SAP - December 2020

SAP SE

DIGITAL REPORT 2020

SAP Industry 4.Now: A Mission to Drive Industry 4.0 Adoption

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SAP Industry 4.Now: it’s NOW time for Data-Driven Business Processes

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“ The time is now,” says SAP Digital Supply Chain’s Mike Wade, on SAP’s mission to accelerate the adoption of Industry 4.0 and to help customers transform their manufacturing business.

M

ike Wade’s career in the supply chain industry began “rather by accident” he reflects.

“I started in air freight and logistics, so that’s

how I got into the big world of supply chain. Then I was a manager and the Regional General Manager for a third-party logistics business in the UK. I then changed direction slightly and moved into a UK headquartered global Retail organisation (The Body Shop International) as a distribution manager. This exposed me at that point to the combination of distribution management, supply chain planning, supply chain execution, and manufacturing. In 1998, I then made what felt like a radical change and moved into a supply chain technology business.”

Today, Wade is the Head of Digital Supply Chain in South Europe, Middle East & Africa at SAP Digital Supply Chain (DSC), where he still finds his varied experience in the sector very helpful when talking with customers “because I have empathy with them in operations, running their businesses”.

“When I look back, I can recall some of the experiences I had running those supply chain organisations w w w. s a p . c o m /p r o du c t s/s up p l y - c h ain - m a n a g e m e n t . h t m l

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“ It’s a great time to be in the world of supply chain” — Mike Wade, Head of Digital Supply Chain in South Europe, Middle East & Africa, SAP Digital Supply Chain (DSC)

profile changed massively seeing huge increases. “I’ve talked to multiple CEOs, and I’ve talked to some who have been given by their chairman or board open cheques to secure the supply source for their business. On the other hand, I talked to customers who were told to close their doors for three months during the peak of COVID – their busi-

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or supply chain operations,” he contin-

ness was closed. We see both ends

ues. “I’ve been in this role for three and

of the scale. And what this has really

a half years, but I have been with SAP

focused on is resilience. Resiliency in

nine. It’s a great time to be in the world

supply chain operations and supply

of supply chain. The focus is higher now

chain planning is critical.”

than it ever has been, and the good news,

With resiliency now more than ever

even in this world that’s accelerating and

being a critical requirement in supply

adopting new innovation, is that there

chain operations, Wade explains that

is still absolutely – and probably more

“a new lens has focused organisations

than ever – a need to focus on the supply

in a different way, making companies

chain. So it’s a good place to be.”

ask the questions: how agile are the

With the increased focus on the supply chain industry experienced over the last eight to nine months, Wade comments that “supply chains have been a focus like never before, we felt the impact of that in the early days of COVID.” When supply sources were put under pressure at the outset, Wade reflects on his discussions with others in the industry, whose demand

Mike Wade - Head of supply Chain EMEA South, Middle East and Africa at SAP CLICK TO WATCH

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07 systems supporting my supply chain?

has been so high, and we’ve seen the

How reliant are we on outsource manu-

pressure that this has put on omnichan-

facturing? I read recently a Bain report

nel fulfilment operations. So companies,

that shows how many companies are

in general, have had to reassess their

now considering onshoring versus

supply chain planning capabilities to

offshoring when compared to perhaps

manage and plan their way forward.”

two or three years ago, and the potential change is incredible.”

However, “trying to balance supply

INDUSTRY 4.0: INNOVATION AND TRANSFORMATION

and demand has never been more diffi-

Being a founding member of the ‘Industry

cult or challenging,” adds Wade, who has

4.0 Alliance’ established in Germany,

seen online retail accelerate their adop-

“SAP has been at the forefront of industry

tion of digital transformation by many

4.0 for some time,” comments Wade.

years. “They have pulled forward that

The alliance brings together like-minded

transformation because the demand

organisations to drive the agenda and

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common standards across industry 4.0.

placed to help our customers navigate

“I’m pleased to say that that Alliance is

from the idea to the realisation of value,

accelerating the nature of industry 4.0,

which can be either at the manufacturing

which essentially calls for technology to

level – so the shop floor level in an organi-

connect business processes and physi-

sation – or enterprise-wide, and the

cal assets,” adds Wade. “SAP is ideally

focus is to drive competitive advantage.”

