LG CNS Teams Up With SAP to Integrate AI-Driven Supply Chain Planning

LG CNS Executive Director Cho Min-gwan (right) and SAP Korea Chief Business Officer Kim Jun-hyung pose after signing an agreement. — LG CNS Executive Director Cho Min-gwan (right), who leads its SCM Innovation business, and SAP Korea Chief Business Officer (CBO) Kim Jun-hyung pose for a photo after signing an MOU. [Photo=LG CNS]

LG CNS is partnering with SAP to pursue artificial intelligence-based supply chain innovation, aiming to cut inefficiencies such as excess inventory and delivery delays by integrating processes that have been run separately across production, sales and inventory.

LG CNS said April 29 that it recently signed a memorandum of understanding with SAP to expand intelligent supply chain innovation and its global business based on SAP Integrated Business Planning (IBP). Attendees included Cho Min-gwan, an executive director in charge of LG CNS’ SCM Innovation business, and Kim Jun-hyung, SAP Korea’s chief business officer.

The agreement centers on integrating supply chain data using SAP’s SCM solution, SAP IBP. The platform brings together demand forecasting, production planning and inventory management data to improve visibility and support decision-making.

SAP is also applying its generative AI assistant, Joule, and AI agent functions across its broader “Business Suite,” including IBP. Users can ask questions in natural language to get guidance on needed functions. The AI analyzes large volumes of supply chain data to produce key insights and visual reports, automatically runs scenario simulations for issues such as delivery delays, and has agents across purchasing, production and logistics work together to propose optimized plans.

LG CNS said it will combine its own technology to differentiate services, including stronger capabilities to analyze shifts in demand and supply data, identify drivers behind performance changes, and forecast future sales and inventory flows. It also plans to add customer-specific functions such as preventing data errors in advance, managing supply chain risks and managing partner reputation.

The companies also plan to accelerate their push overseas. LG CNS said it will expand its IBP business based on its experience building SAP ERP systems across industries, and jointly pursue supply chain innovation projects for overseas companies by using its North American and Asian subsidiaries and SAP’s global network.

LG CNS is currently implementing SAP IBP for LG Innotek and plans to expand into automotive parts, high-tech, consumer goods, and pharmaceuticals and biotech.

An LG CNS official said the company will build competitiveness in the AI-based integrated supply chain management market on the back of its SAP ERP implementation capabilities, adding that it will lead supply chain innovation in global markets.

* This article has been translated by AI.

LEE JEE WON