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Overview Strategic Priorities E2E Scenario Deep Dives SAP Solution Portfolio SAP Value Proposition Referencesǀ ǀ ǀ ǀ ǀ ǀǀSAP Strategy
Transform Building Products Companies with SAP® Solutions Business Value with Intelligent ERP
SAP Value Paper ǀ PUBLIC
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Overview Strategic Priorities E2E Scenario Deep Dives SAP Solution Portfolio SAP Value Proposition Referencesǀ ǀ ǀ ǀ ǀ ǀǀSAP Strategy
The Need for an Intelligent ERP System
Building products must respond to rapid changeA digital core is an IT architecture that offers stability and long-term reliability for core enterprise processes, yet it also provides the flexibility to adapt quickly to new opportunities, challenges, and regulations. This solid foundation gives you a single source of truth, which in turn enables flexibility for innovation to accommodate things such as new business models, new regulations, and business events, such as mergers or acquisitions.
What-if scenarios, analytics, and predictionThe ability to respond quickly is an essential part of managing a building products company. To do this, simulation, prediction, and analytical capabilities are important components. Data is critical for gaining the insight to make decisions. This insight must be at a granular level, so that decision-makers have the detail they need to understand trends, opportunities, and risks, and quickly carry out what-if analysis using predictive algorithms.
“The SAP S/4HANA Enterprise Management solution has made our operations more efficient by standardizing controls and reducing risk. Our decisions are better, faster, and information driven, giving us a definite competitive edge.”Manish Sinha, Head of IT, Vectus Industries Limited
Read the business transformation study.
Generate additional value from dataEvery building products company needs the computing capability to carry out complex algorithms with large data sets to support timely, real-time analysis. Everyone in the company must have access to the data they need, whenever and wherever they need it. This is also true for the rest of the ecosystem, so that suppliers can stay up to date with a company’s orders, salespeople can see customer history for credit risk and stock information, and so that accuracy of delivery schedules can be ensured.
Addressing innovative opportunitiesCustomers of the building products sector are demanding innovation. Companies are responding with new products and services that better meet individual needs. These new offerings impact every facet of business, not just the front office. Companies must address end-to-end (E2E) processes across departments and lines of business (LoBs) to deliver on new customer experiences, products, and services.
Vectus Industries Limited
60% Increase in operational efficiency
Century Cement9 weeksTo successfully migrate to SAP S/4HANA Enterprise Management
“We chose SAP S/4HANA to improve our business processes and lay solid foundations for our future digital initiatives. We migrated our system without affecting critical business operations."Sarang Deshpande, Vice President IT, Century Textiles and Industries Limited (Cement Division)
Read the business transformation study.
Supporting next practices with intelligent ERP The most powerful influencer driving change in the building products sector is the connected end consumer, who has long been a neglected entity in the value chain. Addressing the needs of the “new” end consumer drives many business decisions. New technologies like artificial intelligence, machine learning, the Internet of Things (IoT), advanced analytics, and virtual or augmented reality enable building products companies to transform their businesses. They automate repetitive tasks, enable employees to focus on higher-value tasks, and allow building products companies to invent new business models and revenue streams by monetizing data-driven capabilities andapplying core competencies in new ways. How does a digital core with a true single source of truth help?
The intelligent ERPBringing SAP S/4HANA® and SAP® Leonardo technologies together as a digital core will result in a more flexible and intelligent enterprise. To achieve next-generation business processes, companies need an intelligent ERP solution that can be continuously enhanced and extended with innovative business services and applications built on emerging technologies, including machine learning, blockchain, and the IoT. Building products organizations that have big innovation appetites or choose to be early adopters have already begun this journey.
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Overview Strategic Priorities E2E Scenario Deep Dives SAP Solution Portfolio SAP Value Proposition Referencesǀ ǀ ǀ ǀ ǀ ǀǀSAP Strategy
Strategic Priorities in a Digital EconomyThe digital economy is disruptive. Building products companies need strategic priorities that drive transformation. SAP supports a reimagined set of E2E business scenarios to support the strategic priorities of working in a digital environment.
