Transform the Intelligent IM&C Enterprise
Transcript of Transform the Intelligent IM&C Enterprise
Overview Strategic Priorities E2E Scenarios SAP Value Proposition ReferencesSAP Strategy
Transform Your Wholesale Distribution Organization
into an Intelligent Enterprise
Achieve Value with Intelligent ERP
SAP Value Paper | PUBLIC
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Enhance and Extend Next-Generation Processes with Intelligent ERPBringing SAP S/4HANA® and intelligent technologies from SAP together as Intelligent ERP results in a more flexible and intelligent enterprise. To create next-generation business processes and respond to rapid changes, companies need Intelligent ERP solutions that can be continuously enhanced and extended with innovative business services and applications built on emerging technologies, including machine learning, blockchain, and the Internet of Things (IoT). Wholesale distributors focused on innovation or early adoption have already begun this journey.
The Power of Intelligent ERP
Overview Strategic Priorities E2E Scenarios SAP Value Proposition ReferencesSAP Strategy
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Leading wholesale distributors are transforming their business to provide customer-specific solutions that differentiate their companies from peers in the marketplace.
The digitalization of businesses across all industries is happening rapidly, and there is no turning back. Digital transformation fosters operational excellence within wholesale
distribution companies, providing the real-time information required to overcome market challenges and drive immediate impact for their customers. Leading wholesale
distributors are looking for new ways to deliver value to their customers through new business models and services. Intelligent technologies can enable distributors to become
proactive, insight-driven companies that can drive new revenue sources, retain customer loyalty, and increase long-term profitability.
More-demanding customers
Customers are demanding a wider range of products with shorter delivery times and
more delivery options.
Distributors can pivot to becoming a go-to partner for infinite inventory – offering anywhere,
anytime delivery to meet expectations in the age of Amazon.
Need for solution orientationCustomers are looking to distributors to collaborate and provide complete solutions for specific business needs or projects.
Effective two-way collaboration between the distributor and customer can provide project-
supporting solutions that build a long-term, valuable partnership.
New employee expectationsEmployees are burdened by work-arounds and manual tasks that negate job satisfaction and overall experience.
To combat the talent shortage, distributors can focus employees on high-value tasks based on
insights embedded in operational activities. This focus allows for improved decision-making, role
attractiveness, and employee motivation.
More-complex customer needs
Customers are seeking additional services such as light manufacturing, kitting and
assembly, and maintenance to support the products they sell.
Distributors who provide value-added services can evolve differentiating business models that
drive customer stickiness and long-term profitability.
PROMESA
30% Increase in sales due to product design improvements
5 seconds Time to run an average core process, down from 5 minutes
Through our ongoing partnership with SAP, we’ve achieved the impossible – getting into the customer’s mind using analytics and not just reading their mood of the moment with surveys.
“
Miguel Sotomayor, Technology Manager, Productos Metalúrgicos S.A. (PROMESA)
Read the business transformation study
”
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Drive Business Value with Intelligent ERP: SAP S/4HANA Customer Stories
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Jebsen & Jessen (SEA)
70%SAP HANA® database usage
67% Improvement of memory consumption
Jebsen & Jessen established SAP S/4HANA as the digital core to streamline and optimize business processes throughout the business while improving productivity. The migration is an essential step in our group’s digital road map and will put us in the position to harness current and future business growth opportunities.
“
Chris Tan, Group Director (ITC), Jebsen & Jessen (SEA)
Read the business transformation study
”
Drive Business Value with Intelligent ERP: SAP S/4HANA Customer Stories
The digital economy is disruptive. Wholesale distribution companies need strategic priorities that drive their transformation into intelligent enterprises. SAP supports a reimagined
set of end-to-end (E2E) business scenarios that are part of a digital environment.
