SAP acquires SmartOps to help customers optimize inventory
SAP AG (NYSE: SAP) announced plans to acquire SmartOps, a leading
provider of inventory and service-level optimization software solutions.
The acquisition paves the way for SAP to develop “real-time supply
chain” software solutions, leveraging the SAP HANA® platform, which
empowers customers to run their businesses in real time — to analyze,
predict, react and adjust instantly.
SmartOps provides key operating parameters and targets for supply
chain management (SCM) planning.
The company’s solutions coordinate capacity, inventory, demand, lead
time and product availability variables that enable customers to
optimize inventory and service levels, freeing up working capital for
innovation and growth. SmartOps and SAP have a longstanding
relationship, jointly delivering best-in-class supply chain solutions to
many large enterprise customers.
Companies around the world are facing the issues of volatile markets
and growing logistics complexity. Winning in this environment requires
an excellent understanding of the demand for your products and a most
efficient supply network.
This requires continuous work on the Sales and Operation plans, which
consider revenue and profitability right away. Core and center of the
Sales and Operations plan is to ensure highest customer satisfaction and
lowest inventory levels. To reduce the demand uncertainty, better
predictability and increased short term forecast accuracy is needed.
Only this will keep inventory as low as possible during day to day
operations.
SmartOps has developed large-scale, “stochastic” algorithms that take
the uncertainty and risk out of SCM processes.
These algorithms use predictive analytics to help manage global
distribution networks and vast, multi-stage supply chains. Such
solutions would be significantly enhanced by SAP HANA, allowing for
processing of high volumes of data in real time.
It also would complement and expand existing SCM sales and operations
offerings from SAP, such as the SAP Sales and Operations Planning
analytic application powered by SAP HANA, the SAP Demand Signal
Management application powered by SAP HANA and the SAP Advanced Planning
& Optimization (SAP APO) component, paving the way for “real-time supply
chain” solution. The two companies intend to provide current customers
the same, or increased, levels of support without disruption to their
existing systems. Founded in 2000, SmartOps released its first product
in 2001.
The company has had a formal business relationship with SAP since
2006 and for the last four years has been a part of the program for
solution extensions at SAP.
SmartOps’ customers include major brands in the manufacturing,
distribution, chemical, life sciences, retail, high-tech, and consumer
product industries.
Analysts note the market for supply chain software is large and
diverse in offerings and growing. They predict a yearly growth of 7.7
percent, to exceed US$9 billion by the end of 2013.The dynamics of the
market also are shifting. Companies around the world face issues such as
volatile markets and increasing logistics complexity.
Their sales and operations plan, which considers immediate revenue
and profitability, demand the highest levels of customer satisfaction
and the lowest possible inventory levels. Winning in this environment
requires an excellent understanding of product demand and the most
efficient supply network.
“We are at a turning point in the global market for supply and demand
technology,” said Abdul Razack, senior vice president and head of
Customer Engagement and Strategic Projects, SAP.“With the addition of
SmartOps, SAP will be able to dramatically accelerate and improve the
performance of real-time world-class supply chain management solutions
that give customers the decisive competitive edge to succeed and grow
their business.”
“Joining SAP is both a strategic and exciting move for us,” said
Martin Barkman, President and CEO, SmartOps.“Having already embraced the
need for both on-premise and cloud-based solutions, the prospect of
developing these on SAP HANA will propel us to new heights in technology
innovation.”
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