Comparison Between ERP - SAP

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ERP VS.

SAP: Know the Differences between ERP and


SAP
Both of these are used for the management of resources and functions in a workplace, but
there is a key difference between ERP and SAP. ERP refers to a management tool for
business processes. It utilises various resources to deal with and manage a company’s basic
internal processes. The SAP, on the other hand, refers to the products from the SAP AG
company. They have created an integrated solution using the SAP-ERP software. Businesses
across various industries use it to streamline the overall processes of manufacturing,
procurement, sales, service, human resource, as well as finance.

In this article, we will discuss the basic differences between ERP and SAP. But before we do
that, let us understand a bit more about each of these in detail.

What is ERP?
The term ERP is an abbreviation for Enterprise Resource Planning. The ERP software is
basically an all-in-one tool used by many businesses for managing all of their human
resources, bill payment, purchasing, manufacturing, and accounting processes. This database
acts as the backbone of a commendable ERP platform. It helps businesses collect crucial data
and information on their clients as well as employees- and all these helps professionals
manage day-to-day operations. In the arena of ERP software in the market, SAP is a well-
recognised name. It is now synonymous with ERP- and yet, SAP is just one of the providers
of ERP solutions.

What is SAP?
The term SAP is an abbreviation for Systems, Applications, and Products. SAP is an
established software company that provides its clients with solutions for distributions,
manufacturing logistics, financials, and many more. As a system, SAP is a product of the
company named SAP AG. The SAP-ERP is a very famous software and an efficient solution
for ERP. It acts as an integrated system where all the modules of the SAP share their
information and data. The system carries out all the transactions automatically on the basis of
the processes defined in it.

Difference between ERP and SAP


Let us talk about the differences present between ERP and SAP.
Parameters ERP SAP

Full-Form ERP is an abbreviation for the term SAP is an abbreviation for the term – Systems,
Enterprise Resource Planning. Applications, and Products.

Vendor Sage Groups, Oracle Applications, SAP SAP AG


AG, and many more.

Definition ERP is basically a software suite of SAP is a software development corporation that
various applications involving business provides ERP software solutions in the market.
process management.

Basics The ERP is a tool used for the We use the term SAP to refer to the SAP AG
management of business processes across company’s products. The SAP AG has an integrated
various industries. ERP utilises various solution in the form of the SAP-ERP software. It helps
modules to deal with a company’s all a company streamline all the processes- involving
internal processes. manufacturing, sales, procurement, service, human
resource, and finance.

Correlation It is one of the supersets of SAP. It is one of the best vendors in the market for software
dealing with ERP systems.

Mode of ERP links all the available applications of SAP provides an ERP system that acts as a platform for
Application an enterprise/ business into one major all businesses to consolidate their information and data
architecture. on a single database.

Features Here are some of the basic features of Here are some of the basic features of SAP:
ERP:
 Provides management facility for procurement;
 Multi-mode and multi-platform  Assists in the development of various products
facility for all users; by the company;
 Support for business planning  It supports all the services and sales
activities strategically; requirements.
 Total integration of all the
functioning systems;
 It covers all the functional areas
of a business/ enterprise.

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