and customer service.

Easy Scalability. The size of a business can changed based on its needs at any given point, so it is important to have a system that can scale up or down, depending on what the company needs. Several ERP programs today offer services through modules and can accommodate new changes, such as extra users or extra functionalities as the business thrives.

Cons of ERP Implementation

While there are several perks to ERP integration, its downsides should be factored into the equation as well. Take note of the following cons when implementing ERP:

Costs. One of the biggest deterrents to using ERP is, expectedly, the price tag. ERP programs, by themselves, are already expensive, and this does not take into account maintenance or hardware costs upon deployment. For subscription-based ERP, using the ERP system becomes an ongoing operational cost. That said, companies have reported a significant ROI within six months to two years as business operations improve.

Implementation Challenges. Deploying a large-scale system like ERP is an exceptional challenge. Setbacks include not allocating enough capital for the project, ineffective management, lack of customization, or lack of training for employees using the new system. Fortunately, these problems can be addressed with in-depth planning and dedicated team leaders. Consulting with an ERP expert can also help the project move more efficiently.

Data Quality and Migration. Even with a centralized database, information is only as good as its source. Companies with poor recordkeeping face a lot of problems entering their data into the new system. In such cases, going to a data immigration expert may help smoothen out the process.

At this point, it becomes clear that there are several things to consider when implementing an ERP solution. It takes a lot of planning, research, and dedication for companies to achieve the results they want.

Partnering with a reliable ERP software vendor and consultant is one of the many ways you can ensure a smooth planning and deployment process. ANSI, one of the top solutions providers in the Philippines, has helped numerous companies based locally and internationally for over three decades. From large, rising brands to small businesses, ANSI has every company’s best interests in mind and will help you efficiently reach your ERP goals.

For more information, contact ANSI today.