Career Development

What Is the Meaning of SAP and How Is it Used in the Workplace?

June 24, 2021

Most employers search for candidates with a diverse skill set. Developing SAP skills could make you more marketable during your job search because several companies use SAP software for their operations. Understanding how the SAP works in relation to your industry can also help you get a new job or promotion to a leadership position. In this article, we focus on defining SAP and its related skills, and discuss why SAP is essential in the workplace.

What is the meaning of SAP?

The meaning of SAP is an abbreviation for systems applications and products. It's an enterprise resource planning (ERP) software implemented in businesses to streamline company operations. Businesses also use it to create a centralized system that allows departments to share data. There are hundreds of fully integrated modules incorporated in the software which cover all aspects of the business. These modules can give you an edge in this competitive generation.

What is ERP?

ERP is an abbreviation for enterprise resource planning. Companies use this software to manage the primary functions of a business collectively. It facilitates communication between different departments such as sales, marketing, procurement, and human resources. Most companies use ERP in resource planning, and ERP software can integrate all processes required to run a company.

SAP software offers several benefits to organizations. It enables the easy flow of information and real-time processing. ERP can be very effective when well-managed. It also improves awareness within the corporation by linking data from different sources, such as distribution and production. ERP software is also helpful in strategic business planning. Having knowledge about how ERP works will give you an edge during interviews, as most hiring managers might be looking for candidates who bring value through ERP to the employer's business.

The importance of SAP

The primary function of SAP is data collection and processing. It works to process data from all functions in a single platform. Most modern businesses have implemented SAP because it facilitates easier communication among the departments. The effective communication and data flow offered by SAP has led to the success of several modern organizations.

SAP skills

You need various skills to be proficient with SAP. If you are looking for vacant positions in companies that use ERP software, you can become a competitive candidate by developing appropriate SAP skills. Some roles require experience and proficiency with SAP. Some SAP skills you can learn to increase your employability include:

  • Transaction utilization. When applying for a job in sales management, transaction utilization is an added advantage. It facilitates the input of data into the SAP software.

  • Reporting. It's essential to understand how to generate reports. Managers and department heads usually request detailed reports and SAP software to gather all the information to be compiled in a report.

  • Accounting. It's crucial to understand how to incorporate accounting modules in SAP software. SAP accounting skills are an added advantage for those seeking employment in accounting or finance positions.

  • Recruitment. There are various recruitment modules in SAP. If you specialize in human resource management, it's essential to understand these modules to facilitate the hiring process of potential employees.

  • Management. Different management modules make up SAP. These include customer, project, warehouse, transportation, and inventory management.

  • Communication. This is one of the most important aspects of SAP software. It facilitates smooth communication among the departments. New applicants should be able to display their skills in communication management using the SAP software.

Related: Hard Skills vs. Soft Skills

SAP training and certification

You should consider SAP training if you want to equip yourself with SAP skills to improve your resume. There is an opportunity to learn various modules of SAP and receive certification after achieving competency. You can enroll in an SAP training course from home since several academies offer online SAP courses. Many courses are free, but you may need to pay a small fee to receive the official certification. Examples of SAP certifications include:

  • Project management
  • Spend analysis
  • Integrated business planning
  • Sales implementation

Related: The 10 Most Valuable Certifications Today

SAP in the workplace

Several companies use SAP across the globe to overcome the challenges faced by manual processing methods. Implementing SAP software in a business can lead to streamlining the process of tracking work status. It also improves deadline management and improves communication between departments. SAP skills apply in various departments of an organization. Some key areas where SAP skills are instrumental for success include:

Human resource management

Human resources play an important role in an organization's operations. The department manages an organization's talent, both potential, new and existing employees. It's also responsible for reviewing and enforcing policies and procedures. SAP software helps human resource managers locate and record employee information from when they start working for the company until they complete their contracts. Some human resource departments that benefit from SAP software are:

  • Organization management. It allows HR professionals to manage workflow and create management plans.

  • Personnel administration. An organization's personnel administration deals with administrative roles, such as recording employee personal information, such as their birth date, SIN number, and salary.

  • Personnel development. SAP is essential in qualifying employees and helps in the management of employee turnover. Also, the software applies in skill development and productivity.

  • Time management. Proper time management is key to the success of any organization. The software is essential in monitoring employee attendance and shift schedules to ensure that the company is as productive as possible.

  • Payroll management. SAP software displays information on payment processing. It also simplifies the process by ensuring that the organization processes payment checks appropriately.

Related: Defining Team's Roles and Responsibilities

Project management

Innovation and creativity drive the growth of an organization. Employing a diverse workforce with the right tools needed to manage projects from the beginning to the end is essential for project management. SAP software helps simplify the following stages of a project:

  • Project initiation. This stage deals with all activities, from the setup to the launch of the project. These include definition, work breakdown, networking, milestones, and creation.
  • Planning. This is one of the most critical stages of project implementation. Understanding how to use SAP software in the planning stage of a project could make you invaluable to your company. You can also include it in your resume to impress hiring managers during your job search.
  • Execution. SAP contains advanced project management tools such as budgeting and milestone trackers. These can be used to monitor the progress of projects, review financial expenditures, and track teams' performance in real-time during the project duration.
  • Closure. The closure module includes information associated with period-end and project closing.

Related: 22 Essential Project Management Skills

Warehouse management

Warehouse management is a crucial section of an organization's business operations. Learning SAP skills can improve your chances of securing a warehouse management job and thriving in the role. Some of the extended warehouse functions include:

  • Inbound management. SAP software facilitates smooth inbound processing through data validation and acceptance of production receipts. The software also helps achieve optimized receipt processing.
  • Outbound management. Outbound activities include shipping activities and stock selection based on attributes and debated features.
  • Storage and operations. SAP gives managers full control of internal processes. These include physical inventory counting, equipment handling, and status checking.
  • Cross-functional management. Various cross-functional features such as batch, serial number, and dock appointment are improved using SAP software.

Customer relationship management

CRM professionals handle the automation and integration of customer activities. These include sales, marketing, and customer service. The following are functions of the CRM department:

  • Sales. SAP software provides a better customer experience with AI-guided powered selling, plan modelling, and billing management.
  • Marketing. Marketing professionals can access better services by including features such as customer profile access and behaviour insights. Team collaboration and campaigns are valuable marketing practices that are improved using SAP.
  • Customer service. Customer service representatives and managers work to deliver exceptional customer services using customer insights and networking.
  • Commerce. SAP exposes employees to comprehensive experiences in commerce, which is invaluable in a business's pursuit of profit.

Related: Customer Service Skills: Definition and Examples

Finance and accounting management

The finance department helps companies keep track of their budget, expenditure, and earnings. Some of the finance management systems offered by SAP include:

  • Planning and analysis. This system helps a business plan its expected expenditure and earnings within a specified period. It also ensures that the projects to be implemented are within the company's stated budget.
  • Accounting and tax management. Failure to pay taxes will contribute to penalties and fines, which will add to the company's expenditure. SAP software helps businesses manage their taxes and avoid extra costs.
  • Treasury and cash management. The treasury manages cash flow and debt management, ensuring that the company only assumes reasonable debt and can pay it comfortably.
  • Accounts payable and receivable. The software can assist in risk management and billing.


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