Let’s assume you are planning to start a new company, which is an Electric Bike manufacturing company.
- During the start of the company, you need materials like Steel, aluminum, screws, nuts, accountant, logistics requirements etc., from different suppliers to manufacture a bike with the best price available to customers to buy it.
- Once you have all the input materials, you can start manufacturing a bike with your technical/engineering team. Now the bike is completed and sent for testing, passed all the tests and ready to release in the market to make it available for customers
- Now you will showcase the bike at an auto showroom. Received positive feedback from the public with huge, advanced bookings.
- Now you must start mass production and deliver the bikes across the locations in the country as per the booking agreement.
- While building one bike, you would require one or two sets of each material, with small team, place to sell, QA check list and the finances that can be managed using an excel sheet. Till now, you can be able to lead the process and personally monitor all the end-to-end aspects of making a bike.
- But now you are proceeding with mass production, then you need a large volume of input materials, big technical/engineering team, huge money to manage the finance activities and you need to deliver the bikes to multiple locations on time
- At this stage, how do you manage everything very efficiently?
- Here SAP comes into a picture that keeps everything organized and helps you to manage the end-to-end activities, even scaling up your business to thousands or millions of bikes
- SAP is a business application that helps companies keep track of their work in different areas called modules (FICO, MM, SD, PP, HR etc.) which talks each other and manages the various activities of the entire company.
- SAP FICO- This module helps to manage all your accounting needs (how much is spent, what is the revenue etc.)
- SAP MM- This module helps to handle all types of materials procurement from different suppliers and manage inventory(to keep track of the availability of raw materials for production needs)
- SAP SD- This module supports your sales activities starting from customer quotation to sales order, billing and customer payment
- SAP HR- This module helps you to manage activities related to your employees (Ex: salary, leaves, events, travel etc.)
- SAP CRM- This module helps to keep track of all the customers and find ways to make them happy like remembering their birthdays, marriage days and sending them gifts.