SAP ERP Advantages of SAP ERP

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SAP ERP Advantages of SAP ERP

SAP ERP is one of the most widely used ERP Software Worldwide .Almost all Companies worldwide are working   on SAP ERP

Advantages of ERP: By integrating the business processes, the ERP offers the following advantages −

Saves time and cost.

Allows faster decision-making by the management, utilizing the data and reporting tools designed in the systems.

Single data source and sharing of data among all the units of an organization.

Helps in tracking every transaction that takes place in an organization, from starting till end.

Supplies real-time information whenever required.

Provides synchronized information transfer between different functional areas such as sales, marketing, finance, manufacturing, human resource, logistics, etc.

SAP ERP Advantages of SAP ERP

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Solutions for every Industry, ERP vendors develop solutions for specific industries in close collaboration with their Customer Organizations, which is demonstrated by the fact some ERP Vendors, like SAP, support as many as more than 30 diverse Industry verticals such as Mining, Banking, Professional Services, Public Sector, Discrete and Process Manufacturing, Healthcare, Hospitality, Higher Education and Research etc.

ERP applications of today, irrespective of which vendor they belong to, have most functionality required by an Organization such as manufacturing, accounting, maintenance, human resources, sales, planning.g, costing, service management etc.

SAP ERP Advantages of SAP ERP

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Evolution of ERP

But back in 1960, when the first business planning application was supposed to have been used (Material Re.source Planning), there were only applications either supporting processes in only manufacturing or only accounting or sales;

Before MRP, organizations were just managing and controlling inventory and the related systems were referred to as Inventory Management and Control Systems (IM & C)

The activeties in IM & C included determining stock requirements, providing replenishment strategies and options, monitoring goods receipts, withdrawals and consumption, reconciling balances and reporting stock status.

Using these systems, organizations couldn’t schedule production operations and material purchases. These limitations were over come by MRP – Material Requirement Planning.

MRP Systems were first introduced in the late 1960s, to plan production so that the right materials are available at the right place at the right time.

Organizations also realized the need to have other functions of the Organization in the same sy.tem as that of MRP II and hence functions such as financial accounting, costing, maintenance, sales, human resources etc. were also incorporated. Hence systems with all these functions were developed and referred to as Enterprise Resource Planning since it involved not only planning of materials bit also other resources or organization such as personnel, money etc.