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Disadvantages Of SAP

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INTRODUCTION

This paper serves to explore the potential benefits of implementing an ERP system, namely the Systems, Applications & Products in Data Processing (SAP) software, into a business’s distribution process. It seeks to educate the reader on what an ERP/SAP system is, benefits of implementing it as well as best practices to enable successful implementation of the system.
Background
According to the official SAP website, (SAP America, 2017) stands for Systems, Applications and Products in data processing. It is an Enterprise Resource Planning (ERP) system by SAP AG, a company based out of Wall Dorf in Germany. It provides end to end solutions for financials, manufacturing, logistics, distribution etc. All business processes are executed in one SAP system, which …show more content…

A good distribution system quite simply means the company has greater chance of selling its products more than its competitors. The company that spreads its products wider and faster into the market place at lower costs than its competitors will make greater margins absorb raw material price rise better and last longer in tough market conditions” (The Economic Times, 2017). This therefore shows just how important the distribution industry is to the supply chain and the overall process of buying and selling products. In Jamaica, we recognize that there is a common problem within the distribution process, namely, inventory management which can be defined as the supervision of non-capitalized assets and stock items,(Rouse & Cole, 2017). We have observed where companies have been underperforming because of the poor use of forecasting methods and other tools critical to success. This, in turn, leads to a decline in production and triggers a domino effect that results in dissatisfied customers. This observation led us to do further research and a common issue that was discovered is the lack of Enterprise Resource Planning systems within Jamaican

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