Shipping diverse offerings to customers around the world requires a wide range of containers, all of which must be managed efficiently and transparently across internal, supplier and customer operations. However, to be successful, this approach requires the integration of numerous business systems and applications to securely access and exchange information, strategically streamline processes, and respond accurately to new challenges and opportunities.
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By Korbinian Koblitz, Business Development Manager, SAP
The Schaeffler Group has been responsible for groundbreaking inventions and developments in motion technology over the past 75 years. From bearing solutions and linear guide systems to repair and monitoring services, the manufacturer has innovated a range of essential technologies, products and services for electric mobility, CO₂-efficient drives, chassis solutions and renewable energy .
All this hard work and ingenuity has made Schaeffler a reliable partner in making the movement more efficient, intelligent and sustainable throughout the life cycle.
“We view sustainability and digitalization as key topics for our future success,” said Christof Heurung, Head of Strategic Digitalization at Schaeffler. “By combining the right digital technologies, such as AI innovations, with our pioneering spirit, we can take sustainability to the next level and create an even more sustainable future for Schaeffler, as well as for our customers and suppliers.
Partnership for greener digitalization of the supply chain
Shipping diverse offerings to customers around the world requires a wide range of containers, all of which must be managed efficiently and transparently across internal, supplier and customer operations. However, to be successful, this approach requires the integration of numerous business systems and applications to securely access and exchange information, strategically streamline processes, and respond accurately to new challenges and opportunities.
Unfortunately, most companies fail to achieve this advantage. Shipping containers are often managed with a fragmented application landscape. This configuration challenges the ability to quickly respond to packaging trends and new business requirements. It also limits the transparency needed to accurately reconcile customers’ returnable packaging accounts and outsource delivery services to the appropriate shared services center. Vendors using the same containers operate on a separate third-party system, leading to inconsistent operations.
“Having used SAP solutions for approximately 40 years now, over the past five years we have established a strategic partnership with SAP to develop and introduce new IT application systems while continuing our desire to run a more sustainable operation” , said Gerhard Stoessel. , IT program manager for SAP S/4HANA within the Schaeffler Group. “Such a relationship allows Schaeffler and SAP to identify unmet needs in the industry and launch numerous innovations. »
Overview of industry-wide circular logistics flows
One of these innovations is the SAP returnable packaging management solution. The industry-specific solution supports circular logistics flows for returnable and reusable packaging materials such as containers, boxes and pallets, from supplier and customer deliveries to intra-company movements and back to the company.
When Schaeffler first used SAP Returnable Packaging Management, it only covered 30% of container management needs. Sven Proschek, SAP S/4HANA Cloud product owner for logistics at Schaeffler, notes that the company’s close collaboration with SAP has been key to reversing this trend.
“Our partnership with SAP has allowed us to enrich the solution with the industry-relevant features that businesses like ours need, as well as near-seamless, end-to-end integration of the container management cycle.
Schaeffler is currently deploying the solution in more than 80 manufacturing plants across its global ecosystem. This approach streamlines the supply chain into a more efficient and robust network, resulting in fewer delivery failures and greater transparency in the company’s packaging material inventory.
Overall workload decreases even as the company ships products to more customers, thanks to AI capabilities such as container reconciliation automation and self-services for reordering packaging materials and stock checking.
“We can now respond quickly to new trends, support an end-to-end collaborative solution for suppliers and customers, and save time and money through automation,” reports Proschek. “Efficient container management also helps us avoid delivery failures due to shortages. »
Making sustainability more profitable
Schaeffler is also exploring new AI-driven capabilities for SAP Returnable Packaging Management that can help the company, as well as its peers, further bridge the gap between sustainability and profitability.
One idea gaining traction is machine learning-based returnable packaging count matching. It aims to reduce the manual effort required to analyze unmatched items and determine whether the underlying issue is a logistical exception or a discrepancy in matching attributes between incoming statements and current line items.
With this feature, Schaeffler can match logged accounts using machine learning models and automate the matching process by enabling line item matching. This streamlines the reconciliation process and improves efficiency, allowing packaging planners to focus on strategic tasks. Additionally, it minimizes errors and increases inventory accuracy of returnable packaging materials throughout the supply chain.
Expanding possibilities with a forward-looking vision
Schaeffler’s commitment to innovation and sustainability is evident in its adoption of AI-based solutions for sustainable packaging and supply chain management. By using technologies such as the item matching functionality available in SAP Returnable Packaging Management, Schaeffler not only streamlines its operations, but also reduces costs, minimizes errors and increases efficiency.
As Schaeffler continues to lead the way in sustainable packaging practices, it sets a compelling example for the industry, demonstrating the transformative potential of cloud innovations and AI in promoting sustainable business practices.
This story also appears on the SAP News Center.