Data Optimization for Efficient Supply Chain Operations with SNP Group

Of all process areas, supply chain may hold the greatest potential for digital transformation improvement, accounting for between 40-60% of total benefits. All industries can benefit from supply chain integration and optimization, and this includes the semiconductor industry which has captured the attention of both industrial buyers and investors.

The strategic significance of semiconductors in the modern digital age cannot be understated. The rise of artificial neural networks and deep learning in the AI space demands superior processing power. Semiconductors are at the foundation of cutting-edge electronics that drive significant technological advancements.

Semiconductor companies have grown in terms of market capitalization. However, they face many challenges, especially supply chain vulnerabilities. A single semiconductor requires contributions from thousands of companies worldwide to source raw materials and components. As these chips traverse international borders, covering thousands of miles through various production stages, the complexity of the supply chain becomes evident.

Certain key components and raw materials have highly concentrated sources of supply, creating choke points that could disrupt the entire industry. The risks within the supply chain make it significant for semiconductor companies to clean and consolidate their huge volume of data to improve their manufacturing, quality control, and supply chain operations. The following is an example used by Brian Reiff, CEO at Sure Coded, in a LinkedIn article on the subject of ERP, AI, and supply chains:

“Imagine a multinational electronics manufacturer. AI analyzes global supply chain data, including demand forecasts, transportation costs, and customs regulations. With this information, AI can recommend the most cost-effective transportation routes and suppliers, optimizing costs and ensuring that components arrive just in time for production. Furthermore, AI can manage inventory levels with precision, preventing overstock or stockout situations. This level of supply chain optimization not only reduces costs but also enhances flexibility, making manufacturers more responsive to market fluctuations.”

SAP developed innovative solutions that leverage the Internet of Things (IoT), manufacturing solutions, and AI technologies to address the pain points of the semiconductor industry. SAP S/4HANA facilitates real-time operations monitoring, automated reporting, quality inspection, preventive maintenance, cognitive worker guidance, and predictive analytics. This level of insight and intelligence is invaluable in a complex industry whose products are mission-critical for driving innovations in nearly every sector. The move to a clean digital core in SAP S/4HANA with a cloud-based infrastructure provides enhanced semiconductor security, compliance, data privacy, and risk posture.

The full benefits of AI or advanced SAP systems can be realized only when a company has access to relevant, clean, and accurate data. Over 3,000 clients of SNP Group benefitted by reducing the time, risk, and cost of their SAP transformation initiatives while addressing the fundamental data issues.

SNP Group provides effective solutions to the global industrial electronics sector. Its team of SAP experts help companies to implement suitable SAP solutions in a customized way which provide end-to-end coverage to handle sourcing, manufacturing, quality management, and distribution complexities. SNP Group can solve data challenges quickly and securely so that companies can maximize the value of their SAP and AI investments.