Digital Supply Chain | Deloitte (2023)

Amid never-ending disruption, the procurement function has become increasingly critical to business success. Procurement today must pivot fast—to support new business models and priorities, to launch new products, to onboard alternate suppliers, and to enable efficiencies.

For organizations planning a transformation with SAP solutions such as SAP S/4HANA and SAP Ariba, the vision emerging is one of intelligent, flexible, disruption-ready procurement. And for many global businesses, especially those with diverse ERP landscapes, the journey may begin with SAP Central Procurement.

Deloitte can help you tap the full potential of SAP Central Procurement to harmonize sourcing and procurement processes, centrally monitor invoices, and generate analytic insights for more intelligent spend management—through seamless integration with back-end ERP systems.

End-to-end functionality

With SAP Central Procurement and help from Deloitte, you can lay a foundation for broader built-to-evolve procurement functionality—Kinetic Procurement—that extends to category management, contract management, supplier collaboration, and more. You can create an integrated, insights-driven digital hub—regardless of your ERP landscape, and without disrupting your existing ERP environment. Deployed on premises or in the cloud, this integrated, centralized procurement platform can serve as a single source for:

• Guiding buying—with an integrated front-end portal for business users
• Central requisitioning
• Central purchasing
• Central sourcing
• Central purchasing contracts
• Central invoice monitoring (for Cloud deployment)
• Central analytics

By working with Deloitte to enable SAP Central Procurement, you can put the procurement function at the center of things, with integrated capabilities and services covering:

• Cognitive spend
• Supply and category management
• Spend category management
• Preconfigured e-procurement
• Procurement strategy and operating model
• Cloud procurement strategy
• Supplier risk management
• Procurement operations
• Intelligent payments

Potential benefits

Deloitte can help you unlock a number of potential results with SAP Central Procurement and an integrated suite of solutions, including:

• Enablement of procurement shared services—allowing you to control and manage the procurement processes of distributed environments via a single hub
• Increased compliance, resulting from central governance and workflows
• Ability to scale more readily and integrate heterogenous ERPs as your business evolves
• Intelligently automated processes across the procure-to-pay spectrum, encompassing both direct spend and indirect spend
• A unified, real-time view of data, spending, and savings across categories and business areas
• Reduced off-contract spend, improved negotiations, and more competitive pricing—leveraging the effects of scale
• Improved insights and tools that serve as levers to control spend
• Simplified data, IT, and process landscape
• A single source of the truth for supply/procurement decision-making
• A scalable platform that can help address future disruption and support the built-to-evolve Kinetic EnterpriseTM
• Greater efficiency and usability in supply/procurement processes
• Cost savings across multiple business areas—from direct materials to vendor transactions
• Greater control of rogue spending
• Reduced supply chain risk
• Improved supplier collaboration and action on discounts
• Enhanced capabilities for business planning, what-if scenarios, spend modeling, and predictive/proactive operations

Make your vision real … faster

With SAP Central Procurement and help from Deloitte, you can rise above the chaos of “how” and get back to “why”—back to running your business. Deloitte brings a full set of services and solutions across the advise-implement-operate spectrum—to help you plan your transformation, effectively execute your vision, run an integrated procurement environment, and continuously improve the procurement function as needs evolve and disruption continues.

Using our proprietary accelerators and deep industry knowhow, Deloitte can help you create your vision for centralized procurement and take the necessary steps to make it real—from developing the business case for procurement transformation to implementing and integrating technology to managing change to running the solutions on an ongoing basis.

We can also help you sustain transformation impact through constant innovation—whether it’s adding mobile functionality, embedding IoT into your supply chain, driving processes with AI, or doing something else that can give you an edge.

A few additional ways we can help:

• Our Central Procurement Lab can provide an interactive experience for exploring the possibilities for new value
• Our SAP Central Procurement “touchless” starter kit enabled on cloud can help you rapidly stand up a baseline system and potentially reduce deployment time by 20%
• Our Intelligent Buyer asset enabled by AI and machine learning, can assess spend patterns and provide intelligent insights to support smarter purchasing decisions and savings

A powerful team for transformation results

In addition to our 26,000 SAP-focused professionals and our industry-specific supply chain specialists, we also bring along specialists in finance, data, analytics, cloud, risk, tax, customer experience, and more—to help transform procurement with new technologies and drive outcomes that matter for your business.

We have been widely recognized by SAP for our ability to help clients realize results with SAP solutions. We have won numerous SAP Pinnacle Awards, SAP’s top honor. Recognition includes including the SAP Pinnacle Award as SAP S/4HANA Partner of the Year (Large Enterprise) for 2016, 2017, 2018, 2020, and 2021. We also earned the 2021 SAP Pinnacle Awards as Delivery Excellence Partner of the Year.

