smartops corporation case study
DESCRIPTION
Smartops Corporation: Forging Smart Alliances? Should Smartops consider 2nd Partnership Deal with SAP?TRANSCRIPT
By: Ansh Aggarwal Danish Hasware
Varun Balakrishnan Nivedita Subbaram
SMARTOPSCORPORATION:FORGINGSMART ALLIANCES?
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.
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.
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?
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?
Manufacturing plant
Packaging supplier
Raw material supplier
Distribution centre
Retail customer
consumer
Dist. or
wholesaler
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.