SKF partners with SAP to transition to cloud, enhancing operational efficiency and sustainability

SAP SE (NYSE: SAP), a global leader in business software solutions, has announced a significant partnership with SKF, a leading manufacturer of bearings and rotating equipment, to implement the RISE with SAP solution. This strategic move is aimed at future-proofing SKF’s global operations by simplifying its IT infrastructure and leveraging cutting-edge technologies such as artificial intelligence (AI) and machine learning (ML).

SKF’s decision to transition from a traditional on-premise IT setup to a cloud-based system represents a fundamental shift in its operational strategy. Pedro de Freitas, SKF’s Head of Global Digital Services, emphasized the alignment of this transition with SKF’s commitment to sustainability and efficiency. “Transitioning to the cloud demonstrates our commitment to operational efficiency and pushing the boundaries towards a sustainable future,” he stated.

The shift involves integrating existing SAP S/4HANA software into a more advanced cloud strategy, enabling SKF to enhance critical business areas including finance, parts supply, warehousing, supply chain, and manufacturing. This move is expected to streamline operations and support SKF’s progress towards achieving its sustainability goals.

SKF, based in Sweden, plays a pivotal role in reducing friction in industrial operations, which is crucial given that approximately 20% of global energy is consumed in overcoming friction. SKF’s products are integral in industries such as transport, agriculture, and food and beverage, optimizing temperature and speed to boost production efficiency.

By adopting SAP S/4HANA Cloud through the RISE with SAP initiative, SKF is set to benefit from a seamless and secure migration of its ERP systems to the cloud. This transition will enable SKF to harness real-time operational insights and embedded intelligence, making data-driven business decisions that align with its internal AI strategies.

Emmanuel Raptopoulos, president of SAP Europe Middle East and Africa, highlighted the long-standing collaboration between SAP and SKF. “With our AI- and cloud-driven solutions, we help our customers become more efficient, resilient, and sustainable. We have had a strong collaboration for many years and will continue working closely with SKF to identify innovative solutions and opportunities for streamlining processes,” he commented.

This partnership between SAP and SKF is a testament to how traditional manufacturing industries are embracing digital transformation to enhance operational efficiencies and adopt sustainable practices. The integration of AI and ML into SKF’s operational framework through SAP’s cloud solutions not only sets a benchmark for the industry but also aligns with broader environmental objectives, including carbon accounting and compliance with evolving sustainability regulations.

This strategic move is expected to not only enhance SKF’s operational agility but also bolster its position as a leader in sustainable manufacturing solutions, setting a precedent for other companies in the sector to follow.