(Digital Supply Chain is part of SAP Leonardo’s business area).

“Digital transformation has turned information into a vital element for business decision-makers, who need to have a real-time view and anticipate the challenges posed with better collaboration between departments and companies.”

Source: SAP AG

In this context, SAP has searched for a way to combine a full business overview into one single platform. SAP Leonardo incorporates new technologies into the SAP Cloud Platform and offers services and expertise in design thinking to help rapidly track the Digital Transformation of businesses.

Innovative technologies can help to resolve issues through the provision of vital business information online, better real-time data analysis and better collaboration between departments and companies. SAP Leonardo provides a portfolio of innovative solutions that enable businesses to not only implement digital transformation in existing end-to-end business processes, but to also develop new business models so that they can be transformed into digital processes.

Source: SAP AG

With the arrival of the Internet Of Things, the pace of business has drastically changed and supply chains are becoming ever more complex. In addition, companies all around the world are facing volatile customer demands and higher expectations in their ability to respond.

The 6 pillars that form the SAP Digital Supply Chain

The value map in a digital supply chain proposed by the SAP Digital Supply Chain, is represented by 6 complimentary pillars, and each one of them offers a concrete solution to business challenges in the supply chain:

Source: SAP AG

Digital Business Planning

It combines sales processes, inventories and operations. It enables decision-making through a balance between the profitability of supply and demand, and the optimal availability of products. It significantly reduces the inventory and working capital. It optimises service levels and improves profitability and customer services.

Digital Response and Supply Management

It’s a solution that helps supply planning and production to satisfy the demands of different channels. It satisfies demand through the planning of resource allocation and smart confirmation of orders, and reduces latency in the supply chain via collaboration with suppliers, manufacturers and clients.

Digital Logistics

It acts as a complement to maximise strategies for supply chain logistics, and allows compliance with stowage and transport regulations, through SAP Leonardo IoT.

It improves planning and the optimisation of storage operations, completely automating storage and distribution operations.  It includes goods issue and receipt processes, storage and inventory management and distribution. It facilitates resource and asset management, workforce management, space management and warehouse team management.

Digital Products and Projects

It manages innovation driven by businesses and consumers and, at the same time, eliminates information silos in order to integrate processes.

Digital Manufacturing

It increases visibility and transparency in manufacturing operations. It optimises manufacturing processes and collaboration in global networks, while reducing their overall costs.

Digital Operations

It reduces risk, improves operational safety, improves product quality, maximizes return on production assets, avoids unplanned down time and provides a competitive advantage through the optimisation of energy usage.

Overall benefits of the SAP Digital Supply Chain:

  • It provides a long-term advantage in satisfying short-term demand with digital supply and response.
  • It optimises fleet operations, delivery and storage by providing the visibility that is required for efficient decision-making concerning logistics.
  • It provides visibility and transparency in operations that enable the optimisation of manufacturing processes.
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Roberto Pérez is a senior industrial engineer at the Polytechnic University of Valencia, Master in Integral Logistics (SCM) and BPMN certified consultant. He is currently in the SAP Business Development Group and was for many years a SAP logistics consultant. Previously he was in Microsoft partners as commercial director and consulting manager. Passionate about basketball and sports.