Industrial sustainability: greener manufacturing, factories, and products
Industrial manufacturers are facing the biggest challenge to date: profitable sustainability. Not only do you need to reduce emissions in your own operations and supply chains – but you also need to provide products and services that help your customers do the same.
Industry 4.0 and IIoT
Adoption of Industry 4.0 technologies, such as the Industrial Internet of Things (IIoT), AI, intelligent automation, and edge computing, continues to grow. Not only do these technologies power smart, highly efficient machinery and factories, they provide the visibility and transparency needed to reduce emissions and comply with new regulations.
Increasingly, industrial manufacturers are adopting service-based business models and retaining more responsibility for their equipment, improving sustainability in two ways. First, when experts service their own machinery, they can ensure it runs at peak efficiency, and second, they are motivated to make better products that last longer and are easier to recycle.
In a recent survey, nearly half of industrial manufacturers said product and service innovation was central to sustainability. Large generator and engine manufacturers, for example, are working to design engines that can use hydrogen-based fuel to meet demand for greener products. Often, these products are bundled with services to further reduce downstream emissions.
Circular supply chain
Circular supply chains – where manufacturers reuse, refurbish, remanufacture, and recycle parts and products – are key to a more sustainable future. They can be profitable too. Using the right technologies, manufacturers can simulate revenue across multiple customer lifecycles and forecast the future value of valuable materials, like aluminum and gold.
Featured industrial manufacturing solutions
SAP Sustainability Control Tower
Reach your sustainable business ambitions with holistic, enterprise-wide sustainability performance management. Set targets, monitor progress and gain actionable insights from dependable sustainability data.
SAP S/4HANA for product compliance
Automate compliance throughout the product lifecycle with software to manage regulatory and sustainability requirements, including registrations, classifications, labeling, and more.
SAP Product Footprint Management
Gain insights into the environmental impact of your products across their entire lifecycle to meet disclosure requirements, manage emissions, and optimize internal processes.
See how customers are succeeding with SAP
See how American Air Filter runs smooth end-to-end processes by standardizing 10 legacy systems into one cloud-based ERP.
Discover how Komax standardized processes after implementing a foundation for technology that helps it focus on future growth.
Explore how Vestas Wind Systems is meeting the world’s demand for clean energy by automating and simplifying procurement.
Learn how the factory-service arm of Carrier surpassed its efficiency targets and boosted the productivity of its field service teams.
What are the leading analysts saying about SAP?
Investing in service-based models
Explore initiatives and projects that leverage software technology to transform internal processes for industrial manufacturing and high tech companies.
Drive business impact through transformation
Manufacturers are changing what it means to be innovative. See how industry leaders are using technology today for the most impact across the enterprise.
Building value networks for a sustainable future
Learn how organizations are incorporating a sustainable philosophy into their business and technology transformations. SAP and Oxford Economics surveyed 1,935 senior executives, including 215 from the industrial manufacturing industry.
Transform to gain control despite disruption
Manufacturers are in the midst of immense digital disruption that means they need technology to enable continuous improvement, agility, and scalability.
Explore how we can help your industrial manufacturing business run better
42% of manufacturers report that embedding smart devices and/or intelligence into products is a significant focus of their product innovation plans.
Deploying SAP Product Lifecycle Management was a big step forward for us. Now, we can find all CAD files to share detailed design information across the company on one system.
Dr. Volker Frey, IT Strategy Expert, Endress+Hauser Level+Pressure
Deliver exceptional customer experiences at every touch point. Our industrial manufacturing sales and marketing software supports all customer-facing activities, including personalized B2B marketing, omnichannel commerce, quote to cash for configurable products, subscription-based billing, and more.
76% of industrial machinery and components organizations consider it important to instantaneously configure and sell products based on customer input, but only 36% are able to do so.
Source: SAP Performance Benchmarking
We can further improve our sales experience, gain greater efficiency, and break down silos between lines of business thanks to SAP Predictive Engineering Insights enabled by ANSYS. It helps us reduce our cost of sales.
