SAP has enhanced its solutions for the supply chain by introducing new AI-based features. According to the company, these will improve decision-making processes, simplify new product development, and reduce unplanned machine downtime.
AI enters the supply chain
According to the study «The Importance of AI in Supply Chain and Operations» conducted by IDC in collaboration with SAP, 63% of supply chain managers have an AI strategy linked to business goals. In the case of operations managers, the percentage rises to 52%. Overall, the research shows that over half of the respondents (51% out of a sample of over 2,000 people) are integrating AI into supply chain planning processes and key applications to improve and expedite decision-making. 58% of respondents, on the other hand, aim to introduce AI to enhance productivity and operational efficiency.
SAP integrates AI into supply chain solutions
Given the increasingly important role of artificial intelligence in manufacturing, SAP is enhancing its applications with new features that leverage AI. Now users of SAP supply chain solutions will not only be able to leverage more data to make their decisions but also integrate visual inspection into their processes, thus automating processes that are still manual in many cases.
AI will also allow monitoring of machinery and company assets through the integration of Software AG’s Cumulocity IoT solution into SAP Asset Performance Management, which will help reduce machine downtime through predictive maintenance. This feature will be available starting in the third quarter of the year.
Currently, product developers can use the Joule co-pilot to gather and enhance ideas for new products by asking questions in natural language. Joule also helps tag product design with company data, contextualizing critical information visually for the company.
Among the customers who have already experienced these innovations is SMA Solar Technology AG, which claims to have increased supply chain worker productivity by 15%, while also reducing supply chain planning costs and storage costs by 10%.
According to Muhammad Alam, member of the Executive Board of SAP SE, SAP Product Engineering, «Companies today face challenges ranging from supply chain disruptions to labor shortages to geopolitical uncertainties. SAP recognizes the fundamental importance of agility and intelligence, promoting innovation with AI-based solutions to streamline supply chain and production processes. Companies can improve operational efficiency and supply chain resilience, while also satisfying customers with superior service, paving the way for sustained growth and increased competitiveness in the market«.
