SAP / Digital Transformation

SAP S/4HANA’s role in sustainable manufacturing


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For business leaders in the Australian manufacturing industry, digital transformation is not just a buzzword—it is a necessity to stay ahead and maintain a competitive edge in operational efficiency. 

However, enhancing productivity is not the only end goal of this crucial transformation. Digital technologies also play a pivotal role in enhancing manufacturing sustainability initiatives.

One significant step in this direction is adopting advanced enterprise resource planning (ERP) systems like SAP S/4HANA, according to KPMG. Designed to enable real-time monitoring of sustainable metrics—like energy consumption, water usage, and waste generation—this next-generation ERP solution aims to empower manufacturers to streamline operations, meet regulatory requirements, and respond to increasing demand for sustainable practices.

Sustainability and efficiency with S/4HANA

William Servaes, lead for logistics and supply chain transformation at KPMG Belgium, highlighted the importance of a scalable IT landscape for businesses facing increasing pressure from regulators and the public to meet environmental, social, and corporate governance (ESG) goals.

To access this much-needed scalability, manufacturers tap into advanced ERP systems that offer a comprehensive view of various sustainability metrics, such as energy consumption, carbon emissions, and waste management. This enables them to make informed decisions to optimise their processes, reduce resource consumption, and minimise environmental impact. Consequently, it also enhances brand reputation among increasingly eco-conscious consumers.

Real-time data also allows for a more agile and responsive production process, enabling manufacturers to quickly adapt to market changes and innovate their product offerings. 

KPMG’s expertise in transformation

KPMG’s extensive network of SAP consultants provides the necessary expertise to guide manufacturers through the transition to SAP S/4HANA. 

Through its Powered Enterprise approach, KPMG aims to help businesses define a clear transformation strategy, streamline their operations, and maximise the benefits of the new ERP system. This holistic support ensures that the transition is not just a technical upgrade but a comprehensive business improvement.

For Australian manufacturing leaders, transitioning to SAP S/4HANA is a strategic move that enhances both sustainability and operational efficiency. It offers manufacturers the tools they need to meet today’s challenges and prepare for tomorrow’s opportunities. 

Placing the focus on sustainability and operational efficiency may be the first step toward positioning Australia as a leader in the global manufacturing market, driving innovation and growth while contributing positively to environmental and social goals. 

The journey towards sustainability and operational excellence is ongoing, and transitioning from SAP ECC to S/4HANA is a pivotal step. 

Equipped with a next-generation solution, you can harness the power of real-time analytics, increase productivity, and drive innovation—all while upholding the highest standards of sustainability. 

To read more about the advantages of this transition, access KPMG’s whitepaper, “Flexible and future-proof with S/4HANA” here. Learn more at KPMG.com/au/PoweredSAP.



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