The market is experiencing a disruptive shift in customer demand for new, extensive, smart, and personalized products. Sellers are constantly reducing buffer inventory with obsolescence risk in mind. Manufacturers are competing to meet this challenge and provide individualized products in similar lead times and cost as off-the shelf products. This creates tremendous complexity for the manufacturing operations team, yet at the same time, companies are looking for growth and profitability while maintaining high quality and sustainability.
To meet these demands, manufacturing is being used as a strategic pillar, becoming more collaborative, localized, automated, integrated, and highly adaptive. Companies are adopting digital manufacturing strategies and solutions to seamlessly connect relevant business stakeholders, information and operational processes in real time. Digital manufacturing simultaneously improves responsiveness and efficiency which drives growth, while decreasing cycle time and cost. Leveraging technologies like 3D printing, cloud, machine learning, and the Internet of Things (IoT) is increasing agility and extending the manufacturing network. Digital manufacturing has become a strategic differentiator.
Digital Priorities in Manufacturing
Live Planning - To fulfill customer orders in time, demand needs to be prioritized over forecast in real time. Optimal planning and faster response to demand changes based on live visibility of constraints enables higher production (lowers manufacturing costs) while increasing on-time delivery performance.Live planning enabled by SAP S/4HANA provides constraint-based planning (capacity and material flow) in one system that addresses requirements of all major manufacturing industries. Manufacturers can manage advanced planning and scheduling scenarios directly integrated with SAP S/4HANA material and order management environment.
Production Engineering and Operations (PEO) - To manufacture personalized products ordered by customer, the need to efficiently and accurately synchronize data across designing/ formulating, manufacturing engineering, and production execution processes is required. SAP S/4HANA Manufacturing for production engineering and operations expands core SAP S/4HANA manufacturing capabilities, delivering enhanced visualization with newly developed and enriched BOM management, process planning, change management, and shop floor execution feature sets. New digital manufacturing capabilities streamline production planning and shop floor operations within global production environments utilizing the power of SAP S/4HANA with proven integrations.
Distributed Manufacturing - To leverage the global manufacturing and logistics partner network, manufacturers need to quickly and efficiently connect them through supply chain and manufacturing solutions with the 3D printing and other manufacturing capabilities. Manufacturers can improve on-time delivery performance by effectively planning inventory replenishment and optimizing trade-offs between inventory. SAP Distributed Manufacturing solution enables digital collaboration with manufacturing service providers. End-to-end process from design, costing, approvals, quality checks to production status is supported. This increases local and central operational visibility, and flexibility in production of components/ products with personalized / complex designs, and variable/ low demand (e.g. new launches, spare parts etc.)
Digital Manufacturing Insights - For manufacturing leaders to drive insights to action, access is required into live information about global production operations based on a common definition to drive continuous improvement across the organization. SAP Digital Manufacturing Insights solution provides standardized manufacturing process view for the SAP S/4HANA software environment and is future-proof in design by running analytics directly from the digital core. SAP delivers a unique perspective of analytics that is tied to core business processes and functions. This enables tracking of efficiency and ties dollar figures to variances of these processes.
Reimagine Demand to Production Plan
SAP S/4HANA provides next-generation production planning (MRP live) optimized on the SAP HANA platform for faster planning cycles and synchronization to demand changes, resulting in fewer material shortages and delays, and less safety stock.
Reimagine Personalized Order to Production (Industry 4.0)
Personalized customer order is transferred to manufacturing with minimal manual intervention through the integration of SAP S/4HANA with SAP e-commerce solutions. Integration with suppliers enables optimized scheduling and getting the required raw materials at the right production line. There is complete traceability and serialization for the finished goods. A personalized order is executed as seamlessly as mass production.
Reimagine Global Manufacturing Networks - Insights to Action
The SAP Digital Manufacturing Insights solution provides the global view of manufacturing operations. SAP Distributed Manufacturing enables digital collaboration with manufacturing service providers. The partners are aligned with the manufacturing process through Ariba Network for forecast, quality, and inventory.
Reimagine Distributed Manufacturing
Manufacturers can efficiently handle variable customer demands and compress manufacturing cycles using SAP Distributed Manufacturing solution. Manufacturers identify which components of their products are best suited for 3D printing and help find the right partners for printing. The result is a new level of supply chain agility to meet fast-changing customer needs.
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