Supporting value-added services and new business models Digitalization or interconnection of products and services can create additional value. Some examples are leasing and usage-based selling or including maintenance or take-back services. Construction or remodeling projects can be cumbersome to mange, so offering outcome-based services can both increase customer satisfaction and revenue potential. Many companies are looking past current value chains to expand into new ecosystems..
Running smart factories and digital distribution networksTransform your supply chain into a responsive network. Companies everywhere face volatile customer demand and heightened expectations of responsiveness. Innovative technologies can help meet these higher expectations by providing vital business information across the network, improving real-time analysis, and enabling better collaboration across departments and trading partners, making the supply chain more responsive.
Achieving customer centricityPutting the customer’s point of view at the center of every decision is a key prerequisite for building products companies. It encompasses what to market, sell, and produce, what services are offered, and where products and services are delivered. Providing relevant information, independent of the channel used, contributes to a positive customer experience. Including the end consumer in business-to-consumer go-to-market activities is mandatory.
E2E scenario: One-stop shopping – Become the go-to partner when it comes to home projects.
E2E scenario: Manage the ecosystem – Transform your traditional, linear manufacturing supply chain into a responsive network.
E2E scenario: 360-degree customer order support – Improve order fulfillment with real-time integrated multichannel insights.
E2E scenario: Manufacture individual products – Address the need to fulfill a customer’s unique product requirements.
Operating for purpose Building products companies want to address growing expectations from customers, investors, employees, and society. Offering a safe, attractive, and purpose-driven business increases brand recognition and attracts talent, investors, and customers alike. Products that are designed and built with sustainability topics in mind can drive purchase decisions and employee engagement. Efficient production and logistics contribute to lower emissions and energy use, which are increasingly important criteria for suppliers. Reuse of materials is the future as part of a closed-loop material circulation.
Offering small lot sizes and individualizationQuick order completion and delivery of tailor-made solutions create additional value for customers. Being able to execute the wish of a customer from order through manufacturing and offering multiple delivery options – all while considering costs and margins – is a key differentiator.
E2E scenario: Ensure worker safety on the spot in real time – Protect your employees as a key aspect of a sustainable business strategy.
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Overview Strategic Priorities E2E Scenario Deep Dives SAP Solution Portfolio SAP Value Proposition Referencesǀ ǀ ǀ ǀ ǀ ǀǀSAP Strategy
360-Degree Customer Order SupportCustomer order processing solutions from SAP help organizations streamline the order-to-customer cycle, including order fulfillment and after-sales service, with real-time data and fully integrated and automated workflows.
A new world with SAP
Improve customer satisfaction Reduce sales and service cost Increase revenue growth Top value drivers:
When a customer requests unique product features, machine learning can support product configuration. Products and services are captured in one central place.
Transparency of customer history and activities improves decision-making. Machine learning can automatically define the right reaction for speedy claim resolution.
All dependent processes can be adapted based on custom requirements. Change requests to orders can take effect immediately, and decisions can be communicated to the customer in a timely manner.
A high level of integration across sales order processing allows for total visibility of cost drivers at all stages. Knowing transportation details helps avoid delays and find alternatives. Product status and origin can be tracked across all material levels.
High customer satisfaction is achieved through individually configured products delivered on time. Value-adding services such as installation services or supplemental products provide a complete solution for customers. Claims and warranty cases can be more easily addressed.
Disparate info and data silos are hindering the ability to have a clear picture of customers’ orders and order status. Order fulfillment and
delivery are separate processes, making product tracking difficult.
When claims are filed, many departments need to be consulted to understand the situation and to provide appropriate assistance to the customer.
Production, costing structures, price, delivery dates, andso on need to be calculated manually.
Achieving consistent product configuration requires significant effort. Different products need to be ordered through different channels.
Changes to customer orders impact many different levels and departments. A lack of integration leads to highly manual processes.
