SAP SPECTRUM December 2009
Customer magazine
Joining Forces
One for all? Once, perhaps. But times have changed. Real innovation is no longer driven by individual companies working under their own steam. Today, collaboration is the name of the game – and pooling ideas is the key to achieving new successes.
The Customer President
As president of Adobe Japan, Garrett Ilg experienced firsthand how SAP brought his business greater margins. Convinced, he took over the top spot at SAP Japan in September 2008, a day after the Lehman Brothers collapse. One year later and undeterred by prolonged crises, Ilg is determined to do for customers what SAP has done for his previous employer.
Miners with Market Mindset
PT Timah, the world’s second largest tin producer, has been progressively implementing SAP software, from its back office to its core processes. The solutions have enabled an attitudinal shift in the company, from production selling to demand filling. The result is greater profitability.
18.06.2009
Summit Electric Improves Chargebacks
By: Neetin Datar, SAP
Chargeback management – or special pricing allowances (SPAs) as it is better known in the electrical distribution industry – is a big part of any wholesale distributor’s profit model. Summit Electric Supply, a U.S. $385 million electrical distributor based in Albuquerque, New Mexico, leveraged SAP and its best practices to increase its claims by 118 percent. It also got a return on investment in less than six months.
Headquarters Summit Electric in Albuquerque, New Mexico (photo: Summit Electric)
Summit Electric Supply is a privately-held wholesale distributor of electrical products founded in 1977. It is a standout in the hyper-competitive, U.S. $72 billion electrical wholesale distribution market. Summit had outgrown its legacy systems in the middle of 2006, when it selected SAP as its ERP partner.
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A perfect fit
Initially, Summit was thinking of developing the chargeback process in-house. However, when the management learned about the application SAP Paybacks and Chargebacks by Vistex, it was quickly convinced that SAP could meet the company’s needs for the following reasons:
- Automated chargeback process would significantly reduce manual processing compared to what was required in Summit’s legacy system;
- EDI (Electronic Data Interchange)-enabled chargeback process would speed up claims’ turnaround time, help the company go paperless and positively impact its working capital requirements;
- Standard reporting would be configured to drive better visibility, control and decision-making.
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