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An Update on SAP’s Growing CM Footprint

Last week, I was afforded a catch-up briefing by the SAP team including its VP for Commodity Management and Agribusiness, Ms. Anja Strothkaemper. Ms. Strothkaemper looks after both SAP’s Commodity Management and Agribusiness efforts since they see a great deal of overlap and synergy.

Since the last time I had spoken to SAP, they have apparently signed another 15 customers for its Commodities solution including a steel company in the Middle East that will use SAP for iron ore commodity management, a sizable agricultural company in France, a copper company in China, and a US-based wholesale grains trader. For SAP, Commodity Management is a door opener and a differentiator, Ms. Strothkaemper told me and a strategic initiative with all that that means within SAP (read investment in programming, marketing and sales).

Another win against a CTRM software vendor in the metals side will see the first cloud-based solution implemented by SAP for Commodity Management via the HANA platform and this will include risk reporting. Meanwhile, SAP continues its build out and is working with another major user to enhance hedge accounting in view of upcoming IFRS9 requirements and other more trade-centric functionality. The focus remains more on Commodity Management including procurement, sales and risk management at the moment, but we have no doubt that in time, SAP will add sufficient trade functionality to compete also in the narrower CTRM software market.

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