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The pros and cons of ERP consolidation

The pros and cons of ERP consolidation

Enterprise resource planning solutions are known for their ability to solve problems for the many organizations that use them. Nevertheless, these systems can present their own set of difficulties – particularly when it comes to pairing multiple types of this software together. Before deciding whether an ERP consolidation is the right move for your company, you should first consider these arguments for and against this common strategy:

Pros

  • Consolidating may make the user experience easier: By using a single ERP solution, your company would eliminate the need to train employees on multiple systems. This reduces confusion while saving time and energy on the warehouse floor.
  • Increases internal efficiency: According to TechTarget, the following are signs separate ERP systems aren’t working for your company: Your IT department finds making changes across multiple platforms to be a cumbersome process; your internal audits are complicated; or you’re lacking consistent data or a single version of the truth.

“Consolidating ERP systems saves time and energy on the warehouse floor.”

Cons

  • Inconsistent data can create issues: Though the goal of consolidating ERP solutions is to align data across a single platform, this may prove difficult at the project’s onset when vital information, such as financial or customer records, fail to match up between systems.
  • May require more resources: Given the aforementioned point and the additional concerns than can accompany the consolidation process, companies may need assemble a hefty team to clean up data and manage problems as they arise. Additionally, though business managers tend to see ROI quickly, they will need to allocate time and money upfront for the unification.
  • Difficulty in meeting everyone’s needs: Given that it can be difficult to scale a single ERP solution, many companies choose to utilize a two-tier system. Essentially, this means a company’s corporate office would run its own software while allowing warehouses to incorporate other software to better fit day-to-day needs; to increase efficiency, both systems are typically set up through the same vendor.

Though an ERP system like Microsoft Dynamics NAV can certainly bring efficiency and accuracy to your company’s inventory structure and warehouse floor overall, the use of multiple systems may tell another story. Ultimately, ERP overseers will need to weigh the costs and benefits before deciding if a consolidation would best for their organization.

Companies interested in learning more about NAV Barcoding can click to download the “Keeping the Physical World and the Virtual World in Sync” white paper.

Posted in: Barcoding, Mobile Warehouse Inventory Management

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