SAP adds intelligent agents to SCM product

SAP is building intelligent agent technology into its supply chain management software which it claims will make logistics and procurement chains more efficient by automating decisions.

The company is working with software firm BiosGroup to build the technology into mySAP Supply Chain Management (SCM), for release during the second quarter of 2002. This will form part of SAP Event Management, a component of mySAP SCM.

Intelligent agent software gathers information which can be used to trigger automatic responses using pre-set rules. SAP claims that it will be able to build "adaptive supply networks" able to sense and respond, for example, if demand changes.

The company said that adaptive supply networks will work through portals and exchanges to speed up collaboration between the various companies in the supply chain.

"We believe intelligent agents will be the key to resolving the increasing challenges companies are faced with in participating in, and managing, global adaptive supply networks," said SAP board member Claus Heinrich in a company statement.

Intelligent agents can cut out-of-stock and excess inventory by up to 75 per cent, according to Stuart Kauffman, chief scientific officer at BiosGroup.