An International pharmaceutical company is engaged in manufacturing of several types of medicines at various factories. Each factory sends information on different software and platforms, thus fails to communicate with e

Limitations in Implementation of ERP System are as below: Difficult to Implement in Running Businesses: Implementing ERP in an existing business is challenging due to the need for employee training, significant downtime during the transition, and potential profit loss. ERP systems' industry standards may also limit creativity or competitive advantage. Customization is Problematic: ERP systems often require extensive customization to fit specific business requirements, which involves significant money and resources, acting as a limitation. Policy Limitations: Not all ERP systems align with every business plan, and some may not allow the drastic customizations needed for specific tasks due to company policies or system design. Ongoing Support: Relying on support for ERP systems can be difficult. While minor issues might be handled, major complications can exceed the capabilities of limited customer service. Lack of User Participation in ERP Implementation: Successful ERP implementation requires exhaustive user training, simple user interfaces, and crucial involvement of key users at both pre-implementation and implementation stages. Lack of this participation is a significant limitation. Problem of Harmonization of ERP Processes with the Business Processes: Harmonizing ERP systems with existing business processes, especially for large companies, is a mammoth task requiring substantial time, planning, and money. Resistance to Change: ERP implementation often necessitates significant process changes, leading to redundancy in some roles and requiring employees to learn new processes and technologies. This can cause resistance, which is a major limitation. High Annual Charges: Most ERP vendors charge substantial annual license renewal fees, often unrelated to the company's size or profitability, posing a significant financial limitation. Cutting Expenses on Training: ERP success depends on a skilled workforce. Many companies cut training budgets, leading to inadequate education for personnel, especially in smaller enterprises, which limits effective ERP operation. Dependency on one Vendor/High Switching Cost: Once implemented, an ERP system often leads to vendor lock-in for upgrades and customizations. Switching costs are very high, reducing flexibility and strategic control. Time Consuming: ERP deployment projects are lengthy, typically taking 1 to 3 years, and may require further tweaking even after initial implementation. Cost savings / ROI may take years to realise: It can take several years for a business to realize the full benefits and return on investment from a newly implemented ERP system, as transactional data needs time to build up and become accurate for reporting.