3. CASE SYNOPSIS
• Sridhar Tayur- CEO- Smartops.
• Began as an idea for improving inventory policies with
higher Complex supply chains.
• Partnered with SAP AG in Germany.
• Scientific method of multi-echelon,Dynamic inventory
target setting.
• Multi-Echelons: vendor at different stages of
manufacturing & Distribution.
• Companies needed Enterprise Software.
4. CASE SYNOPSIS
• $ 250 billion can be saved in buffer inventories
worldwide.
• Faced initial setbacks with no sales in 1st year.
• Concept of Proof of value(POV).
• Faced competition with SAP, Oracle.
• Focus shift to Supply Chain expertise of
Clienteles.
7. SAP & Smartops
• Partnering with SAP a logical solution.
• VERTICALS- supported Smartops.
• HORIZONTALS- supported i2 & Manugistics.
• 2006, Endorsed Business Plan(EBS).
• Smartops made it easy for SAP Reps. to sell their
products.
• Many SAP Reps. Shifted to Smartops.
• Solution Extension Arrangement with SAP?
8. Problem Definition
The Deal
• Partnering Company Receives 30% to 50% of the fee.
• SAP would set the price
• The Brand SAP on the products
• Partnering Company’s permission to contact customers
• Additional Monetary if the partnering company helped the sales force
• 3 year deal(Initial)
Should SmartOps sign the contract and become a Reseller for
SAP?
What are the consequences of not signing the Reseller deal?
13. RECOMMENDATIONS
• Yes , SmartOps should sign a deal with SAP
• SmartOps had to be in sync with SAP
supplychain software , and SAP would
support SmartOps marketing.
• SmartOps were to partner with big brands
• 60% global company used SAP.