Traditional scenario
Put customer success at the center of all activities:• Single point of truth• One single document that
covers all products or services requested
• 360-degree view of past and current customer activities, leading to better decisions
• Ability to react quickly to late order changes
• Ability to track goods and delivery
• Instant service on claims and warranty cases
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Overview Strategic Priorities E2E Scenario Deep Dives SAP Solution Portfolio SAP Value Proposition Referencesǀ ǀ ǀ ǀ ǀ ǀǀSAP Strategy
Unique design and engineering systems and bills of materials (BOMs), leading to high integration efforts
Unique manufacturing BOMs and routing for each predefined variant, requiring manual handling of BOMs, routings, and engineering changes
Variant product catalog with limited number of variants available
Product variants predefined by marketing and product management
Every variant exists independently as a product, resulting in inconsistency and errors in variant management downstream
Inefficient, expensive, and error-prone variant manufacturing
Manufacture Individual ProductsWith SAP S/4HANA as their digital core, building products companies can provide their customers with individualized products faster and at a lower cost.
Lower R&D costs Increase in revenue from new products
Customer requests unique product, payment, and delivery options and can be guided to appropriate choices
Integrated design, engineering, manufacturing, and sourcing supporting engineer-to-order, prefabrication, or 3D printing
Product and production engineering managed by system rules
Integrated handling of production planning and execution for flexible and efficient operations
Fulfillment of personalized order with short lead time, low cost, and high customer satisfaction
Faster time to market
Machine learning technologies help guide and identify the right configuration
• Define product feature catalog, which can be selected during sales order processing
• Personalize marketing and sales
• Offer products and services tailored to individual customer segments
• Support flexible manufacturing units with highly automated processes and data exchange
• Support omnichannel solution selling
A new world with SAP
Top value drivers:
There is an inability to design, market, and profitably sell individualized products. Special requests or changes are difficult to manage, time-consuming, and cut into margins.
Traditional scenario
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Overview Strategic Priorities E2E Scenario Deep Dives SAP Solution Portfolio SAP Value Proposition Referencesǀ ǀ ǀ ǀ ǀ ǀǀSAP Strategy
Manage the Ecosystem
• Disconnected departments and limited access to the business network, prohibiting responsive business
• Inconsistent creation and sharing of plans, so information cannot flow quickly
• Unaligned R&D, sourcing, sales, manufacturing, and planning –wasting time and money
• Reliance on and manual communication with even just a few supply chain partners, resulting in limited visibility and collaboration difficulties, which make delays inevitable and the risk of error high
• Digital technology in plants and in the supply chain, intelligently connecting manufacturing operations and supply chain networks to the rest of the enterprise, while technologies such as predictive quality and maintenance can help dramatically change the way products are created, sold, and delivered
• Linear supply chains transforming into digital supply networks through simultaneous collaboration of all relevant stakeholders
• Alignment of procurement, sales, manufacturing, and delivery, improving customer satisfaction
• Connected enterprise that can quickly act on any sudden change within the network
• Your company at the center
Connectedsupply
Connected customers
Connected data andreal-time analytics
Connectedoperations
Better real-time decisions Optimized inventory and supplyHigher overall equipment efficiency
Connectedassets
Connectedworkforce
A new world with SAP
Top value drivers:
Traditional scenario
Manufacturing
Asset management
Sourcing
R&D
Supply chain planning
Finance
Sales
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Overview Strategic Priorities E2E Scenario Deep Dives SAP Solution Portfolio SAP Value Proposition Referencesǀ ǀ ǀ ǀ ǀ ǀǀSAP Strategy
One-Stop Shopping
• Customers are required to manage all of their needs to run a home improvement project by themselves.
• The parties involved are not connected to each other, which leads to increased administration costs and delay in project delivery.
Become the go-to partner when it comes to home projects such as construction or remodeling. Provide all products to complete a project, not only those the building products company produces but also third-party products required for the project, and deliver those to the job site. Include design, installation, and maintenance services in the offering.
• Unified business systems and standardized data to support orchestration of one-stop shopping across multiple acquired product lines
• Business networks connecting with other manufacturers and traders that can supplement your own offerings to enable a complete solution
• End-to-end management of customer needs to open up new revenue streams and increase customer retention
Increase in customer satisfaction Increase in revenueGreater competitive edge
Design supportSubsidiaries and
distribution centers
Third-partysuppliers
Certified contractors
Maintenance services
…
Customer
Serviceprovider
A new world with SAP
Top value drivers:
Traditional scenario
Architect and designer
Installation services
Product 1
Product 2
Product n
Customer
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Overview Strategic Priorities E2E Scenario Deep Dives SAP Solution Portfolio SAP Value Proposition Referencesǀ ǀ ǀ ǀ ǀ ǀǀSAP Strategy
Ensure Worker Safety On the Spot in Real Time SAP S/4HANA helps organizations keep employees safer and mitigate environment, health, and safety (EH&S) risks by providing the functionality to perform risk assessments, efficiently measure and report emissions, manage incidents, and communicate safe work practices to all employees.