The value-added services distributor
For years, most distributors have been providing value-added services,
many of which have been free of charge. Leading distributors take these
value-added services to the next level and use them to significantly
increase revenue and bottom-line profitability. Distributors should consider
providing customers with a menu of options such as light manufacturing,
sensor-based services, training and consulting services, or lending
services.
E2E scenario: Customized products – Think beyond the purchasing
and selling of goods. Based on customer requests, distributors can take
responsibility for customer tasks and deliver individualized products.
The “anything, anywhere, anytime” distributor
Companies everywhere face volatile customer demand and heightened
service expectations. Innovative technologies can help resolve these
issues by providing vital business information across the network,
improving real-time analysis, and enabling better collaboration across
departments and trading partners – thus transforming the supply chain
into a responsive network.
E2E scenario: Intelligent inventory investment – Transform your
traditional linear supply chain into a responsive digital supply network
supporting all aspects in the order-to-delivery value chain.
The solution-oriented distributor
With so many options in the marketplace, distributors need to establish
themselves as trusted partners. One way to do so is by working with
customers to not only understand needs but also collaborate closely
on larger products. Through this relationship, distributors can plan for
and deliver the products and services that establish themselves as a
long-term, valuable part of the customer’s success.
E2E scenario: Usage-based printing – Rethink traditional product
offerings to include services and usage-based contracts that could include
routine maintenance and replenishment.
Empowerment of the modern employee
Over time, processes can become outdated or broken, requiring
employees to spend much of their time on work-arounds and manual
tasks. Refocusing employee time on higher-value tasks with real-time
insights and automation can dramatically improve employee
experiences.
E2E scenario: Efficiency through process mining – Analyze process
breaks, highlight manual interactions, and review undocumented
deviations from assumed best practices to comprehend areas of
improvement.
Strategic Priorities in a Digital Economy
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Overview Strategic Priorities E2E Scenarios SAP Value Proposition ReferencesSAP Strategy
Putting the customer’s point of view at the center of every decision is a key prerequisite for success in the digital age. Based on customer requests, wholesale distributors take
tasks over from their customers and deliver individualized products. SAP® solutions enable wholesale distributors to easily adopt value-added services while driving customer
stickiness and long-term profitability.
The Value-Added Services Distributor
Customized Products
/6 17*Benefits are based on early adopters of SAP S/4HANA or conservative outside-in benefits due to moving from a traditional ERP to enhanced SAP S/4HANA with line-of-business or cloud capabilities.
As each enterprise is at a different level of maturity, we recommend working with you to determine the value proposition for your enterprise.
Top value drivers*
Traditional scenario
10%–20%Increase in customer satisfaction
29%Fewer days in inventory
IncreasedRevenue growth
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Customer orders replacement
products, often when machine
malfunctions.
Customer customizes product
according to his needs.
Buy replacement products of various
types based on past consumption data.
Keep high safety buffers to guarantee
availability of critical parts.
Carry out urgent delivery of
original products to customer.
Store products in warehouse
until they are needed.
Wholesale company: The hose is cut for the specific
machine and fitted with appropriate connectors,
enabled through real-time prioritization and capacity
planning. Demand-driven replenishment allows
safety stock to be minimized.
An integrated, holistic solution is used to
perform quality planning and inspections
for the assembled products. Results are
collected to enable informed decisions and
help ensure product quality.
Customer site: Using predictive maintenance, the
condition of hydraulic machines is monitored.
Based on the information, maintenance activities are
triggered. As a result, individual hydraulic hoses are
ordered before the machine malfunctions.
Products are delivered to the customer
using a single embedded platform for
transportation management. Goods in
transit are tracked in real time. Customer
feedback is used to validate quality and
identify future opportunities.
Overview Strategic Priorities E2E Scenarios SAP Value Proposition ReferencesSAP Strategy
A new world with SAP
The “Anything, Anywhere, Anytime” Distributor
Intelligent Inventory Investment
/7 17*Benefits are based on early adopters of SAP S/4HANA or conservative outside-in benefits due to moving from a traditional ERP to enhanced SAP S/4HANA with line-of-business or cloud capabilities.
