You’ve probably heard the word SAP and wondered, “What is SAP?”, and what advantages it might offer to companies like yours.
Before we go on to explain what SAP is, we’d like to remind you that we have a guide on ERP systems. Take a look to better understand everything that ERP systems offer.
What is SAP?
SAP is one of the most widely used enterprise resource planning (ERP) tools globally. This kind of software allows for the total optimization of business operations. For large companies, its use is practically mandatory, as it is the only way to maintain real control over internal processes.
The SAP system was founded in 1972 by German IBM employees and, over the years, it has become a world leader in its sector because it provides different functionalities for diverse areas such as marketing, sales, accounting, and logistics.
Benefits of using SAP
SAP makes the management of different business processes easier and optimizes them.
For instance, you can:
- Control finances and tax payments
- Monitor costs
- Use it as a human resource management tool
- Plan tasks
- Carry out product quality control
- Create reports
- Analyze business performance
- Manage sale
- Track the production of items
This is what companies gain after the implementation of the SAP ERP system, but there are more benefits to SAP:
- The SAP system can be used by all companies, from large businesses and multinationals to smaller retailers.
- Increased productivity due to automation, monitoring, and offers more control over all departments and actions. This means that less time and resources need to be invested in processes.
- The decision-making process is supported by measurable and real-time data. This accelerates the process of doing forecasts and analyses.
- The automation and traceability across the business makes SAP a tool that drives cost efficiency in the long run.
- Increased security of internal information. SAP has specific solutions for online stores regarding GDPR. This is a great competitive advantage and a way to solve the treatment & storage of customer data & business information.
- Better collaboration and communication between departments. For instance, you can use the SAP system to gain control over all processes and avoid repeating unnecessary tasks or duplicating information across several platforms. This also ensures business transparency.
- Reliable customer service. Not only will the company experience the benefits of using an SAP ERP system, but customers can also benefit from it. Once a business has all customer information centralized and organized, sales, marketing, and support employees can focus on building customer loyalty through personalized communications and campaigns.
- It is an open-source system which means that it is highly customizable to the needs and requirements of each business and sector. This customization can be done through SAP modules, thanks to its module system. You can read more on these SAP systems of modules below.
Available SAP modules
Modules are ready-made applications that companies can integrate into the software to extend its capabilities and functionality. All companies can expand SAP functionalities based on their growth through the installation of modules, a way simpler and more affordable customization than the costs required by custom developments.
Integrating the following SAP modules will allow you to respond more efficiently to the different needs that arise within your industry. The software constantly updates its modules so that companies can stay up to date. Check out some of the modules offered by SAP.
Manage your post-checkout processes with Outvio
Is it possible to optimize processes in eCommerce without an ERP? Yes, with Outvio! This platform is specialized in optimizing post-checkout operations so that online stores of any size can scale their business while providing a high-quality purchasing experience.
Connect your shipping companies and eCommerce platform in a single interface to automate shipments, shipping-issue management, and returns — as well as customize elements in order to fully brand your post-checkout operations. All of this can be done on an international scale.
FAQs about SAP
What is an SAP consultant?
The SAP consultant is a professional in charge of guiding companies in everything related to the installation and use of the SAP system.
Which companies use SAP?
SAP can be used by companies of any nature or size; however, many of its clients are medium-sized companies that are still growing.
What is SAP R/3?
SAP R/3, now known as SAP ERP 6.0, is a version of SAP software designed exclusively for the management of large multinationals and companies. It is a much broader model in terms of the features available, but it is also more complex and expensive.
What does SAP stand for?
SAP stands for Systems, Applications, and Products in Data Processing.
What sectors usually use SAP?
Due to its modules, SAP works as a multi-industry solution.
Are SAP and ERP the same?
SAP is an ERP system, but all ERP systems aren’t necessarily SAP. Saying that SAP and ERP are the same is like saying all tissues are Kleenex.
Now that you know what SAP is and what the advantages of using the SAP software system is, it’s time for the implementation of this ERP in your eCommerce store to automate and optimize processes, drive efficiency, and reduce unnecessary costs.