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SAP Delivers Enhanced Warehouse Management Functionalities

   SAP AG LOGO
SAP AG logo. (PRNewsFoto)[AS]
CHICAGO, IL USA
     New Capabilities in mySAP(TM) Supply Chain Management Help Customers
        Accelerate and Simplify Their Supply Chains to Provide Higher
           Visibility Across Processes and Lower Operational Costs

    CHICAGO, Sept. 17 /PRNewswire-FirstCall/ -- SAP AG (NYSE: SAP), the widely
recognized leader in supply chain solutions, today announced the launch of new
warehouse management capabilities in mySAP(TM) Supply Chain Management (mySAP
SCM) that cover the areas of yard management, cross docking and value-added
services, enabling companies to create more efficient and adaptive supply
chains. With the warehouse management extensions, companies will also be able
to tap the full potential of their warehouse management operations with a
number of additional features, including leveraging radio frequency
identification technology (RFID), enhanced task and resource management (TRM)
and the integration of handling unit management (HUM) and quality management
(QM). The announcement was made at Frontline's International Supply Chain
Week, being held in Chicago, Illinois, September 16-18.
    (LOGO:  http://www.newscom.com/cgi-bin/prnh/20020923/SFM002LOGO )
    The new functionality for yard management provides customers with a
starting point for extending warehouse management and control beyond the
traditional "four walls" of the warehouse-a step toward creating more supply
chain visibility and building adaptive supply chain networks. Yard management
links inbound/outbound transportation functions with the distribution center
(DC) to optimize the flow of goods into and out of the DC. The new
functionality accelerates the total supply chain by reducing storage
requirements and helps companies optimize their door and dock utilization.
Companies also benefit from the seamless integration to functionalities such
as cross docking, value-added services and HUM. Features of yard management
include delivery/shipment check-in and checkout, arrival/departure
verification procedures, move instructions for yard personnel and yard stock
visibility.
    Closely aligned with yard management is the new cross-docking
functionality in SAP's warehouse management extension. Cross docking describes
the strategy of processing incoming goods and issuing them without the
intermediate step of storage. The new functionality supports both planned and
opportunistic cross docking, accelerating the flow of goods through the
facility, reducing cycle times and optimizing goods flow.
    One of SAP's customers already benefiting from the warehouse management
extensions is Whirlpool Corporation, headquartered in Benton Harbor, Michigan.
    "We chose SAP's warehouse management solution to leverage the integration
of the warehouse management functions with SAP's shipping and delivery
functions as part of our new application strategy reducing the total time and
cost to serve our customers," said Jim Shimp, director of global supply chain
at Whirlpool Corporation, the world's leading manufacturer and marketer of
major home appliances, with annual sales over 11 billion, 68,000 employees and
nearly 50 manufacturing and technology research centers around the globe. "We
are also looking to building even better supply chain processes by utilizing
the new cross-docking and trailer yard management functions based on our
cooperative development efforts with SAP. Capitalizing on SAP's ERP and
decentralized warehouse capabilities was the most cost effective solution
available to us here at Whirlpool."
    The enhanced functionality of value-added services (VAS) describes
operations performed in the warehouse to increase the value of goods. Examples
of such activities include hanger insertion, price marking, tagging and
packaging and labeling. VAS functionality is provided to create, monitor and
invoice for VAS activities in the warehouse. VAS is tightly interconnected to
yard management and cross docking, since the direct flow of goods through a
warehouse without intermediate storage often requires additional repacking or
other value-added services.
    SAP's warehouse management extension provides additional functionalities
such as the extended integration of HUM and QM to improve usability and
logistical handling of pallets and cases, as well as enhancements in TRM to
help optimize workflow and reduce resources needed. Warehouse management from
SAP also provides functionality for radio frequency supported dynamic cycle
counting, enabling the user to count physical inventory at storage bin and
material levels without blocking storage bins, thus ensuring continuous
warehouse operation during cycle counting. SAP will continue delivering add-on
warehouse management capabilities -- especially those leveraging RFID
technologies as part of warehouse management and logistics operations -- to
its customers.
    "mySAP SCM addresses the customers' needs in the areas of warehouse-,
transportation- and supply chain event management to enable them to drive
logistics excellence," said Claus Heinrich, member of the executive board at
SAP. "Companies throughout the world are increasingly relying on our proven
warehouse management solution to integrate supply chain processes from
warehouse operations to shipping and delivery. The new capabilities in
warehouse management and our commitment to RFID technology address our vision
of adaptive supply chain networks, enabling our customers to create more
responsive and flexible supply chain processes, thus helping them to leverage
their investments."

    About mySAP SCM:
    mySAP(TM) Supply Chain Management (mySAP SCM) is part of the family of
cross-industry solutions within the mySAP(TM) Business Suite platform. A
leading supply chain management solution, mySAP SCM transforms traditional
supply chains from linear, sequential steps into adaptive supply chain
networks in which communities of customer-focused companies share knowledge
and resources to intelligently adjust to changing market conditions.
    Additional information about mySAP SCM can be found at:
http://www.sap.com/scm/

    About SAP
    SAP is the world's leading provider of business software solutions.
Through mySAP(TM) Business Suite, people in businesses around the globe are
improving relationships with customers and partners, streamlining operations
and achieving significant efficiencies throughout their supply chains. The
unique core processes of various industries, from aerospace to utilities, are
supported effectively by SAP's 23 industry solution portfolios. Today, more
than 20,000 companies in over 120 countries run more than 64,500 installations
of SAP(R) software. With subsidiaries in over 50 countries, the company is
listed on several exchanges, including the Frankfurt stock exchange and NYSE
under the symbol "SAP." (Additional information at http://www.sap.com )

    Any statements contained in this document that are not historical facts
are forward-looking statements as defined in the U.S. Private Securities
Litigation Reform Act of 1995. Words such as "anticipate," "believe,"
"estimate," "expect," "forecast," "intend," "may," "plan," "project,"
"predict," "should" and "will" and similar expressions as they relate to SAP
are intended to identify such forward-looking statements. SAP undertakes no
obligation to publicly update or revise any forward-looking statements. All
forward-looking statements are subject to various risks and uncertainties that
could cause actual results to differ materially from expectations. The factors
that could affect SAP's future financial results are discussed more fully in
SAP's filings with the U.S. Securities and Exchange Commission ("SEC"),
including SAP's Annual Report on Form 20-F for 2002 filed with the SEC on
March 21, 2003. Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of their dates.

    NOTE:  SAP, the SAP logo, SAP NetWeaver, xApp, xApps, mySAP.com, mySAP and
all other SAP products and services mentioned herein are trademarks or
registered trademarks of SAP AG in Germany and several other countries.
Other product or service names mentioned herein are the trademarks of their
respective owners.

    For customers interested in learning more about SAP products:
     Global Customer Center:  +49-180-534-34-24,
     United States Only, 800-872-1SAP (1-800-872-1727)


SOURCE SAP AG




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