SAP (system applications and products in data
processing), is a package which allows more:
1. Flexibility.
2. Customized solutions to suit your business.
3. Highly integrated with other modules.
4. Industry specific modules with a deep insight.
5. Continuous support.
The major advantages of sap erp, is the HIGHLY INTEGRATION WITH OTHER
MODULES OF BUSINESS, which is not there in other SOFT WARES.
In other software, you need to have different software's for different
module.
e.g. BAAN, ORACLE MANUFACTURING, etc.
There, integration becomes the issue, not all software support some
integration's except for SAP, so SAP is clear WINNER .
Further Advantages Of SAP
ERP
1. Reduction in sales order processing costs.
2. Reduced time to calculate selling price.
3. Increased Cash Flow (one-time event).
a. Savings result due to access to real-time transaction information
by all authorized users (visibility),
b. Reduced request-to-quote time.
c. Reduced order-to-delivery time.
d. Reduced delivery-to-invoice time.
4. Reducing the number of days sales outstanding (DSO) by freeing-up
capital (I.e., reduced working capital; free cash flow).
a. Reduce the amount of borrowed funds required.
b. Increase investment potential.
c. Reduction (of DSO) achieved through faster order-to-cash time.
d. Accurate & timely information leads to reduced reconciliation's
and better management of the billing process leading to quicker payment
and a reduction in accounts receivable (DSO), number of disputes per order.
5. Increased revenues due to less stock outages (reduction in lost sales).
a. Reduced loss of revenue due to items being out-of-stock.
b. Fewer stock outages occur because there are more reliable materials
buying processes/procedures in place.
c. Increases customer satisfaction due to the higher availability of
products.
6. Reduction in distribution costs.
7. Reduction in freight costs.
Additional Advantages Of SAP ERP
1. Vast array of modules, with huge spectrum of functionalities which
ARE NOT PROVIDED by other ERP applications.
2. Specific functionalities which are core competencies of SAP while
they are not available in other ERP applications, makes it an obvious choice
for some specific industries. E.g. Variant configuration and Automobile
industry.
3. SAP knowing the demand for special processes for each industry has
come up with industry specific solutions which are unheard of from other
applications.
4. Not only on the functionality side, but also on the system architecture
and landscape SAP is innovating day by day from R2 to R3 to ECC to SOA,
to adopt to the business needs, thus adding immense value to the customers.
5. SAP also gets complimented by most ubiquitous office applications
of MS namely MSWord.
6. Also SAP's market share gives some certainty of business and hence
it is much better than any other smaller ERP applications in terms of career
prospects.
Owing to all these advantages of sap erp which are not prevalent in
other applications, SAP will obviously become the hot choice for every
client who is willing to have a robust and efficient system.
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