Difference between ERP and SAP

What is ERP?

ERP, short for Enterprise Resource Planning, is business process management software that allows an organization to integrate various processes that are essential to running a business into one complete system in order to increase productivity and improve performance within an organization. ERP software is basically a suite of integrated applications designed to manage the key functions of a business including accounting, inventory and order management, human resources, and more. It integrates all those basic functions into one centralized system in order to streamline processes and information flow across the entire business organization. The automated system integrates areas such as planning, inventory, purchasing, marketing and sales, human resources, and finance. The term ERP is not self-explanatory and refers to an industry term for the broad set of activities that would help an organization record and manage its data related to technology and human resources. In short, ERP is a technology that automates the core business processes of an organization in order to eliminate redundant processes and systems.

What is SAP?

SAP stands for Systems, Applications, and Products in Data Processing. It’s a German multinational software giant known for making enterprise resource planning (ERP) software to manage business processes and customer relations. SAP is the world’s largest vendor of ERP solutions and a leader in business applications. SAP provides a software suite of business process applications that are implemented across large or medium size enterprises to provide end to end solutions for logistics, distribution, financial, and inventories. It integrates core business processes across various functions with each function tied up to the respective module in SAP. The modules collect and integrate data from different aspects of the business. There are different SAP modules which share information into an integrated system based on the defined processes. The most implemented SAP modules are Human and Resource Management (HRM), Sales and Distribution (SD), Material Management (MM), Production Planning (PP), Quality Management (QM), Financial Accounting (FI), and more.