As each enterprise is at a different level of maturity, we recommend working with you to determine the value proposition for your enterprise.
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Top value drivers*
Traditional scenario
10%–12%Reduction in total logistics costs
10%–20%Increase in on-time delivery
Up to 10%Reduction in total inventory investment
• Look up product availability
and price.
• Call vendors to manage
items not stocked.
• Replenish inventory with material
resource planning runs in overnight
batch jobs.
• Manage stocking requests from
branches for new items.
Review inventory levels for
“dead” stock and analyze when
this stock might be transferred
and where it can be sold.
• Perform live material resource planning,
enabling insight to action in real time with
one consistent user interface.
• Create role-specific screens to speed up
the management and execution of orders.
• Conduct a product availability check
with alternative source confirmation
options in real time.
• Enable full integration with vendors for
items not stocked.
Predict slow stock movements and analyze
redeployment of inventory with intelligent
technologies that efficiently complete these
complex tasks in a timely manner.
• Monitor order and shipment status with vendors
through business networks in real time.
• Monitor overdue stock with intelligent applications
that more accurately predict stock movements.
• Check with vendors on status
of shipments.
• Check with branches on status
of stock transfers.
Overview Strategic Priorities E2E Scenarios SAP Value Proposition ReferencesSAP Strategy
A new world with SAP
Providing products that fit the needs of customers at the right time and right prices has been routine in traditional wholesale distribution. Today, there are even more challenges to
doing this consistently, especially considering the alternative sources customers have today from online marketplaces. SAP solutions allow distributors to push standardization
and simplification, becoming more responsive along the supply chain to drive custom-tailored, real-time responsiveness.
The Solution-Oriented Distributor
Usage-Based PrintingTo remain competitive in today’s market, wholesale distributors must transform into solution providers that engage with customers to collaborate and work toward comprehensive
and attractive outcomes. By moving from simply selling products to providing services and adding value, new business models evolve. SAP solutions empower distributors with
the technology required to move away from a model of capturing sales orders reactively to driving proactive, solution-oriented engagements.
/8 17*Benefits are based on early adopters of SAP S/4HANA or conservative outside-in benefits due to moving from a traditional ERP to enhanced SAP S/4HANA with line-of-business or cloud capabilities.
As each enterprise is at a different level of maturity, we recommend working with you to determine the value proposition for your enterprise.
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Top value drivers*
Traditional scenario
27% Fewer days sales outstanding
Up to 25% Reduction in customer support calls
A new world with SAP
In case of malfunction, customer
requests repair. Until repair
technician arrives, printer is out
of order.
Sales representative visits
customer and presents new
products and offerings.
• Printer is delivered, with
installation service provided.
• Printer paper is delivered
at regular intervals without insight
into actual customer need.
Customer orders printer and printer
paper. Printers and print paper are sold
separately, without follow-up activities.
Overview Strategic Priorities E2E Scenarios SAP Value Proposition ReferencesSAP Strategy
• By focusing on deals with a high propensity of closing,
sales representative uses time more productively.
• The rep offers a compelling solution for complete
print management and closes a use-based contract
for printing services.
Based on various parameters, printer is monitored
and maintenance is predicted, preventing printer
outage, enabling a high service level, and reducing
customer calls. Insights into customer experience
help improve future service.
Printer is installed using IoT
technology to connect the printer to
systems at the wholesale company.
Metering system captures number of prints.
Use is monitored and managed on an
exception basis. Use-based billing includes
thresholds and customer-specific pricing.
Empowerment of the Modern Employee
Efficiency Through Process MiningProcesses in large organizations are complex by nature, and companies often take the opportunity to standardize them with an ERP deployment. Even the most disciplined
organization notices that its control over processes tends to deteriorate over time. SAP solutions empower employees to get the real-time insights they need to cut costs,
minimize time-intensive bottlenecks, and pivot to focus on high-value tasks that build employee engagement.
