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$250 Billion Automotive Aftermarket Poised for Improvements with New Solution from SAP |
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SAP, Praxis Software and Valogix Deliver e-Commerce and Inventory Management in Integrated SAP® Business One Solution
CHICAGO, Ill. - July 19, 2005 - America’s $250 billion automotive aftermarket businesses have new opportunities to increase sales, reduce inventory, improve service levels and increase productivity with a new small and midsize industry-specific solution from SAP America, Inc., a subsidiary of SAP AG (NYSE: SAP). Developed by SAP® Business One solution partners Praxis Software and Valogix, the new solution offers SAP-certified e-commerce and inventory management capabilities from the SAP partners with SAP Business One in an integrated software solution. The announcement was made at the Aftermarket eForum 2005, the annual technological showcase of the automotive aftermarket industry, held in Chicago, Illinois, July 19-21.
The new solution draws on the industry expertise of SAP and its partners to support automotive aftermarket suppliers—employing more than 4.5 million—as they order, market and sell all parts, accessories, services and upgrades bought for automobiles after the original purchase. With the new software solution, aftermarket suppliers will be able to resolve numerous business management issues, including inefficiencies caused by managing disparate software solutions, difficulties tracking large quantities of parts and a rising demand for an online presence and electronic catalog to reach a growing marketplace.
“The thousands of companies operating within the automotive aftermarket have typically employed several siloed business solutions to sell products and analyze data for demand and price forecasting,” said Scott Luckett, vice president, Technology Standards and Solutions, Automotive Aftermarket Industry Association. “Having a solution that can combine core business processes such as tracking individual parts, purchasing supplies and online sales can help aftermarket companies achieve operational efficiencies, create new revenue channels and provide accurate sales forecasting.”
E-Commerce and Inventory Optimization and Replenishment
SAP Business One helps small and midsize enterprises run more efficiently by making business operations easier and customer relationships richer. SAP’s partnerships with Praxis Software and Valogix will result in an integrated e-commerce and inventory management capabilities for SAP Business One, eliminating the trouble and cost of integration business owners would have to face in cobbling together disparate applications for the same functionality.
“What sold us was the tight integration within the solution and how well its capabilities work together,” said Scott Toll, sales manager, Service-Mate, a manufacturer and distributor of aftermarket products for construction vehicle dealers and independent automotive dealers. “The efficiencies we are gaining are incredible. We are virtually eliminating paper from the process. Being able to have customers enter orders through the Web front-end frees up my sales staff, allowing them to generate new business rather than take orders. The tight inventory management drastically reduces errors and saves us money.”
The SAP-certified integration solution NetPoint CommerceTM from Praxis Software will provide an integrated online sales framework that enables aftermarket companies to increase revenues by creating up-selling and cross-selling opportunities. Customers can employ easy-to-use search capabilities to track and find highly specialized automotive parts and features through real-time inventory tracking and use customer self-service to create and finalize orders more efficiently.
Advanced Inventory Management from Valogix® Parts Planner, an SAP-certified integration solution, enables small and midsize aftermarket companies to optimize inventory levels and streamline supply chain processes by connecting with sales data, including current sales levels and predictions of future demand for automotive products and services. Aftermarket companies can generate real-time reports that recommended stocking levels and dates for inventory replenishment orders to lower inventory investments, replenishment expenditures and costs from emergency shipments.
The partner integrations between the new e-commerce and inventory management capabilities of SAP Business One have been verified by SAP in accordance with SAP’s certification process. Praxis and Valogix are among the first partners with certified integrations for SAP Business One, an important element of SAP’s newly announced SAP PartnerEdge™ Channel Partner Program. The new solution will be offered through select certified SAP Business One resellers.
“Small and midsize companies are increasingly recognizing the ability of SAP and its partners to provide tightly integrated solutions that offer measurable, rapid time to value,” said Dan Kraus, vice president, SAP Business One, SAP America, Inc. “With this new offering for the automotive aftermarket, SAP is joining with partners to extend its automotive expertise to deliver a singular solution that recognizes the numerous demands of this growing segment of small and midsize enterprises.”
About SAP
SAP is the world’s leading provider of business software solutions*. Today, more than 27,000 customers in over 120 countries run more than 91,500 installations of SAP® software—from distinct solutions addressing the needs of small and midsize businesses to enterprise-scale suite solutions for global organizations. Powered by the SAP NetWeaver™ platform to drive innovation and enable business change, mySAP™ Business Suite solutions are helping enterprises around the world improve customer relationships, enhance partner collaboration and create efficiencies across their supply chains and business operations. SAP industry solutions support the unique business processes of more than 25 industry segments, including high tech, retail, public sector and financial services. With subsidiaries in more than 50 countries, the company is listed on several exchanges, including the Frankfurt stock exchange and NYSE under the symbol “SAP.”
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