SAP & AWS: Powering AI Supply Chain Transformation
Organisations are rapidly transitioning to more agile, cloud-based solutions for managing core business functions.
With this shift, the focus has turned to enhancing supply chain and procurement operations, which are critical for maintaining competitiveness in today’s digital economy.
A new collaboration between enterprise software giant SAP and cloud leader Amazon Web Services (AWS) targets these priorities, leveraging generative AI and cloud technology to simplify the deployment of enterprise resource planning (ERP) systems.
Traditional ERP systems often required significant upfront investments in infrastructure, licences and maintenance.
In contrast, cloud-based ERP platforms now allow organisations to integrate essential business functions—such as finance, human resources, supply chain management and customer service—without the need for costly on-premises solutions.
The partnership between SAP and AWS marks a major step in enabling businesses to adopt these tools faster, more efficiently and with reduced financial and operational barriers.
Supply chain integration gets a cloud boost
At the core of this collaboration is the GROW with SAP platform, now offered through AWS. This marks AWS as the first cloud provider to host SAP’s streamlined ERP solution, positioning the partnership as a leader in driving supply chain innovation.
The GROW with SAP platform simplifies access to ERP software by operating as a software-as-a-service (SaaS) model.
Businesses can now deploy ERP systems in months rather than years while avoiding upfront costs for hardware or licences. Through AWS Marketplace, customers can also consolidate billing and leverage existing AWS credits to streamline payments.
This advancement is especially impactful for supply chain operations, where speed and accuracy are essential. Companies can use the platform to gain real-time visibility into inventory, demand forecasts and vendor management—key components of a resilient supply chain.
As Ruba Borno, VP of Specialists and Partners at AWS, explains: “For more than 16 years, we’ve worked to empower thousands of customers to transform their businesses through seamless integration of SAP solutions with AWS.”
AI enhances procurement and logistics
Beyond cost savings and deployment speed, the partnership focuses on enhancing supply chain and procurement through artificial intelligence.
AWS’s AI service, Amazon Bedrock, is now integrated with SAP’s technology, enabling businesses to harness advanced AI models. These models come from leading innovators such as Anthropic, Meta and Stability AI.
The integration also incorporates SAP’s AI assistant, Joule, which is embedded across its business applications. Joule enables companies to optimise procurement, automate logistics and predict supply chain disruptions.
By processing vast amounts of data, the combined platform delivers actionable insights that drive smarter decision-making.
As Steve Niesman, Executive Vice President at NTT DATA Business Solutions, notes: “The combination of SAP’s proven cloud ERP solutions, the scalability of AWS and cutting-edge generative AI capabilities empowers customers with significant productivity gains.”
Energy efficiency and sustainability
Sustainability is another key focus of the SAP-AWS collaboration.
The platform utilises AWS Nitro System and Graviton processors, which consume 60% less energy than traditional computing instances. These energy-efficient technologies align with global efforts to reduce the environmental impact of digital operations.
“Our collaboration with AWS will provide customers of all sizes a simplified path to deploy cloud ERP with powerful automation and insights via Joule embedded across our business applications," adds Muhammad Alam, Member of the Executive Board at SAP Product Engineering.
By hosting ERP systems in the cloud, organisations also eliminate the need for energy-intensive on-premises data centres. The shift not only supports operational efficiency but also contributes to long-term environmental goals, making it an attractive option for sustainability-conscious businesses.
The SAP and AWS partnership signals a new era in how organisations approach supply chain and procurement challenges. With faster deployment, enhanced AI capabilities and a focus on sustainability, the collaboration aims to unlock new opportunities for businesses across industries.
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