IBM, a global leader in technology, has announced a strategic collaboration with SAP, a leading enterprise software company, to develop advanced solutions using generative AI. This initiative aims to enhance supply chain and finance operations, sales, and services in the consumer packaged goods (CPG) and retail industries.

Integrating AI to Transform Business Operations

The collaboration builds on the expertise of both IBM and SAP, with a focus on embedding IBM Watsonx, an enterprise-ready AI and data platform, into SAP solutions. The goal is to create generative and traditional AI solutions tailored to address the complexities of direct store delivery business processes and product portfolio management. IBM Consulting and SAP are currently working with CPG clients globally to develop secured and scalable AI solutions that can integrate seamlessly with the SAP Direct Distribution solution.

Enhancing Transportation, Assortments, and Order Settlement

The proposed solutions aim to enhance transportation planning and execution by incorporating external data such as weather and traffic into the SAP Direct Distribution solution. The application of AI is expected to identify optimal store delivery routes, reducing costs and carbon footprints. Additionally, IBM plans to utilize AI and generative AI to optimize store-level assortments based on market dynamics and sales patterns. The objective is to maximize sales and minimize waste through specific product recommendations and preliminary planning. IBM is also working with SAP to automate order settlement in direct store delivery, using automation and intelligent workflows to improve operational efficiencies and increase settlement accuracy.

Comments from IBM and SAP Leaders

Luq Niazi, Global Managing Partner, Industries and Global Consumer Industry, IBM Consulting, emphasized the need for advanced insights in the consumer industry to improve operations and meet customer expectations. “With SAP, we are looking to build on the long-standing work of incorporating AI into SAP solutions that can help enterprise clients achieve further business value,” said Niazi.

EJ Kenney, Senior Vice President Consumer Products Industry and Life Sciences Business Unit at SAP, echoed this sentiment. He highlighted the significance of leveraging AI to transform operations and improve bottom lines in the consumer goods industry, especially in managing direct store delivery.

IBM Consulting’s AI Expertise and Ecosystem

IBM Consulting boasts over 21,000 data and AI professionals, ready to accelerate business transformations using enterprise-grade AI from technology partners like SAP and IBM. Embracing a collaborative and open ecosystem approach, IBM Consulting works with a diverse AI partner ecosystem, offering multiple models on multiple clouds. This flexibility ensures that clients can choose the best models and architecture for their specific needs.

A Step Towards the Future of Business Transformation

The collaboration between IBM and SAP represents a significant step towards harnessing the power of AI in business transformation. With deep industry expertise and a commitment to innovation, IBM Consulting is poised to modernize and secure complex systems, helping clients navigate the rapidly evolving business landscape. The initiative sets a precedent for future collaborations in the realm of AI-driven business solutions.

  EJ Kenney, IBM, IBM Watsonx, Luq Niazi, SAP