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SAPPHIRE NOW China Summit – High Tech Customer Industry 4.0 transformation journey

The post-pandemic world presents challenges to all industry sectors. However, there are a number of factors which are specific, and especially acute for High Tech industry.  We have seen the phenomena:

  • The pandemic drives popularity of consumer electronic devices including games consoles, laptops and tablets. PlayStations got harder to find in stores; Broadband providers faced months long delays for internet routers.
  • A global shortage of semiconductor computer chips is impacting car production around the globe and continues to disrupt the automotive supply chain. Car makers slashed production.

Electronics Manufacturing in High Tech Industry is a tough and competitive business, and the supply chain is global, which is characterized by:

  • Mass-customized production, typically in electronic components, aims at maintaining high-sequence throughput and consistent quality despite increased product variances.
  • High-volume production, such as consumer electronics, semiconductor chips, full automation (lights-out production) drives further productivity increase while changing product mixes require higher flexibility or production line adaptation.
  • A long and complex production process, which relies on a large number of high precision and complex equipment.
  • An intermediated, global, and very complex supply and value chain, which are networked of multiple partners, suppliers, and component manufacturers. A typical electronic product has hundreds of individual components, typically provided by different suppliers, often traveling thousands of miles. (see figure-1)
  • Unpredictable demand, sometimes even unreasonable customer expectations. For example, the stay-at-home era pushed the demand for computers and office equipment to support home workers (and network equipment to supply their connectivity) far beyond levels projected before the pandemic.

Figure-1  High Tech Industry Value Chain


SAP Strategy for Industry 4.0

To address these challenges, SAP has introduced the Industry 4.0 scenarios in SAP’s  Strategy for Industry 4.0(see Figure-2):

Figure-2 Industry 4.0 Scenario Examples Across Industry Clusters


How is the customer Industry 4.0 transformation journey with the help of SAP solutions?

Let us look at a customer example – Shenzhen ABSEN Optoelectronic Co. Ltd.  ABSEN is a leading LED displays manufacturer and shared their “Industry 4.0 transformation journey” at 2021 SAPPHIRE NOW China Summit.

Since 2016, ABSEN has started with an Industry 4.0 smart factory approach by deploying SAP® Manufacturing Suite and SAP S/4HANA®. Here are some highlights:

  • ABSEN has combined automated SMT assembly, manual module assembly and case assembly into one digital process, enabling digitally networked manufacturing.
  • SAP ME is seamless integrated with SAP ERP and SCADA. 139 equipment are connected. 303 data collection points ensure the data accuracy traceability with full transparency across the production lifecycle.
  • ABSEN has simplified user interfaces on the shop floor using mobile devices, which allows shopfloor worker to go paperless, and have implemented active process interlocking and control.
  • ABSEN has connected assembly stations with automated guided vehicles and automated warehouse processing, bringing new levels of flexibility to an already highly automated process. This has resulted in increased throughput, improved uptime, and lower capital expenditure on shop floor equipment while still supporting increased product diversity.
  • SMT equipment is set up automatically with parameters taken from the production order; SMT equipment operating parameters are collected for preventive and even predictive maintenance. The real time process data is collected for automated process control and quality control.

With such a digital backbone: automating processes, digitalizing operations, and leveraging detailed information from the shop floor operations, ABSEN is continuously improving product design, Supplier collaboration, Logistics and after sales service to fulfil varying customer demand and deliver high service levels.

To learn more about it, please visit:

2021 SAPPHIRE NOW China Summit – “Industry 4.0 transformation journey”

How Can a Smart Factory Transform Production to Deliver Sustained Competitive Advantage?

In this blog, I try to give you an overview:

  • What are the major challenges High Tech manufacturers are facing in post-pandemic world?
  • What is SAP’s Point of view for Industry 4.0 scenarios in High Tech industry?
  • How does Industry 4.0 frontrunner response to these challenges?

Looking forward to receiving your feedback and comments! You can also go to Ask a Question if you have further questions.


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