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  • Essay / Benefits and Benefits of Using SAP ERP System

    SAP ERP SystemIntroductionSAP is an acronym for data processing systems, applications and products. It is an enterprise resource planning (ERP) software used in all kinds of businesses to control all aspects of business processing. It is an IBM product developed in the 1970s. It is used by many companies to manage logistics, business operations, human resources/payroll, reporting, order processing, resource planning, etc. Previous companies used separate systems to manage general ledger, sales processing, production processing, etc. exchanged in order to generate management reports. But errors and inconsistencies existed during the exchange of data, which distorted management reports. Then the SAP ERP system was developed, which was a fully integrated system. This eliminated errors that existed between systems. It is very beneficial in the business environment in terms of strategic planning, efficiency, cost reduction and reduced complexity which is usually present in different processes. SAP has a well-established market that almost includes automotive, chemicals, furniture, consulting and software, healthcare, retail, oil and gas, etc. (Blain Jonathan, 1999).Advantages of Using SAP SoftwareThere are many advantages of using ERP software like SAP. But certain conditions help to achieve these benefits, such as education and training of employees, people, i.e. IT staff, established measures, resources and responsible management that can discipline users and facilitate organizational learning. Staehr, LB (2012).Integrated SystemThe 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 allows you to control and manage stocks. SAP Production Planning (PP) This module helps in planning and managing the manufacturing activities of the company. It includes sub-modules such as sales and operations planning, product cost planning, and material requirements planning. SAP Materials Management (MM) This module manages daily business operations such as purchasing, receiving and storing goods. Quality Management (QM) This module helps in managing product quality and meeting product specifications. It helps maintain standards in all company processes. SAP Human Resources (HR) This module helps in the process of hiring or retiring an employee within the HR department. It covers the employee's performance, promotions, benefits, compensation and payroll.Conclusion