In recent times, the urban population is expanding, and our living standards are also rising. As a result, there is a huge demand for building products in the developing countries. Whereas in the developed countries, low interest rates and migration are reviving renovation and home construction. Significant changes in behaviour, attitudes and technologies are also having an impact on the building products market.
By focusing on vision 2025, Building Products Intelligent Firms will be strongly connected to the construction industry and the end customer. They will also place a greater emphasis on developing sustainable products, providing excellent customer service and making a positive contribution to the society. But have you ever wondered how these needs can be accomplished with an Intelligent ERP system? If you’re curious to know about the answer, keep reading the blog until the end.
Strategic Priorities for Building Products Companies
The importance and values of Digital Transformation have been recognised by leading building product companies. Thus, they are concentrating on four strategic priorities outlined below in order to transform their organization into an intelligent enterprise.
- Delivering a Superior Customer Experience
- Connecting and Automating the Enterprise
- Supporting Enhanced Business Models and Value-Added Services
- Building a Responsible and Sustainable Business
In order to achieve this, Intelligent technologies embedded in RISE with SAP framework acts as a key-value contributor to enabling building products companies to become intelligent enterprises. Adapting to this enables your organization to redesign entire business models, processes, and products by driving enterprise digitalization through product development.
Connecting and Automating the Enterprise
Companies all across the world are dealing with fluctuating client demand and increased expectations of timelines. So, in order to achieve operational efficiency, businesses will need to be heavily automated. And it also needs to be well-connected to the rest of the network’s players.
To better understand this, let’s consider there are two businesses where:
- Company A uses a non-SAP ERP system
- Company B uses an SAP-ERP system
As Company A’s entire business structure is governed by a non-ERP system, these were the pain points faced by them:
- Disconnected departments and limited access to the company network make it difficult for their business to respond quickly.
- The information does not flow as rapidly as it could because of inconsistencies in the creation and sharing of plans.
- R&D, sourcing, sales, manufacturing, and planning are all out of sync, resulting in a waste of time and money.
- Limited visibility and cooperation issues resulted from reliance on and manual contact with even a few supply-chain partners, making delays inevitable and the risk of error significant.
As a result, insufficient integration of their traditional system resulted in a high involvement of manual processes.
Now let’s see about Company B, which uses an SAP-ERP system where:
- Digital technology in plants and supply chain department intelligently integrates manufacturing processes and supply chain networks with the rest of the company.
- Predictive quality and maintenance solutions helped drastically change the way how goods were generated, sold and delivered.
- Any sudden change in the network can be immediately responded to by a connected organisation.
- Customer satisfaction is improved when procurement, sales, manufacturing, and delivery are all in sync.
- Linear supply chains transformed into digital supply networks when all stakeholders operated together at the same time.
Overall, Company B’s Intelligent ERP system [RISE with SAP Package] has a responsive digital network with real-time analysis, allowing for enhanced communication across departments and trading partners. It allows them to use new technologies to automate the entire organisation and not just the shop floor.
Top Value Drivers
The major value drivers in the building products industry post successful deployment of SAP S/4HANA are:
- Overall equipment efficiency is higher.
- Improved real-time decision-making
- Inventory and supply are optimized
- R&D costs are reduced by 20% to 30%.
- Reduction in overall production costs of up to 10%
- 10%–20% of the manual rework is reduced due to improved product combinations
(Note: Data was taken from SAP’s statistics)
Now you may be asking, “How can RISE with SAP help us?”. Here are the primary business capabilities they offer to assist you in reaching your objectives:
- With real-time analysis, transform the linear supply chain into a responsive digital network.
- Allow automation and connected processes to drive efficiency and competitive advantage.
To conclude, SAP software for building materials can help you gain competitive insights into your operations, increasing efficiency and agility while simplifying operations from procurement to manufacturing, order administration, distribution and transportation.
Own your tomorrow with a guided journey and outcome driven practices of RISE with SAP. To know more about the industry-specific solution, do get in touch with us!