SAP Supply Chain Management

Supply Chain Management

by Faulkner Staff

Docid: 00018005

Publication Date: 2301

Report Type: PRODUCT


SAP, a leader in the supply chain management (SCM) market, offers a
cloud-based platform in its Integrated Business Planning suite as part of
“Supply Chain as a Service” (SCaaS) approach. SAP’s SCaaS allows companies
to generate a higher return on investment by partnering with one service
vendor to support all or part of their supply chain needs, including
procurement, production control, manufacturing, quality, warehousing, and
logistics. SAP also offers other software components for the supply chain
as it continues to see competition from Oracle, Blue Yonder, and E2open,
among others.

Report Contents:


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Related Faulkner Reports
SAP Company

German software firm SAP markets its supply chain management (SCM)
products to corporate, retail, and industry clients. SAP is considered the
leader in the SCM market ahead of its main competitor Oracle. 

The company offers services designed to synchronize planning, design,
manufacture, delivery, and operations to transform a linear supply chain
into a responsive supply network that is able to adapt to market needs
while reducing waste, lowering emissions, and addressing inequality across
the end-to-end supply chain. The goal of SAP’s SCM services is to help
manage suppliers, customers, and contract manufacturers worldwide.

The Integrated Business Planning platform utilizes SAP HANA technology
and encompasses sales and operations, demand, response and supply
planning, and inventory optimization. This platform enables organizations
to collaborate and make decisions on big data and all aspects of the
supply chain while reducing costs and boosting revenue. It helps to
predict market potential with historical, promotional, and point-of-sale

Name: SAP AG
Dietmar-Hopp-Allee 16
69190 Walldorf Germany
Tel: +49-6227-7-47474
Fax: +49-6227-7-57575
Type of Vendor: E-Business Software and Services
Founded: 1972
Service Areas: Global
Stock Symbol: SAP (NYSE).


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SAP has a number of applications, particularly for the consumer products,
high tech, defense and security, and retail sectors. Table 1 lists the
main supply chain products that SAP has to offer along with their
individual purposes.

Table 1. SAP SCM Solutions
Area Description
Supply Chain Planning SAP’s Integrated Business
Planning software combines artificial intelligence and analytics
to enable better planning and decision-making. The solution
integrates sales and operations planning, forecasting and demand
management, response and supply planning, and inventory and
replenishment. In addition, Integrated Business Planning
integrates with SAP’s Supply Chain Control Tower, which promotes
better visibility into the supply chain by delivering alerts and
metrics in real-time. 
Supply Chain Logistics To move products quickly
and efficiently, SAP’s technologies enable the digitization and
management of the entire warehouse process. Solutions

  • Warehouse Management
  • Transportation Management
  • Order Fulfillment and Promising
  • Yard Management
  • Logistics Network and Track and Trace
  • Sustainable Load Optimization
Manufacturing Manufacturing software from
SAP enables streamlining of processes to leverage artificial
intelligence and the Industrial Internet of Things (IIOT) to solve
challenges. Capabilities within this suite include: 

  • Manufacturing Execution System (MES)
  • Production Management, Planning, and Optimization
  • IIOT Solutions
  • Unified Supply Chain Data and Manufacturing Analytics
  • Product Quality Management and Compliance
  • Sustainable Manufacturing and Lower Emissions
Product Lifecycle Management SAP connects systems,
people, and processes with an end-to-end digital thread to
accelerate innovation. Offerings include: 

  • Enterprise Product Development
  • Product Costing and Engineering
  • Project Portfolio Management
  • Commercial Project Management
  • Project Network
  • Sustainable Design of Recyclable Products
Enterprise Asset Management SAP enables organizations
to streamline lifecycle management for various assets, including
equipment and property. SAP’s software delivers real-time,
accurate data to make informed decisions. Offerings within this
area include: 

  • Maintenance and Service Management
  • Asset Network and Collaboration
  • Asset Strategy and Performance
  • Predictive Maintenance and Optimization
  • Mobile Enterprise Asset Management (EAM)
  • Sustainable Operation of Assets and Equipment

In addition to its standard SCM portfolio, SAP provides industry-specific
supply chain management products for such sectors as automotive,
chemicals, consumer products, defense and security, industrial machinery
and components, life sciences, fashion, retail, agribusiness, and
wholesale distribution. 


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SAP SCM is designed to operate in anything from small to large-scale
enterprise IT environments. It is interoperable with other SAP enterprise
software and is increasingly able to integrate with third-party systems.
SCM runs on the company’s HANA in-memory data platform, which can be
deployed on-premises as an appliance or in the cloud.


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SAP’s customer support program includes a self-service portal with a
knowledgebase, road maps, documentation, communities, and downloads. For
those organizations who wish to have dedicated resources available to
them, SAP offers tiered levels of support. In addition, SAP provides
training and education courses for technical staff members to gain the
maximum insight into their SAP products and services. Service options are
also provided by management and consulting firms with whom SAP has formed


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SAP recommends that interested parties contact the company for pricing
details. The company does offer volume-based pricing. SAP can be reached
at (800) 872-1727.


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Although SAP is clearly the main leader in the SCM market and has been
for a number of years, there are several additional vendors who offer
similar, competitive offerings for the supply chain. These vendors

  • Oracle
  • Blue Yonder
  • Manhattan Associates 
  • Infor
  • E2open
  • SPS Commerce

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Blue Yonder:
Manhattan Associates:
SPS Commerce, Inc.:

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