SAP & AWS: Behind the AI Procurement Revolution
Organisations are increasingly embracing agile, cloud-based platforms to revolutionise their core business processes.
As these shifts gain momentum, procurement and supply chain operations are taking centre stage as areas ripe for innovation, pivotal to maintaining competitive edges in today’s interconnected, digital economy.
A new partnership between SAP, the enterprise software leader and Amazon Web Services (AWS), the prominent cloud provider, is steering this transformation. Together, they’re using generative AI and cloud-based technology to streamline enterprise resource planning (ERP) systems, fundamentally altering how businesses approach procurement and logistics.
Simplifying ERP deployment with cloud technology
Traditionally, ERP systems required hefty investments in infrastructure, licensing and maintenance, often creating barriers to entry.
However, cloud-based platforms like SAP’s GROW with SAP, now hosted exclusively by AWS, are dismantling these barriers. The platform operates as a software-as-a-service (SaaS) model, enabling organisations to access ERP capabilities without the need for costly on-premises setups.
With this collaboration, businesses can implement ERP solutions in months rather than years. Through AWS Marketplace, they can also consolidate billing processes and leverage existing AWS credits to simplify payments.
Such advancements are a game-changer for procurement and supply chain operations.
Organisations gain real-time visibility into inventory levels, demand forecasts, and vendor management, creating a more resilient and responsive supply chain. Speed and precision, both essential in procurement, are significantly enhanced through these streamlined processes.
“For more than 16 years, we’ve worked to empower thousands of customers to transform their businesses through seamless integration of SAP solutions with AWS,” says Ruba Borno, Vice President of Specialists and Partners at AWS.
AI revolutionises procurement and logistics
A key aspect of the partnership lies in its integration of AI technologies to elevate procurement and logistics.
Amazon Bedrock, AWS’s AI service, is now embedded within SAP’s ecosystem, offering businesses access to sophisticated AI models developed by leaders such as Anthropic and Stability AI.
SAP’s proprietary AI assistant, Joule, further enhances the platform’s functionality. Embedded across SAP’s business applications, Joule enables organisations to optimise procurement by automating repetitive tasks, improving logistics operations and predicting potential supply chain disruptions.
The AI capabilities provide actionable insights by processing vast amounts of data from various sources, empowering companies to make informed, strategic decisions.
As Steve Niesman, Executive Vice President at NTT DATA Business Solutions, explains: “The combination of SAP’s proven cloud ERP solutions, the scalability of AWS and cutting-edge generative AI capabilities empowers customers with significant productivity gains.”
Prioritising sustainability in procurement
Beyond operational improvements, the partnership emphasises sustainability. By hosting ERP systems in the cloud, organisations eliminate the need for energy-intensive on-site data centres, significantly reducing their carbon footprints.
The platform also employs AWS’s energy-efficient Nitro System and Graviton processors, which use 60% less energy than traditional alternatives. This commitment aligns with growing demands for environmentally responsible business practices.
“Our collaboration with AWS will provide customers of all sizes a simplified path to deploy cloud ERP with powerful automation and insights via Joule embedded across our business applications,” says Muhammad Alam, Member of the Executive Board at SAP Product Engineering.
For procurement and supply chain teams, sustainability measures extend beyond internal benefits. These efficiencies resonate with environmentally conscious stakeholders, enhancing brand reputation and long-term competitiveness.
The SAP and AWS collaboration represents a shift in how organisations approach supply chain and procurement challenges.
By blending AI-driven insights, simplified ERP deployment and sustainability-focused strategies, the partnership equips businesses with tools to thrive in an evolving digital landscape.
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