What is SAP ERP


A company requires the presence of many different departments for it to function. These departments are essential to any business transaction conducted by the company since they’re fully integrated into its system. A non-functioning department in the company could lead to a domino effect of miscommunication and ultimately, a failure to deliver the product or service.

In order to avoid this, many companies or businesses have had to employ methods or integrate software into their daily functions which can help them avoid or reduce instances of unfortunate situations from occurring. One such software like SAP software for manufacturing companies is adopted by these businesses to ensure smooth-sailing and fully-functioning departments, particularly in the manufacturing and production departments.

If you’re a business looking to invest in business-integrating software, then the simple informational guide below will help you become more knowledgeable in such systems.

SAP ERP is a centralized system

In a manufacturing business, communication is important in ensuring that a particular good or service is delivered. This process may start from an infinite number of ways, but ultimately, it begins with a client contacting the business’s sales team with the intent of availing of a product.

Different problems can arise with regard to providing this service, such as miscommunication, especially if the business structuring is heavily decentralized. Some of these problems include redundancies in data, high production costs, and contrasting data.

With SAP ERP, businesses can avoid such situations from occurring. This is because the data is stored at a central location which the various departments have access to. Instances of miscommunication and data redundancies are avoided because departments are able to cross-check the information in order to verify them, making it easier for the business to provide the service requested by the customer or client.

Other more benefits offered by a centralized system include the improvement of customer service, the elimination of data duplication, and an increase in the level of productivity among departments.

Enterprise Resource Planning Software

Basing from the acronym itself, SAP ERP stands for Systems, Applications, and Products, Enterprise Resource and Planning. SAP also denotes the name of a German-based multinational software company that produces software enabling companies to function in a more centralized manner.

The purpose of the ERP software is to merge and provide a foundation for every level of a business, from human resources, manufacturing, sales, and down to the logistics level as well as, inventory management.

To provide a uniform structure to any kind of business, there should also be structured in the software whose primary purpose is to centralize the departments of a particular manufacturing company. SAP ERP is structured in a three-tiered system, consisting of the presentation, application, and the database tier.

Presentation Tier

Simply put, the purpose of the presentation tier is to offer a streamlined and user-friendly communication between the user and the SAP ERP system. The interface of the presentation tier is designed ergonomically for the user’s convenience. This is where the user is able to directly interact with the software in the comfort of their own desktops, or laptops. 

Application Tier

On the other hand, the application tier is responsible for executing the main functions of the SAP ERP system, such as the business logic whose primary function is to process client transactions. It also holds responsibility for coordinating database access.

Database Tier

The database tier is responsible for the storage of two types of data, generated by both the SAP ERP application programs and the business itself. Data from businesses might include sales orders, completed transactions, information on the delivery of pending goods, as well as, inventory data, just to name a few.

Software Supporting a Business’s Functions

Generally, SAP ERP is software that provides integration of every single one of a business’s departments that perform functions. These functions are essential for them to be able to execute the delivery of a product or service to a customer, through the centralized management of every level in a business.

It is important to note that for the SAP ERP software to fully be able to conduct its integration functions in every level, or department within a business, it has to tailor-fit to the business’s needs. The software is able to achieve in this regard, as it is flexible and simple, allowing the customer to conveniently use it without experiencing a considerable level of difficulty.

Precisely due to the integrating capabilities of the software, this allows a business’s employees to become more productive, enabling them to deal with, and manage a large number of requests from clients.

Through SAP ERP’s capacity for managing and handling large volumes of data as accurately as possible, at any given time, this allows businesses to gain access to more reliable and accurate information.

Key Takeaway

Ensuring that operations run smoothly is one major challenge businesses tackle on a daily basis. As such, they aim to reduce instances wherein they fail to deliver a good, or service. This feat would be made even more achievable through adopting business-integration software which could transform a decentralized business model into a more centralized one.

If you’re a business owner looking for ways to better integrate your departments and functions, investing in SAP software for your manufacturing needs is one of the best decisions you could make.

Author Bio

I am Nikki Anca, a Digital Curator from the Philippines, 20 years old, at the same time a lover for new beginnings. I deliver blog/suggestions on how to spice up your everyday cycle and purposely give suggestions on how to “revamp” and begin with anew.