According to Forbes Magazine, software giant SAP SE has announced its plan to provide online procurement and vendor management services.  The strategy SAP SE is pursuing is to take advantage of the business-to-business (B2B) ecommerce market in procurement which has become a hot spot of competition between up-and-coming organizations and heavyweights such as Oracle and Salesforce.com.

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Like most businesses in the software services field, SAP SE has made aggressive investments and buyouts in the cloud-based and SaaS models and providers to the tune of almost $20 billion.  Among others these acquisitions include Fieldglass and Ariba.

The merging of these organizations has allowed SAP SE to create a service called “Business Network” which is specifically for purchasing services.  The leader of the Business Network division, Steve Singh, predicts this sector will be a $75 billion opportunity for SAP SE.

SAP SE plans to leverage its existing customers into further savings opportunities by participating in the Business Network.  While SAP SE certainly will have numerous advantages of their small competitors in terms of sheer size, one has to wonder how nimble SAP SE will be to adapt to ever coming changes in the technology realm.  This is one advantage much smaller businesses will have in this area.

Charles Dominick, SPSM, SPSM2, SPSM3

Charles Dominick, SPSM, SPSM2, SPSM3 is an internationally-recognized business expert, legendary procurement thought leader, award-winning entrepreneur, and provocative blogger. Charles founded the Next Level Purchasing Association in 2000, oversaw its incredible growth, and successfully led the organization to its acquisition by the Certitrek Group in 2016. He continues to blog and provide advisory services for the NLPA on a part-time basis as he incubates his upcoming business innovations. Charles is also the co-author of the wildly popular, groundbreaking book, "The Procurement Game Plan: Winning Strategies & Techniques For Supply Management Professionals."

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