all about sap and erp system in supply chain mgmt.

1. SAP-Enterprise Application
Presented by: Khushboo Choudhary

2. ERP
Stands for ENTERPRISE RESOURCE PLANNING.
An Extension of MRP (Material Requirements Planning)
and CIM (Computer Integrated Manufacturing).
It is a company-wide computer software system used to
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It is a company-wide computer software system used to
manage and coordinate all the resources, information, and
functions of a business from shared data stores.
SAP by definition is also name of the ERP software as
well as the name of the company.

3. Typical enterprise business process
Enterprise software
system can be broadly
classified into two
types:
I. Decentralized
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I. Decentralized
systems
II. Centralized systems
– also called ERP

4. Why ERP is required?
Enterprise-wide system which integrates the business
functions and processes of an organization.
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functions and processes of an organization.
Utilizes a Common Information System.
It helps in effective forecasting, planning and scheduling.
It gives a Competitive Advantage.

5. ERP CHARACTERSTICS
Integrated System
Real Time
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Best Practice
Process Oriented
Customizing
(Configuration)

6. SAP
Stands for SYSTEM, APPLICATIONS, AND PRODUCTS
in DATA PROCESSING.
SAP is the Market Leader in ERP Software Solutions.
Global Software product engineered on MULTILINGUAL and
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Global Software product engineered on MULTILINGUAL and
MULTINATIONAL platforms.
An Integrated Enterprise Resource Planner.
The system comprises of a number of fully integrated modules.

7. SAP is a Centralized Enterprise
Management System.
Founded in Germany
(1972)
World’s fourth largest
software provider
World’s largest provider
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World’s largest provider
of Integrated Business
Solutions software
Company stock trades on
the Frankfurt and New
York exchanges

8. Name of the company
SAP AG
SAP America
Name of the software
SAP R/2 – Mainframe version
SAP R/3 – Client/Server version
My SAP ERP
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My SAP ERP
The concept of Client/Server version is still very popular
despite the growing popularity of other environments and
architectures.

9. Client/server environment
The Communication and Interchange of data between the
requesting and supplying machine is known as the
Client/Sever Relationship.
Enables a company to link it’s business processes in Real-
time, Scalable and flexible environment.
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Client
Software/hardware combination that can make a request
for services from a central repository of resources
Server
Software/hardware combination that can provide services
to a group of clients in a controlled environment

10. Major ERP Vendors
Different ERP Software Solutions Vendors in the Market
are:
I. SAP
II. RAMCO
III. BAAN
IV. IBM
Oracle Applications
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V. Oracle Applications
VI. MicroSoft Dynamics
VII. CA
VIII.JDE
IX. PeopleSoft
X. JD Edwards
XI. SSA Global Technologies

11. Advantages
Integration among different
functional areas to ensure proper
communication, productivity and
efficiency.
Order tracking, from acceptance
through fulfillment.
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through fulfillment.
Permits control of business
processes that cross functional
boundaries.
Reduces the risk of loss of
sensitive data.
Provides control over various
business process.

12. Disadvantages
Customization of the ERP software is limited.
ERP systems can be very Expensive.
ERPs are often seen as too rigid and too difficult to
adept to the specific workflow and business process of
some companies.
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some companies.
Resistance in sharing sensitive Internal Information
between departments.

13. SAP Business Modules
Financial Accounting (FI)
Sales and Distribution (SD)
Materials Management (MM)
Warehouse Management (LE – WM)
Production Planning (PP)
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Production Planning (PP)
Project System (PS)
Personnel Development (PA – PD)
Enterprise Controlling (EC)
Personnel Administration and Payroll Accounting (PA)

14. SAP technical overview
IN SAP “techno “ speak, the WebAS or
Basis system is the middleware or
Software that functions as a
conversion or translation layer
between the technology ad
business/application layers of a
computing solution and allows the
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computing solution and allows the
various SAP applications to run on
different hardware and system
platforms. Some of these available
platforms, as well as their technology
and business - enabling layers are
displayed.

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SAP WebAS/Basis available platforms

16. Basis tools
Remote Functions Calls (RFCs)
Common Program Interface Communications (CPI – C)
Electronic Data Interchange (EDI)
Object Linking and Embedding (OLE)
Application Link Enabling (ALE)
16 Basis Tools

17. Overview of mm module
“Material Management is the management of the flow of
materials into an organization to the point, where those
material are converted into firm’s end products”.
SAP MM Module is one of the most important SAP Modules
where MM stands for Materials Management – underpins
the supply chain, including
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the supply chain, including
I. Requisitions
II. Purchase orders
III. Good Receipts
IV. Account payable
V. Inventory management

18. Why need MM..???
Amount spend on material is higher than other inputs.
Material offer considerable scope for reducing cost and
improving profit.
Material add value to the product.
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Material add value to the product.
Efficiency of any organization depend upon the
availability of right material, in right quantity at right
time.
Quality of end product depend on material.

19. Material Management Component
Consumption Based Planning
(CBP)
Purchasing
External Service Management
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External Service Management
Inventory Management
Logistic Invoice Verification
Vendor Evaluation

20. MM
Materials
mgmt
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2
7
Source
1 Determine Requirements
Goods receipt and
inventory management
Plan
Rqmts.
InvoicePurchase
order
Invoice verification
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Purchase
order
6
5
4
2
Order follow-up
Order processing
Vendor selection3
Source
determination
inventory management

21. Benefits of MM
Material cost can be lowered down
Controlling of indirect cost
Risk of inventory loss minimized
Reduction in loss of time of direct labor
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Reduction in loss of time of direct labor
Control of manufacturing cycle
Material congestion in storage places
avoided
Improvement in delivery of the product

22. Process flow
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Process flow in MM

23. SAP Industry Solution
• Aerospace/Defense
• Automotive
• Banking
• Chemicals
• Consumer Products
• Media
• Mill Products
• Mining
• Oil & Gas
• Pharmaceuticals
Public Sector
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• Consumer Products
• Engineering/Construction
• Financial Svc Provider
• Healthcare
• High Tech
• Higher
Education/Research
• Public Sector
• Retail
• Service Providers
• Telecommunications
• Utilities
…so on …

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25. Thank you..!!
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