Supply chains in the cloud

In response to ever new challenges, many companies are looking for rapidly deployable extensions to existing enterprise systems. The goal: to reduce the time-to-market for innovations without jeopardizing business processes.

Whether logistics bottlenecks, material and chip shortages or changing customer behavior: More and more companies are feeling the pressure to meet the challenges of the "New Now" with transformations and innovations. For example, companies in the process industry are looking for ways to optimize the digital supply chain to better manage the variability and complexity of the supply chain.

Real-time optimization

The solution, with vertical and horizontal scenario planning and features such as real-time optimization or automated decision support, makes it possible to respond to changes with well-informed decisions. 

The cloud-based solution complements SAP Integrated Business Planning (IBP) and is an example of a use case that becomes feasible with an industry-specific, third-party cloud-based solution.

Industry Cloud and IBP

Partner engagement is part of the SAP Industry Cloud strategy for specific industry challenges that are not fully addressed with standard SAP functionality. With the launch of the SAP Industry Cloud strategy at Sapphire 2020, SAP recognizes the limitations of standard software and invites partners to bridge the gap with solutions offered as cloud extensions. They will be implemented on or extend the SAP Business Technology Platform (SAP BTP). SAP BTP is the technology platform on which SAP's industry cloud strategy is built, as it opens SAP environments to rapid innovation (by SAP or partner applications). SAP BTP's extensive integration, extension and data integration capabilities support the seamless connection of SAP and third-party applications. SAP positions the offering as a platform for agility, versatility and speed.

There are a number of innovative scenarios for digital supply chains that become possible in this way. In addition to the KPI-driven production planning and control mentioned above, there are applications for more visibility in the supply chain.

Cloud for customer requirements

This new, almost modular approach is SAP's answer to a situation in which customer requirements are becoming more diverse and, at the same time, extensions to the standard SCM portfolio programmed by customers themselves are no longer sustainable or desired. For the issues of supply chain visibility or resilience, cloud-based solutions are ideal because they often bring more functionality than in-house developments and release cycles provide for new functionality. For example, there are standard integrations for external data sources such as weather data or logistics data. The extensions fit seamlessly into the existing landscape, and issues such as code security, compatibility or development of new features are the responsibility of SAP or the SAP partner offering the solution. 

The customer receives the best of both worlds through the cloud-based industry extensions on the BTP: a company-specific solution that covers industry requirements and uses modern techniques, as well as bringing the advantages of standard software products, keyword Business Process Reliability. The innovative solutions provide a competitive edge in the market and support goals such as driving growth and innovation even in fast-moving or volatile industries.