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SAP's Latest Addition to Cloud-Based Supply Chain Platform

Having made quite a stir with announcements of product updates and launches at the ongoing trade fair CeBIT 2016, Germany-based software development firm SAP SESAP unveiled its latest SAP Integrated Business Planning 6.1 application, another potent addition to its highly successful cloud-based planning suite.

AAP Integrated Business Planning 6.1, an application engineered for perfecting "response and supply" of supply chain management issues, is expected to help business enterprises adjust to challenges rising from demand-upside opportunities or supply disruptions. Deploying this application, business enterprises can seamlessly single out their demand priorities which in turn will help in eliminating constraints from supply chain.

Built on SAP's highly adept commercially successful SAP HANA platform, the latest offering can deliver faster and accurate decisions based on software empowered "what-if" analysis that is expected to bolster clients' operational excellence. Since the inception of the first variant of the suite in 2012, the SAP Integrated Business Planning has grown in leaps and bounds being extensively deployed in a gamut of industries.

The latest release makes the business planning suite more comprehensive enabling it to support the whole spectrum of planning functions including end-to-end planning processes of sales and operations, demand sensing and planning, supply and allocations planning, response planning and inventory optimization. For customers, this translates into more visibility, diligent planning cycles, fast response to demand and supply changes, diminished working capital and fast time-to-value deployments.

Apart from this, the company continued its product revamp streak with the introduction of a promotional package for existing customers of the SAP Advanced Planning and Optimization component and the SAP Enterprise Inventory and Service-Level Optimization Analytics analytic application.

We believe SAP's robust revenue growth, moderate debt levels and decent profit margins signal the company's long-term resiliency. Despite the company's relentless efforts toward portfolio expansion, factors like intensifying competition in the IT industry and inherent seasonality in clients' technology spending are currently dampening its near-term prospects. Currently, the company holds a Zacks Rank #4 (Sell).

Better-ranked stocks in the industry include Citrix Systems, Inc. CTXS , CommVault Systems, Inc. CVLT and Infoblox Inc. BLOX . All three stocks carry a Zacks Rank #2 (Buy).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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