Schaeffler Adopts SAP Returnable Packaging Management

SAP Returnable Packaging Management enables the Schaeffler Group to enhance operational efficiency while prioritizing sustainability in logistics.

For over seven decades, the Schaeffler Group has been a prominent innovator in motion technology. Its contributions span critical advancements in electric mobility, energy-efficient drives, and renewable energy solutions. The company’s strategic approach emphasizes making operations intelligent and eco-friendly, reflecting its dedication to sustainability.

Christof Heurung, head of Strategic Digitalization at Schaeffler, highlights the importance of integrating cutting-edge digital technologies with sustainability initiatives. Heurung explains that Schaeffler aims to create lasting value for its operations and stakeholders by leveraging advancements such as artificial intelligence to elevate environmental responsibility.

Implementing SAP Returnable Packaging Management

Efficient supply chain management, particularly for returnable packaging, presents logistical challenges for manufacturers. Schaeffler’s operations require seamless coordination of reusable packaging like containers and pallets across suppliers, customers, and internal processes. Traditionally, fragmented systems have hindered transparency, resulting in operational inefficiencies and limited adaptability to packaging trends.

Schaeffler addresses these challenges through its collaboration with SAP, which spans over four decades. Gerhard Stoessel, IT program lead for SAP S/4HANA at Schaeffler, notes the partnership’s value in addressing industry-specific needs. Schaeffler and SAP have co-developed solutions, including the SAP Returnable Packaging Management system, to streamline packaging processes and improve sustainability.

The SAP Returnable Packaging Management solution facilitates circular logistics by monitoring and managing packaging material throughout its lifecycle. This comprehensive approach includes tracking supplier deliveries, intra-company movements, and returns, enabling greater efficiency.

Enhanced Capabilities and Broad Deployment

When Schaeffler initially implemented SAP Returnable Packaging Management, the system met only 30% of its container management needs. Through collaboration with SAP, additional functionalities were developed to address Schaeffler’s requirements comprehensively.

Sven Proschek, product owner of SAP S/4HANA Cloud for logistics at Schaeffler, underscores the importance of this collaboration, which enabled the integration of advanced industry capabilities and streamlined container management processes. Schaeffler is now deploying the system across its global network of over 80 manufacturing plants.

Key benefits include:

• Automation: AI-enabled reconciliation of container inventories reduces manual workloads.
• Transparency: Real-time data provides visibility into packaging material usage and availability.
• Efficiency: Improved processes minimize delivery disruptions and reduce overall costs.

Proschek notes that automation and enhanced collaboration between suppliers and customers are crucial outcomes of this initiative, helping Schaeffler stay agile in responding to new challenges.

Innovating for Cost-Effective Sustainability

As part of its continuous improvement efforts, Schaeffler is exploring new AI-driven features within SAP Returnable Packaging Management. For instance, machine learning algorithms are being tested for returnable packaging account matching. These tools aim to minimize manual reconciliation tasks, address logistical discrepancies, and improve inventory accuracy.

According to Proschek, such innovations empower planners to focus on strategic initiatives rather than routine tasks, contributing to more efficient and error-free operations.

Schaeffler’s proactive adoption of AI and cloud-based solutions exemplifies how manufacturers can align digital transformation with environmental goals. By enhancing packaging efficiency and reducing resource consumption, the company demonstrates the potential of SAP’s tools in driving sustainable practices. Through initiatives like SAP Returnable Packaging Management, Schaeffler showcases its commitment to innovation and sustainability, paving the way for industry-wide improvements in supply chain management.