Logistics operations center coordinating freight movements across North America
Case Study · SAP · North American Logistics

North American Logistics Firm. Eight million dollars saved on SAP support.

A twenty thousand employee logistics firm stopped renewing SAP support by habit. License optimization shrank the maintenance base, and third party maintenance took over the stable ECC core. Eight million dollars stayed in the business.

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$8MSAP support saving
~50%Maintenance cut on covered systems
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A North American logistics firm with roughly twenty thousand employees paid SAP maintenance on a license base that had grown for fifteen years and shrunk in usage for five. The ECC core was stable and going nowhere soon.

License optimization plus a third party maintenance move on the stable core saved eight million dollars across the engagement horizon.

Key takeaways

  • Support renewals reward inertia. Maintenance billed on the historical license base, not the operating reality.
  • Optimize the base before touching the rate. Surplus and shelved licenses came out of the maintenance calculation first.
  • Stable ECC is the third party maintenance sweet spot. Systems with no upgrade path planned do not need SAP innovation spend.
  • Roughly half the maintenance cost came off covered systems. Third party maintenance priced near 50 percent of the SAP rate.
  • Keep the S/4HANA option open. License positions were preserved so a future migration is a choice, not a penalty.
  • The decision is segmentation, not ideology. Each system earned its support model on its own roadmap.

What happened in this SAP support case?

The firm saved eight million dollars by shrinking the maintenance base through license optimization, then moving the stable ECC core to third party maintenance at roughly half the SAP Enterprise Support rate.

The trigger was a renewal notice that assumed the full historical base would renew as always. Finance asked what the maintenance actually bought on systems frozen by design.

The segmentation question

The estate split into a stable ECC core with no planned upgrades, satellite systems with active roadmaps, and a future S/4HANA decision deliberately not yet made.

What did the license position show?

The license measurement showed named users without humans attached, engine metrics sized for a bigger business, and shelfware from projects that never shipped. All of it billed maintenance every year.

Cleaning the base

  • Surplus named users. Reclassified or retired against actual headcount and roles.
  • Oversized engine metrics. Rebaselined against measured consumption.
  • Shelfware. Identified, documented, and removed from the renewal calculation.

Why the base matters more than the rate

Maintenance percentage points are negotiated rarely and grudgingly. The base is arithmetic: every license removed cuts its maintenance forever. The base moved first, then the model.

Which levers produced the eight million dollars?

Two levers produced the saving: a smaller maintenance base after optimization, and third party maintenance on the stable core at roughly half the SAP rate, with SAP support retained where the roadmap justified it.

Support models by system segment

SegmentRoadmapSupport modelCost effect
Stable ECC coreFrozen, run for yearsThird party maintenanceNear 50 percent reduction
Active satellitesEnhancements plannedSAP support retainedSmaller base after cleanup
ShelfwareNoneRemoved from renewalMaintenance eliminated
S/4HANA decisionDeferred by choiceLicense position preservedOption kept open

What third party maintenance does and does not cover

Third party maintenance delivers break fix, regulatory updates, and customization support, but none of the version upgrades listed in the SAP support offerings. For systems with no upgrade path planned, that trade is the point, not the problem. The RISE with SAP path was evaluated and consciously deferred.

What buyer side moves closed the saving?

The closing sequence was license measurement, base cleanup, system segmentation by roadmap, then the support model decision per segment, all documented before the renewal deadline.

Where the common advice on SAP support is wrong

The standard SAP account team position is that leaving Enterprise Support forfeits the future, because rejoining costs back maintenance and the S/4HANA path closes. We disagree. In roughly 20 to 30 SAP support engagements we advised across 2024 and 2025, the firms that segmented their estates kept every strategic option open while cutting support cost by 45 to 55 percent on frozen systems, and the license positions preserved in the exercise priced the eventual S/4HANA conversation better, not worse. The buyer side move is to let each system earn its support model from its own roadmap, document the license baseline, and treat back maintenance math as a negotiation input rather than a deterrent.

Freight containers stacked at an intermodal yard, the physical estate behind the SAP systems
A frozen ECC core can run reliably for years; the support question is what innovation spend buys on a system designed not to change.
26
SAP support engagements, 2024 to 2025
45 to 55%
Support cut on systems moved to third party
10 to 25%
Maintenance base traced to unused licenses

Source: Redress Compliance advisory engagement file, 2024 to 2025.

The maintenance invoice was a history lesson. We paid for the business we used to be, on systems we had ordered not to change.

More SAP cost analysis lives in the SAP knowledge hub and the related SAP BTP rationalization case study.

What to do next

  1. Run the license measurement before the renewal notice arrives, not after.
  2. Strip surplus users, oversized engines, and shelfware from the maintenance base.
  3. Segment every system by realistic roadmap: frozen, active, or undecided.
  4. Price third party maintenance for the frozen segment against the SAP rate.
  5. Preserve license positions so the S/4HANA decision stays a free option.
  6. Document the baseline. It anchors both the renewal and any future audit.
Cover of the SAP support and maintenance. The buyer side negotiation white paper from Redress Compliance

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SAP support and maintenance. The buyer side negotiation

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Frequently asked questions

How did the logistics firm save $8 million on SAP support?

The saving combined two levers: license optimization that shrank the maintenance base, and third party maintenance on the stable ECC core at roughly half the SAP Enterprise Support rate, while SAP support stayed on systems with active roadmaps.

Is third party maintenance safe for SAP systems?

For stable systems with no planned upgrades it is a mature, widely used model covering break fix, regulatory updates, and customizations. What it does not provide is new SAP versions, which frozen systems do not consume anyway.

Does leaving SAP support close the S/4HANA path?

No, if license positions are preserved. The firm kept its entitlements documented and intact, so a future S/4HANA or RISE move remains a commercial negotiation, with back maintenance treated as a negotiable input rather than a lock.

How much SAP maintenance is typically wasted?

In our 2024 to 2025 engagements, 10 to 25 percent of the maintenance base on mature ECC estates traced to licenses with no assigned users or measurable usage. That share bills every year until the base is cleaned.

Should the maintenance rate or the license base be negotiated first?

The base first, always. Rates move by points after hard negotiation; the base moves by removing licenses that should never have renewed. Every license removed cuts its maintenance permanently.

Half our maintenance bought upgrades we had decided never to install. Naming that out loud was the whole business case.

Chief Information Officer
North American logistics firm
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