SAP - An ERP System

SAP

Systems Applications & Products

•  It is also called as ERP – Enterprise Resource Planning.
•  SAP software was founded in 1972 by 5 People.
•  SAP is #1 in the ERP market.
•  Other Competitors of SAP Products are:
•  Oracle
•  Microsoft Dynamics
•  Net Suite

What is ERP?

• ERP – Enterprise Resource Planning.

• ERP integrates everything into a single one. Instead of having more no of modules and Spending more time on every module if one thing is to be changed or updated in a single module. It’s like combining more modules into one to make the work more productive and gets things done easier.

Why ERP is required?

• ERP is required to understand the customers needed and makes things done easier in short duration.

For eg:

• Assume that a customer is going to the Cake Shop (Bakery). The customer is asking the Person on the stall.
• What is the cost of 1kg Black Forest Cake cost?
• The Person replied as Rs.550
• Now the customer asking I need 500kgs of black forest cake with this type in addition of more cashew nuts and some extra design over the cake how much it will cost and when it will be ready.

Without ERP System:

• The person said that sir can u wait for 5mins our cake maker persons will come I will ask them how much time it will take and how much cost it would will let you know sir.
• Customer is waiting for more than 5mins. The cake maker person has reached and now the person said about the customer requirements to the cake maker. Now Cake Maker person said I need to check for the availability of raw materials to prepare the cake. If not I need to make a call to owner and ask him for the amount to buy those material and then only I can able to say about the price and date of delivery sir.
• The customer get dejected and went to the next shop and made the order and purchased the Order there.
• Thus result in Loss of Revenue to the First shop that the customers got dejected. Not only loss on that cake. The customer never again goes back to that shop again and also he won’t prefer that shop to other friends too. Thus loss in Overall Revenue.

With an ERP System:

• Customer reached the Bakery shop and asked for the same things he ask in previous shop. Now here the reply from the stall person is in few seconds that it will cost around Rs.10268 Sir and will be delivered to you within 18 hours of the order. Thus customer was amused by the words.
• He made ordered in this shop and went home and he got the cake exactly at 18hrs from the order time.
• Yes! This cake shop has ERP system which maintains the raw materials availability and time needed to make a cake everything has been stored in an ERP system and the stall person has the right to access those ERP system and Make the Customers satisfied at most needs on the requirements.
• In addition to that the customer also would also prefer this shop to his friends and he would go back again too. Thus increase in revenue.

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Thanks and regards,

Tech Bird