How digitizing the supply chain makes companies more resilient

Global supply chains are characterized by many uncertainties: geopolitical tensions, natural disasters, and volatile markets make long-term logistics planning difficult for companies. At the same time, the shortage of skilled workers is increasing the pressure on operational logistics.
Digitalization plays a key role in combining efficiency, resilience, planning reliability, and sustainability. To this end, SAP relies on its modular SCM Suite, which gives companies flexible scope for designing their supply chains of the future.

The answer: SAP SCM Suite with modular building blocks

Instead of the digital supply chain, as originally planned, SAP now refers to the modular Supply Chain Management Suite. This combines hybrid solutions for warehouse management (SAP EWM), transportation management (SAP TM), and production logistics (SAP DM). Companies can flexibly select the modules that best support their processes and requirements and operate them in the public or private cloud, as well as on-premises. This modular principle is the strength of the new SAP SCM Suite.

Modularity and cloud strategy as advantages in the SAP universe

In addition, companies benefit from seamless integration within SAP.
Landscape. This reduces system fragmentation and gives IT departments a clearer foundation for future expansions. The SAP SCM Suite is based on the „Rise with SAP“ concept and focuses on cloud-first strategies. Here, the cloud acts in particular as an enabler of new business models and integrated value chains. Consulting and implementation partners specializing in the SAP supply chain, such as SWAN, support companies in selecting the right solutions. With their expertise in operational SAP logistics processes and exciting AI integration options, they accompany the upcoming cloud transition with a view to the SAP roadmap and future developments.

The path to cloud transition

The cloud transition in operational logistics begins with a careful analysis of existing systems and data structures. In targeted workshops, individual requirements are compared with current and future technological possibilities and translated into concrete roadmaps. In addition to a technological feasibility study, clean, consistent master data is a prerequisite for the efficient use of the SCM Suite modules for digital logistics. Older systems such as SAP LE-TRA, the classic module for shipping and transport, have a clear expiration date with the discontinuation of SAP maintenance at the end of 2030. They are increasingly being replaced by modern solutions in S/4HANA.

Therefore, it is important to check in advance which processes can be migrated in a future-proof manner, which additional programming can be adapted or replaced by standard functions, and whether custom extensions are necessary or ready-made solutions from the cloud can be used. Companies can estimate a time frame of six months to a year for the first steps into the cloud.

Sustainability aspects are gaining in importance

What's more, anyone investing today must act responsibly not only economically but also ecologically. This is because a large proportion of global CO₂ emissions in operational logistics arise on the supplier and distribution side. Although solutions already exist in this area, such as for calculating emissions along the entire supply chain, these are often (still) associated with high costs. As a result, other sustainable aspects such as circular economy and reverse logistics are gaining importance in the industry—especially since the return and recycling of materials extend their life cycle.

Measurable improvements through digitalization

Companies that invest in digitizing their supply chain report clear progress in process control, from warehousing to transport planning: faster and more efficient processes, cost reductions, greater transparency, improved resilience, and increased sustainability. Linked data from multiple systems enables data-driven analyses and thus more informed decisions, such as selecting suppliers based on their carbon footprint. Automation and digitalization are therefore real drivers of efficiency and help to compensate for the shortage of skilled workers, among other things. Automated workflows and AI-supported, data-based forecasts further accelerate processes in warehousing and transport, relieve the burden on the workforce, and at the same time create greater transparency in supply chains worldwide.

Practical example from the food industry

A clear best case study describes the introduction of a combined solution consisting of SAP Extended Warehouse Management (EWM) and SAP Transportation Management (TM) at a large manufacturer and distributor of dairy products. With this solution, SAP logistics consulting firm SWAN was able to digitally link all warehouse and transport processes within the company – from goods receipt and cold chain management to the billing of logistics services. The result: a seamless flow of materials along the entire supply chain. SAP solutions can be used in such a practical and effective way to optimize the entire digital supply chain, especially in highly sensitive industries.

Integration with third-party software

In addition to the selection of SAP modules, the integration capability of the solutions used is also crucial: SAP logistics systems must communicate seamlessly with third-party software, partner solutions, and supplier systems to ensure a continuous flow of materials and information and to fully exploit the advantages of the digital supply chain. Integration with manufacturing execution systems (MES) or enterprise application platforms (EAP) is possible. With SAP DM and the Business Network for Logistics, SAP also offers its own solutions that, in combination with partner solutions, provide comprehensive collaboration capabilities.

Innovation through AI agents

Innovations such as artificial intelligence are also opening up further optimization potential in digital supply chains. Much of this is still a long way off, but modern digitization projects are already looking at current and future AI options. Revolutionary AI agent models are highly likely to profoundly change digital supply chains. This is because agents based on large language models are capable of evaluating huge amounts of data and thus automating decisions. Nevertheless, the role of humans remains crucial, especially when it comes to evaluating strategic options and designing robust processes.

Reliable companions through change

The solutions offered by the SAP Supply Chain Management Suite provide a modular toolkit that enables companies to respond flexibly to new challenges. Whether currently on-premises, in the cloud, or hybrid, its integration capabilities create a future-proof basis for a consistent digital infrastructure. Consulting firms specializing in SAP solutions, such as SWAN, support this transformation with their in-depth understanding of processes and technological expertise.