Companies Choose SAP to Help with Supply and Demand Volatility

Rhea-AI Summary

SAP SE (NYSE: SAP) announced that companies like Palace Resorts and Siemens Energy have adopted SAP® Ariba® and SAP Fieldglass® solutions to enhance procurement and workforce management in Q3. SAP maintains a dominant position in the procurement applications software market with a 32.8% market share, surpassing its next 11 competitors combined. The procurement market grew 5.4% to $6.2 billion in 2020. SAP's solutions are aimed at increasing operational agility and reducing risks amidst ongoing supply and demand challenges.

Positive

• SAP holds a 32.8% market share in procurement applications, leading the market significantly.
• Adoption of SAP solutions by major companies indicates strong demand and confidence in SAP's offerings.

Negative

• None.

WALLDORF, Germany, Oct. 28, 2021 /PRNewswire/ -- SAP SE (NYSE: SAP) today announced that Palace Resorts and Siemens Energy are among the hundreds of companies worldwide to have chosen SAP® Ariba® and SAP Fieldglass® solutions in the third quarter to help digitalize procurement and external workforce management. Hundreds more companies also renewed licenses and went live with solutions from SAP to optimize spend management.

SAP maintains the largest share of the procurement applications software market, according to the recently published "IDC Worldwide Procurement Applications Software Market Shares, 2020: Digital Became the New Normal" report.* IDC estimates that SAP's market share has grown to 32.8%, maintaining its position of having the largest share of the market — more than the next 11 vendors combined.

IDC Vice President of Enterprise Applications and Digital Commerce Mickey North Rizza said, "SAP clients have told us collectively that they have chosen SAP Ariba solutions for the extensive benchmarking across industries and spend categories and integration with SAP S/4HANA. They also love the guided buying experience in the SAP Ariba solutions. Many others have told us SAP Fieldglass solutions have helped improve their services procurement processes for engagement with consulting firms, marketing agencies, field services, maintenance and business process outsourcing." According to the report, IDC estimates that the procurement software market has grown 5.4% to $6.2 billion in 2020 alone. 

Ongoing shifts and imbalances in supply and demand have led companies across geographies and industries to recognize how critical digitalizing operations is to procuring goods and services and keeping the global economy running.

"Right now, business leaders are recognizing the power of procurement and flexible workforces to help them achieve more than just cost savings," said Etosha Thurman, Chief Marketing and Solutions Officer, Intelligent Spend and Business Network, SAP. "We believe our market leadership is one of the reasons why they are turning to SAP to help increase agility and reduce risk in a world where supply and demand is volatile, disruption is expected and risk in various forms is more pervasive than ever before."

Highlights from the third quarter include:

Grupo KUO, a Mexican industrial conglomerate, selected SAP Fieldglass solutions for contingent workforce management. By digitalizing and automating its processes for sourcing, hiring and managing external talent, the company aims to comply with Mexico's recent labor outsourcing regulation while also improving the experience for its workers and talent suppliers.

Mubadala Investment Company, a global investment group based in the United Arab Emirates and owner of the Acelen oil refinery in Brazil, has chosen SAP to support its growth strategy. Acelen will adopt the RISE with SAP offering, combining SAP S/4HANA® Cloud, private edition, and the SAP Analytics solution to unify operations under one robust platform. In addition, cloud-based SAP Ariba, SAP Concur®, SAP Fieldglass and SAP SuccessFactors® solutions will help transform spend management and total workforce management so Acelen can maximize savings and deliver a better human experience for all workers.

The Palace Resorts hotel chain in Mexico has selected RISE with SAP to support its IT strategy of digitalizing business processes in the cloud. The hospitality group also chose SAP Ariba solutions to help transform its procurement function and improve the buying experience and collaboration with its suppliers.

Petrobras, the Brazilian energy company, is accelerating its digital transformation with SAP. Taking a phased approach following the adoption of SAP S/4HANA, this quarter the company went live with SAP Ariba solutions for guided buying and catalogs to help improve its procurement and supply chain processes and provide a better user experience for employees and suppliers.

Siemens Energy AG, based in Munich, Germany, is focused on shaping the energy transition worldwide to help protect the climate while meeting growing energy demand with its strong and resilient portfolio. It selected SAP Ariba solutions to help improve, harmonize and automate procurement operations across the organization. 

Waters Corporation, the Massachusetts-based analytical laboratory instrument and software company, selected SAP Ariba solutions — after a highly competitive evaluation and selection process — to help digitally transform its supply chain and improve its procurement operations with standardized and automated processes. Connecting to a digital network and aligning stakeholders and trading partners to a common plan will help Waters gain real-time visibility to anticipate and respond to changes in demand more quickly and orchestrate its multitier supply chain more effectively, with the goal of improving inventory management, customer service and on-time shipments.

Zijin Mining is one of China's largest gold mining companies. To support its rapid global expansion, the company selected SAP Ariba solutions to help improve the transparency, intelligence and compliance of its procurement system, strengthen group governance, and meet different procurement requirements around the world.

For more information, visit the SAP News Center. Follow SAP on Twitter at @sapnews.

About SAP

SAP's strategy is to help every business run as a sustainable intelligent enterprise. As a market leader in enterprise application software, we help companies of all sizes and in all industries run at their best: SAP customers generate 87% of total global commerce. Our machine learning, Internet of Things (IoT), and advanced analytics technologies help turn customers' businesses into sustainable intelligent enterprises. SAP helps give people and organizations deep business insight and fosters collaboration that helps them stay ahead of their competition. We simplify technology for companies so they can consume our software the way they want — without disruption. Our end-to-end suite of applications and services enables business and public customers across 25 industries globally to operate profitably, adapt continuously, and make a difference. With a global network of customers, partners, employees and thought leaders, SAP helps the world run better and improve people's lives. For more information, visit www.sap.com.

* "IDC Worldwide Procurement Applications Software Market Shares, 2020: Digital Became the New Normal" report (Doc # US47984421, August 2021).

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FAQ

What recent companies adopted SAP solutions?

Companies like Palace Resorts and Siemens Energy selected SAP Ariba and SAP Fieldglass solutions in Q3 2021.

What is SAP's market share in procurement applications?

SAP holds a 32.8% market share in procurement applications, more than the next 11 competitors combined.

How much did the procurement software market grow in 2020?

The procurement software market grew 5.4% to $6.2 billion in 2020.

What are the benefits of SAP Ariba solutions?

SAP Ariba solutions provide extensive benchmarking, integration with SAP S/4HANA, and enhanced procurement processes.

What is the goal of adopting SAP Fieldglass solutions?

Companies adopt SAP Fieldglass solutions to automate and improve external talent management and compliance with labor regulations.