SAP Leads in Supplier Relationship Management with 25 Percent Growth Year-on-Year in Asia Pacific

December 2, 2005 by SAP News 0

Increasing Number of mySAP SRM Customers in the Region See ROI of Four Times Their SRM investments in Under a Year

SingaporeSAP Asia Pacific today announced mySAP™ Supplier Relationship Management (mySAP SRM) installations have grown more than 25 percent in APA1 year-on-year to date compared to 2004. With this impressive growth, SAP has taken the leadership position in the SRM applications market in the region, something confirmed in IDC’s recent Worldwide SRM Applications 2005 – 2009 Forecast2. SAP took the leadership position in the market within just two years of offering a specialized SRM application solution. Worldwide, more than 3000 companies are currently using mySAP SRM to reduce procurement costs, shorten sourcing cycle times, and improve sourcing strategy.

Increased customer adoption for mySAP SRM by companies such as Tata Motors Limited, India; Hero Honda Motors Limited, India; and Datang International Power Generation, China indicates 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 closed-loop insight into enterprise spend.

Customer adoption of mySAP SRM has also been driven by its embedded analytics capabilities powered by SAP NetWeaver®. The insights provided by SAP Spend Analysis analytics embedded in mySAP SRM give users the information to gain stronger negotiation power in contract negotiation as well as the ability to identify business opportunities through comparison of prices and performance. Because the analytics are embedded, mySAP SRM delivers more value to the business user because of better user adoption at all levels of the organisation – more users use it in more of their decisions. With the analytics leveraging the SAP NetWeaver platform, users are also assured of reusabability so there is no need to re-invent the wheel for each analytical requirement across the value chain.

IDC attributed the increased adoption of SAP’s mySRM solution to the performance and scalability of the products, in addition to its ease of integration with SAP NetWeaver. According to the IDC report, due to the completeness of SAP’s products and better-than-expected ROI, some of SAP’s customers indicated that they were generating substantial savings of as much as four times their SRM application investments in as little as one year after implementation. 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.

“In today’s challenging business environment, companies in Asia Pacific need solutions such as mySAP SRM to sustain efficient supplier relationships and to deliver real business benefits such as lower transaction costs, standardized business processes and spend visibility and control,” said Stanley Young, Director, Asia Pacific, SRM Application Solution Management. “SAP’s strong performance in the SRM applications segment demonstrates the success of our organic growth strategy.”

Fast-growing organizations from Asia Pacific, such as Hero Honda Motors Limited, who have deployed mySAP SRM further substantiate the solution’s business benefits praised in the IDC report. The world’s largest two wheeler manufacturer, needed an integrated Supply Chain Management solution that would improve information exchange with business and channel partners, reduce inventories at every stage of the value chain as well as enable suppliers and dealers to perform transactions online.

S.R. Balasubramanian, Vice President of Information Systems at Hero Honda said, “Hero Honda has been able to drive a more transparent relationship with our suppliers, reduce transaction time and cost, decrease manual data entry as well as accelerate order and delivery processes with mySAP SRM. We wanted to enable our dealers and suppliers to perform online transactions to enhance our competitive edge and that has been exactly the result. With SAP, we are confident that we’re on the right track for continued success.”

About mySAP Supplier Relationship Management
mySAP Supplier Relationship Management (mySAP SRM) automates processes between sourcing and procurement, within the enterprise, and across the supply base. Built on the open architecture of the SAP NetWeaver platform, the application enables increased supply chain visibility and gives customers closed-loop insight into their global spend. With mySAP SRM, customers can control the complete supply cycle — from strategy to execution — to help them optimize supplier selection, compress cycle times, and build sustainable, workable supplier relationships. And, with the unique advantages of consolidated content and master data, mySAP SRM helps customers make and execute decisions that align with corporate strategy. (Additional information at http://www.sap.com/solutions/business-suite/srm/index.epx)