What is "erp"

Enterprise Resource Planning (ERP) is an information system that integrates all the data and processes of an organization into a single system. The integration can be seen from the functional perspective (systems: finance, accounting, human resources, manufacturing, marketing, sales, shopping etc) and from the systemic perspective (transaction processing system, management information systems, decision support systems etc).

Erps in general terms, are a software platform developed to integrate the various departments of a company, enabling the automation and storage of all business information.

Advantages of ERP

Some of the advantages of implementing an ERP in a company are:

• Eliminate the use of manual interfaces;
• Optimize information flow and quality within the organisation (efficiency);
• Optimize the decision-making process;
• Eliminate the redundancy of activities;
• Reduce market response time limits;
• Reduce lead time uncertainties;
• Incorporation of best practices (coded in ERP) into processes; company internal;
• Reduce the time of management processes;
• Stock reduction.

Disadvantages of ERP

Some of the disadvantages of implementing an ERP in a company are:

• Using ERP alone does not make a real company integrated;
• High costs that often do not prove the relationship cost/benefit;
• Dependency on package provider;
• Adoption of best practices increases the degree of imitation and standardization between undertakings in a;
• Makes modules dependent on each other, as each department depends on the information of the previous module, for example. Therefore, the information has to be constantly updated, since the information are in real time, causing more work;
• Increased workload of the company’s servers and extreme dependence on them.