/9 17*Benefits are based on early adopters of SAP S/4HANA or conservative outside-in benefits due to moving from a traditional ERP to enhanced SAP S/4HANA with line-of-business or cloud capabilities.
As each enterprise is at a different level of maturity, we recommend working with you to determine the value proposition for your enterprise.
Traditional scenario
IncreasedProcess transparency
and visualization
IncreasedProcess compliance
with audit standards
ReducedManual interventions
in process execution
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Shipping of goods on time
or too late without prior
notification to the customer
Manual postprocessing of
orders for delivery date
changes, price adjustments,
or out-of-stock handling
Processing of customer
service tickets to manage
requests, complaints, or claims
Isolated creation of
orders through multiple
interaction points
Postsales activities to
alleviate market
perception through
promotions or discounts
Handling and mitigation of
incidents with visibility on
social media or a Web shop
Shipping of goods with real-
time customer notifications
Chatbot-supported postprocessing of
orders for delivery date changes, price
adjustments, or out-of-stock handling
Proactive handling of incidents
with predefined mitigation
options to manage customer
expectations
Integrated interaction channels
providing a 360-degree view of
and for the customer
Active social media presence
that captures the customer
experience for continuous
improvement
OptimizedThroughput times by
identifying bottlenecks
Process mining provides insight into process breaks to identify repetitive tasks and conduct root-cause analysis.
Overview Strategic Priorities E2E Scenarios SAP Value Proposition ReferencesSAP Strategy
A new world with SAP
Top value drivers*
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Intelligent ERP Is the Foundation of an
Intelligent Enterprise
Intelligent enterprises run agile, integrated business processes and
use advanced technologies such as artificial intelligence, machine
learning, and the Internet of Things.
They apply leading-edge industry best practices and work together
to build flexible value chains. They evaluate and act on customer,
partner, and employee sentiment, and they understand and manage
their environmental impact. This makes them resilient, successful,
and sustainable.
Overview Strategic Priorities E2E Scenarios SAP Value Proposition ReferencesSAP Strategy
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SAP Strategy – Deliver the Intelligent Enterprise
Intelligent suite – helps to run agile, integrated
business processes. We help manage every part
of the organization – employees, customers, products,
spend, finance, and IT. With embedded analytics, we
offer a 360-degree view of the business.
Experience management – helps organizations evaluate
and act on customer, partner, and employee sentiment.
Understanding what your stakeholders want and how they
feel is critical to making the right decisions.
Business network – helps customers digitalize
cross-company business processes. The network builds
on our procurement, travel, and contingent workforce
solutions. It helps our customers work together to build
flexible value chains.
Business Technology Platform – provides data
management and analytics and supports application
development and integration. It also allows our
customers to use intelligent technologies – such as
artificial intelligence, machine learning, and the
Internet of Things – to drive innovation.
Sustainability management – helps customers
understand and manage their impact on people and the
environment. Climate 21 is the name of our initiative behind
our new crop of sustainability management solutions. These
solutions help businesses understand and manage
greenhouse gas emissions.
Industry cloud – allows customers to discover and
deploy vertical solutions from SAP and partners.
These help customers apply leading-edge industry
best practices and extend current business processes.
