Delivery Insights -S/4HANA and SAP Internet of Things (IoT) Ensure End-To-End Supply Chain Transparency
Have you ever waited for a delivery that arrived late or damaged? To me, this happened a few days ago, when I was expecting a doll house for my daughter’s birthday. When it arrived, the packaging was damaged as well as the roof of the little playhouse. Surely, you can imagine the 6-year-old’s face, when I told her she would have to wait for her present another few days.
Just as I relied on the delivery of a present, companies across all industries are heavily dependent on in-time delivery of goods for their production processes and/or need to ensure their products reach the recipient punctual and undamaged. … while the above is a rather simple example of a product delivery. Think about a sensitive vaccine or very expensive medication delivered to a surgery, or a key part for a machine that has huge impact on business operations.
The key to end-to-end supply chain transparency for outbound deliveries is providing insights to real-time sensor data to facilitate and improve the existing business process and allow business users to take pro-active decisions.
In 2019 SAP IoT and S/4HANA together kicked off a project to simplify and automate existing processes leveraging the power of the Internet of Things. A lot has happened since then. Joined teams developed the first ideas in design thinking workshops. The ideas were evaluated with customers and implemented to proof the feasibility of the integration. S/4 HANA and SAP IoT – Integration with Delivery Insights was one of these ideas -first released in 2002 as S/4HANA scope item.
Delivery Insights enables selling and purchasing companies to monitor their deliveries near real-time and react to critical situations.
One of our co-innovation customers in the chemical industry ships cryotanks several times a week between sites. In the past the company had no insights into the delivery process. And only found out about issues when the tanks arrived.
Using real time insights provided by SAP IoT the company can now plan produc-tion more reliably and in-crease efficiency in subsequent processes. In case a critical situation occurs such as potential material damage, or delay of the delivery the responsible person is immediately notified in the S/4HANA Fiori Launchpad. This ensures quick reaction within his or her natural working environment.
Together with SAP Digital Business Services the company has proven the feasibility in a one-week proof of concept in February and is willing to implement the solution to monitor conditions of the delivery once it’s available for S/4HANA on Premise.
Delivery Insights can support several use cases; from the above described detection of damage and monitoring temperature of sensitive products to spotting theft. It helps improve operational efficiency through proactive and data-driven decision making and increases customer satisfaction by providing deliveries in time and quality.
Delivery Insights is not the only integration scenario we are currently developing. This year we also plan to release IoT enabled Handling Unit Management and we are looking into other use cases such as Cycle Counting, Kanban and Automatic Replenishment. So, stay tuned for more!
Learn more about the new scope item here (open in Chrome for better usability).