Suits Blog: The Digital Disconnect in Supply Chain: Why SAP Investment Doesn’t Always Equal Results. 

By Leon Davis, Global Director Solution Consulting, Neptune Software 

Companies have never invested more in digital transformation. SAP S/4HANA programs, warehouse modernization projects, and AI pilots are running everywhere. Yet despite all that spending, supply chain leaders still ask the same question: 

“Why aren’t our KPIs improving?” 

Accuracy down. Costs up. Fulfillment delayed. 
If that sounds familiar, you are not alone. 

At Neptune, we talk to supply chain and logistics leaders across industries who tell us the same story. They have the right systems in place, but their real-world results lag behind expectations. The reason is not a lack of technology. It’s the gap between digital investment and operational execution. 

The Digital Disconnect: When Systems Don’t Deliver Outcomes 

Gartner recently described it as “the digital disconnect” — the widening gap between technology adoption and measurable improvement. Many supply chain organizations have modern ERPs and warehouse systems but still struggle to deliver consistent performance. 

Here is where it goes wrong: 

• Stock inaccuracies between system records and physical counts create stockouts, overstock, and fulfillment errors. 
• Lack of real-time visibility across plants and 3PLs slows decision making and order fulfillment. 
• Manual workload persists because processes still rely on paper, repetitive SAP transactions, and low-connectivity workarounds. 
• Complex UX and training keep users from adopting digital tools efficiently, resulting in data errors and delays in staff onboarding. 

The outcome is predictable. KPIs like OTIF, Inventory Accuracy, and Inventory Turnover stagnate even as IT budgets grow. 

According to IDC, organizations that delay true process modernization face 20–30 % higher long-term IT costs due to inefficiency and technical debt 
(IDC FutureScape: Worldwide CIO Agenda 2024 Predictions). 
McKinsey found that digital leaders generate up to three times higher ROI than late adopters because they act on the operational layer, not just the system layer 
(McKinsey Global Institute – The Case for Digital Reinvention). 

What the Numbers Show 

When we break down performance metrics across the value chain, the pattern is clear: 

• OTIF (On-Time-In-Full) slips when upstream visibility and receiving accuracy falter. 
• Inventory Accuracy drifts when cycle counts and write-offs are still manual. 
• Inventory Turnover slows when replenishment and bin transfers rely on spreadsheets. 
• Forecast Accuracy deteriorates when real-time data from the floor never reaches planning. 

In short, most enterprises have digitized reporting, not execution. 

And that matters. A recent SAPInsider study called inventory accuracy “the top metric identified by respondents,” noting that many organizations continue to “struggle with the fundamentals” despite years of ERP investment 
(SAPInsider: Inventory Accuracy – The Struggle with the Fundamentals). 

Globally, inventory distortion — the combined cost of stockouts and overstocks — reached an estimated USD 1.8 trillion in 2020 
(Netstock – Inventory Management Statistics). 

So when accuracy drops a few points, the cost is not abstract. It hits the balance sheet. 

Every Friction Has a Fix 

At Neptune, we see the same set of frictions again and again. The good news is that each one can be fixed faster than most think. 

1. Receiving accuracy 
Mobile Goods Receipt (GR) with barcode or RFID scanning, inbound shipment reconciliation, and exception capture eliminate manual errors and improve OTIF and Inventory Accuracy. 

2. Outbound speed and correctness 
Goods Issue (GI) on mobile, outbound staging trackers, and pick-pack-ship apps connected to real ATP data directly drive OTIF and delivery cost reduction. 

3. Counting efficiency 
Cycle counting, physical inventory flows, and automated write-off approvals shorten counting time and lift accuracy. 

4. Flow within the four walls 
Bin-to-bin transfers in EWM, shelf-life monitoring, 3PL stock reconciliation, and EWM-to-WMS sync remove hidden delays. 

5. End-to-end visibility 
Digital-twin inventory viewer, inventory snapshot dashboards, and fleet-inventory sync connect plants, warehouses, and external logistics partners in real time. 

All these solutions are built with Neptune DXP, our SAP-native low-code platform that runs directly inside ECC or S/4HANA. That means IT keeps the core clean, while business users finally get simple, role-based apps that actually work for them. 

Results That Speak for Themselves 

When you fix frictions instead of adding new layers of complexity, results appear fast: 

• 40 % reduction in supply chain processing time. 

• 97 % reduction in training time by simplifying SAP transactions from ten steps to three. 

• 80 % reduction in inventory count times. 

• 30 % faster replenishment and 20–30 % fewer stock inaccuracies. 

These results align with broader industry research. 
SCM Champs found that combining SAP EWM and automation can improve productivity by 55 % and reach 99.9 % inventory accuracy with ROI in 6–18 months 
(scmchamps.com). 
Similarly, SAPInsider reports that warehouse automation initiatives typically achieve ROI within 6–24 months 
(sapinsider.org). 

Bridging the Gap Without Breaking SAP 

Neptune DXP closes the digital disconnect by running inside SAP and extending it securely to every user and device. 

• It runs natively in SAP for full compliance with clean-core strategies. 

• It works anywhere, including warehouses with poor connectivity. 

• It integrates easily with EWM, WMS, and 3PL systems for live stock visibility. 

• It is modular, so teams can start with their biggest friction and expand. 

This approach turns SAP from a back-office system into an operational nerve center that delivers visible results on the warehouse floor. 

Closing Thought 

Technology alone doesn’t fix processes. People do, when the tools actually work for them. 

If your warehouse or supply chain teams are still struggling despite big digital investments, it’s time to look at the disconnect between system and experience. 
Because every friction has a fix. 

And if your SAP investments aren’t translating into results, it’s time to reconnect the system with the shop floor. Discover how Neptune DXP closes that gap by bringing real-time visibility, simplified UX, and measurable improvement to every process that keeps your supply chain moving.