LG CNS said Tuesday it recently signed a memorandum of understanding with SAP to drive intelligent supply chain innovation based on SAP Integrated Business Planning, or SAP IBP, and to expand in global markets. The signing ceremony was attended by Cho Min-gwan, an executive director in charge of LG CNS’ SCM innovation business, and Kim Jun-young, a vice president at SAP Korea, among others.
The agreement centers on integrating supply chain data using SAP’s SCM solution, SAP IBP. The platform brings together data across demand forecasting, production planning and inventory management 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, while AI analyzes large volumes of supply chain data to produce key insights and visual reports. It can also automatically run scenario simulations for issues such as delivery delays, with agents across purchasing, production and logistics working together to propose optimized supply chain plans.
LG CNS said it will combine its own technology with IBP to deliver differentiated 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 monitoring supplier reputations.
The companies also plan to accelerate their push overseas. LG CNS said it will expand its IBP business based on its SAP ERP implementation experience across industries, and jointly pursue supply chain innovation projects for foreign companies by leveraging 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 the business to auto parts, high-tech, consumer goods, and pharmaceutical and biotech sectors.
“Building on our SAP ERP implementation capabilities, we will secure competitiveness in the AI-based integrated supply chain management market,” an LG CNS official said. “We will lead supply chain innovation in the global market.”
* This article has been translated by AI.
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