There is a need for SugarSquared Inc. to adopt the use of SAP Enterprise resource planning (ERP) software for its operations. SAP is the best system that would enable the firm to deliver its integrated sequence of business operations. The system can incorporate all the critical business functions of an organization. It has many benefits that suit the needs of SugarSquared Inc., where it will be of help in the management of its processes. The processes includes the human resource, the logistics, the silos, the retail prices, and its entire supply chain hence enhancing the company’s efficiency and helping it achieve its projected goals and objectives.
Benefits of the SAP ERP system
The SAP software has numerous benefits that would easily match with the expectations of the Sugar Squared Inc., company. A significant advantage of the system is the fact that it has incredible financial management capability as compared to most of the other systems (Heinzelmann, 2017). It has features like accounts receivable, accounts payable, and fixed assets management, which is very critical for the organization.
Another benefit of the SAP software is that it has features for HR management. The system manages the firm’s HR functions, and aloes permit the user to access critical information regarding the employees all in one place. The employee gets to enjoy a designated portal, where they can update their data when the need arises (Grube & Wynn, 2019). The SAP ERP also helps with an issue such as the payroll and e-recruiting functionality that could be of great use to the SugarSquared, Inc. in dealing with the retention of the workers and battling the challenge of turnover.
The software is very efficient with regard to the management of the supply chain. In distribution management, the system provides critical information reading the warehouse profitability and is also essential in the management of the distribution tasks (TURBAN, VOLONINO, & WOOD, 2015). SAP has the purchase order processing feature, which could provide sustainable solutions on the issue of management of warehouses for SugarSquared, Inc. It also utilizes the procure to pay model, which assists firms in the management of purchases and enforcement of the vendor choices, while at the same time looks at the procurement patterns that drive future decisions (Grube & Wynn, 2019). It also has an order to cash function that could help in the management and other elements of contracts with the vendors, as well as ensuring that there are efficient deliveries. SAP has also proved to be efficient on matters of inventory management, pricing, and on CRM, all of which are much-needed functions that could help in the management of operations at SugarSquared, Inc. and help in the management of all the systems (Shim S. J., 2019). This shows that the system is best suited for the company due to its efficiency in tackling significant challenges and helping with the smooth running of the critical operations.
Challenges in implementing this system
A major problem likely to be faced when implementing this system is on the issue of training. Before its implementation, there is a need for the firm to plan on how to train the workers and concerned stakeholders. They should be trained on how to run the system, failure to which may lead to resentment from the workers (Shim & Shim, 2018, October). A resentment may mean heavy degrade of the productivity process, a factor that may negatively affect the growth of the firm and attainment of the set goals. Another likely challenge of using the system is the high implementation costs, which is greater than the initial costs. The total cost of this system may depend on the customization costs, where the more significant the customization is, then the higher the costs of implementation.
There may be a challenge of cross configuration between the SAP and other systems. Once the SAP is installed, it becomes prefigured, to suit the precise business needs. The introduction of other policies that are different from the SAP configuration may lead to complications (Shim & Shim, 2018, October). Trying to address the complexities may lead to further issues. This is an issue that the company should be very keen on before making the choice of introducing the system. The company ought to invest in an integration program that would help in the standardizing of the data structures between the ERP data and the SAP install.
A challenge associated with having the SAP system for SugarSquared Inc. is that the SAP database could get pretty significant since the flow of data within the system will need constant interaction and for all the processes. This could lead to bottlenecks and slow down the generation of results. To overcome this issue, the firm could utilize the SAP cloudy servers, and consequently exploit the nearly limiting processing and storage power to work seamlessly with the system (TURBAN, VOLONINO, & WOOD, 2015). An installed integration could also adjust dynamically as a way of dealing with the incoming extensive volume processing, making sure that the processing power is efficiently used.
Vendors that offer such systems
Multiple vendors deal with the sale and installation of the SAP system. However, the system has an online store, where a company can buy and have the system installed and integrated into the company system. It can also be purchased as an application that is licensed on a perpetual named-user basis from SAP directly. Alternatively, it could be licensed with an investment in SAP businesses all in one through the reselling partners (Heinzelmann, 2017). The most preferred one is, however, by buying directly from the SAP online store since there will be no middle parties and that the company will ensure that the system effectively works with the company. It is also able to undertake its necessary tasks.
Business factors to address to make this determination
Before purchasing a system for a company, some elements ought to be addressed first. The first would be the cost of the system. A Company should be able to afford a given system before deciding on purchasing it. Other factors to consider include the efficiency and the ability to handle the operations of the firm (Shim S. J., 2019). Before buying any system, there is a need to consider whether the system will be able to handle the company’s data, system, and desires, to perform effectively without any hurdles that may derail the process. Other factors may include the needs of the firm and also the type of human resource a firm has.
SAP Enterprise resource planning (ERP) software is one of the best Enterprise systems that can get used in enhancing the activities of a firm. SugarSquared Inc. needs to adopt the use of the system in its operations as a way of improving its efficiency. By implementing the system, then the company is likely to boost processes such as accounting, inventory management, human resource management, and its overall supply chain management.
Grube, M., & Wynn, M. G. (2019). Management Guidelines for Better Application of Business Process Management in SAP ERP projects. . International Journal on Advances in Systems and Measurements, 12(1&2), 125-134.
Heinzelmann, R. (2017). Accounting logics as a challenge for ERP system implementation: A field study of SAP. . Journal of Accounting & Organizational Change.
Shim, S. J. (2019). Effects of user perceptions of SAP ERP system on user learning and skills. Journal of Computing in Higher Education, 32(1), 41-56.
Shim, S. J., & Shim, M. K. ( 2018, October). How user perceptions of SAP ERP system change with system experience. In Proceedings of the First International Conference on Data Science, E-learning and Information Systems. 1-4.
TURBAN, E., VOLONINO, L., & WOOD, G. R. (2015). Information Technology for Management. Digital Strategies for Insight, Action, and Sustainable Performance, 10th Edition .
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