DaimlerChrysler Achieves Significant ROI in Only Six Months With mySAP E-Procurement
PALO ALTO, Calif.--Dec. 18, 2001--Confirming the value of its e-procurement offerings, SAP Markets, Inc., the exchange company of the SAP group, today announced that an influential research and consulting organization found Mercedes-Benz Espana S.A., a division of DaimlerChrysler AG, is realizing "significant benefits" after implementing mySAP(TM) E-Procurement to streamline purchasing and connect with e-marketplaces.
Aberdeen Group Inc. found that within the first six months mySAP E-Procurement, featuring SAP Markets(TM) Enterprise Buyer(TM) (Professional Edition) as the key component, gave Mercedes-Benz Espana the flexibility to reduce the number of suppliers from 1,497 to approximately 200 and achieve an 80 percent return on investment (ROI).
According to the report, Mercedes-Benz Espana has achieved a total savings from e-procurement in the region of 1.5 million euros to 3 million euros ($1.4 million to $2.7 million U.S.), 20 percent to 30 percent of which can be attributed directly to process cost savings.
The independent report issued by Aberdeen found that within the mySAP E-Procurement system, Enterprise Buyer (Professional Edition), which is jointly developed by SAP Markets and Commerce One, Inc., enabled Mercedes-Benz Espana to streamline procurement, reduce costs including labor costs related to purchasing and invoicing, and more efficiently analyze purchasing activities.
Mercedes-Benz Espana produces 90,000 vans a year and employs 3,300 employees at its manufacturing plant in Vitoria, Spain, and another 800 in Barcelona, Spain.
"The mySAP E-Procurement solution has been widely accepted among our employees and, combined with Covisint, has revolutionized the way the automotive industry does business," said Norbert Litzkow, board member of Mercedes-Benz Espana. "DaimlerChrysler considers this a unique opportunity for the company to become even more competitive in the international market."
mySAP E-Procurement manages the instant purchasing of goods, along with the planning and monitoring of goods and services delivery from suppliers. It also provides workflows that allow managers to review and approve electronic requisitions and manage workers. The solution supports processes for planned and unplanned procurement of direct and indirect materials, goods and services.
"Mercedes-Benz Espana wanted a solution that would integrate easily into its back-end system," said Frances Howarth, research director of e-business for Aberdeen, in the report, noting that the plant already operated a full-fledged SAP(R) infrastructure. "The mySAP E-Procurement solution slotted easily into this IT infrastructure." So easily, in fact, that Mercedes-Benz Espana became the first original equipment manufacturer in Europe to trade on Covisint, the world's largest online marketplace.
mySAP E-Procurement offers customers a single solution that integrates multiple and decentralized procurement and back-office systems into one homogeneous system that automatesa company's e-procurement processes worldwide and reduces overall cycle times and transaction costs.
"SAP Markets provides our customers with solutions that are quick to implement and improve their time to market," said Mayur Shah, president of SAP Markets. "Aberdeen's report attests to the fact that the mySAP E-Procurement solution and its core SAP Markets Enterprise Buyer (Professional Edition) functionality is the most robust, scalable and flexible e-procurement solution available on the market today."
About SAP Markets
SAP Markets is the exchange company within the SAP group. We deliver extended selling and buying solutions as well as integration into related business services, providing competitive advantage by enabling collaboration with all trading partners. Exchange-based solutions from SAP Markets transform your value chain into one integrated, collaborative and seamless cycle. We can help you remove inefficiencies, transcend heterogeneous systems, master growth and complexity, and realize the full potential of your value chain. At SAP Markets, we take your Business Beyond Boundaries(TM).
SAP Markets opened for business in May 2000 and is headquartered in Palo Alto, Calif., with offices in St. Leon-Rot (Germany) and Singapore. To date, the customer base comprises more than 1,200 organizations worldwide.
www.sapmarkets.com
SAP Markets, Inc., is the exchange company of the SAP group of companies. Any statements contained in this document that are not historical facts are forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. Words such as "believe," "estimate," "intend," "may," "will," "expect," and "project" and similar expressions as they relate to SAP are intended to identify such forward-looking statements. SAP undertakes no obligation to publicly update or revise any forward-looking statements. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. The factors that could affect SAP's future financial results are discussed more fully in SAP's filings with the U.S. Securities and Exchange Commission (the "SEC"), including the SAP Annual Report on Form 20-F for 2000 filed with the SEC on March 28, 2001. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates.
Copyright(c)2001 SAP Markets, Inc.
SAP Markets and Business Beyond Boundaries are trademarks of SAP Markets, Inc.
MarketSet and Enterprise Buyer are joint trademarks of SAP Markets, Inc., and Commerce One, Inc.
Other product or service names mentioned herein are the trademarks of their respective owners.