Less time and money loss Increased employee satisfaction and engagement
Increased safety
Sophisticated analytics to analyze incidents, near misses, and other safety information, including asset, spatial, weather, and other IoT data
Monitoring of environmental data records graphically for different compliance scenarios with applicable compliance limits
Approve, replace, or invalidate the recorded values of environmental data records
Dedicated application to manage chemicals with all the relevant details
Simplified process to identify risks and assign relevant safety measures for risk mitigation
Health and safety administrators supported by advanced analytics, simplified EH&S processes, and dedicated applications to act in the moment
Incident management Environment management Health and safety management
Proactive warnings to workers to avoid incidents using IoT technology
SAP® Connected Worker Safety solution
A new world with SAP
Top value drivers:
Traditional scenario
Multiple reports to monitor and analyze environmental compliance across the organization
Health and safety administrators have limited insight into root causes of incidents, their implications, and into organization-level compliance for EH&S
Analytics disconnected from real-time incident data
Out-of-the-box applications to analyze incident data
No easy way to identify risks for location and to define risks
Incident reporting
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Overview Strategic Priorities E2E Scenario Deep Dives SAP Solution Portfolio SAP Value Proposition Referencesǀ ǀ ǀ ǀ ǀ ǀǀSAP Strategy
Deep Dives Along the Building Products Value Chain
Sustainable product innovation
Supply chain planning and order fulfillment
Manufacturing and asset operations excellence
Customer engagement and commerce
• Project and portfolio management
• Compliant product lifecycle management
• Software offerings
• Sales, inventory, and operations planning
• Demand management and insights
• Response and supply planning
• Digital logistics and order fulfillment
• Manufacturing operations
• Manufacturing execution (Industry 4.0)
• Manufacturing networks
• Quality management
• Asset management
• Environment, health, and safety
• Marketing and brand management
• Sales management, including product configuration
• Trade and promotion management
• Omnichannel commerce
• Omnichannel customer service and compliance management
The benefits of improving E2E business processes are significant. However, realizing those benefits requires capabilities found in the detailed solutions for each LoB. Primary capabilities where value can be achieved through SAP S/4HANA, LoB solutions, and SAP Leonardo are as follows:
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Capabilities of Cloud-Based LoBs and SAP Leonardo
Current State with ERP
Capabilities of SAP S/4HANATypical Challenges Business Benefits*
Overview Strategic Priorities E2E Scenario Deep Dives SAP Solution Portfolio SAP Value Proposition Referencesǀ ǀ ǀ ǀ ǀ ǀǀSAP Strategy
Sustainable Product Innovation
• Inability to bring selected building products ideas and concepts to market in a timely manner, leading to low brand equity and stagnant growth
• Inability to manage collaborative work and new requirements across the value chain
• Inability to plan and manage engineering change
• Inability to get product costs under control
• Complex and costly product configuration modeling
• Lack of access to all compliance obligations for product segment, material, and markets
• Inability to connect with suppliers and customers to receive and provide sustainability information
• Ideas and requirements across building products stakeholders not managed
• Collaboration managed with e-mail
• Ability to release engineering changes for a unique lot number and release date
• Manual effort for simple costing estimates
• Handling of variant configuration through the complete business process
• Product safety and stewardship solutions that automate compliance determination and embed compliance metrics in the R&D environment
• Single multidisciplinary product definition enterprise-wide, reducing development errors and improving product lifecycle management
• Enhanced CAD integration with market-leading authoring tools to support cross-discipline product definition
• Instant transparency on live data with enhanced context-sensitive analytics
• New, optimized configuration engine in the SAP HANA®
business data platform• New simulation environment
with efficient UI• Real-time product
compliance processes and analytics
• Instant transparency on live data with enhanced context-sensitive analytics
• Efficient definition, structuring, and management of customer requirements in a requirement-driven product development environment with the SAP S/4HANA Cloud solution for intelligent product design
• Traceability and impact analysis of requirements-change implications
• Integrated configurator supporting single-level variant configuration models
• New simulation environment for BOMs
• Simplified, streamlined, and automated product compliance processes
• Sourcing event execution and analysis
• Faster time to market• Reduced engineering
change cost• Ability to meet target
costs• Increased revenue from
new products• Reduced compliance
management costs, fines, and recalls due to noncompliance
• Accelerated product development across extended enterprise
*Benefits are based on results from early adopters of SAP S/4HANA or are conservative outside-in estimates of the benefits of moving from a traditional ERP system to enhanced SAP S/4HANA with line-of-business and cloud capabilities. As each enterprise is at a different level of maturity, our recommendation is that you work with SAP to determine the value proposition for your enterprise.
