Leveraging digital potential through logistics from the cloud

Logistics chains that used to function separately must dynamically reconnect with each other.

In this context, a key factor for future corporate success is achieving a high rate of change in processes. On the one hand, the development of highly automated and complex warehouse and system structures brings efficiency advantages.

On the other hand, the underlying processes can also change so quickly that the structures that have been set up quickly become obsolete and have to be changed at great expense.

The prerequisite for this is an ERP system that can map the requirements in terms of speed and flexibility and ensure a high level of "elasticity" for the rapidly changing logistics chains.

With EWM based on S/4, SAP provides a modern and powerful system solution that represents the core of a digitally oriented organization.

Due to the upcoming transition to S/4 Hana - not least due to the announced end of maintenance for SAP ERP at the end of 2025 - companies are increasingly implementing transformation projects in the area of warehouse management - in some cases clearly aligned with the underlying end-to-end processes.

In many cases, this is also accompanied by an adaptation of SAP architectures: While stable processes run in S/4, small and flexible applications - combined with innovative technologies such as blockchain, chatbots, IoT - are being moved to cloud environments such as the SAP Cloud Platform.

Experience shows that digitization gaps still exist in logistics, even with a core application for automated or optimized processes.

The classic approach of extending the SAP system with embedded add-ons and individual programming only inadequately meets the requirements in a digitized world.

The goal must be to increase the necessary speed of change in the processes and close these gaps. The integration of end devices, such as tablets, smartwatches or Bluetooth/dash buttons, into the processes must be simple and cost-effective.

The use of cloud-based platforms and the connection with SAP EWM enable a service-oriented individualization of processes in the warehouse. The challenge is to identify relevant use cases that drive the digitalization of business processes and models through the use of these technologies.

Arvato provides such use cases and microservices in a cloud-based platform for logistics functions. These can enrich existing processes and thus exploit digitization potential with little effort, as their digital repository can be easily combined with SAP-based backend processes. This supports the process-related connection of isolated solutions that formerly existed separately from one another.

Concrete examples

Production supply: E-Kanban via dash/WLAN buttons to trigger replenishment processes in production and SAP EWM

Container Management: Real-time inventory transparency and unambiguous ownership assurance across organizational boundaries - Data integrity and security through the use of blockchain technology

Digital assistant in the warehouse (messenger/chatbot): query stock levels or carry out inventory processes, for example, using speech- or text-based dialogs

Field Service Management: Tracking and orchestration of transport vehicles or personnel planning based on the available order backlog as well as route optimization and exception management

High project costs and runtimes contradict the desired process "elasticity". Cloud-based services as a supplement to the back-end systems must therefore be able to be introduced and used quickly and cost-effectively. Prior usability checks support integration and rollout at the customer's site.

In addition, the development of a self-service portal is planned, through which apps can be activated independently and connected automatically to the backend systems in the warehouse by entering parameters.

This combination of a strong back-end system and flexible cloud services ensures that the demands of the future for transparency, flexibility and agility in logistics are met.