Make a bigger impact with your data

What’s your plan for transforming procurement—to help make a bigger impact for your business? Discover how Deloitte can help you make an impact with intelligent SAP solutions. Contact us to schedule a demo of SAP Central Procurement in action.

Harmonizing processes and building intelligent insights with SAP Central Procurement

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2019 Global CPO Survey

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Smart Factory—powered by SAP® Digital Manufacturing

If you want to build a smart factory, you’re not alone. In fact, 86% of surveyed manufacturers believe that smart factory initiatives will be the main driver of manufacturing competitiveness in the next five years[1]. But making manufacturing smart will take more than intelligent tools and processes. It will require a total approach to transformation—and a deep understanding of what’s possible. Deloitte can help.

Envision, build, and run the intelligent factory

To help you transform manufacturing and support tomorrow’s digital supply chain, Smart Factory by Deloitte combines industry-specific services plus a portfolio of SAP® solutions. The offering is designed to help you envision, build, and run the disruption-ready factory and enable intelligent capabilities that go beyond the traditional “four walls” of the shop floor.

Smart Factory enables a flexible system that can enhance performance across a broader network, self-adapting and learning from new conditions in real-time or near real-time, and autonomously run entire production processes across four key areas: secure, connected, transparent and agile.

Smart Factory is focused on helping manufacturers operate more efficiently, effectively, and securely with an integrated and intelligent production environment that can deliver new levels of insights, service, and bottom-line value for your business. It can also help support the “built to evolve” Kinetic Enterprise™—an intelligent, cloud-enabled enterprise capable of moving at the pace of disruption, operating with a clean core and an inclusive ecosystem of capabilities. The offering brings together a range of transformation services from Deloitte, as well as SAP® Industry 4.0 solutions and other SAP technologies:

Advisory Smart Factory services:

• Deloitte SAP Digital Manufacturing Transformation Strategy
• Deloitte Smart Factory Capability Diagnostic
• Deloitte cybersecurity maturity assessment

Smart Factory technology implementation:

• SAPS/4HANA® Manufacturing
• SAP Digital Manufacturing Suite
• SAP Digital Manufacturing Cloud
• SAP Environmental Health and Safety (EHS)
• SAP IoT Edge services
• SAP Cloud Platform
• SAP Fiori® and UI5 user experience and apps

Modular, flexible, and scalable shop floor operate services

• Application management services (AMS) for shop floor technologies (OT-IT)
• Evaluating the performance of OT-IT applications, interfaces, and equipment integration
• Establishing a governance model to enable the effective delivery of services to support the shop floor
• Implementing monitoring tools to increase the visibility of daily operations
• Delivering services efficiencies through equipment automation, robotics, and artificial intelligence (AI) solutions

Making the possible real

Smart Factory capabilities support the vision of the digital supply chain and help enable “built to evolve” manufacturing capabilities, providing functionality such as: Internet of Things (IoT) and vision analytics via the cloud, integration of the shop floor with SAP solutions for manufacturing and back-office processes, data-driven manufacturing insights, Labor tracking and efficiency and cyber risk management program.

Smart Factory can help you unlock increased value while getting ahead of challenges and reducing risks. Smart Factory leverages machine intelligence, connected sensors, advanced analytics, control tower capabilities, and other intelligent tools to help you address several potential use cases, including:

• Factory asset intelligence and performance management—Apply data science tools to provide insights around improving factory floor operations
  
• Quality sensing and detection—Prevent quality issues in near real-time while reducing the need for human quality inspections
• Factory synchronization & dynamic scheduling— scarce factory resources for enhanced manufacturing and operational activities
• Augmented workforce efficiency— Improve workforce efficiency through enhanced technologies and equipment
• Plant consumption and energy management— Leverage contextual data to refine energy usage and reduce overhead costs
• Smart warehousing solutions—Automate warehouse operations by analyzing inventory distribution and use rates
• Smart conveyance— Enhance warehouse material transfers using digital orders and autonomous vehicles
• Engineering collaboration | Digital twin— Use product performance data to improve design, engineering, and production
• Cyber risk management—Design and implement a broad cyber management program that extends across the enterprise (OT and IT) to help identify, protect, respond to, and recover from cyberattacks by performing a cybersecurity maturity assessment, establishing a formal cybersecurity governance program that considers OT, prioritizes actions based on risk profiles, and builds in security

