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The SAP Conundrum

How Underutilization Sabotages Business Success

By
Martin Rowan
SAP Supply Chain Education

In today’s complex supply chains, SAP often serves as the operational backbone for many companies, promising efficiency, automation, and enhanced business performance. However, despite significant investments, most organizations only scratch the surface of SAP's full potential, using less than 35% of its capabilities. This underutilization triggers inefficiencies, missed opportunities, and widespread frustration, leaving companies questioning why their substantial SAP investments aren't yielding the expected business performance improvements.

The truth is, in most cases, the problem isn't the technology itself. The lack of comprehensive SAP education for key supply chain and operational business users, the individuals responsible for executing critical business processes that directly influence customer satisfaction and operational costs. Without the right knowledge, these users can't fully leverage SAP, leading to suboptimal performance, manual workarounds, and inefficient business operations.

The Hidden Costs of SAP Underutilization in Supply Chains

Underutilizing SAP affects companies in multiple ways, each of which impacts their bottom line:

  1. Revenue Stress: Inefficient processes result in lost sales, delayed deliveries, and stockouts, negatively affecting customer satisfaction and revenue.
  2. Increased Operational Costs: Manual processes require more resources, driving up operational costs for tasks that should be automated.
  3. Working Capital Inefficiencies: Companies often overstock inventory to account for uncertainties, unnecessarily tying up capital and cash that could be used elsewhere.

McKinsey highlights that many companies fall into the trap of focusing solely on technology when digitally transforming their supply chains, often neglecting the critical human element.

This is a long-standing challenge, one that underscores the importance of aligning people, processes, and SAP. Yet, achieving this alignment remains elusive for many companies. In today’s increasingly dynamic marketplace, the question looms: can companies afford to keep repeating the mistakes of the past?

The Real Culprit: Insufficient SAP Education for Business Users

While SAP is indeed complex, the true obstacle lies in inadequate education for business users. IT teams may have a deep understanding of SAP’s technical aspects, but supply chain and operational professionals are often left without the practical, hands-on education needed to link SAP functionalities with real-world processes. Lacking this knowledge, business users struggle with SAP's complexities, wasting countless hours navigating the system instead of optimizing processes. This inefficiency often leads to frustration, burnout, and high employee turnover as staff grapple with a system they aren't properly trained to use.

Additionally, many organizations adopt a "technology-first" approach, assuming that simply implementing advanced systems will solve their problems. This mindset overlooks the fact that without the right education, teams will continue to underutilize SAP, leading to low system confidence and further inefficiencies.

A New Approach to SAP Training: Reveal TV

Here’s where Reveal TV comes in, a platform specifically designed for supply chain business users. Reveal TV provides practical, business-centric training that directly addresses the challenges users face every day. By taking a human-centered approach, Reveal TV offers:

  1. Empowering Business Users: Reveal TV provides hands-on SAP supply chain and operations training that simplifies the complexity, helping users navigate the system with confidence and apply their learnings to their roles immediately.
  2. Rather than generic tutorials, Reveal TV connects SAP capabilities to real-world supply chain challenges, ensuring users can make tangible improvements in their work.
  3. AI-Powered Guidance: Reveal TV’s AI-driven platform helps users quickly find the specific training they need, reducing frustration and promoting continuous learning.
  4. Structured Learning Management: Along with being a standalone video-based platform, Reveal TV integrates into existing Learning Management Systems, enabling organizations to embed essential SAP supply chain training into onboarding processes and structured learning programs.
  5. Short bit-size videos: Viewable on all platforms (web, mobile, and tablet), these less than 10-minute videos provide the business user …

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Making SAP Work for You: A Subtle Yet Powerful Shift

To truly transform your supply chain and operational environments, the focus needs to shift from merely implementing technology to building the capabilities of your people. Through Reveal TV’s video-based training platform, business users can gain the skills necessary to navigate SAP’s complexities, ultimately optimizing processes, improving customer service, and reducing inventory levels. This holistic approach to SAP supply chain training fosters not only proficiency but also a mindset of continuous improvement that can drive sustainable success.

Elevating Supply Chains with People-centered SAP Training

The key to discovering SAP’s full potential doesn’t lie in more technology, it lies in empowering your people. The most successful digital transformations are those that prioritize the human element. By equipping business users with the training and support they need, organizations can tap into SAP’s vast capabilities, finally achieving the efficiency, automation, and business performance they envisioned when they first invested in the system.

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