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Difference between ERP and SAP

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 Enterprise Resource Planning. SAP is an abbreviation for the term – Systems, Applications, and Products.
Vendor Sage Groups, Oracle Applications, SAP AG, and many more. SAP AG
Definition ERP is basically a software suite of various applications involving business process management. SAP is a software development corporation that provides ERP software solutions in the market.
Basics The ERP is a tool used for the management of business processes across various industries. ERP utilises various modules to deal with a company’s all internal processes. We use the term SAP to refer to the SAP AG company’s products. The SAP AG has an integrated solution in the form of the SAP-ERP software. It helps a company streamline all the processes- involving 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 Application ERP links all the available applications of an enterprise/ business into one major architecture. SAP provides an ERP system that acts as a platform for all businesses to consolidate their information and data on a single database.
Features Here are some of the basic features of ERP:

  • Multi-mode and multi-platform facility for all users;
  • Support for business planning activities strategically;
  • Total integration of all the functioning systems;
  • It covers all the functional areas of a business/ enterprise.
Here are some of the basic features of SAP:

  • Provides management facility for procurement;
  • Assists in the development of various products by the company;
  • It supports all the services and sales requirements.

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