Potential benefits with Smart Factory

• Greater insights and information transparency for intelligently automated processes and decision-making
• Increased operational efficiency
• Improved order fulfillment rates
• Predictive, intelligently automated processes
• A more connected, integrated OT/IT and process landscape
• A unified, real-time view of operational data
• Agility and responsiveness to address current needs and future disruption—and to support the “built to evolve” Kinetic Enterprise
• Reduced supply chain risk
• Greater overall impact from transformation, with the quality implementation of new technology

The Deloitte difference

Ready to transform the supply chain—from the factory floor to the customer’s door? Deloitte can help you achieve the desired impact from a manufacturing transformation. Our team understands not only how to help you deploy SAP solutions effectively—but how to align those technologies with how you aspire to operate and with your business goals. It’s about deeply understanding the details and the demands of your business—and then prioritizing them to help you make an impact.

Relationships are also key. Deloitte’s relationship with SAP dates back more than 30 years, with a lengthy history of collaboration and co-innovation. Today, our worldwide team of more than 25,000 SAP specialists brings a tested methodology for creating value with the “built to evolve” Kinetic Enterprise.

A smart next move

The future of operations will be smart. What’s your plan for bringing greater intelligence to your production processes—to help unlock greater value to your business? What’s your strategy for making manufacturing more connected, intelligent, and efficient?

A conversation with Deloitte can be an excellent place to begin. We can provide demonstrations of Smart Factory use cases, share additional transformation insights, or discuss a specific challenge your organization is facing. We can even help you better understand your challenges, leveraging the Smart Factory Capability Diagnostic tool as a first step. Contact us to get the conversation started.

[1]Source: Deloitte analysis of the 2019 Deloitte and MAPI Smart Factory Study data

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Demand planning and supply planning both hinge on having the right insights at the right time. Make the wrong call, and the consequences can include lost productivity, higher operating costs, excess inventory sitting on the books, product loss, or an inability to deliver to customers as expected—to name only a few.

Make planning more intelligent, predictive, and integrated, and you can avoid or reduce perennial challenges—such as excess inventory, insufficient inventory, products being stored far from where they are needed, or products moving through the supply chain at the wrong time.

Integrated and insights-driven—for impact

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Connected to address complexity

Synchronized Planning can help you build a cohesive, more predictive planning environment driven by intelligent technologies such as machine learning and artificial intelligence. The solution helps address today’s complex business planning challenges, providing digital functionality for three key needs: Uniformity, insights and efficiency.

Capabilities to help you elevate planning

With an integrated Synchronized Planning solution, you can get a more complete view across demand, model different scenarios, and leverage predictive machine intelligence capabilities to get ahead of needs and challenges. Synchronized Planning is designed to intelligently analyze data to automate key supply chain processes, supporting capabilities that include:

• Predictive sensor-driven replenishment
• Autonomous transportation and “last mile” delivery optimization
• Cognitive source-to-contract capabilities
• Automated purchase-to-pay functionality
• Intelligent procurement operation management

Synchronized Planning is designed to deliver key capabilities across the entire strategic-to-operational spectrum, including:

• Dynamic flow optimization
• Responsive demand-supply matching
• Supply network design
• Intelligent demand management
• Portfolio lifecycle planning
• Enterprise plan reconciliation

Potential benefits with Synchronized Planning

• Reduction in excess inventory
• More efficient use of resources
• Improved customer satisfaction
• Improved transportation capacity/operations
• Reduction of warehouse constraints and potential space needs
• Workforce optimization
• Reduced waste (including product shelf-life and spoilage issues)
• Intelligently automated processes across the planning spectrum
• A unified, real-time SAP Supply Chain Control Tower view of data
• Responsiveness to address future disruption and support the “built to evolve” Kinetic Enterprise™
• Reduced supply chain risk

The Deloitte difference

Deloitte can help you achieve maximum impact from a planning transformation. Our team understands not only how to help you deploy SAP solutions effectively—but how to align those technologies with the way you operate and with your business goals. It’s about deeply understanding the details and the demands of your business—and then prioritizing them to help you make an impact.

Deloitte’s work on behalf of clients has earned us the 2019 North America SAP Ariba and SAP Fieldglass Services Partner of the Year (2019) Award, as well as multiple SAP® Pinnacle Awards.

Planning the next step

There’s no end in sight for business disruption. How will you plan for it—and how will you transform your planning capabilities so that you can respond rapidly no matter what the future throws at your business? As you explore answers, a conversation with Deloitte can be a great start. We can provide a demo of Synchronized Planning in action, share additional transformation insights, or discuss a specific challenge your organization is facing. Contact us to get the conversation started.

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