The most imperative challenge that a number of managers face in recent years has been to regain lost market share and secure new competitive advantages. The impetus for this trend continues to be the ubiquitous tendency towards globalization and the ensuing intensification of international competition. Customer orientation, lean management and re-engineering are the buzzwords that characterize these efforts. Within this context, there is hardly a corporate function that has grown in significance in recent years as much as logistics.
Increasingly, logistics is being functionally mapped in standard business software. Accordingly, there is great demand for logistical expertise in connection with the know-how surrounding the implementation of logistics in complex information systems. The SAP Business One is one such solution that gives companies complete control over various business process involved in logistics management.
This article looks at the various modules of the SAP system, and its benefits for the company.
SAP Logistics and Production
Logistics and production is the most extensive area of SAP and contains the largest number of modules. The logistic modules run all processes concerned with the internal supply chain, from raw material procurement to final customer delivery and billing. These functions interact with virtually every module, from financial to human resources.
The main logistic-related modules are:
Sales & Distribution (SD)
Production Planning (PP)
Material Management (MM)
SAP Sales and Distribution
This is the second most deployed module and encompasses the complete sales cycle from order and quotations over shipping and transportation to billing and customer payment processing. Sales and Distribution supports Electronic data interchange (EDI), fax, mail and more. Other useful features include the immediate product availability and delivery schedule information by integrating with Material Management and Production Planning. In addition, thanks to seamless integration with SAP Financial Accounting modules, company receivables and revenues are immediately updated.
SAP Material Management
Material Management includes all activities related with material acquisitions (purchasing) and control (inventory, warehousing). The warehouse management modules manage complex warehouse structures, storage areas and transportation routes. Stock is always controlled because every material movement is immediately recorded.
SAP Production Planning
Production planning provides a whole range of production methods from make-to- order production to repetitive manufacturing / mass production for discrete, batch oriented and continuous production. This business area is a very complex part of SAP, extensively integrated with Sales & Distribution and Material Management. Furthermore, there is greater cohesion between related modules Plant Maintenance, Quality Management and the Project System.
The evidence supporting SAP Business One as an effective Logistical Management solution is overwhelming. Over the years, multiple companies have tried and tested the efficacy of the software; and as a result have hugely benefited from the fruits of a well endowed integration. If you are looking for a full featured solution for your managing your company’s logistics hurdles, well then look no further. The SAP Business One for Logistics has stood the test of time and come ahead as a go-to business solution, which will help your business keep-up with market changes and growing competition.