SAP Goes Head-to-Head with Oracle over Supply-Chain Solutions

SAP announced the newest version of its SAP BusinessObjects Global Trade Services Application, integrated along with the SAP BusinessObjects Risk Management application, designed to automate regulatory compliance across the supply chain. This is the latest in new products that SAP has rolled out in 2009 and comes weeks after Oracle announced its own SAAS application for streamlining supply-chain management.

SAP announced on March 18 the rollout of a new version of the SAP BusinessObjects Global Trade Services application, part of the SAP BusinessObjects governance, risk and compliance solutions suite.

The announcement follows Oracle’s March 9 release of Oracle Sourcing On Demand, a software-as-a-service solution intended to make strategic sourcing, the process by which companies procure materials for their operations, more efficient and cost-effective.    

With the global economic downturn, the enterprise has been looking for solutions to streamline its supply-chain logistics.

Integrated along with the SAP BusinessObjects Risk Management application, the Global Trade Services application automates regulatory compliance across the supply chain.

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"Since we formed the GRC business unit in April 2006, the SAP strategy has been that companies need to look at governance, risk and compliance initiatives in a holistic way," Narina Sippy, senior vice president and general manager of SAP BusinessObjects GRC solutions, said in an interview. "Within that context, we’ve been delivering on a set of solutions that tackle 'multiproblems' – multiple regulations and requirements by industries, regions and governments."

SAP BusinessObjects solutions are designed to provide continual status information on various aspects of supply-chain logistics, including customer service and compliance with international trade regulations. The enterprise executive receiving the data can adjust their action plans and strategy in order to mitigate risk and increase efficiencies.

Combining SAP’s Global Trade Services and Risk Management solutions ensures that suppliers are AEO (Authorized Economic Operator) certified, meaning their transactions comply with international trade standards for safety and transparency; should they be in violation, SAP BusinessObjects Risk Management notifies the customer. 

In turn, this potentially negates any disruptions to the supply chain.

SAP has made a number of new-product rollouts in 2009, many of them grouped around its release of SAP Business Suite 7, due for general adoption this summer.

On March 11, SAP announced a partnership with Sybase and a resulting mobile solution that would allow the SAP Business Suite to run on Apple iPhone, Microsoft Windows Mobile, and other mobile devices.   

"Compliance is one kind of risk, if you look at what drives your company performance," said Sippy. "We’ve been looking at how you can mitigate that risk."

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