Falko Lameter, CIO, KAESER KOMPRESSOREN SE
Increase transparency and resilience across your manufacturing supply chain with SAP solutions that can help you optimize planning, respond to change dynamically, support smart logistics, and service the segment of one. Reduce your carbon footprint and support a circular supply chain – and look to your suppliers to do the same.
66% of manufacturing companies say that a sustainable supply chain is a competitive differentiator.
Source: The Sustainable Supply Chain Paradox: Balancing the Bottom Line with the Green Line report by Oxford Economics, sponsored by SAP
Today, we’ve achieved 100% automatic load optimization and our carrier assignment is 95% automatic. SAP solutions provide us with the complete process visibility we need to reduce our freight spend and achieve such a high degree of automation.
Jackie Carpentier, Senior Manager, Business Systems – Distribution IT Applications, The Chamberlain Group Inc.
Industrial manufacturers are seeing increased process efficiency from using technology in manufacturing processes – 61% from IoT and 44% from 3D printing.
Source: Oxford Economics report sponsored by SAP
We help our customers thrive in the digital era with automation and IoT technology. Applications from SAP Manufacturing Suite enable our own company to take advantage of all that digital connectivity has to offer.
Dr.-Ing. Patrick-Benjamin Bök, Vice President of Global Digitalization and Corporate Factory IT and Technologies, Weidmüller Group
Leverage data collected from products and assets to support new service and outcome-based business models. Grow revenue, differentiate your offerings, and work toward sustainability goals – for you and your customers. Offer equipment-as-a-service and data-driven aftermarket services, take advantage of digital twin technology, optimize field service, and more.
58% of manufacturers forecast increased demand for services.
Source: SAP Performance Benchmarking
Until now, we primarily sold machines. Now, we are expanding our business toward services. With the help of intelligent cloud solutions and experts from SAP, we can offer our customers comprehensive digital services to optimize their production.
Werner Bothe, Head of Digitalization, INDEX-Werke GmbH & Co. KG
Get started with SAP’s cloud solutions for industrial manufacturing
SAP can help you start or enhance your digital transformation – no matter where you are in the journey. If you have yet to move to cloud ERP, you can get started with RISE with SAP for Industrial Manufacturing. If you already have cloud ERP – from SAP or any vendor – you can enhance your digital industrial manufacturing capabilities with our industry cloud solutions.
RISE with SAP
Achieve greater speed, agility, integration, and extensibility with RISE with SAP, a comprehensive solution made up of key products, such as SAP S/4HANA Cloud; industry next practices; business process intelligence; and services from SAP and our partners. RISE with SAP also includes solutions for:
Industry cloud solutions for industrial manufacturing
Built by SAP and our partners on an open platform, SAP’s industry cloud solutions address specific industry needs for the industrial manufacturing sector. Designed to work with your existing SAP and third-party systems, these specialized cloud applications can help you drive cost-effective transformation and sustainable growth.
Featured cloud solutions for industrial manufacturing
SAP Digital Manufacturing Cloud
Execute smart manufacturing processes, analyze production and business data in real time, and integrate all systems with a cloud-based MES based on Industry 4.0.
SAP Intelligent Asset Management
Improve the health and performance of your physical assets and equipment with the IoT, advanced and predictive analytics, machine learning, and mobile tools.
TeamViewer Frontline Augmented Reality
Empower your deskless workforce with augmented reality-based software, smart glasses, and mobile tools – and improve everything from assembly to field service.
Get digital transformation tips now
Join the growing number of manufacturing leaders that are taking steps to accelerate their digital transformation. Let SAP help you transform your business. By subscribing to our manufacturing newsletter, you’ll get five weekly updates with a curated collection of exclusive research reports, analyst insights, and real-word industry success stories to provide inspiration for your business.
After signing up, you can opt out of our communications at any time.
Explore your industrial manufacturing resource center
Learn how SAP can help industrial manufacturers become intelligent enterprises, adapt to industry trends, and deliver tailor-made customer experiences.
Explore current and upcoming innovations that can help industrial manufacturers gain new efficiencies and deliver a superior customer experience.
Discover new ways to enhance the design-to-operate process and drive innovation, while meeting your sustainability goals, in this Oxford Economics report.