Name : RABIATUL ADAWIYAH BT ABD MANAF

ID : 20191409841

Tittle: Benefits Implementing Enterprise Resource Planning (ERP) and disadvantage of the system.

1. Introduction

A few decades ago, filing manually in hard copy is extra work to organize all documentations for a
proper keeping. However this manual system still exist in a lot of company nowadays and it somehow
does not improve work efficiency. Focus on large scale industry, a complex system needed by big
companies or industries to manage all cash flow, vendors, accountings and finance, operation and other
internal or external activities. Advance research in IT technology has come out a new system called
Enterprise Resource Planning (ERP) to keep all the company activities. This information system known by
providing solution to cover the whole department in entire business.

2. Review

ERP tend to show a higher performance system and being a main choice from various industries. This
system is to be said solving company problems as it integrates all the business input in entire organization
to enhance efficiency and maintain productivity. The implementation of ERP can create a wide benefit for
company. For example, even though the cost consider high investment for IT solution, but the benefit of
ERP itself that can be a center for data keeping and meet most of company requirement. Due to this
factor, company can reduce cost to source and invest on other IT components. Other then that,
centralized system will be easier to manage and as employee from other department able to see internal
data from whole operation. The view of the system is wide, thus it improve employee performance and
management. In terms of operation, the system can come out a better planning and scheduling which
save the time cost for forecast planning and inventory management. The total visibility is most likely
chosen criteria on the reason of company selecting ERP for their business processing tool. Hence,
employee and managerial level performance able to control working capital on a more precise level. In
addition, as the system is no more manual recording nor hard copy filing, less time consuming result on
great working efficiency. ERP can help the employees save time and effort as they go about their regular
tasks. The use of an ERP system can drastically simplify or eliminate repetitive manual operations, allowing
team members to focus on revenue-generating activities. The system can also help with the adoption and
implementation of industry best-practice practices, ensuring that all actions are coordinated throughout
the organization.

However through out the years of ERP implantation in most industries and how the system known
to the whole world, there are several weakness or disadvantage found in ERP. The system is complex and
met most of company requirement. Other small – medium enterprise is attracted to put some investment
on this IT solution, however the cost for implementation and the cost for training are totally can burst the
company budget. Training employee on ERP exposure and usage particularly consume time due to
complexity of the system. The software alone can be excessively expensive, particularly for small-to-
medium-sized organizations. Other then that, ERP also can consume much time in order to customize it
to meet company standard which is another cost to be paid. Different company will be different processes.
Customization can end up diminishing the best practices built into the system and make it more difficult
to upgrade in the future. In terms of complexity of ERP, this software solutions include a lot of features,
but they're also complicated and tough to use. It's not uncommon for businesses to attract with an ERP
solution's potential but fail to plan for its adoption correctly. Some companies may end up with systems
that are too big and complicated for their procedures, resulting in a low return on investment. Lastly is
integration problem. Certain company take ERP as data keeping system and source another system for
other process for example activity in generate purchase order and good receive on invoice. The issue will
happen when another system processing does not replicate or integrate the data to be sync in ERP, in that
case the data accuracy will be distracted and affecting work efficiency.

3. Conclusion

Enterprise resource planning software providing good quality for IT solution. It is proven and the
efficiency is valid by a lot of industries. Eventhough there are weakness seen, the system still be a main
choice for small to medium organization. It takes efforts from the company to explore more about ERP
system to ensure it is worth to invest for a long term.

4. Reference

1- The Benefits of Enterprise Resource Planning (ERP) System Implementation in Dry Food Packaging
Industry
2- https://www.selecthub.com/enterprise-resource-planning/erp-advantages-and-
disadvantages/#Advan