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Benefits and Challanges of Erp


Submitted By liridon
Words 2796
Pages 12
Module Title: Logistics

Coursework Title: Enterprise-wide systems and Supply Chain Management

Professor: Fotis Missopoulos Student: Liridon Xhakaliu
Most large corporations have adopted some form of ERP system. The purpose of this paper is to understand the benefits and challenges of Enterprise Resource Planning (ERP) systems. These benefits and challenges have a direct impact on the performance of the business. Another crucial thing that has to be well thought-out while implementing the ERP system is how to gain competitive advantage; however, in order to create this competitive advantage companies must be well coordinated and in order to implement the system successfully companies must involve, supervise, recognize and retain everyone who will work closely with the system.

Furthermore, this essay examines companies that have failed to implement the ERP system successfully; as well as it emphasizes the results of a Croatian company (PLIVA, pharmaceutical Company) after implementing the SAP software and its benefits it gained. Nevertheless, even though the implementation of an ERP system is long and expensive the potential benefits is very high; it can lead to enhanced performance and satisfied workforce which guides to enhancing profitability and gain competitive advantage.

Nowadays the competition is higher than ever, along with the fast development of new information technologies, companies are forced to rely on information systems.
In the past, businesses where organized from independent application systems for different function, for instance: sales and marketing, finance and accounting, manufacturing and production and human resource systems. Yet, enterprise systems have been developed to make possible for information to be shared across the

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