SAP AG, a market leader in enterprise application software, has announced plans to acquire SmartOps, an inventory and service-level software firm, aiming to develop “real-time supply chain” software solutions.

The acquisition paves the way for SAP to leverage its SAP HANA platform, which empowers customers to run their businesses in real time — to analyze, predict, react and adjust instantly.

SmartOps provides key operating parameters and targets for supply chain management (SCM) planning.

The company’s solutions coordinate capacity, inventory, demand, lead time and product availability variables that enable customers to optimize inventory and service levels, freeing up working capital for innovation and growth. SmartOps and SAP have a longstanding relationship, jointly delivering best-in-class supply chain solutions to many large enterprise customers.

SmartOps has developed large-scale, “stochastic” algorithms that take the uncertainty and risk out of SCM processes. These algorithms use predictive analytics to help manage global distribution networks and vast, multi-stage supply chains. Such solutions would be significantly enhanced by SAP HANA, allowing for processing of high volumes of data in real time.

It also would complement and expand existing SCM sales and operations offerings from SAP, such as the SAP Sales and Operations Planning analytic application powered by SAP HANA, the SAP Demand Signal Management application powered by SAP HANA and the SAP Advanced Planning & Optimization (SAP APO) component, paving the way for “real-time supply chain” solution.

The two companies intend to provide current customers the same, or increased, levels of support without disruption to their existing systems.

Analysts note the market for supply chain software is large and diverse in offerings and growing. They predict a yearly growth of 7.7 per cent, to exceed $9 billion by the end of 2013.

“We are at a turning point in the global market for supply and demand technology,” said Abdul Razack, senior vice president and head of Customer Engagement and Strategic Projects, SAP.

“With the addition of SmartOps, SAP will be able to dramatically accelerate and improve the performance of real-time world-class supply chain management solutions that give customers the decisive competitive edge to succeed and grow their business.”

“Joining SAP is both a strategic and exciting move for us,” said Martin Barkman, president and CEO, SmartOps. “Having already embraced the need for both on-premise and cloud-based solutions, the prospect of developing these on SAP HANA will propel us to new heights in technology innovation.”

As part of the acquisition, SmartOps employees will join SAP. The transaction is expected to close during the first quarter of 2013, subject to customary closing conditions. – TradeArabia News Service