“ It’s the combination of SAP, the company, the digital supply chain solutions and the people that make us different to our competitors and enables us to deliver real value for our customers” — Mike Wade, Head of Digital Supply Chain in South Europe, Middle East & Africa, SAP Digital Supply Chain (DSC)

Three of the top trends that Wade is currently seeing in the industry when it comes to industry 4.0 are centred around: business performance, personalised products and a combination of product excellence and intelligent products.

Breaking down each trend in more detail, Wade explains that, “if we look at business performance, the World Economic Forum launched an initiative called the Global Lighthouse Network (GLN). This community of manufactures shows leadership in

E X E C U T I V E P R O FILE :

Mike Wade Title: Head of Digital Supply Chain – South Europe, Middle East & Africa, SAP Digital Supply Chain (DSC) Mike serves as the General Manager of the Digital Supply Chain business across South Europe, Middle East & Africa region at SAP. Mike is responsible for the go-to-market of SAP strategy for the Digital Supply Chain & Industry 4.0 solution portfolio and how this delivers and drives value to its customers across the region through the SAP ecosystem. Mike supports and works directly with many of SAP’s customers across the region as well as leading a team of sales specialists who operate in the specific markets across this geography of 75 countries and six time zones. w w w. s a p . c o m /p r o du c t s/s up p l y - c h ain - m a n a g e m e n t . h t m l

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Mike Wade Explain industry 4.0 CLICK TO WATCH

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10 using Industry 4.0 technologies to transform factories, value chains and business models, for compelling financial and operational returns. Together with McKinsey, they have identified that unprecedented efficiencies are available when adopting industry 4.0 innovation at full scale; the numbers are big, and these companies are showing the way forward for the majority of businesses that are stuck in what is termed ‘pilot purgatory’.

“Number two, personalised products to meet customer demand. We all know of course – and some of us may have

actually tried – the example of Adidas where you can personalise your own shoes to order. However, the consumer then expects that order to be available immediately. They’ve taken the time to customise their order, to take advantage of personalised products and they want the order immediately. So now you see a link between manufacturing and fulfilment, and the agility that is required there in that link. The third area of focus is product excellence and intelligent products. So as consumers, we expect high quality, and this is putting pressure on creating shorter innovation cycles in design and manufacturing, and all of this, of course, has to be done and to drive the circular economy.”

With these trends in mind, when it comes to SAP’s capabilities to help organisations transition to Industry 4.0,

“ With SAP Industry 4.Now, we can help companies translate their vision into reality now” — Mike Wade, Head of Digital Supply Chain in South Europe, Middle East & Africa, SAP Digital Supply Chain (DSC) w w w. s a p . c o m /p r o du c t s/s up p l y - c h ain - m a n a g e m e n t . h t m l

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Wade deep dives into the four key com-

The second area that SAP helps its

ponents of the Industry 4.Now strategy.

customers in is intelligent assets. “This

Starting with intelligent products, Wade

is the ability to links the physical assets

explains that “this is where SAP provides

with its digital twin and to share a sin-

the bridge between engineering and

gle common view between the assets

manufacturing. This handoff has to be

operator, the manufacturer, and the

seamless and fully connected. It’s crucial

service providers that combined

to ensure that the manufactured product

with Machine learning, Predictive

meets – in full – the customer demands.

Algorithms and IoT technology can

Having a fully connected engineer-

help drive operational efficiency and

ing and manufacturing environment

improve maintenance activities.”

means that a company can, for exam-

Number three, intelligent factory – or

ple, accommodate late-stage changes

what we sometimes refer to as the smart

to an order.”

factory – is an agile and adaptable

D2O | 00 | Highlight Video Design 2 Operate CLICK TO WATCH

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S A P C U S T O M ERS HARN ESSI N G I T S I N D U ST RY 4. 0 SO LU T I O N S

De’Longhi Group Headquartered in Italy, De’Longhi is “a very well-known and famous householder appliance manufacturer,” comments Wade.

