In our previous blog we discussed Sustainability Control Tower (SCT) and Sustainability Footprint Management (SFM). These two products, developed by SAP, can be enabled by Deloitte to support companies in their journey towards sustainable procurement. In addition to these products, SAP is also integrating sustainability into core procurement processes such as sourcing and operational procurement within both SAP S/4HANA and SAP Ariba. Let’s take a closer look at three of these functionalities.
Create optimal orders for shipment app
Efficiency in logistics is not just about getting goods from point A to point B, it’s about doing so in the most cost-effective and environmentally sustainable way possible. SAP’s Create Optimal Orders for Shipment application is a powerful tool that helps businesses to achieve that. At its core, this application empowers businesses to make informed decisions when creating purchase orders. By considering the full-truck capacity for each supplier, companies can strategically plan their orders to ensure maximum utilization of available space.
The benefits of leveraging this application extend beyond just economic considerations. By optimizing quantities to enable full-truck deliveries, businesses can reduce the number of trips required to transport goods. This, in turn, leads to a reduction in carbon emissions and other pollutants, contributing to a greener and more sustainable supply chain.
Using SAP’s Create Optimal Orders for Shipment application is straightforward. Businesses input relevant data such as supplier information, product quantities, and delivery schedules. The application then utilizes sophisticated algorithms to analyze this data and generate optimal purchase orders that maintain full-truck capacity for each supplier. While creating the purchase order manually, the information about the truck capacity is updated in real-time, allowing the user to consider this when completing the order.
In conclusion, SAP’s Create Optimal Orders for Shipment application is a valuable tool for businesses looking to optimize their logistics operations, reduce costs, and minimize environmental impact. The functionality is currently exclusively available for SAP on-premise. By embracing this new application, companies can not only reduce their costs but also contribute to building a more sustainable future for all.
CO2 footprint in operational procurement apps
To help organizations take sustainability into account in the procurement process, SAP has added the CO2 footprint of products into a number of Fiori apps. The data for this is pulled from SFM so to use this functionality a SFM license is required and the data has to be maintained.
The CO2 footprint was first added to the purchase requisition at item and header level. This helps buyers to consider the environmental impact of a sourcing decision and enables them to compare different sources of supply in terms of their CO2 footprint. With the inclusion in the purchase requisition, it is also possible for PR approvers to take the environmental impact into consideration when approving a PR.
With the 2402 release of S/4HANA Public Cloud the CO2 footprint is also included in the purchase order so there is visibility throughout the entire procurement process.
Ariba Supplier Risk
Sustainability is also incorporated in supplier risk and sourcing processes with Ariba. With Ariba Supplier Risk the environmental and social risk is included as a risk factor. This risk can be determined based on questionnaires, but also based on information from external data providers. There is an integration available with Ecovadis which provides access to their supplier score cards embedded in Ariba. This gives an instant overview of the supplier performance with respect to environment, labor & human rights, ethics and sustainable procurement. Supplier certifications can also be registered in SAP Ariba Supplier Risk to make sure suppliers meet the required standards.
Enhancing Sustainable Procurement with SAP: How Deloitte Can Support Your Journey
This blog highlighted three features of SAP that support companies in making sustainable choices in their procurement processes. Deloitte is committed to helping companies progress on their journey toward enabling sustainability. Are you interested in how Deloitte can assist your company by leveraging SAP products? Please connect with us, and we would be happy to discuss the possibilities.
