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I want to share some very good news with you about SAP’s
Transportation Management and Warehouse Management solution.  ARC Advisory Group released a report last month
and has named SAP once again as a leader in the fields of transportation
management systems (TMS) and warehouse management systems (WMS).

In the TMS segment, ARC advisory said that not only we were
the revenue leader, but we also grew way faster than the average market growth
of about 15%, led by many large deals in 2012 in the 3PL sector.  This makes TMS one of the fastest growing
businesses in SAP. The research report also said that SAP is the world-wide
leader in Fleet Management sector, as well as the largest supplier of TMS in Europe
and Asia. 

Our efforts in adding significant functionality to our TMS
solution are paying off.  Just in the
last release, we added ocean and air freight management, easier manual and
automated transportation planning, more granular cost distribution, and
additional transportation management analytics and reports.  We also extended TMS to cover air freight
management for freight forwarders, with specific capabilities for air freight
order, capacity, cargo and gateway management. Other enhancements specific for
freight forwarder companies included comprehensive forwarding order and service
product management.

As you know, SAP’s Transportation Management solution covers
end-to-end business scenarios, such as domestic and international inbound and
outbound shipments.  It offers full
integration and synchronization with SAP ERP and other modules of the business
suite, like SAP GTS and the EH&S area.
The end-to-end transportation process for any company starts with
procurement and extends through contract management, planning and optimization,
execution and visibility, and ends with freight audit and pay – and we cover
the entire spectrum due to our rich functionality and its integration to rest
of SAP solutions.

Similarly, in the Warehouse Management space, ARC advisory
found SAP to be the software revenue leader. In addition, it found SAP to be
the number one WMS provider in manufacturing industry segments such as
automotive and machinery.  The ARC report
especially complemented SAP EWM for its robust functionality including
optimization across warehouse labor and material handling, as well as
interoperability with SAP suite of solutions. 

I want to speak specifically to the interoperability point
made by ARC because it realizes a number of advantages for our customers.  These include the ability to support
end-to-end traceability and recalls; support for the release of raw materials
to a factory line; integration to Global Trade Services to ensure the correct
paperwork for goods shipped across international borders and for bonded
warehouses; and integration to SAP’s spare parts planning solution for more
complex spare parts warehouses.  SAP
customers can also obtain total cost of ownership savings from buying all
solutions from one vendor and managing, supporting and extending them with the
same resources and skills instead of acquiring and maintaining heterogeneous IT
skills.

In summary, we are very proud of our market leadership in
the field of Logistics….and it is not SAP stating it, it is a well-respected 3rd
party that has documented and verified revenue and deals, saying that SAP has
arrived as a leader in TMS and WMS .

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