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TOP 6 Solutions for a Sustainable Supply Chain

Changes in supply chain strategies were launched even before the COVID-19 pandemic hit the world. The global lockdown and disruptions caused by the coronavirus have accelerated this process, revealed all the supply chain vulnerabilities, and forced businesses to rethink how they produce, store, and deliver their products.

Sustainability has come out on top as a critical indicator of supply chain performance. But what is supply chain sustainability?

Sustainable supply chain management starts with understanding your company’s impact on the environment, society, and economy and taking measures to reduce it. This article considers six SAP solutions that will help you ensure supply chain sustainability.

SAP Enterprise Product Development

The SAP Enterprise Product Development (EPD) solution helps you develop high-quality, connected, and sustainable products while streamlining product development, improving time to value, and cutting costs.

Key benefits

  • Customer-oriented products

SAP EPD helps you manage company-wide processes and improve design and development efficiency by combining engineering and business data across the organization.

  • Collaborative development

With SAP EPD, you increase entire process visibility while ensuring smooth cooperation on product data and reducing risks.

  • Company empowerment

Now, you can synchronize company-wide digital flow from design to utilization. SAP EPD provides improved training, manufacturing execution, service, and first-time fix rates of critical assets.

SAP Integrated Business Planning for Supply Chain

SAP Integrated Business Planning (IBP) for Supply Chain ensures business continuity through real-time synchronization of supply chain planning. This solution includes supply chain analytics, what-if scenario simulation, alerts, etc.

Key benefits

  • Inventory control

SAP IBP provides effective monitoring and control over your inventory. With this solution, you can avoid a shortage, oversupply of stocks, and downtime at the warehouse.

  • Demand forecasting

Based on statistical data, this solution does advanced demand forecasting and sales planning for up to 36 months.

  • Response & Supply

SAP IBP contains all the planning and distribution tools required. It is a quality assistant for top managers, generating accurate comparative information on measured risks and opportunities.

SAP Digital Manufacturing Cloud

The SAP Digital Manufacturing Cloud (DMC) helps optimize manufacturing performance with integrated production execution, visibility, and analysis. With this solution, you can track and enhance performance, improve visibility and reporting consistency, and gain faster and more consistent insights.

Key benefits

  • Asset efficiency

With SAP DMC, you can improve quality and reduce downtime by maintaining seamless MOM systems running and optimizing the use of manufacturing assets.

  • Adaptation to requirements

SAP DMC provides all the necessary tools to meet market-of-one demand and improve customer satisfaction and loyalty.

  • Improved process visibility

You can ensure transparent production management to quickly overcome manufacturing issues while reducing warranty and liability risks.

SAP Environment, Health, and Safety Management

This solution helps you ensure employee and customer safety. You can promptly identify, analyze, and mitigate risks to ensure compliance with the requirements and reduce a company’s environmental impact.

Key benefits

  • Incident management

SAP EHS Management provides a central repository where the data on various incidents and events is stored. It helps to improve company-wide visibility and analytics.

  • Health and safety management

Despite the working environment specifics your employees work in, you can quickly identify and mitigate workplace hazards with risk assessments and occupational health protocols.

  • Emissions and waste management

You can track waste generation and use appropriate disposal methods. This solution also provides a calculator to track and report on air pollutants, greenhouse gas (GHG) emissions, and wastewater emissions.

SAP Transportation Management

SAP Transportation Management (TM) helps you optimize logistics and improve services by increasing visibility and control. With this solution, you can manage freight, fleet, and logistics to leverage your global and regional transportation investments.

Key benefits

  • Order management

You can synchronize sales and order scheduling and manage changes in transportation demand with real-time order-to-cash and procure-to-pay processes.

  • Transportation planning

SAP TM provides manual, map-based, and automated planning and dynamic replanning features to balance freight costs and service levels.

  • Freight management

This solution includes Advanced analysis, forecasting, and simulation features to help you optimize your freight procurement.

SAP Extended Warehouse Management

Get complete control over all the warehouse processes with SAP Extended Warehouse Management (EWM)!  With this solution, you can manage a high volume of goods while cutting costs and improving sustainability.

Key benefits

  • Optimization

With SAP EWM, you can optimize all the warehouse operations, ranging from building mixed and layered pallets to setting up labor structures and standards, as well as trace batches over multiple process steps and locations.

  • Storage and internal process control

SAP EWM provides data on multiple stock ownership, physical inventory, and cycle counting, along with visibility of stock in the yard.

  • Supply chain management

SAP EWM can be integrated with the SAP S/4HANA system to enhance stock transparency and control and optimize material flow control, yard management, labor management, etc.

In a Nutshell

For years, companies have paid little attention to their activities’ social and environmental impact. Now, it is time to change this approach to doing business because sustainable development is not a trend but a vital criterion affecting business growth and profitability.

Companies that are ensuring their supply chain sustainability will benefit from the boom in consumer spending that is happening today and is expected to increase.

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