What are the advantages & disadvantages of using SAP ERP?

ADVANTAGES & DISADVANTAGES OF USING SAP ERP

Introduction to SAP ERP Thousands of manufacturing companies and retailers use SAP ERP to input and process information and data of business management.

SAP (Systems Applications & Products) is a brand of Enterprise Resource Planning (ERP) software. ERP software is a centralized system for managing, sharing and maintaining departments’ data and info.

History of SAP Wellenreyther, Hopp, Hector, Plattner, and Tschira found the data processing application in 1972. SAP implementation services include a variety of integrated modules for managing the accounting, human resource, purchasing, production, shipping, and sales departments. In the market, SAP is the number one brand for organizations because of its benefits and advantages.

The brand had over 140,000 international installations in 120 countries with over 75,000 clients. Enterprise Resource Planning is essential for large entities, including government agencies and manufacturing companies in every aspect of running the whole business. It keeps up with processes in most departments of an entity from ordering raw materials to contacting vendors and the final stage of delivering finished goods to the customers.

Benefits of the SAP ERP Centralized System  Provides accuracy with a reduction in duplicated data and repetitive information.  Increases productivity resulting in higher profits.  Controls most of the business processes in real-time.  Improves inventory and human resource managements.  Real-time interaction and efficient communications with customers.

SAP software solution updates each departmental processes of manufacturing, placing orders, down to shipping. The software is perfect for most manufacturers with many units and departments for real-time communications and to exchange information. Additionally, it works with third parties including your vendors, customers, and outsourcing companies.

SAP ERP

Advantage

Disadvantage

Advantages of Enterprise Resource Planning System  Provide flexibility for creating an integrated system with restrictions and security within the SAP structure. Someone in authority of a department can determine which employees have access to any of the departments’ secured information.  Analytical features for evaluating the performances of employees and each department.  Analyzes financial information and data for preparing reports in accounting and marketing.  Efficiently and quickly tracks data in the ERP system.

Disadvantages of SAP ERP SAP ERP software has one major disadvantage which is it can be very costly considering there are several optional modules. Associated costs may include implementation, maintenance, monitoring, and labor of installations. You will incur expenses for your company’s IT department overseeing the system or for hiring an outsourced company or consultant to monitor and handle maintenance or potential repairs.

Training can be costly for companies wanting to train the employees on the SAP system.

You must consider the expenses associated with training each employee of the entire organization you want to have access. Because of the complexity of the using the software, some companies only implement one or two functions at a time. This helps the company’s employees familiarize themselves with your selected custom SAP solution. It can take two or more years before implementing the whole business system.

Conclusion SAP Certified Partner, Chetu is a cost-effective business software provider of customized SAP implementation, integration, data structure, and configuration solutions to global manufacturing, governmental, and retail entities. Contact a representative today to learn how SAP ERP services can improve your organization’s data and information efficiently and accurately.

Contact Us Company Name: Chetu Website: https://www.chetu.com/solutions/sap.php Address: 10167 W Sunrise Blvd, Suite 200, Plantation, FL 33322 Phone: (954) 342 5676 Fax: (305) 832 5987

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