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Capabilities of Cloud-Based LoBs and SAP Leonardo
Current State with ERP
Capabilities of SAP S/4HANATypical Challenges Business Benefits*
Overview Strategic Priorities E2E Scenario Deep Dives SAP Solution Portfolio SAP Value Proposition Referencesǀ ǀ ǀ ǀ ǀ ǀǀSAP Strategy
Supply Chain Planning and Order Fulfillment
• Inability to include real-time, changing demands in planning, leading to outdated plans
• Slow, manual process to drive sales and operations planning (S&OP)
• Inability to promise accurate and reliable order dates
• Inefficient strategies to manage orders and allocations
• Manual resolution of material bottlenecks and heavy use of side-by-side simulation tools
• No support for a demand-driven supply chain
• Lack of visibility into the E2E supply chain, leading to poor decision support and slow corrections
• Disconnected transportation and warehouse management processes
• Basic demand planning features with limited ability to sense or predict short-term demand from building products customers
• Collaboration around S&OP that requires later integration
• Difficulty of analyzing different future demand and supply scenarios
• Global available-to-promise checks in a different system
• Low-volume back-order processing supported
• Material requirements planning (MRP) based on incomplete planning info
• Forecasts generatedin a separate system with no direct supplier communication
• Supply chain analytics only possible using an online analytical processing engine, so data is not real time
• Customer demand changes visible without lengthy batch processes
• Orders prioritized and tightly integrated with supply and fulfillment
• Demand-driven business planning
• Allocation management on sales characteristics to achieve commitments to service-level agreements
• Back-order processing with ranking of demand-to-consider priorities
• One live and harmonized MRP process for all materials
• MRP cockpit that provides real-time insight into material availability
• Embedded analytics for ad hoc simulations with real-time data
• Integrated extended warehouse management and transportation processes
• Short-term demand prediction with demand sensing algorithms and forecasts for medium-to-long-term demand
• Rapid and collaborative S&OP, including “what if” analysis
• Collaboration with logistics partners to improve throughput, reduce wait times (SAP Global Track and Trace solution)
• SAP Extended Warehouse Management deployed as a stand-alone application for high-volume and highly automated warehouses
• Ability to collect, map, store, and analyze vehicle and sensor data with the SAP Vehicle Insights application
• SAP Cloud Platform to enable supply chains with blockchain
• More-accurate forecasts• Reduced costs for
demand planning and forecasting
• Reduced overall supply chain planning cost
• Faster integrated sales and operations planning cycles
• Reduced revenue loss due to stock-outs and fulfillment issues
• Improvement in rate of on-time, in-full deliveries
• Improved order fulfillment capabilities
• Streamlined warehouse management processes
• Improved compliance in distributed supply chains utilizing blockchain technology
*Benefits are based on results from early adopters of SAP S/4HANA or are conservative outside-in estimates of the benefits of moving from a traditional ERP system to enhanced SAP S/4HANA with line-of-business and cloud capabilities. As each enterprise is at a different level of maturity, our recommendation is that you work with SAP to determine the value proposition for your enterprise.
