Empowering Engineering, Construction and Operations Industry for the Digital Supply Chain using RISE with SAP 

The Engineering, Construction and Operations industries are working to turn concepts into tangible realities in today’s changing environment, no matter whether you are bridging gaps, reaching new heights, or achieving net zero. Also, they always prioritize completing the client’s job safely, promptly, and within budget among these other goals. To manage projects, lower risks and maintain competitiveness in this situation, EC&O companies require an integrated platform that supports the entire construction lifecycle. So, to confidently build your business, rely on sophisticated and intelligent software.  

Thus, digital transformation is the only journey and you need a set of established strategic priorities to achieve all the goals. So, this article discusses industry-specific features for the engineering, construction and operations industries offered by RISE with SAP’s Business Transformation Service.  

Let us begin by defining strategic priorities and their benefits for the engineering, construction and operations industries! 

Digital Supply Chain  

The Engineering, Construction, and Operations organizations must accomplish one of their strategic targets, “Digital Supply Chain” by the end of the 2025 vision in order to undergo a digital transformation. 

Let’s look at a current example of how J&W Factories operated before and after their digital transformation to better grasp this strategic aim. 

Prior to transformation, an organization’s functionality is: 

  • The delivery of prefabricated bathroom units for critical path installation delays work on the construction site. 
  • The probable delivery date of materials as well as their manufacturing schedule are not known to the construction manager. 
  • Late delivery of materials affects the project’s interdependent tasks’ deadlines for completion.
  • Customers are not satisfied because the project is not completed on schedule and contract penalties are also due. 
  • Costs and the actual delivery date are impacted by material delivery delays. 

Prior to transformation, an organization’s functionality is: 

  • After installation of the smartphone app, regular updates allowed them for real-time tracking of the production of necessary resources. 
  • On-site subcontractors can check which materials are being worked on by scanning a QR code on a blueprint.  
  • Also, Identification of operational risk along with timely delivery was possible. 
  • The cloud provides operational data on the progress of materials in many locations. The delivery is timely.
  • There are no delays in the interrelated building jobs since the materials are delivered and fitted on schedule. 

To summarize, J&W Factories had a prolonged and labor-intensive expediting process with regular delays in all materials with fewer quality standards. Whereas, after the installation of intelligent software, they were able to view real-time analytics with automated expediting procedures. It also allowed them better management of the schedules for material deliveries and quality standards. 

Now you may be asking, “How can RISE with SAP helps us?”. Here are the primary business capabilities they offer to assist you in reaching your objectives: 

  • To accomplish the efficient design, planning, and construction that is competitive, modernize the supply chain. 
  • To ensure visibility, agility, and responsiveness, one plan is shared with all significant partners and resources. 
  • Establishing a new integrated supply chain of different stakeholders will modernize the design, construction and delivery process. 
  • Insights into future demand, inventory optimization and premanufacturing along with procurement. 
  • With the help of an automated and real-time expediting procedure, better, real-time visibility into delivery risks and improved control over material supply schedules and quality standards, it is possible to go from delivery delays and silos to on-time delivery. 

Top Value Drivers 

The major value drivers in the engineering, construction and operations companies post successful deployment of SAP S/4HANA are: 

  • Cost-savings in design and documentation of between 10% and 15% 
  • 45% improvement in procurement effectiveness 
  • 10%‒20% improvement in on-time delivery performance 
  • 2.5% reduction in macro-logistics expenses 
  • 2.5 days reduced personal reimbursement time for employees 
  • 56% increase in overall efficiency in procurement cost control 
  • 42% decrease in response times, allowing for quicker service provision 

(Note: Data was taken from SAP’s statistics) 

Conclusion 

To summarize, conclude making SAP S/4HANA your primary system will be a better choice for a more flexible, agile and effective organization as it also comes with regular partner updates. 

To know more about how SAP S/4HANA or about other solutions that can help enterprises in engineering, construction and operations companies, do get in touch with us! 

Leave a Comment

Your email address will not be published. Required fields are marked *