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SAP vs ERP – Difference between SAP and ERP

SAP vs ERP – Automation in businesses has made managing operations and functioning effortlessly. From issuing pay-checks, managing benefits, paying bills, and tracking budget while maintaining healthy relations with customers and onboarding new clients. Moreover, opting for software helps in managing all resources which ultimately improves the efficiency of the overall business processes.

The primary idea is to implement a system of integrated applications that manage the business processes in a better way and automate functions associated with technology, services, and human resources. This will help in the following: 

  • To increase productivity by automating business processes 
  • To reduce administrative and IT expenses
  • To eliminate manual process handling
  • To improve performance

What is an ERP solution? 

Enterprise Resource Planning(ERP) is business process management software that is used to boost productivity and performance within the organization. ERP helps to integrate critical processes for running the business into one complete system. Moreover, ERP software is a suite of integrated applications that are designed specifically to manage key functions like accounting, human resources, inventory, and more in the business. 

How does ERP function? 

ERP integrates basic functions into one centralized system to streamline processes and information flow across the organization. This automated system integrates into the following processes: 

  • Planning
  • Inventory
  • Purchasing
  • Marketing 
  • Sales
  • Human resources 
  • Finance

ERP automates the core business processes of an organization to bring efficiency and eliminate redundant processes and systems.

What is an SAP solution? 

Systems, Applications, and Products(SAP) is a renowned German multinational software company that is known for providing enterprise resource planning (ERP) software solutions to companies for managing business processes and customer relations.

SAP is the world’s largest vendor of ERP solutions and a leader in business applications that provides a software suite of business process applications for both large and medium-sized enterprises. SAP provides end-to-end business solutions for distribution, logistics, financial, and inventories by integrating core business processes across various functions with each function tied up to the respective module in SAP. 

How does SAP work? 

This module smartly collects and integrates data from different aspects of the business. Moreover, different SAP modules share information into an integrated system based on the defined processes. The most trusted and implemented SAP modules are as follows: 

  • Human and Resource Management (HRM)
  • Financial Accounting (FI)
  • Sales and Distribution (SD)
  • Material Management (MM)
  • Production Planning (PP)
  • Quality Management (QM)
sap vs erp

SAP vs ERP – Difference between SAP and ERP

  • Affordability: As far as budgeting is concerned Oracle’s ERP system is slightly on the higher side as compared to SAP. It is known that SAP’s software is pocket friendly and has the ability to manage and execute general planning. Whereas, Oracle, provides a specialized tool i.e. ‘Asset Lifecycle Management. Oracle ERP enables the user to fully realize the financial potential of the equipment and other facilities. Moreover, a user also gets a series of features that help them to handle the typical budgeting needs of any business.
  • Supply Chain Management: Supply Chain Management (SCM): In SCM, SAP provides a ‘procure to pay’ module to help companies manage their purchases and enforce vendor choices by analyzing the procurement patterns that further help them to drive future decisions. Another module used by SAP is ‘Order to cash’ this helps the businesses to manage quotes and other aspects of contracts with vendors.
  • In SCM, Oracle uses the ‘Supplier Invoice to Payment’ management module for vendor relationships. This includes activities like supplier registration, contract creation, and invoice payment that make it easier for a company to purchase what it needs to function. Oracle’s ‘time and labor cloud’ and ‘sourcing cloud’ modules provide transparency for tracking.
  • Inventory Management: Oracle’s and SAP inventory management solutions offer extremely robust inventory management. SAP stresses that its Inventory Management helps prevent stock shortages, whereas Oracle emphasizes boosted productivity. 

So who wins? 

ERP solutions by both SAP and Oracle are beneficial for businesses according to their business requirements. Therefore, the decision on which ERP solution to opt for lies completely on the management.

If you need expert advice on which ERP solution you should opt for, then you should consult A2 consulting and get the best solution for your business. For more information please visit: http://www.a2consultingllc.com/ 

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