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Sparks and metal splinters flying off industrial machinery components in a manufacturing plant using SAP software

Industrial Machinery and Components

Engage customers by delivering personalised, smart products and solutions at scale and as a service.

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. 

Image representing top of mind topics for industrial manufacturing, including sustainability, industry 4.0, product innovation and circular economy.
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. 

Servitisation

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.

Product innovation

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, labelling, 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 optimise internal processes.

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SAP at Hannover Messe 2022

Watch video highlights and customer interviews from Hannover Messe 2022.

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 organisations 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

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Design smart and innovative industrial machinery, components, and digital solutions. Our software offers robust functionality for collaborative product design, development, and configuration. Support individual order requirements, improve product safety and compliance, extend lifecycles, and more. 

  • Integrated product design and development
  • Real-time insights for risk detection and decision-making
  • Collaboration and change management 
  • Product safety and regulatory compliance 
  • Manufacturing PLM processes

42% of manufacturers report that embedding smart devices and/or intelligence into products is a significant focus of their product innovation plans.

Source: MPI Group

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

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Deliver exceptional customer experiences at every touch point. Our industrial manufacturing sales and marketing software supports all customer-facing activities, including personalised B2B marketing, omnichannel commerce, quote to cash for configurable products, subscription-based billing, and more. 

  • Targeted industrial B2B marketing 
  • Sales force automation and real-time insights
  • One e-commerce platform for all go-to-market models 
  • Dynamic configuration and pricing for complex solutions
  • High-volume subscription billing and revenue management

76% of industrial machinery and components organisations 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

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Increase transparency and resilience across your manufacturing supply chain with SAP solutions that can help you optimise planning, respond to change dynamically, and support smart logistics. Reduce your carbon footprint and support a circular supply chain – and look to your suppliers to do the same. 

  • Synchronised planning for demand, inventory, and operations
  • Streamlined transportation management and vehicle insights
  • Collaborative logistics and supplier networks 
  • Advanced warehouse automation 
  • Tools to reduce emissions and help ensure compliance 

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 optimisation 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.

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Take advantage of Industry 4.0 technologies, such as the IIoT, machine learning, and advanced analytics, to run smart, highly automated manufacturing processes. Produce individualised industrial equipment, machinery, and components – and attract and retain “digital” workers. 

  • Embedded Industry 4.0 technologies and intelligence
  • Continuous collaboration between engineering and manufacturing
  • Smart manufacturing integration, monitoring, and control
  • Plant and asset performance management
  • Environment, health, safety, and risk management 

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 Digitalisation and Corporate Factory IT and Technologies, Weidmüller Group

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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 machine rentals and data-driven aftermarket services, take advantage of digital twin technology, optimise field service, and more.

  • Service management with detailed financial analysis 
  • Digital twin technology for customer assets
  • Omnichannel customer service and support
  • Field service optimisation for first-time resolution
  • Service parts planning, sales, and execution

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 optimise their production.

Werner Bothe, Head of digitalisation, 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: 

  • Intelligent configure, price, and quote processes
  • Real-time, integrated supply chain planning
  • Integrated production execution, visibility, and analysis
  • Connected field service management

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 specialised cloud applications can help you drive cost-effective transformation and sustainable growth. 

  • Cloud-based industrial manufacturing solutions 
  • Built by SAP and our partners
  • Work with existing systems
  • Extend your current investments

Featured cloud solutions for industrial manufacturing

SAP Digital Manufacturing Cloud

Execute smart manufacturing processes, analyse 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

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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, an real-word industry success stories to provide inspiration for your business.

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