Name: Explaining how SAP Creates Value for the Mill Products Industry
Uploaded: 2024-12-2
Duration: 777 s
Description: Watch this video to explore key trends shaping the Mill Products industry and SAP's best-of-suite solutions for the Mill Products industry value chain.

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Explaining How SAP Creates Value for the Mill Products Industry

<div id="content"><p tabindex="0">This video will equip you with the knowledge and tools to transform products, services, and IT operations while staying competitive. We will cover key trends shaping the Mill Products industry and SAP's best-of-suite solutions for the Mill Products industry value chain.</p><div class="note"><div class="noteTitle"><span class="noteIcon"><img title="Note" src="/icons/note.svg"></span><span class="noteTitleText">Note</span></div><div class="noteBody"><p tabindex="0">SAP employees and official SAP Partners can download <a target="_blank" href="https://dam.sap.com/mac/u/a/t8vu8aS?rc=10&amp;doi=SAP1115384">the slide deck</a>.</p></div></div><div class="kalturaVideoLessonWrapper"><div aria-label="" class="kalturaVideoLessonContainer" data-testid="video" id="1_eaiq89t6"></div></div><div class="parentsection"><div class="section"><div tabindex="0"><h3>Summary</h3></div><ul style="list-style-type:disc"><li tabindex="0"><strong>Common Characteristics</strong>: Mill Products industries, such as metals, paper, and textiles are B2B, asset-intensive, and energy-consuming, with products often being intermediates that require further processing and quality tracking.</li><li tabindex="0"><strong>Industry Challenges</strong>: Companies face legacy ERP systems, manual processes, and the necessity to adapt to market changes, sustainability demands, and regulatory compliance to remain competitive.</li><li tabindex="0"><strong>SAP Solutions</strong>: SAP S/4HANA Cloud offers tailored solutions for Mill Products, enabling companies to reduce costs, optimize operations, achieve economies of scale, and support sustainability and innovation.</li><li tabindex="0"><strong>Integrated Capabilities</strong>: SAP facilitates complex supply chain management, enhances collaboration, and improves data visibility, allowing for better decision-making and operational efficiency across enterprises.</li></ul></div></div></div>

Key Trends and SAP Solutions

Introducing the Building Materials Industry

<div>Watch this video to explore key trends shaping the Mill Products industry and SAP's best-of-suite solutions for the Mill Products industry value chain.</div>

