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Reducing SAP TCO: Strategies for Food Manufacturers

For many food manufacturers, the high Total Cost of Ownership (TCO) associated with traditional SAP systems can be a major barrier to innovation. This blog examines the key factors that drive SAP TCO and outlines practical strategies—leveraging low-code/no-code platforms like Pillir—to reduce costs while boosting operational efficiency.

Understanding SAP TCO

  • Cost Components: Hardware, software licenses, development expenses, maintenance, and training.
  • Challenges: Customization costs, prolonged development cycles, and expensive integration efforts contribute to a high TCO.

Limitations of Traditional SAP Systems

While traditional SAP solutions are robust, they have notable limitations:

  • Long Development Cycles: Customizing SAP applications via traditional coding can take months, delaying critical innovations.
  • High Total Cost of Ownership (TCO): Extensive development and ongoing maintenance inflate costs, limiting reinvestment in innovation.
  • Inflexibility: Rigid legacy systems make it difficult for manufacturers to adapt quickly to market changes.

Strategies for Reducing SAP TCO

 

  • Adopt Low-Code/No-Code Platforms:
    • Rapid Development: Reduce labor costs by accelerating the development process.
    • Simplified Maintenance: Lower complexity leads to lower long-term maintenance costs.
  • Streamline Processes:
    • Unified Workflows: Consolidate applications to minimize redundancy and improve efficiency.
    • Automation: Implement automation to reduce manual tasks and associated errors.
  • Enhance System Integration:
    • Seamless Data Flow: Ensure smooth integration with existing systems to lower custom connector expenses.
    • Standardization: Adopt industry best practices to minimize costly customizations.

How Pillir Helps Reduce SAP TCO

  • Efficient Development Cycles: Pillir’s platform can cut development time by up to 20X, leading to significant cost savings.
  • Cost-Effective Customization: A unified, low-code approach reduces the need for piecemeal and expensive integrations.
  • Proven Impact: Many food manufacturers have reported reduced TCO and improved operational efficiency after transitioning to Pillir.
Reducing SAP TCO is not just about cutting costs—it’s about reinvesting savings to drive growth. Learn how you can optimize your SAP environment without compromising performance.
Kapil Bhamburkar

Kapil Bhamburkar

Kapil is the Director of Customer Enablement at Pillir, has over 20 years of techno-functional experience in implementing enterprise business solutions for various industry verticals such as Logistics and Warehouse management, Production and Manufacturing, Oil and Gas, Hi-Tech and Retail Industry clients. He is passionate about successfully deploying solutions using the EdgeReady Cloud. His experience and expertise in EdgeReady Cloud and understanding of business processes ensure that the deployment is always successful and on time. Before joining Pillir, Kapil worked with SEAL Consulting implementing SAP solutions for various global enterprises such as Chevron, Estee Lauder, HP, Celestica and others. He holds a Master's degree in Computer Applications and Business Management and lives in Monroe Twp, NJ with his wife and two kids.