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Capabilities of Cloud-Based LoBs and SAP Leonardo
Current State with ERP
Capabilities of SAP S/4HANATypical Challenges Business Benefits*
Overview Strategic Priorities E2E Scenario Deep Dives SAP Solution Portfolio SAP Value Proposition Referencesǀ ǀ ǀ ǀ ǀ ǀǀSAP Strategy
Manufacturing and Asset Operations Excellence
• Reduced manufacturing cycle time
• Improved manufacturing planning efficiency
• Reduced inventory levels• Improved productivity in
order fulfillment processes
• Reduction in the cost to support quality management
• Increased return on assets
• Decreased unplanned asset downtime and outages
• Lower service and maintenance cost
• Improved employee productivity
• Reduced EH&S management cost
• Long and overnight batch runs, resulting in planning inefficiencies
• Inflexibility to include real-time, changing demands in the planning run
• Complexity in back-order processing
• Inability to mange “lot size of one” in a cost-effective manner
• Lack of real-time view into ongoing maintenance activities and asset performance
• Complex and nonintuitive user interface of asset management applications
• Difficulty in developing one common view of process risks related to workers, assets, or the environment, resulting in high costs for EH&S compliance
• Planning runs at predefined times with data that are consolidated from various systems
• Low-volume back-order processing supported
• SAP Business Suite software, which provides an integrated solution from enterprise planning to shop-floor execution
• Functions that are relevant to quality management integrated with the supply chain, covering the areas of quality engineering, quality inspection, and quality improvement
• Multitiered landscape that makes it challenging to obtain a real-time view of maintenance activities
• User experience enabled through traditional SAP GUI interface and Web-based transactions
• Constraint-based planning using various heuristics and optimizers to generate a precise production plan
• Live MRP available• Real-time view for planners
into ongoing maintenance activities with the ability to reschedule multiple times a day to better plan and schedule maintenance activities and achieve higher efficiency
• Improved user experience enabled by triggering Web-based transaction through SAP Fiori® launchpad
• Native integration of incident management and health and safety management as part of SAP S/4HANA, reducing landscape complexity and improving performance
• Flexible and intuitive reporting with the SAP Digital Manufacturing Insights solution
• Collaboration with manufacturers, operators, and service suppliers across the network
• SAP Predictive Maintenance and Service solution, which increases machine uptime
• Sensor data that can be used for predictive quality to increase production yield
• SAP Connected Worker Safety solution, which helps reduce accidents at the workplace
• Collaboration with manufacturers, operators, and service suppliers across the asset intelligence network
*Benefits are based on results from early adopters of SAP S/4HANA or are conservative outside-in estimates of the benefits of moving from a traditional ERP system to enhanced SAP S/4HANA with line-of-business and cloud capabilities. As each enterprise is at a different level of maturity, our recommendation is that you work with SAP to determine the value proposition for your enterprise.
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Capabilities of Cloud-Based LoBs and SAP Leonardo
Current State with ERP
Capabilities of SAP S/4HANATypical Challenges Business Benefits*
Overview Strategic Priorities E2E Scenario Deep Dives SAP Solution Portfolio SAP Value Proposition Referencesǀ ǀ ǀ ǀ ǀ ǀǀSAP Strategy
Customer Engagement and Commerce
• Multiple, disparate front-end solutions with incomplete integrations, leading to unit silos and organizations not meeting full revenue potential
• Inability to configure complex solutions or outcomes consisting of a mix of building products and services
• Difficulty representing the face and brand of an enterprise by delivering a unique, personalized customer shopping experience
• High data volume and low flexibility in rebate processing, resulting in time-consuming and error-prone processes
• Lack of real-time customer analytics and sales data, leading to poor sales planning for accounts and opportunities
• Little consolidation of customer information
• Inaccurate, outdated customer data without integration to other solutions
• Several unrelated orders –sales order, service order, service contract, and work order – being created by several people
• Responsible employee who has to check multiple reports to get a holistic view
• Basic foreign trade functionality available
• Limited ability to offer rebates to additional customers because invoice history has to be rebuilt in batch runs; rebate process that lacks the ability to use sources other than customer invoices as a basis for rebate calculation
• Single consolidated view of building products customer information
• Prioritized list with key characteristics of outstanding sales orders
• Generation of one single invoice that combines goods and services on a single bill
• Real-time postings to recognize revenue and support different revenue recognition methods
• Flexible analytics dashboards and overview pages that enable sales clerks and sales managers to get operational insight while transactions happen
• Ability to settle retroactive rebates immediately without any manual activities or preliminary tasks up front –also when new customers become eligible for rebates
• SAP Marketing solution, which provides customer information from all company-owned and external sources
• SAP Sales Cloud solutions, which trigger sales activities and leads according to customer signals
• SAP Commerce Cloud solutions, which provide an omnichannel digital sales presence
• Broader scope of international trade functionality available with SAP Global Trade Services application
• SAP Cash Application software, which helps reduce manual effort in assignment of payments to multiple bills
• Improved customer satisfaction
• Reduced cost of sales and service
• Increased sales productivity
• Higher rate of on-time delivery
• More business model flexibility
• Improved compliance• Increased contract
management efficiency • Increased customer
loyalty• Better visibility into actual
profitability, allowing for margin optimization
*Benefits are based on results from early adopters of SAP S/4HANA or are conservative outside-in estimates of the benefits of moving from a traditional ERP system to enhanced SAP S/4HANA with line-of-business and cloud capabilities. As each enterprise is at a different level of maturity, our recommendation is that you work with SAP to determine the value proposition for your enterprise.
