Why Ericsson Chose SAP to Enhance Supply Chain Efficiencies

Ericsson selected SAP Integrated Business Planning for Supply Chain in a bid to drive further efficiencies within its global supply chain network

As one of the world’s leading producers of software for the management of business processes, SAP is constantly developing solutions that facilitate effective data processing and information flow across organisations.

This extends to the supply chain space, where the tech giant is driving operational efficiencies throughout global networks. 

It’s little wonder, then, that Ericsson – itself a world leader in the field of 5G and communications technology and services – has selected SAP Integrated Business Planning (IBP) for Supply Chain in a bid to drive further efficiencies within its own network. 

“Agility, resilience and trust are critical for global leaders like Ericsson to achieve supply chain resilience and meet customers’ needs,” comments Dominik Metzger, Head of SAP Digital Supply Chain.

“Ericsson and SAP have had a strong collaboration over the years. Ericsson’s choice of SAP IBP allows us to support it in further digitalising its supply chain to cement its position as one of the world’s leading telecommunications companies.”

Dominik Metzger, Head of SAP Digital Supply Chain

Navigating complex planning requirements

Supporting networks with more than 2.5 billion subscribers in more than 180 countries, and with 40% of the world’s mobile traffic outside China carried over its networks, Ericsson has been seeking a technological foundation to provide a single source of truth for its entire planning and logistics process.

The cloud-based SAP IBP solution integrates business planning capabilities across various business functions, improves the ability of companies to anticipate supply chain risks and offers mitigating solutions. 

With SAP IBP, Ericsson will be able to navigate complex planning requirements while improving response times of sales, operations, resources and inventory planning, thus empowering the organisation to further focus on driving innovation and improving cost efficiencies.

The ability to predict and meet demand in an agile manner is crucial for companies to achieve several business objectives. 

Ericsson choosing SAP IBP is part of a long-running partnership, which has seen SAP support Ericsson’s vision of providing limitless connectivity for the world.

How else is SAP driving efficiencies? 

SAP is developing solutions to ease the day-to-day work of supply chain and procurement teams at a relentless pace. 

Last year, the technology powerhouse announced Joule, a natural-language, generative AI co-pilot embedded throughout SAP's cloud enterprise portfolio, including procurement and supply chain. 

The tool is aimed at quickly sorting through and contextualising data from multiple systems to surface smarter insights, with the overall intention of helping people get work done faster and driving better business outcomes in a secure, compliant way. 

Joule is able to identify underperforming regions; link to other data sets that reveal a supply chain issue; and automatically connect to the supply chain system to offer potential fixes for the manufacturer's review.

Elsewhere, SAP has been working with EDF Renewables to develop a solution that supports automated replenishment of inventory items based on aggregation of spent data and consumption data.

Supply Chain Digital spoke to Mike Wade, Head of Digital Supply Chain EMEA South at SAP, earlier this year about the company’s efforts to keep up with the pace of change in supply chain and procurement digital transformation.

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