What is SAP? Definition of SAP ERP Software
SAP stands for Systems Applications and Products in Data Processing.
SAP by definition is also named of the ERP (Enterprise Resource Planning) software as well the name of the company. SAP Software was Founded in 1972 by Wellenreuther, Hopp, Hector, Plattner and Tschira.

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Enterprise Resource Planning
The very basic question to any beginners is why Enterprise Resource Planning also called ERP is required? To answer this, let’s examine this typical business scenario.
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Approaches sales team
Suppose a client approaches sales team asking for a particular product. The sales team contacts to inventory department to check the availability of the product.
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SAP ERP tool
To their surprise, sales team found out that the product is out of stock. So next time this don’t happen, they have to introduce a SAP ERP tool.
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What ERP is
Before we actually see in detail, what ERP is and how ERP can help in your business process, we will understand how different departments are involved in the whole business process.
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Client contacts
Client contacts the sales team to check the availability of the product
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Sales team approaches
Sales team approaches the Inventory department to check for the availability of the product
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Production Planning Department
In case the product is out of stock, the sales team approaches the Production Planning Department to manufacture the product
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Inventory department
The production planning team checks with inventory department for availability of raw material
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Material from the Vendors
If raw material is not available with inventory, the Production Planning team buys the raw material from the Vendors
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Shop Floor Execution
Then Production Planning forwards the raw materials to the Shop Floor Execution for actual production