SAP stands for System Analysis Program Development. It is one of the top Enterprise Resource Planning (ERP) applications used worldwide. In fact, SAP is so popular that it is often mistakenly considered synonymous with ERP, although it is really one of the several ERP solutions available.
SAP offers many standout advantages, which makes it an ERP solution of choice for many businesses and organizations around the world. The benefits of using SAP include:
- Integration with third-party systems
- Flexible system structure
- An ability to support concurrent engineering
- Support for real-time integration
- Comprehensive functionality covers most, if not all, organizational processes
- Specific functional and technical modules
Here is a look at some common applications of the SAP ERP.
Applications of SAP
Accounting and Finance
SAP R/3 includes several modules and supports integration with many others. One such module is ‘Finance and Control’ also known as FICO. This module allows you to comprehensively manage all the financial transactions within your organization.
With the help of FICO, you can get a real-time view of the financial status of your business or organization. FICO integrates very effectively with other enterprise modules like payroll or sales. This helps you create a holistic way of managing the finances of your organization.
Human Resource Management
If you want to make sure that your HR department is optimized for efficiency, the SAP Human Capital Management (SCM) module is the solution. You can automate several aspects of the key HR functions such as payroll, employee training, appraisals, compensations, bonuses, performance, and more.
As with other SAP modules, SCM also integrates very well with the other modules. This helps you finance management as well as improving work efficiency.
Sales and Distribution
A separate SAP module, known as Sales and Distribution (SD) exists to comprehensively manage sales and distribution processed within an organization. With the SD module, you can keep track of all relevant transactions, handle inquiries and proposals, take care of the quotations, oversee the billing and invoicing process, and achieve a lot more.
SAP SD is primarily incorporated in the logistics department of an organization. However, you can implement it as per your own requirements.
Materials Management
Materials management involves vital processes within an organization. These processes include materials procurement and production, inventory, storage, consumption-based planning, and invoicing.
Good materials management is vital for the day-to-day operations of an enterprise. This is where SAP MM module offers a reliable solution. It helps you manage and control the MM processes while optimizing these processes at the same time.
Supply Chain Management
A reliable and efficient supply chain is vital to your business operations. Good supply chain management involves a seamless integration of your partners, suppliers, retailers, manufacturers, and other stakeholders. SAP SCM is a module that helps you set up an efficient supply chain while forecasting market conditions.
Although many ERP solutions are today available on the market, SAP remains one of the most popular choices among leading businesses. This is simply because of the sheer range of functionality, guarantee of reliability, and customizability that it offers.