BUSINESS TECHNOLOGY PLATFORM
INTELLIGENT SUITE INDUSTRY CLOUDAPPLICATIONS
TECHNOLOGY
BUSINESS
PROCESS
EXPERIENCE MANAGEMENT
SUSTAINABILITY MANAGEMENT
Across all functions
BUSINESS NETWORK
Overview Strategic Priorities E2E Scenarios SAP Value Proposition ReferencesSAP Strategy
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SAP S/4HANA
Innovations
The Value-Added
Services Distributor
The “Anything,
Anywhere, Anytime”
Distributor
The Solution-
Oriented Distributor
Empowerment
of the Modern
Employee
▪ Robotic process automation
▪ Service request, order, and
contract management
▪ Service quotation
▪ Service request management
▪ Service billing
▪ Supplier rebate programs
▪ Returns and refunds
▪ Extended service-parts planning
▪ Production planning (kitting)
▪ Extended warehouse management
▪ Process mining
▪ Intuitive user interface
▪ Embedded analytics
▪ Supplier management
▪ Cost management and profitability
analysis
▪ Solution quotation and billing
▪ Subscription contracts, billing, and
revenue management
▪ Project and portfolio management
▪ Subscription contracts
▪ Efficient field service management
▪ Procurement analytics
Economic Value Added
Increased profitability (revenue and costs)
Optimized use of capital (working capital and equipment)
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SAP S/4HANA Provides New Capabilities to Enable the Strategic
Priorities of Wholesale Distribution Companies
▪ Operational purchasing
▪ Collaborative sourcing and contract
management
▪ Invoice and payables management
▪ Order and contract management
▪ Customer rebates
▪ Pricing administration
▪ Advanced available to promise
▪ Real-time inventory
▪ Predictive stock in transit
▪ Real-time inventory
Overview Strategic Priorities E2E Scenarios SAP Value Proposition ReferencesSAP Strategy
SAP S/4HANA provides wholesale distribution companies with a proven framework to adopt industry next practices while attaining operational excellence across the entire
value chain.
*Benefits are based on early adopters of SAP S/4HANA or conservative outside-in benefits due to moving from a traditional ERP to enhanced SAP S/4HANA, line-of-business or cloud capabilities, and intelligent technologies from SAP.
As each enterprise is at a different level of maturity, we recommend working with you to determine the value proposition for your enterprise.
Strategy enablement
▪ Accelerate creation of new business models
▪ Enter new markets and industries
▪ Accelerate synergy for mergers and acquisitions
▪ Run live (SAP Digital Boardroom)
▪ Reorganize on the fly
▪ Achieve greater speed and agility
▪ Run simply (master complexity)
▪ Manage risk and enable compliance
Empowered employees
▪ Higher productivity with a new, role-based way
of working through the responsive, intuitive
SAP Fiori® user experience on all devices
▪ Role-based, user-centric processes and
self-service business intelligence for user
empowerment
▪ Actionable insights into unified, real-time data,
and processes with built-in system suggestions
for decision support
IT benefits and total cost of ownership (TCO)
▪ Reduced data footprint
▪ Merger of OLAP and OLTP
▪ Elimination of many desktop clients
▪ Lower testing costs
▪ Simplified landscapes
▪ Native integration
IT benefits
and TCO
Business
benefits
Strategy
enablement
Empowered
employees
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The Value of SAP S/4HANA for Wholesale Distribution Companies
Business benefits*
▪ 10%–30% increase in on-time delivery
▪ 25%–30% reduction in inventory levels
▪ 10%–20% increase in customer satisfaction
▪ 20%–25% reduction in revenue loss due to stock-outs
▪ 10%–12% reduction in total logistics cost
▪ 3%–5% reduction in supply chain planning cost
▪ Reduction in order-fulfillment lead time
Overview Strategic Priorities E2E Scenarios SAP Value Proposition ReferencesSAP Strategy
I-D Foods
Industry:
Wholesale distribution
Customer Web site:
www.idfoods.com
Click here to read the business
transformation study
I-D Foods Corporation is one of Canada’s largest imported specialty and natural
food companies. It serves around 10,000 business customers, including
restaurants, hotels, and grocery stores.
As the company experienced rapid growth, it needed to replace an outdated
legacy ERP system. To streamline operations, optimize warehouse management,
speed deliveries, and deepen customer insight, it chose SAP S/4HANA running
on IBM Power Systems.
