Difference between ERP and SAP | ERP vs SAP

By Mohit Uniyal|Updated : November 8th, 2022

Differences between ERP and SAP is that SAP is the software-producing enterprise, and ERP is the software produces by SAP. SAP and ERP both help run the business efficiently. SAP sells the ERP to help grow a business.

Difference between ERP and SAP PDF

ERP was produced by SAP in order to help the efficient planning of large enterprises. Here, we will explore the difference between ERP and SAP based on various aspects such as usage, meaning, etc. 

Difference between ERP and SAP

The ERP and SAP are different from each other. The ERP is a software and SAP is a developer of software. The difference between ERP and SAP is essential for the GATE CSE exam. SAP provides the ERP software in order to increase productivity and performance of the enterprise.

Key Differences between ERP and SAP

ERP, or Enterprise Resource Planning, is used to manage business processes.SAP, or Systems, Applications, and Products, is a software company.
SAP is the seller of ERP.SAP provides and produces ERP-based software systems.
Used to smoothen the processes of a setup.Used to interact with various aspects of the business.
It is an online web application.It is a software developer.
It is a multi-platform software.It is a management facility and a software development corporation.
Sold by Sage Groups, Oracle applications, SAP AG, etc.Sold by SAP AG.

What is ERP?

ERP's full form is Enterprise Resource Planning. ERP is a type of planning software. It is developed specially to ease the day-to-day tasks of the enterprise. It helps in managing managerial tasks to logistic tasks. The ERP is important for the GATE exam as well.

The key features of the ERP are:

  • Helps in monitoring the growth of the enterprise.
  • ERP manages the resources of the enterprise.
  • ERP integrates the services of the enterprise necessary to run it.

What is SAP?

SAP's full form is System, Application, and Product. SAP is the developer of various types of software. The software developed by SAP is used to manage customer relations and business operations efficiently. SAP is a German multinational software company.

ERP is sold by SAP, the world's largest ERP vendor. The SAP-produced modules are:

  • Human and Resource Management
  • Sales and Distribution
  • Material Management
  • Production Planning
  • Quality Management
  • Financial Accounting
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FAQs on Difference between ERP and SAP

  • The main difference between ERP and SAP is that ERP is a planning software whereas SAP is the Enterprise which sells the ERP software. The SAP is the largest seller of the ERP software in the world which is used to manage the functions of the organisation.

  • SAP differ from the ERP in various ways. SAP is the provider of the EPR. It is the second most expensive ERP system. EPR is a product of SAP and is used to provide resource planning to big enterprises.

  • SAP is an EPR. Even SAP CRM is a part of ERP. It is used for resource planning. The SAP EPR customize business processes. The SAP full form is System Application and Product.

  • The three types of EPR systems widely used nowadays for Enterprise Resource Planning are:

    • cloud ERP,
    • on-premise ERP, and
    • hybrid ERP.
  • Various modules of the ERP are:

    • Finance
    • Procurement
    • Manufacturing
    • Inventory management
    • Order management
    • Warehouse management
    • Customer relationship management (CRM)
    • Professional services automation (PSA)
    • Workforce management (WFM)
    • Human resources management (HRM)
    • Ecommerce
    • Marketing automation. 

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