Building Materials

Respond quickly to changes in supply and demand and create
a sustainable future with integrated building materials software.

Change in the construction materials sector

Organizations are turning to intelligent technology to replace supply chain disruptions
and manufacturing inefficiencies with resilience and sustainability.

The rapid growth of cities

The limited space for the new construction will necessitate increased density instead of sprawl, resulting in upward rather than outward growth of the city.

Issues in the building materials supply chain

Companies need complete visibility to rapidly adapt to changes despite broken supply chains, limited materials, and labor shortages.

Environmentally-friendly construction materials and practices

Construction regulations and customers now require more eco-friendly practices, more significant usage of recycled building materials, and sustainable production methods.

Increasing use of prefabricated building components

Due to advances in innovative manufacturing capabilities, there is an increasing demand for prefabricated building materials, allowing ready-made walls with windows to be built and delivered.

Different stakeholders have varying demands

For successful construction projects, having one source of truth among the planners, architects, owners, subcontractors, and building material suppliers is vital to navigating the complexity.

The digitization of construction operations

AI-driven automation and BIM facilitate collaborative working among different industry sectors.

SAP has created ground breaking solutions for
constructing structures from materials

Solutions tailored to the unique requirements of the building materials
industry can assist you in achieving cost-efficient transformation and ongoing growth.

SAP's solutions for Customer Relationship Management and Experiences

Gather valuable data along the value chain and join real-time business information and indicators to enhance customer loyalty, retention, and income.

SAP's Supply Chain Integrated Business Planning Solution

Regularly track and modify supply chain planning, from Sales and Operations Planning to inventory supply planning, to guarantee that business operations can continue during supply chain interruption.

SAP S/4 HANA Manufacturing

Encourage collaboration across the enterprise in manufacturing to generate precise production plans, decrease order preparation times, and guarantee on-time delivery.

Challenges Benefits Data Analytics & Reporting Strengthening Strategies Digital Transformation

➜  Poor data consistency: Data errors, duplication, and discrepancies can lead to poor decision-making and customer service issues.
➜  Inefficiencies in procurement and inventory: With an ERP system, companies in the Building Materials industry can track inventory levels, order new materials, and monitor supplier rates.
➜  Difficulty in tracking and managing projects: Lack of visibility into project status, labor utilization, billing, and cost information promptly.
➜  Lack of asset management tools and preventive maintenance schedules: Difficult to track equipment performance, plan repairs, and optimize utilization.
➜  Increased costs: Companies without an ERP system might have higher prices due to inefficiencies, such as time delays or wasted materials.
➜  Security risks: With a secure system, companies in the Building Materials industry are protected from data breaches and malicious attacks.

➜  Improved Supply Chain Visibility: SAP can help construction companies streamline their supply chain, helping them gain real-time visibility into the status of their materials, suppliers, and orders, allowing them to maximize efficiency and better manage their resources.
➜  Better Cost and Time Management: SAP can help streamline construction planning, budgeting, and accounting, providing users with insights to manage costs and project timelines better.
➜  Accurate Forecasting: SAP allows construction companies to accurately forecast their needs and materials, allowing them to adjust in-flight orders and accurately purchase in preparation for future projects.
➜  Automation of Core Business Processes: SAP can automate many of the core business processes in the construction industry, including material management, asset management, and other document-intensive operations.
➜  Improved Resource Usage: SAP can help construction materials companies manage their resources more effectively, allowing them to minimize waste and stress on their teams and allowing them to predict labor costs and materials used accurately.
Improved Customer Service: With SAP, construction materials companies will improve their customer service by providing greater accuracy regarding orders, shipment dates, and timeframes – helping them deliver the suitable materials, in the right place, at the right time.

SAP’s reporting and analytics tools are designed to help organizations realize the potential of their data assets. SAP solutions can provide critical insights for the Building Materials industry in the following areas:

Inventory Management - SAP provides solutions that enable complete visibility into construction material inventories. Real-time analytics and reporting help keep track of inventory levels, provide comprehensive insights into current materials, and monitor stock optimization.
Production Planning & Scheduling – With SAP’s comprehensive suite of production planning tools, organizations can optimize production schedules, track resource utilization, and evaluate material requirements.
Supply Chain Analysis – With SAP’s advanced reporting and analytics capabilities, organizations can gain insights into their supply chains and identify areas for improvement, such as reducing lead times, increasing efficiency, and reducing costs.
Quality Management – Organizations can use SAP solutions to track and monitor quality across all stages of production, from raw materials to finished products. This allows organizations to identify potential quality issues and take corrective action before they become significant problems.

➜  Utilizing SAP’s integrated suite of products, companies in the Building Materials industry can streamline and manage the entire order-to-cash process, from demand forecast to production planning, inventory, and distribution, thus increasing their supply chain visibility and agility.
➜  Using SAP Plant Maintenance, Companies in the Building Materials industry can improve the life cycle of assets and reduce downtime while providing visibility into maintenance costs.
➜  SAP ERP can provide critical insights into resource utilization, cost containment, productivity improvement, competitor pricing analysis, and total cost of ownership, enabling companies in the Building Materials industry to stay competitive.
➜  SAP Analytics Cloud can allow companies in the Building Materials industry to access real-time business intelligence and gain an advantage over their competition with its embedded, AI-driven capabilities.
➜  Additionally, SAP Analytics Cloud helps companies in the Building Materials industry access customer behavior data, such as sales, customer recommendations for product improvement, and segmentation recommendations.
➜  Companies in the Building Materials industry can also use the SAP Cloud Platform to develop innovative solutions to differentiate their products and services while providing a superior customer experience.

SAP can help companies in the Building Materials industry in their digital transformation by providing a suite of business solutions and tools. For example, SAP ERP can help manage the entire value chain, from procurement to sales and distribution, and provide a link between critical supply chain operations. SAP Analytics Cloud offers business intelligence, predictive analytics, and automated decision-making capabilities to optimize cost management, demand forecasting, and budgeting processes. Additionally, using SAP Ariba and SAP Concur products, companies can reduce operational costs, improve efficiency and accuracy, and curb fraud and corruption by automating invoice processes. Furthermore, SAP S/4HANA can help companies leverage real-time insights to optimize operations and increase business agility. SAP S/4HANA also provides an effective platform to manage inventory and facilitate automated and controlled order processing. These tools and solutions help the Building Materials industry streamline operations, gain greater visibility into their business, and ensure they stay ahead in a highly competitive market.