In an increasingly competitive global market, logistics costs can account for up to 50% of a product’s final price.
Reducing these costs is essential not only to increase profitability but also to maintain a competitive edge.
Logistics encompasses transportation, warehousing, inventory management, customs, and reverse logistics, all of which require advanced tools to monitor and optimize each component.
In this context, Origen Tech stands out as a strategic partner, offering SAP solutions through the SOLaaS (Solution as a Service) model. This approach enables organizations to adopt and maximize the benefits of SAP S/4HANA Cloud in a straightforward and accessible way.
How Does SAP S/4HANA Cloud Help Reduce Logistics Costs?
SAP S/4HANA Cloud is designed to transform how businesses manage their supply chains.
With this platform, companies can gain real-time visibility into logistics operations, leveraging artificial intelligence and advanced analytics to anticipate issues, optimize processes, and reduce costs in key areas:
1. Transportation: Transportation often represents the largest portion of logistics costs due to factors like fuel prices, tolls, and maintenance. SAP S/4HANA Cloud helps reduce these costs through:
- Route optimization, reducing distances traveled and fuel consumption.
- Integration with transportation management systems (TMS) for efficient planning.
- Quick adaptation to external cost fluctuations, such as those seen in Mexico in early 2024.
2. Warehousing and Inventory Management: Warehousing and inventory management represent another significant part of logistics costs. With advanced warehouse management solutions (WMS), SAP S/4HANA Cloud enables:
- Overall cost reduction through automation.
- Improved inventory turnover, reducing costs linked to obsolete products.
- Optimized warehouse space utilization.
3. Customs and International Operations: In a landscape where cross-border transactions are the norm, managing tariffs, taxes, and customs regulations becomes crucial. SAP S/4HANA Cloud simplifies:
- Detailed tracking of customs costs.
- Efficient planning of international operations.
4. Reverse Logistics: Handling returns, or reverse logistics, is a constant challenge for businesses. SAP S/4HANA Cloud helps optimize this process, minimizing losses and maximizing value recovery.
5. Real-Time Updates and Automation: One of SAP S/4HANA Cloud’s greatest advantages is its ability to provide real-time insights and automate key processes, reducing errors and enhancing operational efficiency.
What Does Origen Tech Offer with SOLaaS S/4HANA?
Origen Tech enhances the capabilities of SAP S/4HANA Cloud with its SOLaaS (Solution as a Service) model. This comprehensive approach includes:
- Pre-assessment of business needs.
- Tailored implementation aligned with client requirements.
- SAP licensing, cloud infrastructure, and continuous support.
SOLaaS provides a complete solution, enabling organizations to implement and manage SAP S/4HANA affordably, regardless of their current business state. This ensures a smooth transition to an optimized supply chain, with visible benefits from the start of the project.
Impact in Latin America and Beyond
Logistics optimization is particularly relevant in Latin America, where factors such as geographical variations, local regulations, and transportation costs present unique challenges.
With SAP S/4HANA Cloud and Origen Tech’s strategic support, companies can not only monitor costs but also make informed decisions that drive productivity and efficiency across all logistics operations.
The combination of advanced tools like SAP S/4HANA Cloud and Origen Tech’s SOLaaS model enables businesses to transform supply chains, optimize processes, and maximize profitability.
