Smartops corporation case study

By: Ansh Aggarwal Danish Hasware

Varun Balakrishnan Nivedita Subbaram

SMARTOPSCORPORATION:FORGINGSMART ALLIANCES?

CASE SYNOPSIS

CASE SYNOPSIS

• Sridhar Tayur- CEO- Smartops.

• Began as an idea for improving inventory policies with higher Complex supply chains.

• Partnered with SAP AG in Germany.

• Scientific method of multi-echelon,Dynamic inventory target setting.

• Multi-Echelons: vendor at different stages of manufacturing & Distribution.

• Companies needed Enterprise Software.

CASE SYNOPSIS• $ 250 billion can be saved in buffer inventories

worldwide.

• Faced initial setbacks with no sales in 1st year.

• Concept of Proof of value(POV).

• Faced competition with SAP, Oracle.

• Focus shift to Supply Chain expertise of Clienteles.

STRATEGY OF SMARTOPS

PARTNERSHIP STRATEGY?

SAP & Smartops• Partnering with SAP a logical solution.• VERTICALS- supported Smartops.• HORIZONTALS- supported i2 & Manugistics.• 2006, Endorsed Business Plan(EBS).• Smartops made it easy for SAP Reps. to sell their

products.• Many SAP Reps. Shifted to Smartops.• Solution Extension Arrangement with SAP?

Problem Definition

The Deal

• Partnering Company Receives 30% to 50% of the fee.• SAP would set the price• The Brand SAP on the products• Partnering Company’s permission to contact customers• Additional Monetary if the partnering company helped the sales force• 3 year deal(Initial)

Should SmartOps sign the contract and become a Reseller for SAP?What are the consequences of not signing the Reseller deal?

INFERENCES

Manufacturing plant

Packaging supplier

Raw material supplier

Distribution centre

Retail customer

consumer

Dist. or

wholesaler

RECOMMENDATIONS

RECOMMENDATIONS

• Yes , SmartOps should sign a deal with SAP

• SmartOps had to be in sync with SAP supplychain software , and SAP would support SmartOps marketing.

• SmartOps were to partner with big brands

• 60% global company used SAP.