German ERP vendor SAP AG is taking a 9.7% stake in Catalyst International Inc, integrating its warehouse management software with SAP’s supply chain software, Logistics Execution Solution (LES). The two companies will target vertical sectors in industrial technology, retail, consumer goods, process goods and motor vehicles and parts. Catalyst’s Warehouse Management System (WMS), available either on Unix or Windows NT operating systems, enables users to manage inventory, personnel systems and machinery. SAP’s LES already includes a transportation module for international trade.

Catalyst will set up a Supply Chain Execution site, based at its headquarters in Milwaukee, Wisconsin, to provide helpdesk, customization and on-site support services. Catalyst’s WMS pricing goes from $250,000 to $1m. Average contract sizes are around the $440,000 mark and seat numbers range from 50 to 400.

SAP will point the new software at its 18,800 R/3 customers that do not so far have supply chain management software, said Franz Josef Schoppengerd, program director for Logistics Execution Solution.