Why SAP Customers Are Rethinking Supply Chains Amid Policy and Performance Pressures
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Key Takeaways
⇨ AI is central to transforming supply chain management by enhancing resilience, visibility, and long-term value, but its effective deployment requires alignment with core ERP systems like SAP S/4HANA.
⇨ Successful integration of AI tools, such as SAP Integrated Business Planning and SAP Global Trade Services, into existing workflows directly correlates with improvements in key performance indicators, including inventory reduction and trade compliance accuracy.
⇨ Leadership and workforce enablement are critical for the success of AI-driven initiatives in supply chains, as companies that prioritize upskilling and process redesign see faster value realization and improved operational outcomes.
As global uncertainty and digital disruption converge, SAP customers are rethinking their approach to supply chain management. From trade policy shifts to underwhelming technology ROIs, companies are recognizing the need to transform how they operate. James Weller, Vice President and Capability Lead at Baer Group, believes AI is now central to that transformation, helping organizations build resilience, visibility, and long-term value.
According to PwC’s 2025 Digital Trends in Operations Survey, 92% of operations leaders say their technology investments have failed to meet expectations. The most cited reasons are integration complexity (47%) and data quality issues (43%). Meanwhile, 91% of supply chain leaders report that recent U.S. trade policy changes are forcing major strategic adjustments.
These pressures are accelerating the adoption of AI across the enterprise. More than half of the respondents report that AI is being used in selected functions, including the management of supply chain disruptions. However, effective deployment depends on more than simply plugging in tools — it requires alignment with core ERP systems, such as SAP S/4HANA, and a focus on achieving measurable business outcomes.
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Rethinking Resilience and ROI with SAP and AI
Recent disruptions have revealed the fragility of traditional supply chain strategies. SAP customers are leveraging AI to boost agility, refine forecasting, and lower costs through automation and smarter planning. But their success depends on seamless integration with SAP technologies and a focus on cross-functional execution.
The Baer Group collaborates with SAP clients to implement solutions such as SAP Integrated Business Planning (IBP), SAP Business AI, and SAP Global Trade Services (GTS). These platforms enable organizations to enhance demand forecasting, optimize inventory planning, and ensure compliance with evolving global trade regulations. Companies that effectively integrate these tools into their operations report increased planning accuracy and reduced operational inefficiencies.
AI is also being utilized to enhance responsiveness to evolving geopolitical and regulatory environments. By combining scenario modeling with SAP GTS capabilities, organizations can simulate the impact of policy changes, adjust sourcing and logistics strategies, and better manage cross-border shipments. With improved visibility and faster access to real-time data, businesses can make more informed decisions that reduce delays and enhance customer satisfaction. Companies are also investing in workforce readiness to support digital transformation.
What This Means for SAPinsiders
AI is driving real supply chain results. SAPinsiders should prioritize initiatives that directly tie AI deployment to key performance indicators (KPIs), such as inventory reduction, lead time compression, and trade compliance accuracy. Solutions like SAP IBP and GTS are proving effective when tightly integrated into existing workflows. The Baer Group supports SAP customers in identifying high-impact use cases and aligning AI initiatives with measurable business outcomes. For IT leaders, this means rethinking AI not as a pilot experiment but as a tool for operational transformation.
SAP ecosystems are evolving into intelligent supply chain platforms. Vendors are rapidly embedding AI into core supply chain functions, from demand sensing to last-mile delivery. SAP offers a unified approach through its SAP Business Technology Platform (BTP), but other enterprise providers are also entering the space. Technology buyers should assess vendors based on their ability to integrate across SAP modules, scale globally, and provide transparency into data and performance. Alignment with ERP architecture is becoming a key differentiator.
Success with AI depends on leadership and talent. Many companies underestimate the people side of digital transformation. Baer Group clients who combine AI deployment with upskilling programs and process redesign often see faster time-to-value and more sustainable outcomes. Industry evidence suggests that workforce enablement is a critical success factor in achieving accurate planning and improving supply chain performance. SAPinsiders should plan for governance, organizational change, and capability development as early as they plan for new tools.
