Advantages of ERP System:
[1] Improved efficiency across business due to timely availability of information.
[2] Better decision making owing to information integration.
[3] Reduced inventory costs due to better inventory management.
[4] Faster response to customer queries.
[5] Reduced operational costs.
[6] Improved customer satisfaction.
[7] Improved customer goodwill.
[8] Improvement in overall corporate image.
[9] Improvement in utilization of organizational resources.
[10] Improvement in information accuracy.
[11] Improvement in decision making.
Disadvantages of ERP System:
[1] Limited budget.
[2] IT infrastructure requirements are not assessed properly.
[3] Requires Technology professionals, with right skills.
[4] Requires adequate teams from the management side.
[5] Core teams involvement and participation in the project is inadequate.
[6] The management insists on changes only to the software rather than changes to the traditional processes.
[7] Communication to the various stakeholders is inadequate during the project implementation.
[8] Lack of project management skills from the client as well as from the consultant’s side.
[9] Lack of support from the ERP vendor, consultancy firm or the hardware vendor.