Understanding SAP ERP and its Important Functions

Many important functions of a business nowadays rely on an enterprise resource planning software known SAP ERP. While the software can handle many business functions, common ones include real estate management, health and safety and travel management environment. These three sub categories fall under the genre of corporate services that can be handled by the SAP ERP. When it comes to human capital management, SAP ERP is effective in handling e-Recruiting, payroll as well as training. Under financials, the planning software takes care of important issues related to financial supply chain, management accounting as well as financial accounting. The enterprise planning software is also effective in operations where it takes care of issues like quality management, logistics executions as well as production planning. Under this category, the software can take care of materials management and sales & distribution. Get the facts related to SAP ERP.

The implementation of the SAP ERP

The SAP ERP consists of several modules that make its operation a reality. This includes human resources, plant maintenance, project systems as well as quality management and product planning. At the same time, the modules consist of material management, sales, and distribution, asset accounting as well as controlling. Financial accounting is another module that falls under this category. These modules are implemented in five phases that include project preparation which is the first phase, a business blueprint which is the second phase as well as realization which makes the third phase. The fourth and the fifth phases include final preparation as well as golive support.

Cost benefits associated with the SAP ERP

Companies that have used the model have reported improved maintenance and deployment costs. Reduced costs can be realized using one of the following means. There are reduced costs when it comes to regulatory compliance. The SAP ERP is known to improve the percentage of the gross margin. At the same time, it results in reduced material costs and administrative costs. Through the software, an organization results in improved efficiency and makes it easy to plan and control.

Advantages of SAP ERP systems

Beyond costs, there are other advantages that are associated with SAP ERP. With this model, global integration is possible meaning that it is possible to avoid cultural barriers, language barriers as well as currency barriers. Another advantage of the model is that an update can only be done once throughout the entire company. The model is also very effective in eliminating redundancy errors. This is possible as it provides users with real time updates. The ERP also has a user interface that is very easy to customize. The final advantage is that the model offers an efficient environment that ensures workers remain productive.

Disadvantages of the model

One of the greatest disadvantages of the model is that it takes longer for the company to become profitable. Also, the model is prone to failure. Finally, some cases of inflexibility have been reported with the model.


Through this article, it is possible to understand the SAP ERP software and why it’s important. The article also discusses the various implementation models of the software. The article concludes by discussing the advantages and disadvantages associated with the software.


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