SAP to Acquire SmartOps

SAP AG announces plans to acquire SmartOps, a provider of inventory and service-level optimization software solutions. The acquisition paves the way for SAP to develop "real-time supply chain" software solutions, leveraging the SAP HANA platform.

 

SmartOps provides key operating parameters and targets for supply chain management (SCM) planning. The company's solutions coordinate capacity, inventory, demand, lead time and product availability variables that enable customers to optimize inventory and service levels, freeing up working capital for innovation and growth. SmartOps and SAP have a longstanding relationship, jointly delivering supply chain solutions to many large enterprise customers.

SmartOps has developed large-scale, "stochastic" algorithms that are made to take the uncertainty and risk out of SCM processes. These algorithms use predictive analytics to help manage global distribution networks and vast, multi-stage supply chains. Such solutions would be significantly enhanced by SAP HANA, allowing for processing of high volumes of data in real time. It also would complement and expand existing SCM sales and operations offerings from SAP, such as the SAP Sales and Operations Planning analytic application powered by SAP HANA, the SAP Demand Signal Management application powered by SAP HANA and the SAP Advanced Planning & Optimization (SAP APO) component, paving the way for "real-time supply chain" solution. The two companies intend to provide current customers the same, or increased, levels of support without disruption to their existing systems.

 

As part of the acquisition, SmartOps employees will join SAP. The transaction is expected to close during the first quarter of 2013, subject to customary closing conditions.