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.