SMA Solar Technology AG: Shaping the energy supply of the future with advanced SAP cloud solutions
Accelerating the transition to clean energy with SAP
For over 40 years, SMA Solar Technology AG has spearheaded the move to decentralized and renewable energies around the world. To power the next phase of solar innovations, SMA became the first company to adopt SAP Digital Manufacturing to support electronics manufacturing, unlocking greater efficiency and transparency.
| Industry | Region | Company Size |
| High Tech | Niestetal, Germany | ~4,000 employees |
Increase in supply chain workforce productivity
Improvement in overall supply chain planning costs
Lower inventory carrying costs and stock turnover rate
Head of IT Order to Cash, SMA Solar Technology AG
Paving the way to renewable energies
Around the world, people, companies, and institutions want to free themselves from dependence on fossil fuels. Instead, they are turning to self-generation and self-consumption of solar energy — an option that is becoming increasingly economical thanks to SMA’s innovative solar and battery inverter technologies.
To meet the growing demand for its solutions, SMA planned the new SMA GIGAWATT FACTORY to double its production capacity from 20 to 40 gigawatts per year. To do this, the company first set out to find a new innovative and scalable Manufacturing Execution System (MES) that could support the expansion. SMA realized that it could increase productivity and reduce logistics costs by equipping existing and new employees with world-class people management. By linking data across the business, the company was also able to optimize inventory management and increase process visibility.
Head of IT Order to Cash, SMA Solar Technology AG
Stepping into the cloud
First, SMA chose to replace its legacy ERP system with SAP S/4HANA Cloud Private Edition to provide the agile, reliable foundations for its transformation. The company worked with PwC to help it build a comprehensive and scalable global digital enterprise platform.
Next, SMA opted to become the first company to deploy SAP Digital Manufacturing, an industry cloud solution, to support electronics manufacturing lines. Working with a team of consulting experts from SAP Services and Support, the company adopted a flexible cloud roadmap. It took advantage of the team’s expertise to achieve a smooth data migration, prioritize and deploy process improvements, and maintain a focus on standardization.
The joint SMA and SAP Services and Support team integrated data, processes, and business systems across the company’s operations. By connecting SAP Digital Manufacturing to SAP S/4HANA Cloud Private Edition, it enabled dashboards that offer stakeholders real-time visibility of production processes. As part of the project, SMA also deployed SAP Analytics Cloud, which provides capabilities such as scenario simulations, automated planning, and specialized analytics to deliver trusted and unique insights to support decision-making.
Program Manager Digitalization, SMA Solar Technology AG
Preparing for a brighter future
As a result of the project, SMA gained a scalable, standardized, integrated, and future-oriented environment. Designed to accommodate huge volumes of data, the SAP solutions seamlessly meet the high-performance demands of mass production. Through SAP, SMA automated control of various manufacturing processes, such as optical and electrical testers, coating, and surface mounting technology (SMT) in printed circuit board assembly.
With automated resource allocation and high energy efficiency, the SAP solutions help SMA to minimize waste. By uniting data and processes within the platform, the company enabled earlier error detection in R&D, engineering, and production. In choosing a cloud-based platform, the company ensures it maintains best practices and standards around IT security, and frees its IT team to focus on delivering strategic initiatives over managing hardware.
Employees benefit from production operator dashboards that incorporate user-friendly interfaces to SAP Digital Manufacturing. The SAP solutions serve up tailored reports for employees that display relevant information, optimizing interactions between personnel, systems, and machines.
Head of IT Order to Cash, SMA Solar Technology AG
Delivering the global energy transition
SMA now has the digital foundations it needs to further drive the global energy transition and decarbonization of the planet with its energy solutions. By streamlining and linking processes with SAP, the company is reducing rework for employees and boosting its First Pass Yield (FPY). As a result, the company has increased supply chain workforce productivity by approximately 15%, reduced overall supply chain planning costs by approximately 10%, and cut inventory carrying costs and stock turnover rate by approximately 10%.
Looking to the future, SMA expects the SAP solutions to continue to deliver value, helping to streamline transportation planning and curb freight spending. The company plans to build on the SAP platform’s capabilities by introducing a collaborative partner portal and more connected devices in the yard. Ultimately, SMA is using the SAP platform to raise operational efficiency, empowering it to continue leading the energy revolution around the world.
Want to know more about SMA Solar Technology AG?
The future of energy supply with a modernized digital foundation (SAP Innovation Award Pitch Deck)