Business Processes and How They Are Developed in a Variety of Industries - Research Paper Example

The modules include SAP financials, Human Capital Management and SAP operations. Currently, it has been used by copious leading companies of the world including Microsoft, DHL, NASA, Shell, Siemens, Exxon, Compaq and many others. It is popular because of its handy functioning which directs the correct scheme of operations (Hernandez, 1997). SAP’s Definition of ERP: How do Managers Use SAP?SAP efficiently redefines the procedures and outcomes of enterprise resource planning in the following manner:• Financials: It provides powerful insights regarding future decision making.

By budgeting and financial management through SAP, managers may get the acquiescence and better predictability ensured. It is a better means of future forecasting and budgeting decisions. It mechanizes financial management (accounting and scrolling) and financial supply chain management through automation. It offers meticulous support for corporate governance authorizations for example Basel-II. • Human Capital Management (HCM): It provides an optimized solution that covers the entire aspects of contemporary HCM practices.

For example, the Global view of human capital. It furnishes the aimed goals in a concrete and precise manner. The potential of the workforce is optimized and maximized by introducing innovation and suppleness. The Human Resource processes are aided by keeping international standards and contemporary HR practices in view. • Operations: It aids the overall supply chain and logistics process. The decisions related to procurement, safety inventory and business facility are met basically. The complete view of business cycle and supply chain management is critically put forward.

Profitability, production or manufacturing and distribution are the core areas covered while in a supply chain. Quality controlling, error reduction and quality assurance in operation management are the areas of business operations management.Supported Business ProcessesSystem Applications and Products (SAP) utility supports a wide range of business processes across the supply chain, operations and logistics management (Hernandez, 1997). Following is a brief description of processes that are basically supported by the software.

• Inventory management: Inventory management is the basic process in order to get operations proficiency. The two views of proficiency are efficiency and responsiveness which are directly based upon inventory management decisions. There are two types of inventories which are needed to be managed. First, raw material inventory (in manufacturing businesses) and second is finished goods inventory (manufacturing as well as retail businesses). An optimal inventory level plus a cushion of safety inventory is calculated and managed.

It helps in tracking material usage and implementation. • Sales and Order Management: a complete record of sales and orders are kept in form of invoices. It also provides support for after-sales services such as defect claims after the sale. After-sales support also helps in ensuring the quality and maintaining long term relationships with the customers (SAP, Official Web Page). • Transportation Management: Order tracking, shipment lots consolidation and other transportation facilities are supported by SAP enterprise resource planning software utility.

Sharing the information through electronic means can provide well again order deliveries. The business partners may interact in an improved way through shared information that is readily available. • Warehouse Management: Managing the warehouse facilities were never this much easier before the introduction of SAP. It helps in optimizing the warehouse activities, inventory in hand and order inventory trade-off. It may further help to generate better insights in order to take strategic supply chain decisions.

Real-Time Scenario: Companies Using SAPThere is a wide list of companies that are partners with SAP. They are successfully using the SAP as the utility software for Enterprise Resource Planning (ERP) (Leary, 2000). Here we have three leading companies who are the strategic partners of SAP:• Microsoft Incorporation: Microsoft is one of the leading drivers of the world who are using SAP as ERP utility software. It uses SAP across its supply chain. It is a great deal to use this software for order processing and after-sale services in particular.

A great alliance has been observed between Microsoft and SAP in the name of Deut. • Shell Petroleum: Shell uses SAP as their ERP software having 17000 users at 22 locations internationally. It has high-performance results and efficiency in production. It enables the company to generate a high volume of revenues and to maintain an optimum level of inventory at warehouses. Order tracking, inventory management, customer relationship management and warehousing facility management are the key areas that are assisted by the SAP at Shell.

• DHL: SAP has been a strategic, innovation and global partner of SAP since 2009. For such a logistics leader of the world, SAP is working proficiently for several areas of operations. In order management, human capital management and financial budgeting, SAP has shown efficient and improved results for the last three years.SAP in Aerospace and Defense: For aerospace and defence, SAP has provided a number of performance-oriented utilities. It helps to simplify complex structural operations.

The system-based approach is used in specific comportment that helps in the reduction of intermediaries and generates a centralized shared operative system to employ an extensive streamline across the organization. It increases the efficiency of strategically held performance variables. The responsiveness along the supply chain is also aided in the case of underlying fields. SAP offers a wide range of security measures that offer the travelling of sensitive information in a whole protected way.