Sapphire Dispatch: Digging into the ASN Announcement

It has certainly been a busy week down in Orlando for SAP. By acquiring Frictionless and announcing a new partnership with Emptoris, SAP has made its intentions clear when it comes to investing in the Spend Management market. But I believe that Ariba's NetWeaver certification announcement for the ASN could ultimately prove to be one of the more important pieces of news coming out of Orlando this week. The fact that SAP now has more competitive sourcing and contract management capabilities through Frictionless -- and even higher-end capabilities available through Emptoris -- is certainly a big deal, but pre-integrated supplier network connectivity via the ASN will go a long way to helping existing SAP SRM customers get the most out of their eProcurement investments. Why does network-based supplier connectivity matter? According to Aberdeen, a typical eProcurement implementation has 253 suppliers enabled, but the average ASN user has over 600 connections (but greater than 50% of ASN customers have more than 1,000 suppliers connected). Aberdeen also found that ASN users have roughly 49% of their total indirect spend under management, compared with 39% for typical eProcurement implementations.

Jason Busch

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