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.
Supporting Enhanced Business Models and Value-Added Services
To compete in a world where industry lines are blurring and new companies are entering well-established categories, you must be willing to expand your product and solution offering. As a result, digitalization or the interconnection of products and services is required.
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:
- While assigning a home improvement project, they have been put in a situation where their customers had to manage their own demands.
- The internal departments involved within a specific project were not connected to each other, which resulted in higher administrative costs and a delay in project completion.
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:
- End-to-end customer management paved the way to open new revenue sources and increased customer retention.
- This intelligent ERP business network helped them to connect with other manufacturers and traders, whereby supplementing their own offers, a full solution to a problem was provided in return.
- Unified business platforms and consistent data enabled them to orchestrate one-stop shopping across several acquired product lines.
Overall, Company B’s Intelligent ERP system [RISE with SAP Package] provides meaningful value by becoming the go-to partner for home tasks like construction or remodelling.
Top Value Drivers
The major value drivers in the building products industry post successful deployment of SAP S/4HANA are:
- Increase in competitive advantage and customer satisfaction
- 10%–20% increase in service revenue per contract on an annual basis
- 10%–30% increase in service margin
(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:
- Increase customer satisfaction and revenue potential by providing services in addition to traditional products.
- Make yourself the go-to person for home projects like construction or remodelling.
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!
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