SAP ERP Can Be Complicated To Understand
We Developed This SAP ERP Mindmap To Clarify What It Is
One of the most common questions we get asked by CEOs, CIOs, CFOs, CMOs, and Executives at all levels, is "What is SAP ERP"?
ERP can trace its roots to MRP (Material Requirements Planning) and then onto MRP II (which has various definitions but in the late 1980s had 16 modules). Fundamentally, ERP represents an evolution of these two approaches to managing the dependent and independent demands of a manufacturing environment. It turns out that the concept can be applied to virtually any industry, for example, Real Estate, and has been.
- Download our unique SAP ERP MindMap which will provide you with a complete overview of the ERP system.
- Compress 6 months of study down into one simple learning tool.
Use our SAP ERP Mind Map to both understand what ERP is and what SAP has to offer.
SAP ERP Provides Consistent Data
Many ask what is the core strength of SAP ERP. You should notice the connecting lines between every part of the system. The interconnected nature of the system ensures the enterprise has consistent data, no matter where it was created or how you are using. That means the SAP Financial and Controlling system has the exact same view of inventory as does the SAP Extended Warehouse Management System.
Just What is Consistent Data?
Briefly stated, it means data that means the same thing wherever and however you are using it. Let's take a common example where data inconsistencies seep into many systems - handling units. What's a handling unit? It is, for example, how a retailer describes all the different packages than article may be packaged in, including what the client sees, as well as all of the different handling unit variations the item may experience as it makes it way through the supply chain. This can range from an EA (Each), to Box, Case, Pallet, Shipping Containing, Train-Car, to air-cargo container. The conversion factor, as to how many of the article might go in each container, often times varies from system to system. That's where data inconsistencies seep into your system and one of the core strengths of having two different companies, who both use SAP, interacting with each other. They speak the same language across the supply chain.
Common Data Consistency Issues
Sticking with our Retail Article Master example, a common issue which must be handled is stacking rules within trucks. Many items, for example, refrigerators, must be stacked a certain way. This will be specified by the manufacturer. You will commonly see measurements such a L,W,H or H,L,W, (Length, Width, Height), as being the specified order in which dimensions must be measured, and from when cube units are calculated. This determines how many truckloads will need to be contracted for, as well as how much weight will be shipped, both factors that often go into shipping cost calculations. If any two parties fail to follow the same measurement procedure (and they often do not follow the same rule), or don't measure it all, it will cause shipping cost calculation problems and ultimately, financial disputes between the parties. In extreme cases, it may result in trucks being overloaded, which can result in tickets being issued when they are found to be over highway weight limits.