Nowadays in the modern organizations are facing more problems. The major industrial problems are improper system in material management. This research work focus on to improve the system using Enterprise Resource Planning (ERP) with the help of SAP software. This software will allow to take care of its supply chain and to manage customer relationships better. Some organizations don't have the awareness to implement the Enterprise Resource Planning (ERP) in an effective way. The main objective of this work is to; reduce the inventory level, system coordination in a supply chain through System, Application and Product (SAP) in data processing software.