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A nod to the notion that SAP SCM can influence service

by Scott Wallask

December 17, 2010

By Scott Wallask, SAP Experts

SCM Expert advisor Chris Moose raises a though-provoking point in a recently posted article to our knowledgebase, “3 Scenarios for Improving Performance with SAP Functionality.”

Many of us would consider SAP SCM as a means to better control costs and improve supply chain performance. It’s the classic back-end business software view.

However, consider this notion by Moose, who is a partner at IBM’s Global Business Services: Adopting SAP technology can differentiate your company or product in a customer’s eyes.

“History has fairly consistently shown that service innovation is valued even within mature products,” Moose writes. “The challenge, which can be answered by IT, is that service innovation can move market share.”

This reminds me of SAP’s current “Run Better” marketing campaign. Think of the messages those commercials and testimonials give (regardless of whether you agree with them). For example, Pinkberry’s tag is that SAP helps the frozen yogurt chain “run yummier.”

A yummy product likely won’t help a supply chain move more efficiently. Rather, good-tasting food promotes consumer satisfaction, which, in theory, SAP products can affect in the bigger picture.

While Moose doesn’t mention the “Run Better” approach in his SCM Expert article, he and SAP recognize that when service and IT collaborate well, the end product for customers improves.

Follow Scott on Twitter @SCMexpert.

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