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SAP Announces New Systems to Amp Supply Chain, Consumer Experience With AI

Sourcing Journal · SAP

SAP said at its inaugural SAP Connect conference last week that it remains committed to leveraging artificial intelligence —particularly agents and autonomous systems—to move the future of work forward for its customers.

The company has for some time now focused on expanding the agents underneath its AI assistant, Joule , with the promise that the assistant would be able to access data autonomously, then handle specific tasks to aid the user across many of SAP’s own applications.

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At Connect, the German technology company noted that it has built several new systems to add Joule on top of; among them are specific applications for customer experience and supply chain.

While the upgrades SAP is making to its systems for clients are, by and large, not yet generally available, the company’s executives had much to share last week in Las Vegas about the promise of the technology—particularly when integrated with SAP’s data repositories.

SAP Supply Chain Orchestration

The technology giant revealed that it will launch a new product, which it calls Supply Chain Orchestration, in the first half of 2026.

The system, which is built on SAP’s Business Technology Platform (BTP) and draws its data from the SAP Business Data Cloud (BDC) and the SAP Business Network, will leverage agentic AI to help supply chain professionals handle the constantly changing risks in their supply chains.

Hagen Heubach, chief marketing officer of supply chain at SAP, said the fluidity of the supply chain has never become as evident as it has over the course of the last five years.

“These guys are hardcore firefighters these days…[They’re] always trying to fix [something], because either they’re getting a new tariff, or a new war is starting, or there’s some logistics bottlenecks where [they] have raw material shortages,” he said. “Supply chains are pretty much stable and…made to be for multiple years, but nowadays, we are lifting and shifting whole production plants or factories from one month to another.”

The system uses myriad data—owned by SAP and external data, like that leveraged by partners like Prewave—to create a knowledge graph that can show issues impacting customers’ supply chains.

That contextualized data can then be used to show a Supply Chain Orchestration user exactly which of their products are at risk, whether there are specific shipping lanes that will need to be avoided, how much revenue is at risk and more.

For instance, if President Donald Trump hands down an unexpected tariff , the tool will be able to show a supply chain team which of its suppliers are directly affected, which could face secondary impacts and more. It also shows information about risk to revenue, projected cost and more.

Based on this information, SAP’s AI assistant, Joule, can leverage multi-functional agents to solve issues or reduce risks. It provides options for changing course, like changing suppliers, passing costs down to customers or finding ways to absorb costs. Alongside each of the scenarios it offers, Joule shows how choosing that path could impact the business from a cost and timing perspective.

Once the human in the loop selects the option the team prefers, the systems can assign tasks to agents that underlay SAP’s assistant.

The idea is that Joule can use the insights surfaced by Supply Chain Orchestration to best help an organization move forward; SAP said that while operations like these previously might have taken weeks, the combination of its newest technology tools can decrease that to mere hours—or minutes, in some cases—by enabling supply chain transparency, scenario simulation and automation.

“The objective of SAP Supply Chain Orchestration goes beyond just surviving one crisis. It’s about building organizations that continuously learn, adapt and become resilient over time—through every scenario, through every decision, through every KPI outcome—and empowering leadership to respond faster, smarter and with greater confidence,” Atena Reyhani, chief product officer for SAP Business Network Core, said during a keynote address at Connect.

In the first half of next year, SAP plans to integrate three new, supply chain-focused agents into its systems: a production planning and operations agent, a change record management agent and a supplier onboarding agent.

Though supply chain professionals face a high degree of uncertainty today, Heubach said SAP is focusing on long-tail success for Supply Chain Orchestration; AI adoption in supply chain has, in some ways, been slow going, despite its promise.

“Yes, we’re doing general availability during the first half of [next] year, but it will be a longer-established vision for what we’re doing with our customers here,” he said.

SAP Engagement Cloud

While SAP has focused heavily on the backend operations that support its clients, it also introduced a solution meant to impact its clients’ consumers directly last week.

SAP Engagement Cloud, which will become generally available in February 2026, will allow organizations to upgrade their customer experience (CX) capabilities by leveraging information from SAP Business Data Cloud to enable hyperpersonalization at scale.

When generative AI first became part of the public consciousness, discussions around personalization dominated retail, fashion and apparel. But as many companies have struggled to find ways to easily, effectively implement AI into their daily processes—and flashy solutions have started to touch every part of the business—discussion around personalization seems to have petered out a bit.

SAP wants to change that. Engagement Cloud will enable companies to leverage data from SAP Business Data Cloud to encourage the highest-value actions and engagements from end consumers. The company expects the tool to touch sales, commerce, marketing and operations teams.

Balaji Balasubramanian, president and chief product officer, SAP CX and consumer industries, said allowing multiple functions to impact the consumer experience in real time could lead to better loyalty and profit outcomes. He noted that today’s consumer wants to be known and respected by the brands and retailers they choose to spend money with.

“In a modern world, proactive and predictive engagement is far more important than after the fact,” Balasubramanian told Sourcing Journal. “With AI agent capabilities, I can hyperpersonalize [the experience]. I know exactly what you’re looking for; I know what you were interested in, and when the engagement is made at that touchpoint, when you need it, it elevates that experience across the entire journey.”

Like Supply Chain Orchestration, SAP will layer Joule on top of Engagement Cloud, which it said will help the assistant create and complete tasks based on data autonomously. The company imagines that Engagement Cloud will provide insights into the most impactful marketing channels; create more intentional touchpoints with existing and new consumers; build trust with customers and more.

Balasubramanian said that Engagement Cloud, while first and foremost meant for upgrading the end consumers’ experiences, can also be extended to employee experience.

“You can use Engagement Cloud as the retailer for your employees, as well. Whether I’m in the headquarters working on something, or I’m a retail store employee working on something, how do you engage with employees? How do you notify them?” Balasubramanian said. “The idea behind this is, if an employee of any kind is engaged, is empowered and is efficient and productive in what they do, it directly translates to an end customer experience.”

Upon release of Engagement Cloud, though, Balasubramanian said SAP expects to see most organizations that adopt the technology doing so to alter consumers’ outcomes, at least as a starting point.

“When you take care of your customers, magic happens,” he said.

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