With the increase in the cost ceiling to 215 million US dollars from 2026 - to take account of new technical regulations and previously excluded cost types - Formula 1 teams are faced with the challenge of managing complex controlling processes within a strict financial framework. Together with SAP, the Mercedes-AMG-Petronas F1 team is facing up to the new requirements.
With the introduction of S/4 Hana Cloud Private Edition as the digital core, the team has access to real-time financial data, predictive analytics and optimized processes. In addition, SAP Business AI is used to plan budgets precisely, optimize supply chains and manage inventories efficiently - key capabilities in the context of the new cost targets.
14,500 individual parts
One use case is inventory management: over 14,500 individual parts per racing car are tracked and evaluated in real time using SAP Cloud ERP Private Edition. This significantly reduces the manual effort involved in reporting to the FIA and ensures precise real-time evaluation of the components. The cloud-based architecture also ensures reliability - a decisive factor on race weekends when smooth IT processes are crucial to success.
The FIA's new regulations require a higher level of financial discipline. SAP supports the team in tracking and allocating costs in R&D, manufacturing and racing operations, as well as automating compliance reporting through integrated audit trails and financial scenario modeling to support strategic decision-making.
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„The Mercedes-AMG-Petronas
F1 team sets the benchmark for digital transformation and AI-driven progress in motorsport.“
Sebastian Steinhäuser,
Chief Operating Officer,
SAP
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