How to move past linear logistics and build resilient supply chains

Discover how the EY-SAP Alliance employed an EY-orchestrated ecosystem to transform linear logistics into agile, resilient supply chains.

In brief

• Complex, linear supply chains struggle to keep pace with accelerating demands, risking delays and inefficiencies.
• EY and SAP teams collaborated to modernize logistics with a dynamic, technology-driven ecosystem approach.
• The result is agile supply chains that adapt quickly to challenges and future-proof supply chains.

Supply chains have never been more critical — or more complex. What once seemed like a straightforward journey from point A to point B now requires navigating a web of stakeholders, systems and shifting variables. And with that added complexity comes real challenges: visibility gaps, delivery delays and rising vulnerability to disruption.

In a world shaped by geopolitical uncertainty and rapid technological change, today’s supply chains must evolve. Linear, rigid models are giving way to more dynamic, networked ecosystems that prioritize agility, real-time tracking and proactive risk management.

Supply chains are increasingly exposed to risk thanks to several persistent challenges, including:

A case study: creating a future-forward supply chain

One EY client sought to modernize their operations. They needed to update their decades-old legacy technology capabilities and establish a new, innovative IT infrastructure that promised untapped efficiencies as well as the increased ability to reduce growing industry risks.

The client’s objectives included:

• Greater operational visibility
• Enhanced communication with logistics partners
• Improved responsiveness to supply chain disruptions
• Reduced risks related to delivery delays
• Streamlined processes to meet customer demands consistently

To achieve the client’s goals, our EY team helped implement an ecosystem approach. This EY-orchestrated ecosystem leveraged systems from our global strategic alliance partner SAP® and combined technology, people and processes to solve problems in a better, more efficient way.

Helping to accelerate digital transformation in logistics

Historically, the client collaborated with hundreds of carriers and freight forwarders across the United States on a variety of operational daily tasks, with each of those entities operating with their own technology and systems resulting in highly inefficient or nontransparent operations. The new SAP offering, SAP Business Network for Logistics, proved to be a great fit for this organization, given their broad operations.

EY teams worked with the client to create an orchestrated ecosystem incorporating SAP Business Network, which helped the client to digitize its operations, significantly streamlining communication and operational workflows. This approach created a “one-to-many” integration model, allowing the client to seamlessly connect with over 100 business partners. As a result, the digital transformation introduced a modern SAP S/4HANA®-based core ERP system, incorporating transportation, warehousing and supply chain planning to support e efficiency.

Implementations of this scale can be time consuming but with the ecosystem approach and SAP technology, the EY team was able to roll out this new IT infrastructure in a single weekend.

The flexibility of ecosystem-driven supply chains

At the beginning of a transformation, it's impossible to know all the solution elements needed. This makes it even more important that the ecosystem can offer additional services or elements to position the client for future growth.

A key advantage of the ecosystem approach is its flexibility to evolve alongside client needs. As challenges arise, additional technology solutions and partners can be integrated to support ongoing transformation.

The implementation of updated technology alone was a step change for the client, the full value of the ecosystem came through by supporting the change management process within the client’s workforce and training their teams.

The result: delivering resilient, agile supply chain solutions

Through this implementation, the client was able to significantly elevate their operations by streamlining their capability to communicate with third parties at speed, while providing their workforce an altogether elevated and efficient IT environment.

This modernization reduced risks, improved freight tendering and track-and-trace capabilities and enhanced customer delivery reliability across the client’s extensive operations.

With the power of ecosystems, organizations can shift from yesterday’s linear supply chains to dynamic, responsive networks built to handle tomorrow’s challenges. Together, EY and SAP help companies to shape the future by transforming disruption into strategic advantage.