SAP® Enterprise Resource Planning (ERP) Solutions: WHY IT MAY BE THE BEST COMPREHENSIVE ERP SOLUTION AVAILABLE ON THE MARKET FOR YOUR BUSINESS.
An enterprise resource planning system helps organizations track information across all departments and business functions, from accounting and human resources to sales activity and more. The term took root in the U.S. around 1990 as a growing number of organizations required integration outside of, but not exclusive to, their manufacturing applications. For example, business leaders needed to share data from their MRP system with their financial accounting team, or their customer relationship data with their supply chain team. As a result, Enterprise planning software was introduced to describe a broader system that integrated each of these applications.
The enterprise resource planning (ERP) software market is large and complex. In fact, if you execute a simple internet search you will see that there are hundreds of vendors offering best-of-breed (i.e., stand alone) ERP applications or integrated ERP software suites.
Let’s see some of the reasons why SAP considers itself the leader in the ERP Market, a solution that is great for all companies not just the big ones. With more than 40 years of experience and nearly 50,000 customers, SAP's market-leading enterprise resource planning (ERP) software is a proven, trusted foundation – built to support the world’s largest organizations as well as small and midsize companies in 25 different industries. Leverage role-based access to critical data, applications, and analytical tools – and streamline your processes across procurement, manufacturing, service, sales, finance, and HR.
Five ex-IBM employees started SAP as a small software company with just one customer in Germany. Those visionary entrepreneurs started SAP in 1972. They started it with the vision of a software that processes data when a user wants, when a customer wants and not in overnight batch jobs like earlier software. R/1 came into existence in 1973 followed by Sap R/3 which was introduced in 1992 and the last R/3 release was in 2003 subsequently ECC 6.0 was released in 2005. With every new offering SAP provided better solutions for their clients to address their evolving needs, which is critical for success.
SAP® ECC Main Solutions:
SAP® ECC (Enterprise Central Component) is the primary building block within the SAP ERP solutions. SAP has categorized their primary ECC solutions into six main offerings. Each of these areas have their own unique challenges in the business process and if not managed well can create significant obstacles and could result in inefficiencies and losses to the bottom line. Listed below are the categories as well as some of the benefits that SAP offers to address those business challenges.
P2P-MM (Procure to pay/ Materials Management): The ERP Procure to pay processes provides visibility into Purchase Orders, contract management and invoice handling. It reduces costs by consolidating shipments and lowering inventory levels. SAP provides organizations with control and visibility over the entire lifecycle of a transaction – from the way an item or service is ordered to the way that the final invoice is processed – providing full insight into cash flow and financial commitments that is now deemed as an important tool for proper implementation of Resource Accounting and Budgeting. SAP empowers your P2P team to manage and execute the process in the most effective and efficient way possible maximizing the purchase power of your companies spend on product, material or services.
P2P-PP (Plan to Produce/Producion Planning): In the Plan to produce space the SAP solution considers the entire manufacturing process from planning and scheduling, to sequencing and execution, and finally on to analysis and reporting. As a result, it improves efficiencies, lower costs, delivers higher-quality products, and boosts your company’s ever elusive profit margins. It makes it easier to deliver the right products to the right place, at the right time. It will respond to demand volatility by accelerating the planning process and help facilitating unexpected changes in your operations. Existing challenges can be identified and eliminated by using real-time tracking and analysis reports so you have easy access to relevant information that will help drive your business forward. Ultimately it reduces manufacturing costs, supports high product quality and delivers regulatory compliance that allows your operations to remain competitive in today’s business world.
Order to Cash: The Order to Cash process can help increase sales, profit margins, and customer satisfaction by automating the entire order cycle. With SAP ERP your company’s orders are delivered on time accelerating your sales processes and reducing operational costs while boosting your company’s productivity. It manages the complete sales order lifecycle, as well as all post-sales activities, giving you clear visibility to all transactional history related to the order or customer. It reduces costs by cutting administration time spent on checking order status or resolving issues as a result of late shipments. Now your staff can be more productive in driving your business by concentrating on customer engagement activities that enable sales, providing your company with a competitive advantage when looking to improve speed to market.
Request to Service: The service market in today’s business world is highly competitive and customer expectations are greater than ever before. It is critical that leaders put a plan in place to ensure that they align every aspect of their operations with the goal of delivering only the best services to their customers. The Request to Service solution helps your organization increase sales, profit margins, enhance customer satisfaction, and differentiate its brand by delivering exceptional service in every customer experience. Using this software you can understand and engage with your customers and exceed their expectations. It will Offer immediate responsiveness and quick resolution to customer issues and it will streamline your service operations to increase efficiency and reduce cost.
Core Human Resources: SAP ERP will automate, streamline, and extend your Core Human Resources processes. Now your HR Team can achieve profitable growth and outperform the competition by leveraging your employees’ skills and talents, while giving them every opportunity to achieve their career goals. Now you can easily automate employee administration, time management, payroll, and legal reporting processes with one system. Imagine being able to easily support compliance with changing global and local HR regulations with one easy to use system. With SAP you will be able to quickly understand, evaluate, and measure your workforce's contributions to the bottom line. The system will empower you to attract, hire, and deliver the right people for the right job, making your new hires productive more quickly. Your team can pinpoint where your talent lies and train to cultivate your workforce in order to align your employees’ goals with your overall business objectives.
Core Finance - The core finance processes will help your company succeed by managing spending, optimizing resources, complying with financial reporting requirements, capturing growth opportunities and streamlining financial operations better than the competition. With integrated Core Finance ERP processes receivables management is particularly effective, as this component allows companies to investigate the causes behind late payments to claim revenue more quickly and decrease day’s sales outstanding. Now you can streamline and automate financial operations while complying with regulations and Gain real-time insight into overall performance. Finally you can easily integrate processes from various applications for a single version of financial truth and Reduce cost of goods sold and maximize profitability.
Solutions4Business extends your reach.
So now you see that SAP can be the key to unlock hidden savings in your supply chain. If your organization is bogged down by fragmented systems, weak business processes and dirty data let the Solutions4Business team help. We can assist you to navigate the steps and implement the changes that are needed in order for you to reap the benefits of improved systems and processes in your business, putting those ever elusive savings with in your reach!
Check out our SAP Practice page for more details and to schedule a complementary assessment with one of our consultants.
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