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Overview Strategic Priorities E2E Scenario Deep Dives SAP Solution Portfolio SAP Value Proposition Referencesǀ ǀ ǀ ǀ ǀ ǀǀSAP Strategy
Intelligent ERP is the Digital Core of an Intelligent EnterpriseAn intelligent enterprise can be continuously enhanced by extending business services and applica-tions built on a digital platform to create transformative business value.Building products organizations have already begun to transform their business to address current challengesand to be ready for an even more competitive future.
SAP Strategy – Deliver the Intelligent Enterprise
Intelligent Technologies
CustomerExperience
PeopleEngagement
Network & SpendManagement
Manufacturing& Supply Chain
Digital Core
DataManagement
CloudPlatform
AI/ML | IoT | Analytics
Intelligent Suite
Digital Platform
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Overview Strategic Priorities E2E Scenario Deep Dives SAP Solution Portfolio SAP Value Proposition Referencesǀ ǀ ǀ ǀ ǀ ǀǀSAP Strategy
Drive innovation and bring new products to market quickly
SAP S/4HANA®
Digital core
Integrate contingent labor to close capacity and skills gaps
Provide innovative products and services
Third-party labor
Attract, develop, and retain the right talent
Manage talent
Be agile and responsive tovolatile markets and demanding customers
Increase flexibility of manufacturing and fulfillment operations
Engage customers and drive profitable growth
Finance Procurement
Allow for visibility into the state of the business at any time
Automate and streamline complex, high-volume invoice processes and
purchasing documentation
Instant supplier collaboration
Insights beyond company boundaries
Connect shop floor to top floor
SAP Manufacturing Execution and SAP Manufacturing Integration and Intelligence
SAP Integrated Business Planning
Digital supplier collaboration
Real-time, integrated supply chain planning
Manufacturing executive and insights
Digital customer engagement
SAP Portfolio of Solutions for Building Products
An E2E intelligent enterprise for building productsBuilding products companies must digitalize to grow profits and reduce costs by simplifying their operations. The value of the digital economy is based on how to serve the customer. Value creation often comes from edge solutions that are based on and coordinated by digital core solutions. It is the platform for innovation and business process optimization, connecting the workforce, the IoT, the supply network, and customers.
Sustainable product innovation
Supply chain planning and order fulfillment
Manufacturing and asset operational excellence
Customer engagement and commerceBig Data and the
Internet of Things
Network and spendmanagement
SAP Cloud Platform
Customerexperience
Network and spendmanagement
Peopleengagement
SAP® Ariba®
solutionsSAP C/4HANA solutionsExceptional
customer experience
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SAP’s Value Proposition for Building Products Companies
*Benefits are based on results from early adopters of SAP S/4HANA or are conservative outside-in estimates of the benefits of moving from a traditional ERP system to enhanced SAP S/4HANA with line-of-business and cloud capabilities. As each enterprise is at a different level of maturity, our recommendation is that you work with SAP to determine the value proposition for your enterprise.
SAP S/4HANA provides building products companies with a proven framework to adopt industry best practices while attaining operational excellence across the full value chain.
