Why do you need an ERP?There are several compelling reasons for implementing an enterprise resource planner (ERP), and some of the benefits your company stands to gain are highlighted below.
- Faster inventory turnover
- Improved customer service
- Better inventory accuracy
- Timely revenue collection and improved cash flow
- Reduced maintenance cost
- Unified data available to all at the same time
In spite of all the advantages, ERP has disadvantages. Some are listed below.
- High cost of technology
- The need for continuous training of workers to effectively use system
- The difficulty and cost of customizing systems
From the foregoing, it is clear that although and ERP system will undoubtedly enhance the business of your company. However, there are also disadvantages that need addressing.Â The success of the system is fully dependent on how the workers utilize it. This means they must be properly trained. Also, one of the biggest problems with ERP is that it is hard to customize. Very few companies can effectively use ERP right out of the box. It must be modified to suit their needs, and this process can be both expensive and tedious. Even when a company does begin changing the system, they are limited in what they can do.
Most ERP vendors will not allow the structure of the software to be altered. In addition to the costs involved with implemented ERP and training workers to use it, the ERP vendors may charge additional license fees, putting a strain on companies that do not have enough resources to pay for them. The technical support of ERP departments has been questioned, and a number of problems could arise due to security, since corporate representatives must give sensitive information to the tech.
It is to address these disadvantages that UITS deploys an open source ERP, called OpenERP.
What is OpenERP?OpenERP is an open-source cross-platform ERP software. It being cross-platform means that, it can run on any operating system. Open source software has the following advantages:
- The availability of the source code and the right to modify it
- The right to redistribute modifications and improvements to the code
- The right to use the software in any way
- There is no one with the power to restrict in a unilateral way how the software is used
- There is no single entity on which the future of the software depends
- No per-copy fees can be asked for modified versions
- There are fewer conflicting priorities due to marketing pressures
Its cross-platform nature also allows it to run on Linux which is a very robust and secure open source operating system. your company will therefore make savings on the cost of operating system licenses.
OpenERP is an advanced ERP platform with the following features:
- Over 250 modules all provided for free
- Covers all enterprise needs (sales, customer relations management, purchases, manufacturing, stocks, accounting, finance, services, project management, point of sale, marketing, etc.)
- Flexible dashboards for all users. Browsable and customizable graphs and stats
- Integrated business process management
- Integrated report designer
- Flexible module management
- Web services interface.
Considering the above advantages, if your company opts for OpenERP, the cost elements for implementing a robust and rich ERP system will be
a. Cost of equipment (servers, network devices) and internet services
b. UITS' charges for setting up and customizing the system, training and support (which will invariably be less than what most ERP vendors charge)
Cost savings will be made in the following areas
a. Operating system cost
b. Database license
c. ERP software
d. ERP customization
e. Training and support
We have great experience in deploying ERP's and look forward to helping your business setup one.
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