What is Enterprise Resource Planning (ERP)? - SAP ERP

This beginner lesson lays the groundwork for Enterprise Resource Planning (ERP)—what it is, why businesses use it, and how a single integrated system keeps complex organizations running smoothly.

Using Pepsi as a relatable example, you’ll see how ERP connects sales, inventory, production, procurement, and finance so information flows in real time and work moves without friction.

📘 What You’ve Learned

1️⃣ What ERP means and how it unifies core business functions into one system
2️⃣ Why large companies rely on ERP for accuracy, visibility, and speed
3️⃣ How integration replaces disconnected tools and error-prone spreadsheets
4️⃣ A step-by-step scenario: from sales order to inventory allocation, production planning, purchasing, shipment, and billing—all in ERP
5️⃣ How real-time data enables faster responses to spikes, shortages, and market changes
6️⃣ Why ERP becomes the digital backbone for decision-making and scale

👥 Who It’s For

❶ Procurement specialists aiming to streamline supplier interactions
❷ Inventory and supply chain managers optimizing stock and fulfillment
❸ Finance professionals seeking real-time, reliable numbers
❹ Project teams supporting transitions from SAP ERP ECC to SAP S/4HANA
❺ Business and IT beginners who need a clear, hands-on ERP foundation
❻ Analysts and students preparing for roles in enterprise systems and operations

🏁 Summary

ERP integrates people, processes, and data into one real-time system, turning a complex web of handoffs into a smooth, automated flow. You’ve seen how that integration helps a global business like Pepsi fulfill orders faster, reduce waste, and make better decisions.

Next, we’ll dive into SAP ERP specifically—how it works under the hood to make these integrated scenarios possible.

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