Difference Between ERP and SAP

Want to understand the difference between ERP and SAP? This article explores the key distinctions between these two terms, providing insights into their definitions, features, and benefits. Whether you’re an IT professional, business owner, or simply curious about these topics, read on to learn more about ERP and SAP and how they differ.

Every growing business needs some sort of automated system that manages operations efficiently and effectively. Enterprise resource planning solutions are at the heart of this automation. You must have heard the terms ERP and SAP or have often used these terms interchangeably. In this article, we will talk about ERP and SAP and cover the difference between ERP and SAP.

Tabular Comparison – ERP vs SAP

ERP is a category of software encompassing a range of applications for managing business processes, while SAP is a specific vendor of ERP software offering a comprehensive suite of applications to manage various aspects of business operations.

Tabular Comparison – ERP vs SAP

	ERP	SAP
Type	ERP is a type of software businesses use to manage and integrate their business processes.	SAP is a specific vendor of ERP software.
Modules	Includes finance, HR, supply chain management, manufacturing, and CRM modules.	SAP provides a comprehensive suite of ERP applications that can be customized to meet the specific needs of different businesses.
Features	Provides multi-platform and multi-mode facilities. Supports strategic and business planning activities. Provides complete systems integration. Covers all functional areas.	Provides ease of purchasing management. Helps in product development. Supports sales and services.
Vendors	Sage Groups, SAP SE, Oracle Applications, etc.	SAP SE

Must Explore – ERP courses

What is ERP?

ERP is the acronym for Enterprise Resource Planning. It is a type of software that allows companies to integrate different operations within the same program. In the same program, you can unite production operations, logistics, inventory, accounting, and human resources. 

Another advantage of ERP systems is their ability to automate processes, which helps companies save time and costs. Thanks to the application of an ERP within the company, you can bring together a large amount of important information about the performance of the business on the same platform.  

Some of the most popular ERP systems are –

• Oracle Cloud Enterprise Resource Planning
• SAP ERP
• Microsoft Dynamics 365
• Odoo
• SAP Business One
• SAP S/4HANA
• ERPNext
• Dolibarr
• Microsoft Dynamics AX

Also Read – What is ERP?

The term ERP was coined by Gartner in 1990. However, its roots go back to the 1960s. It has expanded its functionalities and added business intelligence in today’s scenario. You need a sophisticated information technology infrastructure to work efficiently.

The most relevant characteristics of ERP software are the following:

• Introduction and analysis of information in real-time and from anywhere
• Monitoring of sales, supply chain and manufacturing processes
• Instant identification of problems or errors
• Management of benefits, payroll and employee data
• Improved decision-making based on figures

Must Read – Key Phases of ERP Implementation and Best Practices to Follow

What is SAP?

The SAP System, or “Systems, Applications, Products in Data Processing”, is an enterprise resource planning software developed by the SAP SE, a German multinational software company. ERP software, or enterprise resource planning, is modular software created to integrate the main functions of an organization’s core business processes into a unified system. SAP is one of the world’s largest providers of ERP system software.

What is SAP for?

SAP collects and processes data from all company functions on one platform. It is essential for many organizations because it allows all departments to communicate with each other easily. The success of any organization depends on effective communication and data sharing between its functions, and SAP is a good way to support those efforts.

SAP Modules 

SAP modules allow clients to have greater control of the different sectors of the company in real-time and with updated information: 

• Human Resource Management (SAP HRM)
• Material Management (SAP MM)
• Financial Supply Chain Management (SAP FSCM)
• Production Planning (SAP PP)
• Sales and Distribution (SAP SD)
• Financial Accounting and Controlling (SAP FICO)
• Project System (SAP PS)
• Quality Management (SAP QM)
• Plan Maintenance (SAP PM)

In short, SAP is a computer system that serves to provide information. Based on data and analyzing everything processed, the system produces the information necessary to make decisions so that they can be interpreted by those who use them.

Related – Types of ERP Systems: Which One is Right for Your Business?

Conclusion

In short, the key difference between ERP and SAP is that SAP is one of the largest ERP software providers in the world, while ERP is not a brand as such but a product, service or system of which there are different providers.