SAP Solution to Address Supply Chain Issues During COVID-19

February 17, 2021by Tech Innovation Forum

The COVID-19 pandemic has disrupted supply chains across the globe like never before. As manufacturers restart their operations, SAP ERP Supply Chain Management System can help them build processes that can not only address today’s challenges but will also be future-ready.

Supply chains across the globe have been hit hard by COVID-19 and the resultant lockdown in economies has forced companies to rethink and transform their supply chain operations. The traditional means of managing supply chains have become redundant in the current environment. Supply chain leaders need to quickly change the ways they used to do things earlier and need to address challenges arising from lack of collaboration and visibility of the operations. Companies need to automate more aggressively and free more information and data across the supply chain management process.

Looking into the future, ABI Research’s Supply Chain Trends and Technologies in 2020 report shows that the supply chain impact of COVID-19 will lead to manufacturer’s spending on enterprise resource planning (ERP) system to reach $14 billion in 2024.

Supply chain managers are challenged with the rising demand for customized products and services, lack of complete view or visibility throughout the supply chain process and inefficient manual practices. In the post-COVID-19 world, they need to leverage technologies to improve demand and supply plans, quote-to-cash process, quickly identify bottlenecks and resolve in real-time.

If you’re looking to reimagine your supply chain operations or want to implement SAP ERPSCM in your business, then Gemini Consulting & Services can help you. We are a global SAP partner with years of experience in helping businesses adapt to various SAP systems and solutions. Click here to know more about our SAP ERP services.

SAP ERP solutions help enable business continuity for enterprises in this fragile economy. In the present situation, companies are turning to scalable digital solutions to increase sales and attract customers. SAP ERP solutions can significantly improve business efficiency by streamlining resources and processes. Planning and management also become quite easy.

SAP has beefed up its SAP ERP Supply Chain Management System (SAP ERPSCM) to help businesses in these times of global disruptions. To help manufacturers build intelligent and digital-driven supply chain management process, the company has recently started offering 2 add-ons.

  • SAP Integrated Business Planning (IBP) for sales and operations: This prebuilt application enables enterprises to rapidly and efficiently ramp up supply chains.
  • SAP Ariba Discovery: SAP Ariba is designed to help businesses find alternative sources of supply in real-time from 4 million suppliers in the Ariba Network.

These two add-ons along with SAP’s existing ERPSCM can deliver a range of solutions to help manufacturers redesign and digitalize their supply chain operations. SAP’s ERP Supply chain system includes:

  • SAP Integrated Business Planning for Supply Chain: The SAP IBP for supply chain leverages in-memory computing technology within SAP HANA and supports demand, response, supply planning and inventory optimization. It helps businesses build key capabilities, such as:
    • Providing complete visibility to supply chain, decision support, and enables fast action through integration with SAP Supply Chain Control Tower.
    • Advantage of highly advanced capabilities for demand sensing and statistical forecasting for short, mid, and long-term demand.
    • Optimize inventory and maximize profits while having a buffer to meet unexpected demands.
    • Cross-department sales and operation planning that balances service levels, inventory and profitability.
    • Optimize resource efficiency and supply planning by smartly prioritizing demand, allocation and constraints.
    • Manage supply chain variability and smoothen material flow through demand-driven replenishment planning.
  • SAP Ariba Supply Chain: The software helps businesses gain complete supply chain visibility and manage relationships with suppliers, contract manufacturers and other partners across your supply chain in real-time. Integrated with your SAP ERP and supply chain optimization systems, the platform allows you to work effortlessly with multiple tiers of manufacturers and suppliers across the supply chain processes. The 360-degree visibility to supply chain process enables manufacturers to:
    • Share information like production forecasts, orders, and inventory information with suppliers and get responses in real-time.
    • Predict and resolve supply assurance problems quickly by getting alerts on supply and demand mismatches.
    • Onboard suppliers with a range of on-demand tools, integration options, and enablement teams with significant onboarding expertise.

SAP’s ERP supply chain system helps companies in perfecting their supply operations in these troubled times and be ready for future disruptions by helping them design their supply chain better, break silos and gain end-to-end visibility, manage operations with agility, and streamline logistics to improve deliveries.  It also helps businesses explore and experiment with new business models.

The current pandemic offers an opportunity for manufacturers to be imaginative and build future-ready supply chain systems. As businesses look to restart and make a strong comeback, SAP ERP Supply Chain Management System can help them in building next-age processes.

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