Smart solutions to combat fragile supply chains

 Supply chains worldwide are under pressure - and will remain so. Costs are rising, failures will become part of everyday life, and the ability to plan will decline. To confirm this, one look at the current hotspots worldwide is enough. For companies, the question is: What can they do to counter this negative trend? From a business perspective, the approach so far has been to comprehensively globalize supply chains and minimize warehousing as much as possible.
But we are currently seeing how much this has made manufacturing companies vulnerable. In the medium and long term, greater diversification in purchasing and more digitization are more promising.

This is the only way to make supply chain management more flexible and thus more resilient, and at the same time to simulate new, external disruptive factors in order to cushion the consequences against the plan.
The analysis of tracked live information, transport messages, etc. allows, for example, the control of the supply chain to be more anticipatory in order to minimize risks. Self-learning algorithms recognize patterns for emerging hazards and can trigger largely automated avoidance processes.

What does that mean?

To stabilize an increasingly fragile supply chain, only one thing can help: smart solutions like S/4HANA and SAP TM that flexibly integrate complementary cloud services for analytics, AI, automation, etc., and seamlessly integrate their processes into an enterprise network for logistics like SAP LBN (Logistics Business Network).

Contact our experts

Henrik Lienstromberg
+49 421 430460

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