What is SAP? Why do we need ERP?

What is SAP? Why do we need ERP?

There are numerous services developed or readily available by utilizing items we provide. Locate from a link below a picture of a lot of common SAP solutions. Extra in-depth information about our services and also possibilities for you to build bespoke services can be found below as well as connected pages."

"...the very basic question is why enterprise resource planning also called ERP - SAP - is required? To answer let's examine this typical business scenario. A client approaches the sales team to buy a particular product, the sales team approaches the inventory department to check the availability of the product. In this case the product is out of stock. The sales team approaches the production planning department to manufacture the product. The production planning team checks with the inventory department for availability of raw material. If raw material is not available within the inventory the production planning team buys the raw material from the vendors then production planning forwards the raw materials to the shop floor execution for actual production. Once ready the shop floor team forwards the goods to the sales team, who in turn deliver it to the client. The sales team updates the finance department with revenue generated by the sale of the product. The production planning team updates the finance department with payments to be made to different vendors for raw materials. All departments approach HR for any human resource related issue.

That is the typical business process of any manufacturing company. Some key inferences one could derive from the scenario would be:   
 
- A typical enterprise has many departments or business units these departments or business units (BU)

- These Departments / BUs continuously communicate and exchange data with each other.

- The success of any organization lies in its effective lies in effecitve communication and data exchange within the departments/BU
as well as associated Third Party such as vendors, outsources and customers.
 
Based on the manners in which communication and data exchange is managed enterprise software systems can be broadly classified as decentralized systems or centralized systems which are also called ERP.
 
Let's look at decentralized systems first. In a company with a decentralized system of Data Management - data is maintained locally at the individual departments. Departments do not have access to information or data of other departments.
 
To identify the problems arising from decentralized enterprise management systems let's look at the same business process again. The customer approaches the sales team for a product but. This time he needs the product on an urgent basis...

See more here: https://www.youtube.com/watch?v=lYCEQqSM08I

Click the next links for more information about:

What is SAP software?

Wikipedia about: SAP ERP

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What is SAP? Why do we need ERP?There are numerous services developed or readily available by utilizing items we provide. Locate from a link below a picture of a lot of common SAP solutions. Extra in-depth information about our services and also possibilities for you to build bespoke services can be found below as well as connected...