HP and SAP deliver joint SCM solutions

The recently announced surprise marriage of Hewlett-Packard Company and Compaq Computer Corp. has not altered an earlier announced expanded relationship between HP and SAP AG, according to an HP spokesperson. HP and SAP earlier this year expanded their relationship to improve supply chain management (SCM) and supplier management capabilities for large global customers and their respective trading partners.

HP also entered into agreements to become a Most Valued Partner of SAPMarkets Partner Program. These initiatives are said to be intended to help customers to implement a holistic approach to solving their SCM and supplier management capability needs.

In response to managing supply chains becoming increasingly important to large global enterprises, HP and SAP aim to provide customers the latest SCM technologies, supported by an Internet infrastructure with access to vital business data, to create a fault-tolerant supply network.

HP and SAP plan to cross-train sales teams and consultants to design, develop and deliver solutions that combine mySAP Supply Chain Management (mySAP SCM) software components and HP hardware and middleware for global enterprises in the technology, consumer products, automotive, aerospace and defense, and engineering and construction industries.

Global solution centres have been created at HP and SAP locations to pre-configure and pre-test components for easier and faster implementation. The two companies claim that with access to comprehensive, broad-based solutions, customers can realize faster deployment times and quicker return on their investments regardless of their existing infrastructures.

According to Karen Peterson, research director for SCM enterprise and supply chain management at Gartner, the market for supply chain management solutions is expected to grow by 25-35 percent annually over the next five years.

As a result, many companies, such as BMW, are reportedly turning to HP and SAP to

maximize the efficiency of their supply chains and achieve high levels of business.

With our suppliers worldwide, we need the visibility and flexibility to track critical information in real time, said Guenter Klamer, senior vice president, IT and Logistics, BMW. He reports that with the SAP and HP supply chain solution and infrastructure they expect to achieve better visibility into key business metrics and to anticipate the market need to plan their supply chain more accurately.

HP claims to have has successfully optimized their own factories’ supply chain processes using mySAP.com solutions. The result, says HP, is reduced manufacturing cycles and improved on-time customer delivery.

Our alliance with SAP enables both companies to deliver a strong supply chain solution to the market, announced Ann Livermore, president, HP Services Organization in a press release. She noted that with the robust Internet infrastructure and mySAP SCM, HP customers benefit from quick access to information about orders, forecasts, production plans and key performance indicators.

The solutions will combine SAP’s mySAP SCM software components, SAPMarkets’ MarketSet and Enterprise Buyer Professional, HP hardware, middleware, consulting and hosting services. SAP reports that more than 13,000 companies in over 100 countries run more than 30,000 installations of SAP software.