Advantages and Disadvantages of ERP Software

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Having been in the industry for decades, we are not new to the question, What are the advantages and disadvantages of ERP software? Additional questions and concerns we come across are, which solution is best for us? What are the validity and license like? Why is it expensive? Have you implemented it before? Will this investment be worthwhile? and so on.

Despite the questions and concerns, there’s no doubt ERP software comes with its advantages. Let’s take a manufacturing business that wants to compete on a regional or global level. It’ll be nearly impossible for the business hierarchy to keep track of its inventory, production, financials, extensive quality control, people, sales, and so on without an integrated system. An advantage of ERP software is that it will manage everything from start to finish.

So let us get right into it.

Advantages and disadvantages of ERP Software


  • It ensures compliance.
  • High return on investment.
  • More efficient processes.
  • Less data entry mistakes.
  • More accurate inventory levels.
  • Better business reporting and decision-making.
  • Reduced operating expenses.
  • Streamlined supply chain.
  • It makes you more competitive in the market/industry.
  • Better service delivery and customer satisfaction.


  • It comes with a high initial cost.
  • When poorly implemented, it is frustrating.
  • It takes a while to master and see the benefits.
  • It requires constant training and practice.
  • It can be high to maintain.

In conclusion, based on the advantages and disadvantages of ERP software mentioned above, you can easily deduce that it has more pros than cons. Despite the benefits, I must tell you it doesn’t guarantee success. 

To ensure yours is successful so that you can enjoy the benefits, I suggest you read my article on 

1. The three must ask questions before implementing ERP Software.

2. 7 ways to make the best out of your ERP software.

Tijani Olayiwola Ahmed:
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