SAP’s contribution in manufacturing is consolidated by decades of experience and an unparalleled number of adopters. In even more general terms, the manufacturing sector today is increasingly equipping itself with advanced tools that move beyond the logic of simple manufacturing management software. The offerings, both in the SAP ecosystem and in more general terms, today can cover any need, including the size of companies. Equipping oneself with a state-of-the-art ERP, in short, is an affordable advantage for every company.

It must be said that the number of companies that somehow already have a solution, in the form of manufacturing software, traditional type of management, or at least some form of digitization is very high. So why replace or supplement a working solution? Here are some of the main reasons.

SAP Systems for manufacturing and advanced functionality

In a nutshell, the main reason to consider adopting an SAP solution for manufacturing is related to the ecosystem of services, functionalities and tools that can be activated. In other words, it is possible to move from a system that simply performs essential tasks to a solution that can restore competitiveness to the company by leveraging the functionality and solutions typical of modern ERPs.

In an industry where the benchmark is often the characteristic parameters of Industry 4.0, SAP solutions for manufacturing far exceed them by enabling, for example, extremely innovative use of business data but also, in more pragmatic terms, achieving new levels of efficiency.

We have mentioned that SAP offers a range of solutions for all kinds of industries. By way of example, we will focus on the two most specific products: SAP Business One and the application of SAP S/4HANA.

SAP Business One for small and medium-sized enterprises

Designed for small and medium-sized enterprises, SAP Business One provides the accurate, real-time data needed to optimize productivity and profitability. Capable of meeting the needs of both discrete and process manufacturing, it enables management of all the most critical aspects of business processes, from supply chain to logistics to shipping.

Among the key benefits of SAP Business One for manufacturing, here are some of the areas in which it can support companies:

  • Timelines and deadlines: optimizing processes means being able to guarantee tighter delivery times. For companies that work to order, this translates into a competitive advantage
  • Shorten the preproduction phase: already the mere improvement of internal communication enables a reduction in reaction time. Automation of processes related to internal bureaucracy considerably limits the preproduction stages.
  • Quotation: for sales departments, having visibility into inventory and raw material availability means being able to create more accurate quotations that adhere to the company’s business needs.
  • Increasing efficiency: identifying bottlenecks and pockets of inefficiency allows for increased direct labor time, reducing time spent on non-productive operations.
  • Increased flexibility: better communication, improved efficiency, and more agile preliminary steps enable the company to be more responsive to market demands, whether orders or changes in scenario.

SAP S/4HANA in manufacturing: support for medium and large enterprises

SAP S/4 HANA provides a comprehensive solution that includes business planning, manufacturing execution, and all necessary management services. SAP S/4HANA is an extremely robust support for all digital transformation processes. Here are a few in particular.

sap manufacturing

For example, in manufacturing, backorder processing, as volumes increase, can introduce considerable elements of complexity. A cloud-based SAP solution for manufacturing such as S/4HANA enables the automation of this processing, through a simple and intuitive management system that allows large volumes to be handled efficiently and functionally. The ability to handle orders more efficiently also has a positive impact on the number of cancelled orders.

Real-time inventory management provides transparency throughout the supply chain and across all levels of the flow of raw materials or components. SAP has dedicated modules for materials handling.

Better management of warehouse data also enables optimization of inventory levels, containing waste and overstock and reducing operating costs.

Very often in manufacturing, processes are structured in a linear fashion, without the ability to cope with contingent needs or real-time changes. This in today’s market introduces inefficiencies and declines in quality. Through the implementation of an MRP (Manufacturing Resource Planning) system, the entire production can be monitored in real time, reducing all inefficiencies and improving responsiveness.

Managing manufacturing effectively

Management systems for the next-generation manufacturing sector can offer great opportunities, supporting companies to meet the demands of a market in which change is increasingly sudden and unpredictable. In addition, from a manufacturing perspective, they can help companies achieve better levels of efficiency, including in terms of inventory and supply management.

What are the needs of your company? Our team of consultants is ready to support you throughout the implementation process tailored to your organization.