SAP’s Growth in Supplier Relationship Management Market up 25 Percent

September 13, 2004 by SAP News 0

SAP Expands Regional Leadership in Supplier Relationship Management With Continued Customer Momentum in Asia Pacific

SingaporeSAP AG (NYSE: SAP) today announced continued market momentum for mySAP Supplier Relationship Management (mySAP SRM) in the Asia-Pacific region. Worldwide, more than 2,000 companies are currently using mySAP SRM to reduce procurement costs, shorten sourcing cycle times, and improve sourcing strategy. In the Asia-Pacific region, this total is now over 460, compared to 370 in October 2003; approximately 25 percent more sales over last year. Companies such as Datang Power, HeroHonda and Asia Pulp and Paper have already implemented mySAP SRM. Other companies like Ayala Land, Manila Water, BHP Billiton and Bank Mandiri, have also recently joined these ranks.

Increased customer adoption for mySAP SRM is a clear indicator that companies in Asia Pacific are moving away from point solutions to enterprise-wide platforms in order to extend control over their supplier chain, increase visibility and gain a closed-loop insight into enterprise spend. With its comprehensive functionality, mySAP SRM is helping companies better manage strategic purchasing and sourcing, operational procurement, and supplier collaboration, thus reducing the cost of purchased goods and services.

“SAP’s solution strategy for supplier relationship management is to integrate SRM within a broader platform that addresses enterprise-wide supply management,” says Hans-Peter Klaey, President and CEO of SAP Asia Pacific. “Continued global market leadership in this business sector and the accelerating customer adoption in various industries across Asia-Pacific is testimony to the fact that SAP’s approach offers the enterprise solutions that meet the sourcing needs of organizations today.”

Improved Procurement Management at Datang International Power Generation
Datang International Power Generation, China’s second-largest independent power producer recently finalized the implementation of mySAP SRM in August this year. With seven different backend enterprise asset management systems in place, the company needed an open and flexible interface to ensure seamless purchasing processes across a heterogeneous IT landscape. mySAP SRM fulfilled this key requirement and was deployed to improve supplier and sourcing management and increase transparency in purchasing.

“The extensive capabilities of mySAP SRM will help us better manage and standardize our sourcing and purchasing processes, improve supplier evaluation and service quality and accelerate inventory turnover,” says Chai Jianzhong, vice president of Datang Information Technology Co. Ltd, the IT arm that supports Datang International Power Generation. “Streamlining these processes will increase our agility as a company and positively impact our energy unit prices despite high fuel prices.”

Streamlined Supplier Transactions at Hero Honda
As the world’s leading manufacturer of motorized and non-motorized two-wheeler vehicles, India-based Hero Honda recently completed the deployment of mySAP SRM in June this year. Their objective was to integrate their backend planning, fulfillment, inventory and procurement processes with their supplier network and order management systems. In order to achieve this, they have implemented SAP’s portal technology to enable Web-based supplier management with integrated order management of direct materials sourcing.

“The implementation of mySAP SRM has enables us to streamline our suppliers transactions and significantly reduce inventory-carrying costs,” says S. R. Bala, vice president of information systems at Hero Honda. “As suppliers can now enter shipping notifications into the supplier portal system in advance, we have also considerably reduced error-prone manual data entry.”

Greater Transparency at Asia Pulp and Paper
With headquarters in Singapore and around 16 operations in Indonesia and China, Asia Pulp and Paper (APP) is one of the world’s leading pulp and paper companies. The company implemented mySAP SRM to improve purchasing and vendor efficiency and to optimize tendering processes.

“mySAP SRM has helped us consolidate procurement processes across our operations in Singapore, China and Indonesia and will enable us to increase procurement productivity while improving cost efficiency and transparency,” says Anton Mailoa, C.I.O. of Asia Pulp and Paper. “Furthermore, we will achieve greater transparency in all our sourcing processes and expect to have financial benefits of a few millions dollars.”