Is SAP suitable for the Indian SME market? | TranZact

Jul 2, 2021 in ERP for SME Manufacturers



With the hit of the pandemic in 2020, the Indian economy suffered a huge setback, and the GDP got itself declining like the other world economies. But in these difficult times, the Government of India relied upon the Small and Medium Enterprise (SME) sector to bring back the economy on the right path. The Government supported the SME sectors with many big-budget relief packages. These relief packages helped the SMEs sector a lot, and they revived the Indian economy from a distress situation. Also, during the pre-pandemic period, it is hoped by many experts and the Government itself that the Indian economy would reach a mark of $5 Trillion by 2024-2025. And it is believed that with the help of the SMEs sector at large, this target could get achieved. 

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So it's the right thing to say that SMEs play a significant role like the big corporations in the Indian economy. And that's why the SME sector is expanding rapidly and has also become a large market for Companies providing Business management software like ERPs and other applications. Also, whenever we think of ERPs and Business management software, one company's name always strikes out that turns out to be SAP. So let's find out that what it is and for which enterprises it's suitable to use.

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What is SAP?

SAP logo

SAP SE is a German Multi-National Software company that offers software for the management of business processes. SAP stands for System Analysis Program Development (Systemanalyse Programmentwicklung in German).

It is known as the world leader in providing the best business management software and developing effective data processing solutions. It is the first company to offer Enterprise Resource Planning (ERP) software. Also, it is one of the oldest companies founded in the year 1972, working in the field of ERPs. The company's products serve as industry standards for other companies which are its competitors from the start as it is one of the industry leaders. 

What is SAP ERP?

SAP ERP is one of the different module software solutions offer by SAP. This software module got created to streamline and transform all business processes within any company. Also, the module uses intelligent technologies to help in rapidly adapting to these changes no matter the size of the company.

The ERP system enables its customers to run their business processes, including accounting, sales, production, human resources, and finance, in an integrated environment. The integration ensures that information flows from one SAP component to another without any redundant data entry. It helps in enforcing financial, process, and legal controls. Also, it facilitates the effective use of resources, including manpower, machines, and production capacities.

Different Modules offered by SAP

SAP provides all the different modules range on its Cloud platform that is highly secure and is easy to use. It provides the users with many flexible options, and the software can get easily customize according to their needs. 

SAP software and its features
  1. ERP and Finance - SAP ERP provides ERP solutions to all organizations like small, medium, large scales. It helps in the automation and streamlining of finances from both a reconciliation and reporting basis. Further, it provides various other analytical reports as per its user needs that help in decision-making and financial planning. And as with other ERPs, it also helps in Accounting, Treasury Management, and maintaining all government compliances.
  2. CRM and Customer Solutions - SAP ERP offers many Customer Relationship Management (CRM) tools that help automate and integrate all customer activities like sales, marketing, customer service, and commerce. It also assists businesses to be responsive to customer's needs. Through the features such as AI-powered guided selling process, customer behavior insights, marketing campaign management, and customer identification. It provides a great experience to the users and their customers.
  3. Human Resource Management - SAP ERP offers human resources management tools required for maintaining the HR department in any organization. With the help of this module, the information about an employee, from the time they apply for the job to the time they leave the company, can get recorded efficiently. It helps in creating plans for workflow management, payroll management, and time management.
  4. Small and Midsize Business Management Software - SAP ERP offers specific solutions for Small and Midsize Enterprises. Like its other modules and features for big corporations, it provides the same to small enterprises. But it designs specifically some changes in it to help them in facing their work scale-related challenges. SAP helps these enterprises understand the latest industry trends. It also helps them to reinvent a product brand and embrace leadership change.


SAP offers many services to the businesses like Data Centralisation, Automation of Workflow, and easy accessibility of its products through Cloud-platforms. And through these products, companies can globalize and expand themselves and raise their overall revenue growth it comes very hand to multi-national corporations and companies, not too small scale enterprises.

These small businesses have to select the correct module for their organization as the wrong module can affect them badly. And they can run out of business that got seen many times earlier. The cost of maintaining the SAP ERP solutions is comparatively high from many other solutions in the market for SMEs. Also, the SAP ERP requires its users to get specially train to use it. And this also creates problems for SMEs as they have to hire experienced staff, it does not solve their purpose that all the users can use it easily.

So it is right to say that SAP ERP is very efficient for large corporations and raises their businesses' efficiency. But it is not very suitable for the Indian SME markets, and many other alternatives can get used. TranZact is one such software. It is a digital transformation tool that digitizes the entire business process right from sales inquiry to dispatch. And it is for especially for the Indian SME and manufacturing markets. It hopes to contribute to the Digital India initiative of the Indian Government.

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TranZact is a team of IIT & IIM graduates who have developed a GST compliant, cloud-based, inventory management software for SME manufacturers. It digitizes your entire business operations, right from customer inquiry to dispatch. This also streamlines your Inventory, Purchase, Sales & Quotation management processes in a hassle-free user-friendly manner. The software is free to signup and gets implemented within a week.