Advantages And Benefits Of Using SAP ERP System

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SAP ERP System Introduction SAP is an acronym for systems, applications and products in data processing. It is an enterprise resource planning (ERP) software used in all kinds of businesses to control every aspect of the business processing. It is an IBM product which was developed in 1970s. It is used by many companies to manage logistics, business operations, human resources/payroll, reporting, order processing, planning of resources, etc. Earlier companies were using separate systems to handle general ledger, sales processing, production processing etc. The data was exchanged in order to generate management reports. But errors and inconsistencies existed when the data was interchanged and thereby, it skewed the management reports. Then, SAP ERP system were developed which was a fully integrated system. It eliminated the errors that existed between the systems. It is very beneficial in the corporate environment in terms of strategic planning, efficiency, reduced cost, and reduced complexity which is generally there in different processes. SAP has a well-established market that almost includes automobiles, chemical, furniture, consulting and software, healthcare, retail, oil and gas, etc. (Blain Jonathan, 1999). Benefits of using SAP software There are number of benefits of using ERP software such as SAP. But, there are certain conditions which help in achieving these benefits like education and training of the employees, people i.e. IT personnel, established metrics, resources, and responsible management who can discipline upon users and facilitate organizational learning. Staehr, L. B. (2012). Integrated System The most important thing about SAP software is that it is an integrated and more complete system in itself. It can ... ... middle of paper ... ...iveries. It helps to control and manage inventory. SAP Production Planning (PP) This module helps in the planning and managing the manufacturing activities of the company. It includes the sub-modules like sales and operations planning, product cost planning, and material requirement planning. SAP Materials Management (MM) This module manages the day-to-day business operations like purchasing, receiving, and storing of the goods. SAP Quality Management (QM) This module helps in managing the quality of the product and meet the product specification. It helps to maintain the standards across the processes in the company. SAP Human Resources (HR) This module helps in the process of hire to retire of an employee within the HR Department. It covers the employee’s performance, promotions, benefits, compensation, and payroll. Conclusion

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