SAP in supply chain management enables companies to create risk-resilient and sustainable operations through data-driven insights. With the integration of artificial intelligence and 3D capabilities, the German tech giant’s solutions enable customers to streamline their manufacturing and maintenance processes, while also adhering to sustainable packaging guidelines. In this article, we will explore SAP’s latest advancements in supply chain management and how they are helping companies achieve better visibility and increase resiliency.
The global leader in enterprise software solutions has unveiled its latest innovations to improve supply chain management. The new advancements are designed to generate actionable insights through data-driven analytics, which can help businesses build more sustainable and risk-resilient supply chains.
One of the key features of the new SAP supply chain solutions is the integration of AI into the SAP Digital Manufacturing solution. This integration can help manufacturing companies gain deeper insights into their operations by analyzing large amounts of data in real time. By leveraging AI, businesses can predict potential disruptions and mitigate risks before they happen, leading to more efficient and cost-effective operations.
Additionally, SAP has introduced 3D product and operations viewer capabilities that can be used in manufacturing, service, and maintenance processes. This technology enables companies to create digital twins of their products and operations, which can be used to simulate and optimize processes for greater efficiency and quality control.
Another important aspect of the new SAP supply chain solutions is their adherence to sustainable packaging guidelines in the SAP Responsible Design and Production solution. With sustainability becoming a more pressing concern for businesses worldwide, SAP’s solution can help companies reduce their environmental impact while still maintaining high-quality products and operations.
The Role of SAP in Supply Chain Management
In the current business landscape, constant disruptions are commonplace, making it essential for companies to be resilient and adaptable to change. To achieve this, businesses are focusing on redesigning their supply chain and manufacturing processes to factor in elements such as cost, speed, profitability, customer service, and risk.
According to a global report by Oxford Economics in 2023, manufacturing executives are more inclined to deploy intelligent technologies to enhance predictive analytics capabilities. However, only 36% of the surveyed executives said they had implemented predictive analytics in any aspect of their enterprise.
SAP customers can leverage the AI capabilities embedded in SAP Digital Manufacturing to gain AI-driven insights and power AI-driven visual inspection processes, ultimately improving product quality and yield. With lower product defect rates, there are fewer service claims and enhanced asset health and maintenance, enabling businesses to achieve higher resilience in the face of change.
Thomas Saueressig, a Member of the Executive Board of SAP and is responsible for SAP Product Engineering, believes that the manufacturing industry has experienced significant disruption due to the vulnerability of global supply chains in recent years. He added that SAP plays a significant role in several industry-relevant initiatives, including Catena-X and Manufacturing-X. Saueressig also noted that the manufacturing industry has a particular interest in open data ecosystems.
“What is more, in many of the conversations I’ve had with business leaders, and according to our latest Oxford Economics study, it becomes clear: They see the need of investing in Industry 4.0 principles and AI to increase supply chain resiliency, but many are still in the piloting stage. SAP is in a unique position to accelerate the journey to resilient manufacturing because we can embed intelligent capabilities in enterprise software across all end-to-end-processes,” he further explained.
Enabling Sustainability in Supply Chains
As per a study conducted by Oxford Economics, 28% of supply chain executives have prioritized improving sustainability metrics among their top three strategic goals. In an effort to promote sustainable supply chain operations, SAP has introduced new features to their Responsible Design and Production solution. Companies can now set their own sustainable packaging guidelines and monitor their packaging design to eliminate waste.
Moreover, SAP has extended its partnership with EcoVadis SAS, a business sustainability ratings provider, to enable suppliers to display their sustainability performance and EcoVadis sustainability rating status across SAP Business Network. This integration assists buyers in identifying opportunities to comply with emerging ESG due diligence and reporting legislation and select new suppliers who can help them achieve their sustainability objectives.
SAP has also taken a step forward in aiding the manufacturing industry by integrating 3D product viewer capabilities into its solutions. The integration is aimed to streamline complex assembly processes, accelerate asset maintenance, and reduce downtime.
Additionally, the 3D product viewer capabilities of the SAP Enterprise Product Development solution have been integrated into manufacturing, service, and maintenance processes. With this integration, production operators can now view 3D product models in their dashboard and work environment, while field engineers can use 3D augmented reality views in the SAP Service and Asset Manager mobile app to increase first-time fix rates.
