In a world where sustainability has become the new norm, technology is a key driver for innovative companies. Businesses today are looking for sustainable ways to reinvent the entire ecosystem of customers, suppliers, contract manufacturers, logistics providers and partners to support their supply chains from product design to operations.
Let’s take a look at last year’s SAP Innovation Awards (SIA2022) winners to see how forward-thinking companies are using cloud technologies to make economic, social and environmental impact and improve people’s lives.
Improve decision making with real-time scheduling
The legend of the 50th anniversary of the SIA2022 program, Freudenberg Home and Cleaning Solutions GmbH (FHCS)used different planning approaches and sources, making it difficult to get a consolidated company-wide view.
FHCS integrated its landscape based on SAP ERP and SAP Business Warehouse with specialized forecasting into SAP Integrated Business Planning (IBP). A single, centralized data source enabled the company to generate simulation, planning and reporting solutions based on SAP Analytics Cloud. FHCS now only needs two days to create an initial top-down production plan. By standardizing forecasting processes in its consumer goods division, Freudenberg achieved planning 10 times faster, despite larger amounts of data and greater granularity.
Agile decision making is key in volatile business environments. The process involves several factors that cause complications. For this reason, a closed-loop planning process based on a single source is essential for companies to plan not only values but also volumes at every level of detail, helping them avoid discrepancies between financial and operational plans.
Use machine learning and artificial intelligence for sustainable logistics
With more companies getting into the sustainability game, ensuring sustainable logistics processes is now less of a trend and more of a necessity. Companies that have recognized the importance of going beyond financial measures have used artificial intelligence and machine learning to gain complete visibility into supply chain operations.
Arpa Industriale, the winner of the SIA2022 award for social catalysts in the building products industry, had to respond to the explosive growth in demand. The company was looking for a way to optimize and stabilize this production process while meeting ambitious targets for the use of renewable energy and the reduction of waste and resource consumption.
The Italian manufacturer connected all vehicles in the factory warehouse in real time to work autonomously 24/7 with the aim of loading and reloading barcoded rolls of raw materials. The customer orders in the system automatically update SAP Extended Warehouse Management, SAP Manufacturing Execution and SAP Manufacturing Integration and Intelligence for raw material staging and production line planning.
With real-time data and machine learning algorithms analyzing every millisecond of their day-to-day operations, the company reduced energy and water consumption by 80%. By using dashboards to monitor scrap in manufacturing operations, Arpa reduced scrap by 96% and saved €750,000 in the first year.
Sync physical and digital worlds in Metaverse
Imagine a digital world independent of physical conditions, where you can provide real-time information and a collaborative work environment for employees, business partners and customers around the world, regardless of distances and physical barriers.
Holder of the Automotive Industry Leader Award Martur Fompak created a metaverse that synchronizes a convergence of the physical and digital worlds. The Turkish car manufacturer created digital twins of 45 robotic welding cells and integrated them into the virtual environment to monitor product and process parameters and calculate CO2 emissions and energy consumption in real time. The digital twins are implemented and synchronized with the physical world via bi-directional IoT connections with the SAP Manufacturing Integration and Intelligence and SAP Manufacturing Execution platform.
By running real-time analytics, Martur Fompak reduced greenhouse gas emissions by 12%.
Generate renewable energy with predictive maintenance
As one of the most environmentally friendly energy sources, solar panels are the cleanest and most abundant source of renewable energy, helping businesses save time and money to achieve net-zero emissions goals.
ENGIE, the utility industry leader and SIA2022 winner, has transitioned to renewable energy with predictive maintenance in solar farms. The French energy giant used 7,600 solar panels for maintenance management as part of the Digital Twin project. This enabled the ENGIE subsidiary in Chile to combine data to optimize maintenance activities as part of a cost-benefit assessment. The alerts generated were 100% reliable, which helped ENGIE reduce the total cost of maintaining solar panels and inverters by 45%.
Concentrate on the end-to-end digitization, not on the problem
Even if companies started their digitization journey a long time ago, they can end up with fragmented systems that prevent them from extracting meaningful data. Focusing only on the problem area or one aspect may not be the most substantive solution when it comes to digitization.
Winner of the SIA2022 Transformation Champion category, Fulton County Schools (FCS), is the fourth largest school system in Georgia with more than 17,600 employees. The school’s existing ERP was more than 12 years old. In addition, asset management was handled via a third-party solution and not integrated with SAP. In addition, the system required business users to perform complex manual tasks across multiple disparate systems, increasing the risk of human error.
With SAP S/4HANA, FCS has laid the foundation for a centralized asset data repository, work order management and device tracking to improve overall device efficiency, reliability and audibility. And with SAP Intelligent Asset Management, the school was able to identify items it needed to order and record, while gaining insight into the assets it had.
By focusing on transforming the entire organization, FCS is now able to proactively make decisions based on real-time, actionable data. This has enabled FCS to achieve 52% more accuracy and insight into invoices related to vendors and suppliers, while increasing real-time reporting and analysis by 23%.
Discover how forward-thinking leaders are embedding sustainability into operations to accelerate progress on both sustainability and operational results: IDC Spotlight: Integrated Supply Chain Planning.