How SAP Digital Manufacturing Cloud Benefits Manufacturers

Guest Post | 15-02-2023 | Chetan Mistry

SAP Digital Manufacturing Cloud Benefits

Introduction - What’s new in SAP Digital Manufacturing Cloud?

Globally, the manufacturing sector is passing through a transition period. It is a paradigm shift from legacy processes to digital operations in which real-time information sharing and data access play a pivotal role. Manufacturers tend to connect the production equipment to robust enterprise systems to leverage the data for performance monitoring and improving traceability. Here, SAP Digital Manufacturing Cloud (SAP DMC) comes into play.

SAP DMC enables manufacturers to achieve more flexibility and visibility when exploring new business models. SAP Digital Manufacturing Cloud can also facilitate them to optimize the overall performance in line with ever-changing needs. A Manufacturing Execution System (MES) can execute processes and analyze scenarios effectively with the help of an SAP Digital Manufacturing Cloud solution.

Simply put, SAP DMC is the next-gen manufacturing solution that promotes a resource-efficient Industry 4.0 approach. Let’s discuss the scope and benefits of SAP DMC in this blog.

But, before moving ahead, here are some interesting facts related to the manufacturing sector in Canada.

Canada recorded manufacturing sales of USD 72.3 billion in November 2022
Industrial capacity use stood at 82.6% in the third quarter of 2022
Manufacturing production increased by 1.48% in November 2022 as compared to the previous year
Mining production in Canada stood at 4.62% in the same period.

Here is a graph showing the manufacturing production in Canada for the year 2022.

Most manufacturers are aware of the benefits of SAP Business One Canada. Therefore, we will discuss the key benefits of SAP DMC (Digital Manufacturing Cloud) in this blog.

Key Benefits of Using SAP ERP Software in Manufacturing

SAP for manufacturing industry is designed to benefit the sector in multiple ways. Some of these benefits include cloud deployment, high visibility across the top and shop floors, and KPI measurements. SAP ERP for manufacturing also enables you to get a detailed report on production execution.

Here are the key benefits of SAP Digital Manufacturing Cloud for the industry-

Performance Enhancement

SAP DCM makes it possible for key stakeholders to analyze both global and plant-level performance. Its intuitive, robust, and preconfigured analytics improves decision-making process and contributes in enhancing performance.

Improved Visibility

Manufacturers can acquire data from different MOM (Manufacturing Operations Management) and automation systems by uniting various solutions. SAP DCM also provides users with standard-based interfaces thereby improving visibility.

Increased Productivity

This is one of the biggest benefits of SAP for manufacturing industry. Manufacturers can keep their MOM systems running seamlessly and reduce downtime significantly with the help of SAP manufacturing ERP. It plays a vital role in increasing productivity.

Consistency in Insights

Faster and consistent insights is a key characteristic of SAP Digital Manufacturing Cloud. You can easily improve business processes with the help of root-cause analysis thanks to ML capabilities and advanced algorithms of SAP DMC.

High Adaptation

Manufacturers can easily meet market-of-one demand and improve customer satisfaction while maintaining high productivity with the help of SAP ERP for manufacturing. SAP DCM provides users with high adaptation to individual requirements.

More Efficiency

SAP DCM can ensure that your MOM systems run smoothly. The SAP ERP can optimize the use of manufacturing resources, minimize downtime, and improve the quality of final products. In a way, the manufacturing industry can increase efficiency.

Understanding the Different Modules in the SAP ERP System

In this challenging business scenario, manufacturers have to cope with rising inflation, increasing operational costs, stricter regulations, and environment-related issues. What's more, customers also expect more options and quicker delivery than before. All these challenges lead the manufacturing industry toward innovative approaches.

Most manufacturers tend to invest in emerging technologies including IoT, AI, ML, and data analytics to improve the value chain and maintain the supply chain. Advancing technology enables them to reduce inefficiencies and get more focus of their employees on productive tasks.

Here, cloud-powered MES (Manufacturing Execution System) lends a helping hand and facilitates manufacturers to leverage technological advancements. Cloud MES makes it possible to analyze the corporate data quickly and get actionable insights for every activity. Whether the user is on the plant or at the remote location, they can easily get the necessary information in real-time thanks to cloud MES.

SAP Digital Manufacturing Cloud (DMC) is a top example of a cloud MES. It not only gives manufacturers agility but also enables them to embrace opportunities while managing risks associated with different processes. SAP DMC can be easily connected to broader ERP systems. Different modules of sales, ordering, production, logistics, and customer experience can be used to analyze the data and identify any disruption in the value chain. SAP DMC can also provide users with insights related to ESG (Environment, Social, Governance) initiatives.

Extension Capabilities of SAP’s Manufacturing Systems

SAP DCM supports many extensions that can enhance its functionality. These extensions are segregated in three categories-

1. Business Process Extensions

Some processes require additional extensions with their logic. These extensions get the business context from SAP DMC. The extension can provide the result to DMC after processing the business logic.

2. ML-based Extensions

SAP DMC enables users to upload a trained machine learning (ML) model. These extensions can be activated on the shop floor without writing any line of code. What's more, SAP DMC also enables you to extract data to train a ML model.

3. User Experience Extensions

When it comes to the manufacturing industry, every worker has a special reason to interact with the system. The worker may also need some information or assistance from the system. These extensions help manufacturers improve their workers' experiences.

Cost-Benefit Analysis of Implementing an SAP ERP System

The cost-benefit analysis is the first point to consider when you consider implementing an SAP ERP system. This analysis is aimed at getting the rounded quantity. Based on cost-benefit analysis, the system can decide whether the transferring stock remains proper. The costs in the cost-benefit analysis consists of the Stock Transfer Costs that relate to the inventory balancing.

The benefit aspect follows the following formula-
Benefit = Savings from Reduced Stock Holding Costs + Savings per Prevented Loss+ Savings per Warehouse Space

The SAP ERP system decides the inventory balancing level using the specific formula.

Concluding Remarks

SAP Digital Manufacturing Cloud (DMC) has many benefits to offer to the modern manufacturing industry. Apart from increasing visibility, productivity, and efficiency, SAP DMC can play a vital role in transforming core processes. You can leverage the benefits of ERP by finding the best SAP Business One partner in Canada.



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Chetan Mistry

Chetan is Sr. Digital Marketing Expert at Silver Touch Technologies Canada with 9 years of experience in Digital Marketing. Chetan has engaged with various digital marketing strategies and strong writing skills on Technical contents like Digital Transformation, RPA, Cloud Solutions, Blockchain and many more.