Enterprise Resource Planning (ERP) is a long and comprehensive process that involve several steps and procedures. Even one missing step or element can invalidate the whole project, leading to a massive waste of time and resources.
Traditional methods of forecasting, purchasing and inventory handling are common obstacles to innovative solutions. Creating awareness of options amongst consumers and suppliers are vital to their spread and acceptance.
Oftentimes, companies will not get the best industry practices as they assume that traditional systems are the best way forward. Knowing the business is not beneficial because companies lose the ability to receive objective and diverse business models which are created by outside industry professionals. It is therefore, in a company’s best interest to outsource their ERP system.
Furthermore, having an in-house ERP system can lead to many challenges. It is likely that the understanding of an ERP rests solely with the creator. This can lead to many complications should the creator no longer be part of the company. Moreover, creating and maintaining an ERP system is costly and difficult and often companies will benefit from an external provider that can cope with the demand of day-to-day operations, this is also a cost-effective solution.
It is strongly encouraged that you evaluate the costs and benefits of investing in an in-house ERP system while evaluating alternatives as it is going to be a long-term investment of your business that can drive the success of overall operations.