SAP or not SAP - that is the question here

"We also work in software"

Instead of "We can do everything except High German", it's now more like "We can also do software" - and that doesn't just apply to Swabian companies. Quite a few have recently been emphasizing that they have software expertise. Jungheinrich places its WMS at the center of its success stories, viastore customers justify their decision in favour of viastore by stating that the company also offers software in its portfolio (cover story in Material Flow 04/2016). In this issue, an IT manager from SSI Schaefer talks about what to look out for when introducing a WMS. Vanderlande highlighted its Load Forming Logic in Materialfluss 11/2015, showing how an intelligent system is behind the optimization of the supply chain between warehouse and store. Dematic recently announced that they are also the right people when it comes to introducing SAP Extended Warehouse Management (SAP EWM). The list of examples could go on and on.

It's clear that even the most sophisticated technology won't work without software, but why is the hype surrounding software so conspicuous right now? One reason is certainly the "Industry 4.0 craze". Anyone whose product portfolio doesn't include anything that can be networked, integrated and "smartized" will have a bad time in the ongoing media hype. We are not exempt from this - we also wanted to know how the CeMAT motto affects our own business activities.

Get a slice of the software pie

In an interview with the sister magazine of Materialfluss, LT-manager 05/2015, in fall 2015, Managing Director of viastore, Philipp Hahn-Wörnle, explained the reasons behind the software spin-off. Analysts were forecasting growth of seven percent per year for the software-based intralogistics market and SAP would achieve significantly greater growth with supply chain execution systems. So do companies simply see more room for growth when it comes to software? Definitely yes. The introduction of SAP EWM was a success story that serves as an incentive for many companies. And this is despite the fact that plant manufacturers in particular have no reason to complain (as evidenced by the optimistic statements made by participants at our round table for general contractors and on the subject of RBG and shuttle last year).

But what does this mean for companies that are purely software companies? Will the general contractors and plant manufacturers take the butter off their bread? Or will the specialists still be in demand? The general contractors and plant manufacturers certainly have an advantage. They are simply the first on the scene when a plant is to be modernized, expanded or newly built. They have their foot in the door first, so to speak. If the company from which I purchase conveyor technology, racking and forklift trucks also offers me the right warehouse software - what reason should I have to look for alternatives?

"An SAP solution is often too powerful for SMEs"

Everyone is looking to the "top dog" SAP. Many want to get involved in the software market with their own WMS.

Costs and interfaces - this is what logistics managers focus on Materialfluss asked logistics and IT managers. For many logistics managers, the decision for or against SAP is usually the first priority. "If the company already has an SAP strategy, it is highly likely that they will opt for an SAP solution," says Hondo Santos, Director Logistics at Balluff GmbH. He adds: "If SAP has a module that fully covers the requirements you have, then SAP is the first choice. However, in many cases, an SAP solution could simply be too powerful or ultimately too expensive for some smaller SMEs." According to Santos, WMS modules from other providers have a very good chance, as they are often simply more flexible and possibly also cheaper.

Achim Nolden from Stabilus broadly agrees. He also sees the big decision at the beginning of an IT project as being for or against SAP: "If the possibilities that SAP offers for warehouse management are sufficient for me, then I don't need a special WMS. If I have special requirements for the automation of the warehouse or the integration of industrial trucks, I look for a WMS from a specialist provider that may offer me a broader portfolio and can cover several areas of the supply chain." The Senior System Analyst at the Koblenz-based manufacturer of gas springs also emphasizes: "First and foremost, you should have a plan for which processes you actually need support."

The conclusion is that the system manufacturers who also offer a WMS have recognized the potential of software. Companies that are planning to modernize their conveyor technology or forklift fleet will also consider software from these providers. And according to the motto "the fewer interfaces the better", they have a good chance of being shortlisted. If you look beyond the warehouse and want to automate the entire supply chain, you need a transport management system, a system for customs clearance, preferably a system that can be used to monitor supply chains, and so on. And this is where the pure software providers come into play, offering solutions for the entire supply chain execution.

What nobody normally wants is a software zoo, says Nolden. But anyone who decides on software should focus on the processes. Whether the software comes from someone who also builds shelves and bins or forklifts is then secondary.

Susanne Frank

Contact:

Balluff GmbH 73765 Neuhausen Phone: 0 71 58 / 1 73-0 E-Mail:

Stabilus GmbH 56070 Koblenz Tel.: 02 61 / 89 00-0 E-Mail:[email protected] www.stabilus.de