SAP buys 51 per cent of warehouse management specialist

SAP buys 51 per cent of warehouse management specialist


SAP AG yesterday said it has acquired 51 per cent of Tel Aviv-based Israeli software vendor Ofek-tech Software Industries, for an undisclosed sum.

Ofek-tech specialises in warehousing and distribution-centre logistics management and operations software. SAP said it will use the Israeli company's DC Master management system to enhance the warehouse management and supply chain management applications within its own R/3 enterprise resource planning (ERP) high-end applications suite.

SAP's stake in the Israeli vendor builds on an existing joint development effort between the German vendor and Ofek-tech, announced in the third quarter of 1997. At that time, both companies said they would extend the current R/3 Warehouse Management application software with functionality supporting technical systems in warehouses. The two companies are also working on enabling R/3 to support radio frequencies used for communications in warehouses.

Ofek-tech's DC-Master will continue to be offered to customers until the enhanced warehouse management functionality is generally available within the SAP Business Framework, SAP's component-based applications architecture. The German ERP vendor said it will offer existing DC-Master customers a transition path to R/3.

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