Supply Chain in a Digital Economy

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.It enables companies to drive customer-centric processes and deliver personalized products uniquely built and delivered for the “segment of one.” 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, cloud 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 scenario.

Predictive Forecasting and Demand Sensing
Short-term demand prediction with demand sensing algorithms. Remote capture and analysis of sensor data from connected devices and feeding to demand management process.

Demand Driven Material Requirement Planning
Dynamic planning of replenishments with DDMRP which is fully integrated into existing MRP concept.Replenishment only for real demand and introduction of  buffers at strategically important points.

Live Inventory Management
Live inventory management enabling unlimited simultaneous material movements and allowing for true transparency on inventory and material flows. Decreased stock buffers due to better transparency and insights.

Warehousing and Transportation on One Platform
Single warehousing platform for all warehousing operations, including optimization, automation, and labor management. Single transportation platform with basic and advanced shipping functionality and real-time embedded analytics.

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