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NTT DATA and SAP Unveil Supply Chain Management Solution

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Aiming to respond to the multibillion-dollar losses due to poor transportation conditions in global supply chains, tech industry leaders NTT DATA and SAP Asia-Pacific and Japan (SAP APJ) have recently unveiled a co-innovation solution focused on tracking fragile or sensitive cargo shipments.

At the SAP Sapphire Tokyo conference held recently, Japanese multinational IT services company NTT DATA Corporation and SAP APJ announced a new packaged solution called Connected Product that is designed to strengthen supply chain insurance management. The Connected Product will allow both companies to provide comprehensive end-to-end solutions that are designed to improve efficiency and cut costs. (InsideSAP Asia often references articles from websites in other languages to bring you as much information as possible.)

NTT DATA Corporation and the German enterprise software giant are collaborating on a pilot with a Spanish logistics group and a German insurance company. This pilot has shown that the Connected Product solution, with its real-time location data, is capable of tracking the condition of hundreds of containers moved by 20 shippers between Europe and Asia.

SAP APJ President Paul Marriott noted that global disruptions are responsible for today’s value chains being more complicated and diverse than they have ever been, and he believes that this complexity will only grow over time. He said that the solution that was recently revealed by the companies increases the visibility of supply chains for logistics firms and insurers in the region. Marriott further added:

“…and delivers on NTT and SAP’s shared vision of helping companies around the globe achieve greater resiliency and agility to ensure they are prepared for future disruptions.”

Meanwhile, Norbert Rotter, Senior Vice President at NTT DATA Corporation, and also the Chief Executive Officer at NTT DATA Business Solutions, believes that it is more important than ever before for the global logistics industry to be flexible and highly adaptable. He stated:

“Long-term planning alone is no longer sufficient, and organizations must be able to react quickly, especially in times of uncertainty. Critical to enabling this type of agility is to have the right data in the right hands, in real-time.”

Launching a New Supply Chain Management Solution

The Connected Product offers connected and traceable supply chains for the logistics industry and is based on SAP Business Network for Logistics, Global Track, and Trace Option. Leveraging NTT DATA Corporation’s smart insurance policy management solution, the solution has been expanded to help various industries optimize their supply chain, monitor their assets to mitigate risks, and deliver real-time data with a focus on efficiency.

Furthermore, the solution is powered by SAP Business Technology Platform (SAP BTP) and aims to significantly change the way shipping and risk management is carried out by providing end-to-end monitoring of transportation status in real-time. The use of the SAP Business Network provides a unique solution for transportation insurance management, providing clear guidelines for stakeholders and able to create a more streamlined process for managing insurance and tracking every single shipment.

NTT DATA Corporation’s pilot project is currently underway and will continue to run through September 2022. After the conclusion of this pilot project, the company plans to expand the solution to more companies in the international insurance and logistics field.

Expanding NTT DATA and SAP’s Partnership

The latest solution was jointly developed by NTT DATA and SAP based on the strategic alliance between them that was first announced in 2020. This alliance has fostered a new era of deeply integrated business for both companies, including SAP’s investment in NTT DATA. The two continue to work together to provide customers with next-generation IT solutions, services, and digital transformation capabilities.

According to the two companies’ joint press release, the data collected by IoT sensors during the transportation of goods can ensure the conditions critical for the goods, such as temperature or shock-proofing requirements, remain stable. This information allows customers to quickly react to any incidents that may occur while the goods are in transit.

Also speaking at the recent SAP Sapphire event in Tokyo, SAP Japan President and Representative Director Hirofumi Suzuki stated that the conference focused on several important topics, one of which is the modernization of supply chain management. Commenting on the expanded partnership with NTT DATA Corporation, he remarked:

“I’m excited to see the innovations SAP is driving together with NTT around this area, and what more we can offer to help our customers.”

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