SAP Net Margin Analysis hones in on hidden B2B expenses

SAP Net Margin Analysis hones in on hidden B2B expenses

Summary: SAP Net Margin Analysis is boasted to be able to capture indirect costs hidden throughout the supply chains that service and support customers.

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SAP has just introduced Net Margin Analysis, a new analytics application that is designed to capture the indirect costs hidden in B2B operations.

Customers can use Net Margin Analysis to enhance product mix, order frequency, channel logistics, distribution, reward programs and customer relations.

Essentially, SAP Net Margin Analysis is supposed to be able to answer the following three questions through data that is often overlooked throughout the supply chain:

  • Who are the most profitable customers?
  • Who are the most significant loss makers?
  • Are there costs unaccounted for? If so, where are they occurring?

Karen Lynch, vice president of Global Wholesale Distribution at SAP, asserted in prepared remarks that previously available similar solutions could only provide ballpark estimates for such costs, but Net Margin Analysis is supposed to take things further by providing full visibility via role-based dashboards and graphic reports into the cost-to-serve metrics attached to a company’s B2B interactions.

For example, the application is touted to be able to pinpoint indirect costs between customers even if they share identical revenue numbers. This data can also be pulled immediately without having to wait months for results.  

SAP boasts that enterprise customers could eliminate implementation expenses by up to 40 percent and save up to five percent on indirect costs within the first year of going live.

Offered as a a rapid-deployment solution, the application itself can be launched within 90 days.

It's been a big day for SAP. Earlier on Thursday, the business management software provider pre-announced its best ever second quarter results with software revenues surpassing €1 billion ($1.29 billion) and total revenue hitting €3.9 billion ($4.75 billion).

Topics: SAP, Enterprise Software, Software, Software Development

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