SAP releases improved WMS and SCM tools for global supply chain

Staff -- Supply Chain Management Review, 3/26/2008 10:08:00 AM

SAP will soon introduce a “new generation” of technology to its supply chain management solution designed to drive a “transformation of global business networks.” The release of new SCM technology comes on the heels of its improved warehouse management solution.

With the new SCM release, SAP intends to address global supply chain needs for increased network visibility and enhanced collaboration with business partners worldwide. “Measuring relationships with geographically disperses customers, suppliers and partners has resulted in a need for increased levels of adaptability, collaboration and visibility when dealing with supply chain solutions,” says Andrew White, research VP at Gartner Inc. “As companies expand their operations globally and outsource production, they are faced with the challenge of maintaining timely and accurate supply chain data, responding to shifting customer demand and reducing costs to remain competitive.”

The additional capabilities in SAP’s new SCM offering will include technology that will offer:

• Closer collaboration with business partners to improve visibility
• Maximized workforce planning to increase productivity
• Enhanced planning to improve efficiency

In addition to improving its SCM solution, SAP has moved forward with improvements to its warehouse management system (WMS) solution. According to ARC Advisory Group, SAP now supports three types of WMS deployment options: centralized (running off the same database and the core ERP), decentralized (WMS running on a separate database instance for improve real-time responsiveness, and extended warehouse management (EWM) built on NetWeaver and SOA technologies which are similar to best-of-breed solutions.

SAP’s EWM enhancements have been gaining interest. “One thing that should boost the uptake of EWM was a special offer made by SAP,” says Steve Banker, directory supply chain management at ARC. “In R3 release, 4.7, they came out with Task and Resource Management as a module that was designed to enhance their WM product. This module could be turned on to enhance process flow for particular sites or processes at a particular site.”

Banker notes that the long-run prospects for sales of SAP’s EWM solution will depend on SAP continuing to add functionality. “SAP’s EWM was initially built to possess special capabilities for spare parts warehouse,” says Banker. “To achieve full service parts management capabilities, companies need to also have – or be upgraded to – customer relationship management (CRM) 2005 and SAP ERP 6.0.”

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