Global value chains are becoming increasingly complex due to rising geopolitical risk, trade growth, and volatility of material availability. Losses due to poor transportation conditions have become a multibillion-dollar problem due to extreme difficulty in identifying the cause of damage or when an incident occurred. These challenges offer a great opportunity to overhaul the overall value chain with a solution that can provide real-time information on transport operations – from changes in temperature and humidity to whether the goods have been tilted – to all parties involved, giving everyone the ability to quickly adapt to potential incidents and rapidly recover from them.
The Connected Product solution responds to this need by monitoring the location and environmental conditions of goods in transit. It is especially useful for tracking fragile goods, such as solar panels; bulk liquids, such as wine and olive oil; and sensitive cold chain shipments, such as cheese, pharmaceuticals, and even vaccines. The tracking provides greater visibility across the entire supply chain, and agility to activate immediate reactionary procedures, in case of damage or delays. This reduces friction when purchasing insurance and processing claims for shipments, and ensures timely delivery of goods. It also reduces waste and promotes sustainability.
Connected Product brings together the power of SAP® Business Network for Logistics[1] and the global track and trace option, extended with NTT DATA smart insurance policy management assets[2], to dramatically change the way people ship goods and manage associated risks. The solution also includes components built using SAP® Business Technology Platform[3]. By enabling end-to-end, real-time monitoring of the transportation conditions, the solution can monitor all variables that could affect a shipment, and automatically trigger and execute insurance policies if goods are not transported under certain pre-defined conditions. Utilising SAP Business Network for Logistics helps improve accountability for each stakeholder and makes transport insurance management easier. Plus, by digitising shipment and insurance documentation, the solution simplifies tracking and insurance processes across the supply chain, reducing waste and costs, and benefiting to the whole ecosystem – from the insurance company to the insurance reseller to the logistics companies.
“Global disruptions have caused today’s value chains to be more complex and diversified than ever before, and this complexity will only increase. What we’re announcing today improves supply chain visibility for logistics companies and insurers here in the APJ region, 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,” said Paul Marriott, President, SAP APJ.
“At the SAP Sapphire conference in Tokyo today, modernising supply chain management is one of the key themes that we’ll be discussing. 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,” said Hirofumi Suzuki, President and Representative Director, SAP Japan.
“Today, more than ever before, global logistics need to be resilient and adaptative. Long-term planning alone is no longer sufficient, and organisations 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,” said Norbert Rotter, SVP, NTT DATA Corporation, and CEO, NTT DATA Business Solutions.
Currently, NTT DATA and SAP Connected Product teams in Japan, Germany and Spain are collaborating on a pilot with a Spanish logistics group and a German insurance company, using Connected Product to track the condition of hundreds of containers moved by 20 shippers between Europe and Asia. The data gathered by IoT sensors helps to ensure that conditions critical for the goods – like temperature, luminosity, or shock-proofing requirements – are managed during the journey. That information gives customers the opportunity to quickly react to incidents. The pilot project will continue to run through September 2022, after which NTT DATA plans to incorporate the system into business operations, extending the solution to more international insurance and logistics companies.
For more information on Connected Product, please watch the video featuring Christian Klein, CEO and Member of the Executive Board at SAP SE, and Jun Sawada, CEO of NTT (at the time of filming).
[1] SAP Business Network for Logistics – global track and trace option, enables real-time insights into the availability of materials and products to reduce supply chain risks and optimise costs. It helps companies monitor critical business processes by comparing planned versus actual milestones. https://www.sap.com/products/logistics-business-network.html
[2] NTT DATA smart insurance policy management assets assist insurance companies in making decisions regarding payment of insurance claims and in calculating insurance claims.
[3] SAP Business Technology Platform (SAP BTP) brings together data and analytics, artificial intelligence, application development, automation, and integration in one, unified environment to enable innovations that natively integrate with SAP applications. https://www.sap.com/products/business-technology-platform.html
About NTT DATA
NTT DATA, part of the NTT Group, is a global innovative company providing business and IT services with its headquarters in Tokyo. The company helps its customers in their transformation processes via consultancy, industrial solutions, commercial process services, digital and IT modernisation and managed services. NTT DATA enables them—and society as a whole—to move confidently towards the digital future. The company proves its commitment to the long-term success of its customers, combining a global scope with local service to work with them in over 50 countries around the world. To learn more, please visit 
nttdata.com.
About SAP
SAP’s strategy is to help every business run as an intelligent, sustainable enterprise. As a market leader in enterprise application software, we help companies of all sizes and in all industries run at their best: SAP customers generate 87% of total global commerce. Our machine learning, Internet of Things (IoT), and advanced analytics technologies help turn customers’ businesses into intelligent enterprises. SAP helps give people and organisations deep business insight and fosters collaboration that helps them stay ahead of their competition. We simplify technology for companies so they can consume our software the way they want – without disruption. Our end-to-end suite of applications and services enables business and public customers across 25 industries globally to operate profitably, adapt continuously, and make a difference. With a global network of customers, partners, employees, and thought leaders, SAP helps the world run better and improve people’s lives. For more information, visit https://www.sap.com.
This document contains forward-looking statements, which are predictions, projections, or other statements about future events. These statements are based on current expectations, forecasts, and assumptions that are subject to risks and uncertainties that could cause actual results and outcomes to materially differ. Additional information regarding these risks and uncertainties may be found in our filings with the Securities and Exchange Commission, including but not limited to the risk factors section of SAP’s 2021 Annual Report on Form 20-F.
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