How can SAP Managed Service Providers help you minimise delivery driver shortage disruption?

Share This Post

Is the current delivery driver shortage affecting not only your shopping habits but also your business and supply chain processes? Can SAP Managed Service Providers help you minimise the disruption?

Some of the immediate and most obvious disruptions for many include delivery delays – often leading to increased waste due to goods being rejected; increased reliance on third party hauliers, and frequent change of carriers.

Other serious challenges and ripples that many companies are experiencing are: Delayed and possibly manual update of proof of deliveries into the central SAP system, resulting in reduced visibility of stock levels, and an out-of-date planning system; In-house ERP Support Teams pulled in to help fight at the frontline… and more.

In this blog post, Petra Hampton, Senior Logistics Consultant with Absoft SAP Consultancy, draws attention to the aspects and possible solutions you should investigate in order to minimise disruption. Furthermore, Petra outlines how SAP Managed Service Providers, like Absoft, can help you do so.

If, like me, you enjoy a glass of sparkling water, you may be jumping for joy at the sight of a couple of bottles on the supermarket shelf. The UK CO2 shortage, combined with the lack of lorry drivers suddenly feels very real. And while we feel the impacts in our daily lives, we know that businesses are fighting to get their products delivered to their customers on time. This is important for perishable goods, but also non-perishable seasonal items in the upcoming Christmas period. These goods may well be required for further production of other goods, so the knock-on effect is felt throughout the supply chain.

But even if goods are delivered on time, there are further challenges without sufficient drivers or vehicles. Often companies have to rely more on third-party hauliers who may not have access to the central SAP system to update proof of deliveries or returned goods. Suddenly companies are faced with additional business processes which may be less efficient than those developed and embedded over time. The consequences may be a lack of visibility as to the whereabouts of goods – have they been delivered? Are they on their way back? What are our up-to-date stock levels?

With high streets becoming less attractive to shoppers, some of our customers are shifting focus from B2B sales to B2C. By changing their business models to directly send their products to the end customer (online retail sales), integrating web shops with the central SAP system is a real challenge.

Shifting to online retail sales can be a protective measure, avoiding having to transport large bulk deliveries via hauliers. However, looking ahead things are likely to get worse with border checks being introduced for goods entering from Europe as of January 2022.

Do some of the following challenges sound familiar?

Production disruption as supplier deliveries are delayed or do not arrive
Goods being rejected by customers, having exceeded their shelf life when delivered
Increased waste, and a struggle to achieve CO2 targets (reduce carbon footprint)
Increased reliance on third-party hauliers, and frequent change of carriers
Delayed and possibly manual update of proof of deliveries into the central SAP system, resulting in reduced visibility of stock levels, and an out-of-date planning system
In-house ERP Support Teams pulled in to help fight at the frontline

While Management Teams may be driving towards S/4 HANA and the Cloud, the shortage of delivery drivers has suddenly become a very acute problem requiring focused attention.

What could a solution look like and how can SAP Managed Service Providers help?

This depends on the specific customer and their pain points, but we do know that providing Visas and re-training lorry drivers will not happen overnight. Something we can control, however, is the use of technology. What we advise you to review and consider first would be:

Could existing drivers and vehicles be utilised more efficiently? Improved route planning and scheduling could make the most of existing assets.
Could the ERP system be made more flexible to set up and update different carriers when these change? This may also affect customers running a separate EWM system.
Could third-party hauliers be provided with an app that directly links to the SAP system, or at least sends the PODs in electronic format for entry into the system?
Could the SAP system be adjusted to request shipping notifications/inbound delivery updates from suppliers that directly update the Planning System, allowing for better planning and minimising disruption in production?
Reporting: could reports, at the push of a button, free up personnel that could be utilised elsewhere?
Using the services of an SAP Managed Service Provider could free up internal support teams to focus on the more strategic pieces of work and indeed develop ways to respond to the knock-on effects of driver shortages.

How can Absoft SAP Consultancy help?

Irrespective of specific solutions, in my view there are two ways to go here.

Businesses can set up an internal task force briefed with finding innovative ways of dealing with the effects of driver shortages. Such teams have the most in-depth knowledge of the company and are well-placed to establish new processes or form ideas for new solutions.
Furthermore, in order to free up personnel, making use of an SAP Managed Support Service from a partner, like Absoft, could be one way forward. Absoft’s SAP Managed Service is designed to be much more than a “keep the lights on” solution. Our expert team works with every client to understand their specific business process and tailor our service to focus on those processes. One of the ways we do this with automated monitoring and self-healing features.

Learn more about our next generation Managed Service by downloading the E-Book below:

Alternatively, a fresh pair of eyes could provide ideas or the technical expertise to come up with solutions and assist in putting these into practice. So, whether it be a new Power BI Dashboard to sit on top of the ERP system, a new Fiori or Neptune app, or adjustments straight in your SAP system, Absoft can help in making these changes happen.

So, don’t let the delivery driver shortage come in between you and your sparkling drinks (water or champagne) at Christmas dinner and get in touch! Our SAP expert team is here to help!