Ask Approyo: How can SAP S/4HANA impact building products companies?

August 1, 2017

There are massive changes impacting companies in the building products industries. Standard of living is increasing, and the middle class is growing. End consumers and homeowners are increasingly involved in purchase decisions. Sustainability remains an important factor. There are tremendous opportunities for the industry. Thought-leading companies are transitioning from pure manufacturers of products to technology and innovative solution providers for living and the environment. New approaches are also creating challenges for organizations to fully transform and compete within the new rules of the game. Information technology can help dramatically.

 

Digital Transformation Drivers

The transformation of the building products industry is being driven by trends that are directly related to and can be impacted by digital technology.

 

  • Information consumers. Customers, suppliers, and employees all expect the same digital experience they have in their private lives to also be used in their work lives. Some examples are how-to videos for B2C, access to detailed product data and order status at the contractor to review recent business for B2B, and receiving work orders or status alerts through mobile applications for internal employees.

  • Ubiquity of cloud, mobile, and sensors. Smartphones, and mobile devices, including wearables, are becoming part of daily life for many. Electronically controlled faucets and R&D projects using 3D printing are real. Sensors, the Internet of Things (IoT), and Big Data will soon become essential for the building products industry.

  • Competition from everywhere. Competition is fierce, and building products leaders will need greater differentiation to protect and elevate the brand as well as changing business models to align with customers. Omnichannel commerce and social media marketing are new ways of doing business that leverage real-time data and knowledge to drive customer satisfaction. Instead of offering a finite set of products, the trend is to offer complete solutions with all materials, services, and know-how in one package as well as highly individualized versions of the same offering.

 

Building products companies can use digital technology to evolve and thrive on top of these trends. Firms will not only need to reengineer their business processes, but they will also have to evaluate if they have the right technology platform that can deliver on that vision.This platform requires an IT architecture that provides both stability and long-term reliability for core enterprise processes, and, at the same time, allows for flexibility in areas where change is happening on a constant basis. The digital core is the foundation for the core processes that need to run consistently and flexibly. It provides uninterrupted, real-time transactions and analytics, the ability to work with Big Data, and connectivity to line-of-business extensions that enable supporting processes such as talent sourcing or networks.

 

SAP S/4HANA was specifically developed to represent the digital core in this “bi-modal IT architecture.” It provides building products firms with a proven framework to adopt industry best practices while attaining operational excellence –specifically across core financial, sales, and manufacturing.

 

Simplified processes: key industry capabilities of SAP S/4HANA:

 

Finance and Procurement:

 

  • Accounting and financial close

  • Accounts payables and invoice management

  • Cash and liquidity management

  • Enterprise risk and compliance management

  • Financial planning and analysis

  • Procurement

  • Supplier evaluations and procurement analysis

 

Sales and Order Fulfillment:

 

  • Sales order management and processing

  • Bid and proposal management

  • Sales monitoring and analytics

  • Goods issues/receipt

  • Warehouse management

  • Inventory management

  • Transportation management

  • Billing and invoicing for physical goods

 

Manufacturing and Operations:

 

  • Material requirements planning

  • Production control

  • Asset strategy and planning

  • Maintenance planning and scheduling

  • Maintenance execution

  • Incident management

  • Health and safety management

 

SAP S/4HANA is The Next Generation Business Suite For A Digital World
The opportunity exists to transform business processes and achieve the digital transformation of your business with more automation and real-time visibility. Our SAP S/4HANA, SAP HANA and Big Data solutions address these important needs and more. Let us show you today! Set up a free consultation. 

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