Strategy enablement• Accelerate creation of new business models• Enter new markets and industries• Accelerate synergy for mergers and acquisitions• Run live (SAP Digital Boardroom)• Reorganize on the fly• Achieve greater speed and agility• Run simply (master complexity)• Manage risk and ensure compliance
Empowered employees• Higher productivity with a new,
role-based way of working with responsive, intuitive SAP Fiori user experience on all devices
• Role-driven, user-centric processes and self-service business intelligence for user empowerment
• Actionable insights on unified, real-time data and processes with built-in system suggestionsfor decision support
Business benefits*• 10%–30% increase in on-time delivery• 25%–30% reduction in inventory levels• 10%–20% increase in customer satisfaction• 10%–12% reduction in days of inventory• 10%–15% reduction in revenue loss due
to stock-outs• 10%–12% reduction in total logistics cost• 3%–5% reduction in supply chain planning cost• Reduction in order fulfillment lead time
IT benefits and total cost of ownership (TCO)• Reduced data footprint • Merging of OLAP and OLTP • Elimination of many desktop clients• Lower testing costs• Simplified landscapes• Native integration
IT benefitsand TCO
Business benefits
Strategyenablement
Empowered employees
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IndustryMill products
SAP SolutionSAP S/4HANA
Customer Web sitewww.vectus.in
Click here to read the full story on the SAP News site.
Customers Are Achieving Value from SAP Solutions
Vectus Industries
Vectus Industries Limited deployed the SAP S/4HANA Enterprise Management solution, which made business operations easier to manage. It has decreased its days sales outstanding and can deliver accurate, instantaneous customer invoices. Customers now experience excellent service and on-time delivery, which will remain unchanged during rapid expansion.
“[After going live with SAP S/4HANA,] we have experienced no downtime and have not once had to restart the server during working hours. In all, we believe we have increased total operating efficiency by 60% across the company.”Manish Sinha, Head of IT, Vectus Industries Limited
UE Furniture
UE Furniture Co. Ltd. invites its customers to take a seat and be comfortable. And with overwhelming success. A leading Chinese manufacturer of seating solutions, UE Furniture has always innovated to stay ahead. Its choice for cutting-edge technology is SAP S/4HANA, with the modest goal of keeping customers happy with their seating arrangements.
“In the implementation project with SAP, we formulated a series of rules and regulations, laying a solid foundation for ourselves as a digital and intelligent company.”Zhonghai Fei, CIO, UE Furniture Co. Ltd.
IndustryMill products – furniture
SAP SolutionSAP S/4HANA
Customer Web sitewww.uechairs.cn/en
Click here to read the business transformation study.
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IndustryMill products – glass
SAP SolutionSAP S/4HANA
Customer Web sitewww.schott-kaisha.com
Click here to read the business transformation study.
Customers Are Achieving Value from SAP Solutions
SCHOTT KAISHA
SCHOTT KAISHA Private Limited turned to SAP S/4HANA to enable its digital business transformation journey. SCHOTT KAISHA put actionable data in the hands of stakeholders across finance, sales, and manufacturing for faster decision-making and improved productivity. Now, the company is even better positioned to package and carry precious medicines to millions, spreading hope and, often, saving lives.
"SAP S/4HANA is a perfect fit for our growing company. It provides us with the foundation to harmonize processes and efficiently manage manufacturing operations and customer relationships. It also enables real-time insight through powerful, user-friendly reporting."Eric L'Heureux, Director Operations, SCHOTT KAISHA Private Limited
Mangalam Cement
Mangalam Cement Limited (MCL) sought to gain operational efficiencies with an integrated platform across various departments for fast decisions based on timely business insights. The company deployed SAP S/4HANA in 4 plants, 2 power plants, 13 windmills, 2 mines, and 55 distribution centers. MCL is enhancing critical business processes such as procure to pay, order to cash, and design to deliver.
“With SAP S/4HANA Enterprise Management as our preferred digital core to manage day-to-day business operations and future growth strategy, we look forward to efficiency, productivity, and market-share gains.”Yaswant Mishra, President (Corporate) and CFO, Mangalam Cement Limited
IndustryMill products – cement
SAP SolutionSAP S/4HANA
Customer Web site www.mangalamcement.com
Click here to read the business transformation study.
Studio SAP | 49070enUS (18/09)
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