What is SAP ERP and its Benefits
SAP ERP is the proven foundation for business excellence and innovation. Enterprise resource planning (ERP) is a popular software-based business system that uses database technology for operational efficiency and reduction of wasted resources. SAP is a global leader in business software solutions and offers a suite of ERP solutions.
ERP’s are usually implemented in many different departments, and can manage all aspects of a complex business environment, such as manufacturing. SAP ERP redefines enterprise resource planning – delivering role-based access to crucial data, applications, and analytical tools.
With SAP ERP, you can efficiently deal with business challenges in the following areas:
Financials – Ensure compliance and predictability of business performance – so your organization can gain a deeper financial insight across the enterprise and tighten control of finances. SAP ERP Financials automates financial and management accounting and financial supply chain management.
Human Capital Management – Optimize your HR processes with a complete, integrated, and global human capital management (HCM) solution. SAP ERP provides this HCM solution for organizations of all sizes and in all industries. You can maximize the potential of your workforce, while supporting innovation, growth, and flexibility. The SAP ERP HCM solution automates talent management, core HR processes, and workforce deployment – enabling increased efficiency and better compliance with changing global and local regulations.
Operations – Manage end-to-end procurement and logistics business processes for complete business cycles – from self-service requisitioning to flexible invoicing and payment – optimizing the flow of materials. SAP ERP Operations also helps discrete and process manufacturers manage the entire life cycle of product development and manufacturing. The solution automates the entire manufacturing process and reduces costs by controlling and adapting the manufacturing process in real time – and increases customer satisfaction by delivering higher-quality products.
Because one application can manage an entire business, ERPs can create a more efficient work environment and reduce warehouse and inventory costs. Additionally, management can get a real-time global view of a business and can react quickly to market changes and challenges.
Benefits of SAP ERP
* SAP ERP allows easier global integration (Barriers of currency exchange rates, language, and culture can be bridged automatically)
* SAP ERP updates only need to be done once to be implemented company wide.
* Provides real-time information, reducing the possibility of redundancy errors.
* One system used to perform all your business operations leads to large cost savings. Integration leads to quality of work with less errors (one source of data) and reduction in time to process work
* Creates a more efficient work environment making it easier for employees to do their job which leads to effectiveness
* The biggest business benefit of the SAP ERP is that the integration of multiple information systems within one organization brings about enhanced clarity, understanding and standardization within the company. When the organization works in unison, it would automatically result in better manufacturing and marketing practices, standardization of processes, free flow of information, clarity of roles and easy and wide-spread identification of the corporate goal.
* SAP ERP consists of several modules including: utilities for marketing and sales, field service, product design and development, production and inventory control, human resources, finance and accounting. SAP ERP collects and combines data from the separate modules to provide the company or organization with enterprise resource planning.
Although there can be major benefits for customers of SAP ERP, the implementation and training costs are expensive. SAP ERP systems effectively implemented can have cost benefits.