SAP Achieves Top Spot

Feature Article | April 26, 2004 by admin

mySAP SRM became the market-leading purchasing platform because it covers the full cycle of supplier relationship management – from strategy to execution – with comprehensive functionality for strategic purchasing and sourcing, operational procurement, and supplier collaboration. Increased customer adoption for mySAP SRM is a clear indicator that companies are moving away from point solutions to enterprise-wide platforms. Although companies often make an initial foray into SRM with costly managed services, they eventually need to bring this expertise in-house to more effectively align supply processes with corporate strategy. SAP supports and accelerates this migration and has designed mySAP SRM as a purchasing platform that provides repeatable savings and ongoing unit cost reductions instead of one-time savings. Leading organizations such as Dominion, Mahindra & Mahindra, Pemex, Polish Security Printing Works S.A. and TOT Corp. are already using mySAP SRM for tangible business benefits such as increased efficiencies, reduced costs and improved customer satisfaction.
“Pure-play packages tend to appeal to early adopters, but over time, the majority of businesses begin to value process integration over new features,” said Shai Agassi, executive board member, SAP AG. “Ultimately, because purchasing is integral to so many processes within companies, it is most effective as part of a broader platform that addresses enterprise-wide supply management.”
Nissan Motor is currently using mySAP SRM for production-parts sourcing and purchasing in Japan, Mexico, Europe and the United States. “mySAP SRM enables more meaningful comparisons that take value into account, instead of simply comparing supply prices for a given part,” said Yukihiro Endo, former deputy general manager of the purchasing administration department, Nissan Motor. “With mySAP SRM, we can easily interface with our existing systems for planning, design, production control and management. Now all production parts materials needed to produce cars – including maintenance and prototype parts, exempting machinery and equipment – are procured through it. This amounts to nearly 70 percent of all purchases.”

New process for supply strategy development

mySAP SRM 2004 introduces an entirely new process for supply strategy development – from demand aggregation and portfolio analysis to category management and purchasing controlling. The 2004 release features many enhancements to existing capabilities for strategic sourcing and operational procurement such as factored cost bidding, contract distribution, workload assignments and service progress visibility. Finally, the enhanced supplier collaboration capabilities of mySAP SRM 2004 offer a completely Web-based scenario to provide companies with one unified view on design objects, bids and contracts, forecasts, inventory, procurement documents and shipments.
“Electronic auctions are a crucial component of our business strategy” said Krzysztof Zalewski, the board plenipotentiary for public sector projects, Polish Security Printing Works PLC (PWPW). “mySAP SRM has provided PWPW with the technology we needed to offer services through the Polish Procurement Platform for the public and business sector in the field of tenders, auctions and purchases. We look forward to continuing our relationship with SAP and exploring the enhanced functionality of mySAP SRM.”
mySAP SRM has been built leveraging the full power of the SAP NetWeaver 2004 technology platform. As SAP uniquely combines market-leading business functionality with a leading integration platform, the business processes delivered reduce the need for custom integration in heterogeneous technology environments. Since solutions powered by SAP NetWeaver foster a services-oriented architecture, mySAP SRM enjoys more flexibility, speed in innovation and a better overall cost structure than traditional solutions. Increased adoption of SAP NetWeaver has also led to performance improvements such as faster background processing, better document archiving and security, and the ability to work with larger and more complex documents.

Source: SAP AG

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