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Customers Are Achieving Value with SAP Solutions
We are always looking to improve and win more customers. An important part of
that is delivering great service. To achieve our future ambitions, we needed to
adopt a platform that could offer deeper operational insight, greater agility,
and superb scalability.
“
Mike Issenman, CTO, I-D Foods Corporation
”
Overview Strategic Priorities E2E Scenarios SAP Value Proposition ReferencesSAP Strategy
SAP solution:
SAP S/4HANA
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Customers Are Achieving Value with SAP Solutions
Jebsen & Jessen (SEA)
Industry:
Wholesale distribution;
industrial machinery
and components
SAP solution:
SAP S/4HANA and
SAP Services and Support
Customer Web site:
www.jjsea.com
Click here to read the business
transformation study.
Jebsen & Jessen (SEA) is an engineering, manufacturing, and distribution company
in Southeast Asia. To continuously adapt to the dynamics of an ever-changing
marketplace and to support business growth, the industrial company wanted to
simplify its current business processes.
Jebsen & Jessen partnered with SAP to deploy the latest version of SAP S/4HANA
as their digital core to act as a key enabler of business success for decades to come.
Jebsen & Jessen established SAP S/4HANA as the digital core to streamline
and optimize business processes throughout the business while improving
productivity. The migration is an essential step in our group’s digital road map
and will put us in the position to harness current and future business growth
opportunities.
“
Chris Tan, Group Director (ITC), Jebsen & Jessen (SEA)
”
Overview Strategic Priorities E2E Scenarios SAP Value Proposition ReferencesSAP Strategy
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Customers Are Achieving Value with SAP Solutions
PROMESA
Industry:
Wholesale distribution
Customer Web site:
www.promesa.com.ec (Spanish)
Click here to read the business
transformation study.
As a small company competing against major suppliers, Productos Metalúrgicos S.A.
(PROMESA) sought to automate aging manual processes to better meet customer
expectations for the right product at the right time.
PROMESA implemented SAP S/4HANA as its digital core and integrated
SAP SuccessFactors®, SAP Concur®, SAP Sales Cloud, and SAP Service Cloud
solutions to shape itself into an intelligent enterprise.
Through our ongoing partnership with SAP, we’ve achieved the impossible –
getting into the customer’s mind using analytics and not just reading their mood
of the moment with surveys. A service culture empowered by SAP software to
anticipate customer needs and exceed customer expectations is leading
PROMESA into a bright future.
“
Miguel Sotomayor, Technology Manager, Productos Metalúrgicos S.A.
”
Overview Strategic Priorities E2E Scenarios SAP Value Proposition ReferencesSAP Strategy
SAP solution:
SAP S/4HANA
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Customers Are Achieving Value with SAP Solutions
AmerisourceBergen
Industry:
Wholesale distribution
Customer Web site:
www.amerisource.com
Click here to read the business
transformation study.
We have had the unqualified and invaluable support of SAP experts from the beginning of our
co-innovation effort. Together we produced a state of the art solution that has succeeded
beyond expectations from day one and simply left competitors in the dust.
“
Jeff Denton, VP, Global Secure Supply Chain, AmerisourceBergen Corporation
”
Overview Strategic Priorities E2E Scenarios SAP Value Proposition ReferencesSAP Strategy
SAP solution:
SAP S/4HANA
AmerisourceBergen ships over four million medications and medical devices across
the globe every day.
AmerisourceBergen Corporation is a leading pharmaceutical wholesale distributor
and a major player in the U.S. drug supply chain. The company provides life saving
pharmaceutical products, value driving services, and business solutions to tens of
thousands of healthcare providers, veterinary practices, and livestock producers
who trust AmerisourceBergen as their partner in the pharmaceutical supply chain.
The Drug Supply Chain Security Act (DSCSA) of 2015, regulating the tracking and
tracing of serialized pharmaceuticals in the U.S. supply chain, inspired a vast wave
of innovation at AmerisourceBergen.
Studio SAP | 60406enUS (20/10)
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