“De’Longhi has adopted industry 4.0 technologies from SAP in their manufacturing operation using IoT technologies and connecting all of their manufacturing assets.”

In providing its services to De’Longhi, Wade explains that as a result, De’Longhi has reduced its order to dispatch time. “This is a critical customer service metric and also a very important metric for most manufacturing vice-presidents,” comments Wade, who adds that SAP’s services have “also helped

De’Longhi implement new production lines, in rapid time.

I’ve talked about the ability of manufacturers to pivot during the times that we’re in. This is important because they may want to pivot into new areas as we move forward.”

Faurecia “Faurecia is one of the world’s largest automotive suppliers,” comments Wade, who details that the company is using SAP’s manufacturing solutions to connect all of its manufacturing lines and production machines to deliver innovation inside the operations.

This, in turn, delivers innovation to its automotive customers.

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“ When intelligence systems give people the data to make informed decisions, the human aspect is further enhanced” — Mike Wade, Head of Digital Supply Chain in South Europe, Middle East & Africa, SAP Digital Supply Chain (DSC)

D2C | 00 | Highlight Video for Design 2 Consume CLICK TO WATCH

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factory environment, which is also elastic, and if we think about what’s happened during these times of COVID, manufacturing has had to be flexible and elastic and pivot to produce new products to deal with multiple scenarios.

This type of factory is fully connected and uses real-time data to drive performance and link manufacturing and logistics together to ensure that the customer demands are met,” adds Wade.

The final area which SAP helps its customers to develop is the human aspect “Empowered people”. “People have often w w w. s a p . c o m /p r o du c t s/s up p l y - c h ain - m a n a g e m e n t . h t m l

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Mike Wade explains the process of SAP CLICK TO WATCH

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1972

Year founded

€27.63bn Revenue

101,450 Number of employees

asked: the adoption of industry 4.0, what

Summarising SAP’s role in customer

does it mean for me? What does it mean

journeys, Wade reflects that “here at

for my people?” Wade says. “The great

SAP, we can help companies translate

news about industry 4.0 is that as we

their vision into reality. It’s our job. We

deploy those technologies, we move the

can help move companies beyond

people to a more empowered environ-

what I referred to earlier as “pilot

ment by adopting AI, artificial intelligence,

purgatory” into full-scale adoption of

and connecting all the assets involved

Industry 4.0 – or as we say here in SAP

in manufacturing. The demand from

Industry 4.Now – because the time

the customer allows people to focus on

is NOW. We have an Industry 4.Now

real value. When intelligence systems

team, which is a worldwide team oper-

give people the data to make informed

ating across our regions where we can

decisions, the human aspect is further

bring them alongside customers to

enhanced,” says Wade.

translate vision into reality.”

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Whilst Wade states that he may be

connected digital supply chain. In fact,

slightly biased, he believes there are

the digital supply chain is, by definition,

many reasons why SAP is different

fully connected. It has to be, and the

from the competition, the first being

analysts rank us as number one in the

that “SAP Digital Supply Chain has

market. So this is all very good, but

the broadest process and solution

actually, I think, more importantly, it’s

coverage in the industry, from Design

the people that make us different. We

to Operate. We also cover the fully

are, of course, confident in the SAP

Launching Industry 4.Now Hub

by Thomas Saueressig 19 CLICK TO WATCH

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3:37

solution capability, but unless we can

the people that make us different

translate customer demands, customer

to our competitors and enables us to

needs and customer strategy into a

deliver real value for our customers.”

solution vision, then it’s meaningless.

We have deep subject matter experts that allow us to do this. So for me, it’s the combination of SAP the company, the digital supply chain solutions and w w w. s a p . c o m /p r o du c t s/s up p l y - c h ain - m a n a g e m e n t . h t m l

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