SAP and IBM to Serve Transportation and Logistics Industry

SAP and IBM have announced plans for a global collaboration to provide business software solutions and consulting services for the transportation and logistics industry. The new collaboration is intended to combine IBM’s strategy, industry consulting, and experience in managing large-scale global business transformation projects with SAP’s supply chain management (SCM) software.
The SAP Transportation Management (SAP TM), SAP Event Management (SAP EM), and SAP Customer Relationship Management (SAP CRM) applications, as well as the SAP Billing and Revenue Innovation Management solutions, will be integrated with IBM’s implementation and configuration services. Backed by deep industry knowledge and experience from IBM’s SAP Center of Competence, IBM’s best practice templates aim to tailor SAP SCM solutions to meet each transportation company’s needs. This is intended to result in lower implementation costs and faster time to value, as customers are expected to adopt the new solutions in step-by-step rollouts according to their specific organizational needs and existing infrastructures.
SAP and IBM plan to work closely in the areas of business development, sales, sales support, marketing, and consulting. Together, IBM and SAP plan to help companies in the transportation industry answer such questions as why to transform their business through IT, how to adopt a hybrid on-premise and cloud landscape, and how to keep the systems up-to-date with future business requirements.
While best-of-breed SCM players, such as JDA Software, Manhattan Associates, Descartes, Logility, and others, continue to innovate, they will still maintain a functional capabilities gap versus SAP or Oracle. The market is changing, however. As all the major players have strong capabilities, and as supply chain operations continue to become more complex for many reasons, their business is becoming more about services, including consulting and cloud services. SAP and Oracle have traditionally not been strong in these areas, and this deal with IBM seems a step in the right direction for SAP.
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