Calling on ML with SAP S/4HANA to close the gap between forecast and supply

Posted by:
Manoj Narang

Publish Date:
26 Jul, 2021

Complex and fractured supply chains and up-ended consumer buying patterns resulting from Covid-19 have led many organisations to experience a widening gap between traditional forecasting and supply.

Manufacturing organisations unable to quickly find a way to match supply to forecasts are likely to be dogged by excessive inventory, unplanned downtime and unhappy customers.

Some will choose to continue to pursue month-end planning forecasts in Excel spreadsheets; by using the same approach they always have, they remain hopeful that processes that have brought them success in the past will deliver into the future.

Transforming supply chains for survival

Today, the market is different. Traditionally, suppliers and customers were more local, bills of materials were shorter, and a shipping time of a couple of weeks was considered normal.

Fractured supply chains, inaccurate inventories, staff absences and delayed deliveries are already widening the gap between forecast and supply. In due course, supply chain complexity will dictate that switching to a more advanced Machine Learning (ML)-enabled or Artificial Intelligence (AI)-powered solution such as SAP S/4HANA for planning is imperative to continue to effectively compete.

Failure to upgrade will mean depleting customers, declining shareholder confidence and disenchanted employees. At this point of sink or switch, integration, as with any new system, will pose its own set of challenges.

Some organisations will choose to use this opportunity of upheaval, where market conditions are making it difficult for accurate forecasts and consistent supply, to secure a better position for future growth. By upgrading to an enterprise resource planning solution equipped to handle the intricacies of modern-day supply chains such as complex buying behaviours and increasing scrutiny by managers, shareholders and industry regulators, they will better position themselves to optimise their efficiencies and drive best-practice as supply chains stabilise.

By embarking on a SAP S/4HANA adoption and upgrading to an ML-enabled solution now, organisations have the time to enlist the professional support they need to manage a seamless roll-out, complete with testing and without the urgency that manifests itself in a sink or switch situation, all in a period where the entire manufacturing industry is struggling with organisational effectiveness and are less likely to be in a position to steal market share.

In our webinar on the 29th July at 10:00 BST ‘Planning for Uncertainty – how to gain advantage in uncertain times with S/4HANA’, our team of SAP S/4HANA experts will demonstrate how, using a solution such as SAP S/4HANA in planning can help organisations to close the gap between forecasts and actual supply, not simply for the short term, but for decades to come. With greater visibility, organisations can reach a new level of efficiency, optimising capacity and minimising line change over and warehousing.

Book your place on our webinar. Sign up here > https://invsol.co/3retSes.

Blog Author

Manoj Narang

VP - Business Development

Related Blogs

9 May, 2022

Invenio create an extendable and scalable

Redington Gulf is one of the world’s leading end-to-end supply chain solution...

Learn more
14 Jul, 2021

Using SAP S/4HANA adoption to embrace short-term

Throughout the Covid-19 pandemic, organisations using S/4HANA in their planning...

Learn more
29 Apr, 2022

How to unlock the value of your content financial

Learn more