SAP Accelerates Mercedes F1 Team’s Efficiency in Multi-Year Partnership
Business Software Giant SAP Joins Forces with Mercedes-AMG PETRONAS F1 Team from 2024.
In a significant development for the Formula 1 world, business software giant SAP has officially joined hands with the Mercedes-AMG PETRONAS F1 Team in a multi-year partnership set to kick off in the 2024 season. This collaboration marks SAP’s return to the F1 arena after a lengthy association with McLaren that spanned from 1997 to 2020 and included notable championship successes. The partnership will see the Mercedes team leveraging SAP’s expertise to enhance operational efficiency and navigate the challenges posed by the FIA financial regulations and the cost cap.
SAP, no stranger to the fast-paced world of motorsports, had previously supported the now-defunct Mercedes Formula E outfit and boasts a rich history with McLaren, contributing to the Formula 1 world championship titles for Mika Hakkinen and Lewis Hamilton. The new partnership, however, extends beyond previous collaborations, positioning SAP as an official team partner with the Mercedes-AMG PETRONAS F1 Team.
Mercedes F1, already an SAP customer, will now have access to cutting-edge innovations to enhance their operational efficiency. The team will implement SAP S/4HANA Cloud, private edition, to harness artificial intelligence and cloud solutions. This will aid in decision-making, resource optimization, and future-proofing the team’s IT infrastructure. SAP’s AI capabilities will play a crucial role in forecasting costs, predicting budget needs, and optimizing the supply chain, addressing the complexities introduced by the FIA financial regulations and cost cap.
Formula One’s cost cap, a critical aspect of team management, limits annual spending and imposes penalties for exceeding the set limits. The Mercedes-AMG PETRONAS F1 Team plans to tackle this challenge by leveraging SAP S/4HANA Finance, ensuring efficient resource allocation and utilization. SAP Business AI technology embedded in the system will enable the team to forecast costs, predict final budget requirements, and optimize both the supply chain and stocked items.
The partnership will utilize SAP Build and the SAP Business Technology Platform to create a seamless view of data and systems from various sources within the organization. This approach will streamline processes and facilitate faster delivery of components to the track, ensuring a competitive edge during race weekends.
Toto Wolff, CEO and Team Principal of the Mercedes-AMG PETRONAS F1 Team, expressed excitement about the shared commitment to innovation and improvement with SAP. Richard Sanders, Chief Commercial Officer of the team, highlighted SAP’s history of successful partnerships in elite-level sports, emphasizing the vital role SAP’s knowledge, expertise, and services will play in enhancing efficiencies within the team.
Julia White, Chief Marketing and Solutions Officer at SAP SE, underscored Formula One as one of the most technologically innovative sports globally. Beyond the race day performance, the partnership aims to fine-tune the operations behind the scenes, potentially creating a new blueprint for the automotive industry. The collaboration between SAP and the Mercedes-AMG PETRONAS F1 Team is poised to deliver innovations backed by Formula One insights that will shape the businesses of other SAP customers.
The SAP-Mercedes partnership signals a convergence of technological prowess and racing excellence, with the aim of propelling the Mercedes-AMG PETRONAS F1 Team to new heights of operational efficiency and on-track performance in the upcoming seasons. As Formula One continues to evolve, this collaboration stands as a testament to the pivotal role technology plays in the pursuit of excellence in the world’s premier racing series.
