Sap Services

Sap is used as a full enterprise resource planning (ERP) software meaning helping with financials, distribution, manufacturing, project management and customer relationship management (CRM).

SAP is an Enterprise Resource Planning software (ERP) from the company SAP AG, Germany. SAP (or generally any ERP) is used in large or medium size enterprises to integrate the processes across various functions. Each function is handled by the respective module in SAP (or any other ERP) software. For example, SAP has modules called Sales & Distribution (SD), Advanced Planning and Optimization (APO), Quality Management (QM), Purchasing (MM-PUR) Warehouse Management (WM), Production Planning (PP), Finance (FI) and many other.

Let’s take a simple example. When a customer places an order(via web/EDI/directly in SAP),this order is created and handled by the SD module. This module will make sure that customer data, quantity, pricing, shipping preferences, delivery dates etc. are accurately captured and maintained as per the defined rules.

SD modules will integrate with APO module to check whether or not the ordered product (or raw material to produce it) is in stock or will be in stock by the required date. If not, order may not be accepted, different date may be proposed or can be put on back-order.

If product has to be manufactured/assembled, then PP module will handle the production (how much to produce, what raw materials and quantities are required, when will production start, which production line will be used, what steps have to be performed, capturing the labor time and costs etc.).

QM module will make sure that produced material is inspected and passed before it can be shipped to customers.

WM module will handle the picking of the ordered products from the warehouse. For example it will facilitate the decision about who will pick the order, in what sequence, from which shelf it will be picked, which strategy will be followed (First Expiry First Out or First In First Out or other), which packaging box will be used for shipping, what path operator or machine should use to minimize the travel within warehouse, printing of the customer / transportation documents (packing list, shipping labels, others) etc.

FI module handles the billing and cost components in this process and aggregates and allocates the share of revenues/costs to different departments.

This is just a very simple example of outbound shipping scenario involving some of the mainstream SAP modules. Similar simple examples can be created for inbound receiving processes and for internal processes. Not all of the modules are used in all places. Let me know in the comments if there are any specific questions.

Sap is used as a full enterprise resource planning (erp) software meaning helping with financials, distribution, manufacturing, project management and customer relationship management (crm). It is a strong global player with numerous Fortune 500 clients. They are a company to be respected.