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The Working Capital System · four modules that build on each other
01Working Capital Designyour inventory strategy02Integration Accelerator™the ERP connection03Order Steering™ordering rules for your purchasing04Managed Operationsongoing operations
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Working Capital Designyour inventory strategyIntegration Accelerator™the ERP connectionOrder Steering™ordering rules for your purchasingManaged Operationsongoing operations
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What is SAP (ERP) software? And is it only for large corporations?

The key points

  • An ERP is the central software in which a company maps its core processes: purchasing, warehouse, sales, finance.
  • SAP is the largest ERP vendor. The current product generation is S/4HANA; many businesses still run the older ECC.
  • SAP isn't only for large corporations. But rollout and operation are more demanding than for most mid-market ERPs.
  • The honest answer to the title question: it depends on your processes, not your size.

What is an ERP anyway?

ERP stands for Enterprise Resource Planning: a system that runs a company's core processes on a shared data basis. When the warehouse sells an article, stock falls, the booking is created, the planning updates. The value lies in this one truth: no island solutions, no double maintenance, no contradictory figures between departments. Where the boundary to the leaner inventory-management system runs is clarified by the ERP vs. WaWi system comparison.

And what is SAP exactly?

SAP is a software corporation from Walldorf, founded in 1972, and with its ERP systems the world market leader. The system is divided into modules, e.g. MM for purchasing and warehouse, SD for sales, FI for finance. In practice you meet two generations: the older ECC, whose standard maintenance is ending, and the successor S/4HANA, to which many businesses are currently migrating. For smaller companies there's a separate product line with Business One. What the purchasing process in SAP concretely looks like is shown by the article on the SAP procurement process.

Is SAP only for large corporations?

No. Many mid-market companies work with SAP, especially in manufacturing and technical trade. But it's also honest to say: the complexity is real. Rollout, customising and operation need more budget and more internal know-how than most mid-market ERPs, and little happens without a consulting partner. Anyone running standard processes is often faster and cheaper with a smaller system.

More important than the brand question: an ERP switch is rarely the answer to operational problems. High stock and poor supply capability usually arise in the data and ordering rules, and those move along with the switch.

Before you think about a new ERP: check whether the problem is really the system. Usually it's one level deeper, in master data and planning parameters. Those can be put in order in the existing system, without a migration project.

Keep reading

ERP & Systems

EDI vs. API vs. interfaces: system integration in practice.

ERP & Systems

ERP vs. inventory management: differences, pros, cons.

ERP & Systems

The SAP procurement process, explained briefly.

Inventory & Purchasing

ABC/XYZ analysis: a steerable assortment in 4 steps.

In practice

Systempilot with a talk at the ADV conference "Trends in digitalisation".

Inventory & Purchasing

Never out of stock again: automatic demand forecasts in EazyStock.

How much liquidity is tied up in your warehouse?

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