Note to readers. A more updated version of this article will be kept here…
http://www.scmfocus.com/fourthpartylogistics/2009/08/a-good-reason-why-sap-scm-cant-penetrate-3pls/
SAP SCM has very few 3PLs as customers. Why is this? SAP SCM offers a modules which address:
- Transportation Planning and Vehicle Scheduling (TP/VS)
- Event Management (EM)
- Extended Warehouse Management (EWM)
One reason 3PLs do not select SCM no doubt has to do with its cost (both implementation and maintenance as well as software). However, another is that TP/VS lacks the ability to meet many 3PL requirements and was designed with shippers in mind. However, how difficult would it be for SAP to add functionality that would enable TP/VS for 3PL? As for EM and EWM, they can be used now for 3PLs.
Why Can’t SAP SCM Can Provide an Innovative and Applicable Solution for the 3PL and 4PL industry?
This solution could provide EM as a monitoring service for clients, and interact with a company’s SAP ERP solution. There are still many companies that have not implemented SAP SCM, and will not. A third party logistics company that implemented this solution design (when it is ready) would have a very significant advantage both in terms of the internal improvements offered through the modules. Additionally the ability to easily integrate with many of its shippers that use SAP to manage their supply chain could be a significant differentiator in the market.
