Digitization of the economy is continuing to accelerate the pace of innovation, shortening the product lifecycle and increasing the demand volatility. At the same time supply chains are becoming global and increasingly complex. To be in a position to create and capture opportunities, companies must develop an environment in which they can manage information and processes simultaneously across the extended supply chain. This evolution of supply chains is more connected, intelligent, responsive, and predictive. Itenables companies to drive customer-centric processes and deliver personalized products uniquely built and delivered for the “segment ofone.” These demanding customers have to be serviced across a business network of global partners that are increasingly challenged by resource scarcity. This transformation will continue to impact the business processes and systems that are required to remain competitive. It will change how we design, plan, make, ship, and operate our products and assets.
SAP S/4HANA Supply Chain, and applications such as SAP Ariba solutions and SAP Integrated Business Planning, and SAP Leonardo support a digital supply chain strategy with a digital value network that acts as an enabler for business transformation. The digital value network starts with a digital core that interconnects all aspects of the value network in real time to drive business outcomes. The digital core not only connects every aspect of internal operations but also enables real-time workforce engagement, supplier collaboration, outcome-based omnichannel consumer experience, and other market dynamics with Internet of Things (IoT) and Big Data scenarios.
Reduced Days in Inventory with Live Inventory Management and Demand Driven MRP (DDMRP)
Live inventory management through a redesigned data model enables unlimited simultaneous material movements and allows for true transparency on inventory and material flows. It also provides improved material planning with faster, more frequent Material Requirement Planning (MRP) runs –multiple times a day, with planning and rapid replanning in minutes instead of hours to minimize inventory. It is now possible to replenish only for real demand and introduce buffers at strategically important points (Demand Driven Material Requirement Planning DDMRP).
Reduction in Revenue Loss Due to Fulfillment Issues with Advanced Available to Promise (AATP)
The solution enables intelligent, real-time product availability check for sales, planned and production orders. It includes scalable Available to Promise (ATP) for managing large transaction volumes and flexible allocation management capabilities. It provides back-order processing with intuitive priority classification and interactive exception handling.
Reduce Overall Supply Chain Planning Cost with What-If and Scenario Planning
S/4HANA digital core in conjunction with SAP Integrated Business Planning for sales and operations enables integrated, continuous and iterative supply chain planning. It includes whatif and scenario planning to react to market demand through the best service at lowest cost. Manufacturing costs and premium freight expenses are reduced with detailed constrained planning and scheduling, enabling agility and efficient use of capacity.
Improved Supply Chain Planning FTE Productivity with SAP Integrated Business Planning and SAP Fiori
Supply chain planning productivity is enhanced through easy-touse Microsoft Excel and analytics-based planning interfaces in conjunction with SAP Integrated Business Planning (IBP). This helps production and material planners execute critical daily tasks with embedded decision support analytics and SAP Fiori role-based user interface applications.
Reduced TCO Through Landscape Simplification with Embedded Solutions in SAP S/4HANA
Faster business outcomes are achieved with reduced operational cost, thanks to simplified system landscapes. Redesigned data structure and embedded solutions in SAP S/4HANA result in fewer systems and interfaces. For example SAP Extended Warehouse Management (SAP EWM) and SAP Transportation Management (SAP TM) applications embedded in the SAP S/4HANA core.
Digital Priorities in Supply Chain
Customer Experience - Customer expectations are changing and individualized products are becoming commonplace. It’s not about selling the product but caring about the customer from the beginning through the entire lifecycle. Ability to deliver the same day, or even the same hour to different types of locations is the key to a great customer experience.
SAP Connected Goods software captures information from smart products using IoT sensors. SAP S/4HANA supports the new consumption-based business models, leading to increased revenue for the organization.
Local Manufacturing - Companies are looking to move "closer to home" and reducing outsourced manufacturing with the preference of local manufacturing. To make manufacturing processes more efficient and affordable there is an increase in automation and robotics on the production floor. Also, the assets and products are becoming more connected and smarter.
SAP S/4HANA supports agile manufacturing with ‘lot size of one’ and 3D Printing customization capabilities, which reduces inventory carrying costs. SAP solutions provide better visibility into the performance of the shop floor equipment to increase uptime and utilization.
Networked Economy - The new economy is the networked economy. Organizations are seeking cross department and cross industry business network collaboration. Also, visibility down multiple levels of a supply chain is needed for sustainable and socially responsible networks.
SAP Integrated Business Planning and SAP Ariba solutions provide collaboration across supply chain, logistics, assets, and manufacturing. IoT solutions from SAP leverage data from smart assets to drive data and business processes. Also, improved collaboration in design results in improved compliance and sustainable products.
Changing Society - An increasing percentage of the world’s population now lives in cities and urban areas. This increases the pressure on infrastructures such as electricity, water, and power grids and thus the need to optimize space and logistics. Also, as manufacturing becomes more automated, the role of employees and the skills required are also evolving.
IoT solutions from SAP help build smart cities and optimize the rural areas to support the ever-growing population with the ever-decreasing natural resources. SAP Leonardo capabilities help data scientists analyze vast amounts of data and provide innovative solutions in this time of changing work environments and populations.
Experience Digital Transformation with SAP Solutions powered by Approyo
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 Cloud solutions address these important needs and more. Let us show you today! Set up a free consultation.