SAP Launches Hosted Sourcing Platform and Complementary Services for mySAP SRM

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SAP AG (NYSE: SAP) today announced the immediate availability of a hosted platform that allows companies to utilize mySAP Supplier Relationship Management solution (mySAP SRM) for preliminary sourcing engagements. This offering allows companies to substantiate the benefits of sourcing and supply management before moving to a complete SRM implementation. SAP also announced new and expanded partnerships that support this hosted platform with services to identify savings, prepare and execute sourcing events, and implement corporate purchasing platforms. These announcements were made at the Global SRM Congress 04, being held at Event Island TV Studios in Berlin, Germany, from October 26 to 27, 2004.

The new offerings are designed to accelerate the strong momentum and customer adoption of mySAP SRMpowered by the SAP NetWeaver technology platformby engaging customers with real, tangible examples of strategic sourcing in action. To date, over 2200 companies have signed license agreements covering mySAP SRM.

Hosted Platform Provides Proof of Concept for Strategic Sourcing
SAPs hosted sourcing platform provides quick savings and quantifiable proof of value for companies that are investigating sourcing options or that are unable to immediately implement a fully integrated platform. Companies now have the option to run a series of eventsincluding requests for information (RFIs), requests for quotation (RFQs) and reverse auctionson the hosted platform as a trial phase before bringing it in-house and embedding the sourcing methodology within their core purchasing processes. mySAP SRM provides the integration necessary for SAP customers to migrate all their data, history and reports from the hosted system to the enterprise solution.

Pilgrims Pride Corporation (NYSE: PPC), the second-largest poultry producer in the United States, has already taken advantage of this offering to assess the savings it could capture through SRM.

Our first two auctions on SAPs hosted platform have already given us nearly one million dollars in savings, said Tim Thomas, senior vice president of procurement, Pilgrims Pride. By conducting these events, we have gained a better understanding of the preparation and training required for successful sourcing engagements. Based on the results we saw from the initial auctions, we look forward to using mySAP SRM on a more permanent basis.

SAP Enlists Partners for Vision to Reality Methodology
At the Global SRM Congress, SAP also announced an expanded network of service providers that support its Vision to Reality (V2R) solution design methodology. V2R is a unique approach to value engineering and solution design that allows companies to visualize how their current purchasing processes may be improved through the application of enabling technologies like mySAP SRM. Customers can choose to include V2R services within a mySAP SRM contract or purchase them separately.

First-time users of the hosted sourcing platform will appreciate the event preparation and management services that are now available through SAP and Intersources. Specific consulting engagements are available for all aspects of sourcing and for all levels of experience, including opportunity assessment, category prioritization, strategy development, program management, buyer education and supplier enablement.

SAP also expanded an existing partnership with Capgemini to customize its QuickScan strategy development methodology for mySAP SRM. Aligning the strategic consulting services from Capgemini with the enabling technology solution from SAP makes it easier for customers to identify savings opportunities, improve sourcing processes, and develop better supply strategies. Some of the services now available through this partnership include purchasing health checks, process design and innovation, rapid prototyping and solution implementation.

SAP is leading the movement toward smarter and more strategic purchasing, said Manfred Heil, senior vice president, mySAP SRM, SAP AG. In todays economic environment, companies need solutions like SAPs to understand the true business benefit of strategic supply management. The hosted platform and partnerships that weve announced today demonstrate our increased focus and strong investment in supplier relationship management.

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