Explaining how SAP Creates Value for the Mill Products Industry

Welcome to this session. Mill products consist of industries such as cable and wire, fabricated in primary metals, paper and packaging, plastics, textiles, and all kinds of building materials, like glass tiles, flooring, roofing, wood products, cement, and concrete. You may wonder why these industries are grouped together, but they have a surprisingly high number of common characteristics. They are all B2B, acid -intensive, energy, energy, consuming with no access to their end consumers data, products are usually intermediates which get further processes. Hence, quality tracking and product genealgy do really matter. Often products are flat or rolled goods like metal sheets, paper, plastic foil, and so on. Also often, for full product definition, materials required to be described by additional characteristics like grade, surface coating, color, and dimensions. These aspects lead to common requirements towards business software solutions. It's clear that over the past few years, we've experienced a lot of change at breathtaking speed, and it has resulted in an increase in global uncertainty. As uncertainty grows, Mill Products companies need to leverage technology to safeguard their business and to meet their future ambitions. With a quick and easy implementation of SAP S4 Hanna Cloud that follows a respective standard approach, mid -sized companies can reduce their total cost of ownership, TCO, so that the company can continue to focus on increasing the efficiency of their business processes. Some mill products industries such as metals or paper have been around for centuries. However, that doesn't mean that change and evolution isn't happening behind the curtain. Our conversations are changing constantly and we're touching various points across the entire value chain. As you're listening, maybe this has the potential and resonates to you sounding familiar? Budgets for salaries are affecting your ability to compete in the market rates today. It's becoming difficult and consuming of time to attract the right talent, to retain this talent, and reduce overall turnover. Risks are present, and exposure to market risks could break businesses. Being a regional company, it's more difficult to have direct access to raw materials. You need to procure elsewhere and are reliant on your suppliers and networks to reduce your risks and create stability. Upstream and downstream supply chains make you more reliant on others. Collaboration is more at the forefront and partnership and networks are required to remain competitive and at an advantage. These relationships create resiliency and success, since resources are not owned directly. It budgets are thin. Resources are thin. Time is thinner. There is no time for a good time with a cyber attack. It might break the business. You need a trusted service provider, who is aware, predictive, and proactive to prevent these attacks from happening in the first place. Our customers, their mindsets are growing. They're more focused on sustainability and think of what influences your products. From the location of your plants, warehouses, suppliers, logistical distances, carbon emissions, and impacts to the environment. Making you think deeper looking towards your production processes, your energy outputs, your supplier relationships, and more, to be more socially ethical and aware. As mentioned earlier, Mill Products is an unprofessional. term covering sub-industries which run similar business processes. Here are some examples. Manufactures of brass and plastic fittings piping system components like Slavarm. Glass producers like Veridian. Battery recyclers and manufacturers like Ascend Elements. Building products companies like Allied Rongda Enterprise Group. These are companies who are experiencing similar challenges like Legacy ERP applications, limiting abilities to innovate and grow, manual processes and workarounds, reducing their business efficiencies, having the readiness to move to the next generation ERP. Given the fact that mill products spans across so many businesses, naturally, there are differences in how business run and which priorities they pursue. Especially those business with a more discrete manufacturing approach can benefit from a very high degree of FIT of SAP, Public Edition, such as fabricated metals companies which manufacture goods like wires, wires, nuts, bolts, fittings, doors, and all kinds of building materials, or in a nutshell, companies which produce individual discrete components and finished goods while having both local and international business flows. Furthermore, there is a great fit for companies who mix materials to create batches of standardized end products. Similar to Mill discrete products, these companies have a relatively simple production process, however, the scale of operations is often much larger. This is due to the need to gain economies of scale to achieve margin targets. Within the so-called sales play that is offered by SAP and that is linked on the last slide, you can access the list of sub-industries that are in focus for SAP S4Hanna Cloud, public edition, by reviewing the industry segment one-pager. While it is common for mill products to run industry -specific software in addition to an ERP system, e.g. for production planning and optimization, there are business like textile weaving and knitting mills, integrated metalworks, or fully integrated paper mills, who face tremendous complexity in their day-to-day. These businesses may require capabilities like advanced production planning and scheduling, which are offered only by SAPS for Hanna Cloud, Private Cloud Edition. There are so-called digital discovery assessments offered by SAP to find the best solution fit for an individual customer. As the Mill Products Industries evolve, we find in return the many trends and challenges that would cause a company to rethink their business model. There is a flowing ripple effect seen through many of these challenges. For example, the transition to greener products and the use of new raw materials to balance the demand for sustainable materials in hand with the cost and ability of implementing these new processes. Another example is recycling, managing waste, reducing carbon footprints, and using renewable resources. All require a business to rethink their business models. These greener finished goods could potentially come at higher raw material costs. These fluctuations in the cost of raw materials such as wood pulp that is harvested under new regulations and requirements can impact a company's profitability. In addition, supply chain disruptions or changes in global market conditions can amplify this issue. The industries face conflict of tariffs, new regulatory compliance requirements, but also complex and fragile supply chains. When companies implement technology, it fosters open communications. and platforms to create integrated systems for real-time data sharing and more collaborative supply chains. All stakeholders, including suppliers, manufacturers, and distributors face labor and skill shortages that affect manufacturing, warehousing, and transportation needs. These industries need to hire and retain skilled technicians, planners, and core workers for their shop floors to keep their operations running and growing. When a company faces a labor shortage, this leads to impact. that follow downstream. Many mill products companies are racing in competition due to playing in a commoditized environment with an already saturated market. Companies need to differentiate themselves through quality, innovation, and customer service to stay ahead. Customer preferences shift towards personalized solutions, although products are seen as commodities. Companies must innovate to meet changing consumer demands while managing costs and maintaining efficiency. As the mill products industries evolve, we find in return the ambitions that customers aspire and plan to be in their businesses. There are ambitions to reach new markets, new revenue streams, leading to higher margins and profits with the onboarding and support of new customers and products. Production, suppliers and products will shift from being energy -intensive to energy-aware. They are transitioning to a new model of green energy and decarbonization. Emobility will drive demand from consumer to producers. These demands will inspire manufacturers to shift their mindsets towards green processes and products, searching for new greener materials. As companies aspire to grow, there may be obstructions, roadblocks, and challenges along the journey. Companies have to protect their licenses to operate and follow upcoming, changing regulations, both locally and globally, especially when reaching new marketings outside of national boundaries. If a company under the Mill Products Industry Umbrella does not protect their license to operate, several negative consequences can arise. Companies could face penalties for noncompliance with industry standards, environmental regulations, or safety requirements. Consequences could lead to operational shutdowns. Where without a valid license, the company may be forced to cease operations until it resolves the compliance issues. Their reputations can be damaged with customers, suppliers, and partners. IT operations will be targeted with cyber attacks and will continue to create minefields as as companies grow. Companies will need support in maintaining predictive alerts with precaution and protection. Business operations will fluctuate in visibility as a company expands with new products, markets, and customers. Planning and operations and financial closures will rise in importance to remain agile and profitable as companies scale to new heights and ambitions. SAP for Mill Products provides industry-focused capabilities and processes across the business. In capabilities, this is a business. This includes business planning, manufacturing and asset operations, digital logistics, and customer relationships and experience. In processes, this includes make -to-order, make-to-stock, engineer to order, plan to fulfill, led to cash, just to name a few. These integrated capabilities and processes support key elements across the business-like financial insights for investors and stakeholders, and offers systematic business insights with Jewell, the AI Co-Pilot, to increase productivity and efficiency. Companies can leverage pre -configured industry best practices for cloud to standardize, be consistent, and accelerate the adoption lifecycle to newer models like sustainability in production and operations. As mill product companies move towards the future, the cloud solutions scale at the company's pace. They support resilient supply chains with enhanced visibility and demand-driven business planning with deep cybersecurity. With an integrated enterprise resource planning system, companies can have control over data across all levels of the organization, from the shop floor to the top floor. This integration allows for real -time visibility and streamlined communication between different business processes, facilitating better decision-making and optimized operations throughout the entire enterprise. Let's look at these business capabilities in more detail in the second part of this session.