For manufacturing organizations a smooth supply chain is critical when it comes to the success or failure of their operations. Bumps within the supply chain system can result in missing goods or delayed deliveries – which can quickly add to operational expenses as well as, and more importantly, breed resentment among customers. Therefore, to many companies, using a supply chain management (SCM) application becomes a critical and integral part of their operations.
The SCM application helps to manage all material and information flows across the entire value chain efficiently. However, the one-time installation of such applications is not enough. With the onset of the 4th industruial revolution, SCM systems are increasingly changing due to connection of production and IT applications. Supply chain networks have become complex and expansively global. To keep pace, companies need an agile supply chain management, which continues to evolve together with their processes. Therefore, many companies are planning to optimize their SCM application with the move to SAP HANA and its delivery of a real-time, responsive supply chain network.
The SCM advantage with SAP HANA
SAP HANA is a clear competitive advantage for companies. The in-memory database supports an agile supply chain management with accelerated business processes fueled with real-time data analysis. Data can be directly processed and evaluated much faster with SAP HANA. With a supply chain application that is based on HANA, supply chain data can be accessed in real time to create simulation scenarios, and since the impact of decisions on the supply chain can be easily simulated, the supply chain becomes more efficient, effective and profitable.
In addition, SAP HANA enables, with its simplified data model, the organization to respond better and faster to market changes. Through real-time insights into movements on the logistics market and business dynamics, the supply chain can always be adjusted to current results.
The challenge
With the necessary upgrades to prepare for HANA, IT departments must address not only technical challenges, the roadblocks they will face from modifications they made to their SAP SCM, but also business challenges. Complexity includes:
- Blindsided plans: With no clear visibility or control into and over what processes will fail or which SCM interfaces will be impacted until put to the test, IT cannot prepare any concrete, tailor-made plans
- Lost efficiency: Wasted time on quality and testing of unused custom code
- Even if it works for IT, it might fail the business user
SCM upgrades face operational challenges of time, cost, complexity and risk that can delay or even derail the project. Organizations must ensure that while upgrading their SCM to HANA they do not experience business delays or disruption. To ensure a seamless upgrade organizations need a solution that delivers visibility, efficiency and automation. Learn how to better upgrade your SCM, watch the webinar, Agile Supply Chain Management for the Age of Digital Disruption.