performance and optimize spending with SAP integrations
Cutting operational costs in a
smart and healthy way should always be a priority of any business. With
internal and external costs constantly rising, being conscious of how and where
money is spent is necessary to survive.
With so much else going on,
looking for ways to cut these costs manually is not realistic. Businesses are
investing more heavily in SAP integrations to automate as many processes as
possible or at least make them more efficient.
Integrating SAP has tremendous
potential to reduce operational costs by improving from the supply chain to
marketing campaigns. Optimizing and reducing SAP licenses is another
opportunity for businesses to significantly reduce spending.
Here are some of the ways to
reduce costs in both time and money so your operation can be as efficient as
How SAP integration reduces operational costs
Many businesses waste time and
energy on manually updating duplicate system records that not only lack
efficiency but may be based
on outdated or irrelevant information. This affects every aspect of the
business, leading to redundant and time-consuming work that wastes time,
resources, and money.
SAP integration can
drastically reduce operational costs simply by optimizing the customer
experience. Connecting disjointed systems makes your sales cycle more
competitive and your sales team more efficient. This begins in the quote and
proposal phases of a customer relationship.
Having all the information
from your ERP system of record readily available for your sales team means they
can provide immediate and accurate quotes that will help win more customers. An
integrated pricing system, for instance, removes a large sales obstacle. Sales
teams spend too much time and risk losing customers by relying on manually-gathered and outdated pricing information. A cloud-based
SAP integration can provide them complete and modern data to react to customers
No matter how big or small
your marketing efforts are, the more information you can gather to support
them, the better. Integrating SAP back-office systems with those in production and sales gives you insight into customer
behaviors and patterns.
An integrated approach allows
you to create targeted campaigns and scale them across multiple channels. No
more time and energy wasted on generic marketing efforts with limited
automation capabilities. SAP integration gives you the ability to be anywhere
you need to be with the best data possible to deliver the best message.
SAP integration can
drastically reduce operational costs by gathering your supply chain and
production line data in one place for you to review and analyze. Seeing the big
picture and how processes are working together will help you more easily
identify where there is unnecessary spending.
This has huge potential for manufacturers. You can better manage inventory, optimize delivery, and streamline processes for ordering and fulfillment. This information allows you to predict future behaviors as well, which means you can automate certain purchases based on historical data. Integration will also help you analyze supplier and vendor behaviors to better understand their purchasing and selling habits.
SAP gives you reliable and
current data about all aspects of your operation, which allows you to make
better decisions, react more quickly, and reduce redundant or futile work. By
integrating SAP with quoting, production scheduling, and CRM systems, everyone
in your organization will have the data necessary to do their jobs at a faster
pace and with greater accuracy.
One of the biggest ways
companies can reduce operational costs is by strategically managing their SAP
licenses. SAP has more than 40 license types that range in price from $60 to
$7,000. Each type has various permissions and usages attached to it depending on
the needs of the user. New options include licenses based on the number of
transactions being created from integrated systems, which may make it more
economical to open front-end systems to many more users than previously made
It’s the responsibility of the
customer to manage their licenses and select the appropriate type for each
user. Lack of information and the chaos of running a business can lead to
mismanagement of license types, resulting in over purchasing, under purchasing,
duplicates, and other issues that can cost thousands of dollars.
Larger enterprises will have a
more difficult time staying on top of SAP licenses without a process in place.
Users change responsibilities and jobs quite frequently. If there is no regular
internal audit, businesses may be paying for licenses of users that are no
It’s not uncommon for users to
have various responsibilities across an organization, resulting in the need for
different kinds of access. If not managed carefully, users may be given two or
more licenses with different usernames to give them this access when they only
need one. Identifying these duplicates and removing them will allow you to
reassign licenses to others.
A significant amount of the cost associated with SAP licensing comes from support and maintenance, about 20% in fact. There are many ways to reduce this spending. First, certain users and licenses may not need the support and maintenance the way others do. Consult your SAP agreement to see whether you’re eligible to eliminate this cost on some of your licenses.
Engines are the packages and
add-ons that customers can add to their SAP system depending on need and
functionality. Each engine measures licensing needs differently. It could be
based on the total number of records in that application, its overall
consumption, or something else altogether. Staying on top of how each
application measures licensing will help you optimize licensing needs and
reduce extra spending.
Optimize your SAP integration experience
SAP integration can improve
your business performance in so many ways. Don’t let its potential to reduce
operational costs go unnoticed.
enosix SAP integration
seamlessly connects SAP ERP or SAP S4/HANA to your front-end systems. The
reporting, streamlining, and consolidating benefits that we discussed earlier
will be magnified even further by bringing these features into the system that
your entire team uses.
Check out our case studies to learn how other businesses and manufacturers are creating better customer experiences and accelerating operations with enosix. Then contact us to schedule a demo to learn how this integration can work for you.