SAP Improves Sourcing Strategies, Reduces Process Costs, and Compresses Cycle Times in Growing Number of Global Companies

Companies Such as DaimlerChrysler, Steelcase, Bertelsmann, Akzo Nobel, and Mahindra & Mahindra Are Among Corporate Deployments of mySAP(TM) SRM Spanning Multiple Vertical Markets

WALLDORF, Germany, Feb. 26 /PRNewswire-FirstCall/ -- SAP AG today announced that a rapidly increasing number of organizations are deploying mySAP(TM) Supplier Relationship Management (mySAP SRM) to reduce procurement and sourcing costs and increase profitability. Several leading companies -- such as DaimlerChrysler, Steelcase Inc. , Bertelsmann AG, Akzo Nobel, and Mahindra & Mahindra -- spanning industries ranging from automotive to media and manufacturing have reported a range of benefits from their implementations of mySAP SRM.

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mySAP SRM maximizes return on supplier relationships across all categories of spend at all times. The solution covers the full supply cycle, from strategic sourcing to operational procurement and supplier enablement while leveraging consolidated content and master data. With mySAP SRM, companies can qualify new suppliers and manage contracts, automate cross-company processes with all suppliers, and enable suppliers to participate in e-procurement and sourcing easily and cost-effectively. Companies can gain complete visibility of purchasing activities across multiple business units and heterogeneous systems, allowing them to leverage global spend analysis for implementing improved procurement and sourcing strategies.

"Our mission is to provide an essential advantage for customers who rely on tightly managed spend to maintain their ongoing profitability," said Peter Lorenz, senior vice president, Commerce Applications, SAP AG. "mySAP SRM leverages SAP(R) NetWeaver(TM) to provide a high level of transparency and integration into global purchasing activities so companies can efficiently manage spend across an enterprise."


Global automaker DaimlerChrysler initially went live with the e- procurement capabilities of mySAP SRM at three of its German and U.S. pilot plants in March of 2002. Since the initial deployments, DaimlerChrysler has launched the solution in ten more plants in Germany and currently has more than 1,400 productive users. This includes a mid-term target up to 6,000 users in Germany alone and rollout plans to more global locations after further mySAP SRM development steps. DaimlerChrysler's plants are initially using mySAP SRM for self-service procurement of non-production goods such as office materials, tooling, electronic components, and machine spare parts.

"By implementing mySAP SRM, we will be able to automate our procurement practices including purchase of services," said Klaus Gritsch, director, International Procurement Services, DaimlerChrysler. "With this ability, DaimlerChrysler will realize cost savings and heightened efficiency in all of our purchasing practices."

Steelcase Inc.

Steelcase Inc., the global work-effectiveness company, implemented mySAP SRM to optimize its business partner relationships. Steelcase utilizes the software's capabilities for strategic sourcing, procurement execution, supplier enablement, and reporting. This will allow Steelcase to monitor and evaluate supplier performance and provide its worldwide sourcing team with consolidated purchasing information to make the best sourcing decisions.

Steelcase is currently using mySAP SRM to run SupplySync(TM), a private marketplace that allows Steelcase and its subsidiaries to connect to a global business supply network that serves as a product procurement and service facilitator to these companies.

"By using mySAP SRM, we are able to easily integrate with our suppliers quickly and cost-effectively," said Rob Heitmeier, director of supply chain management, Steelcase. "With this software, we can make activities simple and straightforward by offering one intuitive interface and point of interaction with our suppliers."

Bertelsmann AG

Bertelsmann AG, the global market leader in media distribution through clubs and on the Internet, required an integrated purchasing portal to support all groupwide purchasing activities. With these needs in mind, Bertelsmann chose mySAP SRM because it enables strategic sourcing, automates purchasing processes, and fully integrates all suppliers, even in a disparate IT environment.

Through this implementation, which began in July of 2002 and will be completed in July of 2003, Bertelsmann will enjoy higher transparency in its purchasing activities and spend, generally leaner processes, lower costs through collaborative buying, and the ability to focus on its benchmark suppliers.

"We chose mySAP SRM because it offers an integrated purchasing platform with a comprehensive set of functions that support all of Bertelsmann's supplier relationship requirements," said Josef Schwake, senior vice president corporate sourcing coordination, Bertelsmann AG. "Using this solution provides us with a complete and continuous sourcing and procurement process that truly integrates all our suppliers, even within a heterogeneous system landscape."

Akzo Nobel Coatings

Akzo Nobel Coatings, a subsidiary of the world-leading company for chemicals, coating, and pharmaceutical products, Akzo Nobel, went live with the self-service procurement features of mySAP SRM in December of 2002. With almost 140 users in the Netherlands alone, Akzo Nobel also plans to deploy additional implementations to its Chemicals and Central Purchasing divisions throughout Europe. Currently, Akzo Nobel Coatings is implementing the plan- driven procurement capabilities of mySAP SRM. Requirements generated through Akzo Nobel's planning and execution system can be automatically passed on to mySAP SRM, triggering the creation of an order.

It enables Akzo Nobel to run materials requirement planning in its existing SAP(R) R/3(R) system while benefiting from all the advantages of a fully integrated e-procurement system, such as comprehensive analytical capabilities and centralized contract management. Currently, Akzo Nobel has approximately 120 back-end systems-about 60 percent SAP and 40 percent non-SAP-which it will ultimately be connecting to mySAP SRM.

Mahindra & Mahindra

Mahindra & Mahindra, a leading automotive manufacturer in India, is one of the latest customers to choose mySAP SRM. Specifically, it will be using the software to improve its procurement process and connect to its suppliers.

"Mahindra & Mahindra has chosen mySAP SRM to streamline supplier collaboration," said J. M. Mapgaonkar, vice president of vendor management, Automotive Sector, Mahindra & Mahindra Ltd.

Mahindra & Mahindra will implement supplier self-service functionality with direct integration with SAP R/3 through the SAP Exchange Infrastructure. As a result, approximately 1,000 suppliers will be able to view purchase orders, confirm requested schedules, send an advance shipping notification, and create invoices online. They will also be able to view online their payment status and performance reports.

SAP will present its solutions together with its service, technology, and small and midsize business (SMB) partners at SAP's main booth in hall 4 at CeBIT 2003, being held in Hanover, Germany, March 12-19.

For more information on mySAP SRM, please refer to .

About SAP

SAP is the world's leading provider of business software solutions. Through the mySAP(TM) Business Suite, people in businesses around the globe are improving relationships with customers and partners, streamlining operations, and achieving significant efficiencies throughout their supply chains. Today, more than 19,300 companies in over 120 countries run more than 60,100 installations of SAP(R) software. With subsidiaries in over 50 countries, the company is listed on several exchanges including the Frankfurt stock exchange and NYSE under the symbol "SAP." (Additional information at )

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 "anticipate," "believe," "estimate," "expect," "forecast," "intend," "may," "plan," "project," "predict," "should" and "will" 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 ("SEC"), including SAP's Annual Report on Form 20-F for 2001 filed with the SEC on March 28, 2002. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates.

NOTE: SAP, mySAP,, xApps, xApp, SAP NetWeaver, and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world. All other product and service names mentioned are the trademarks of their respective companies.

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