The Mercedes-AMG PETRONAS F1 Team chooses SAP to increase its efficiency both on and off the track

SAP SE announces a multi-year partnership with the Mercedes-AMG PETRONAS F1 Team starting in 2024, to support the development of the Formula 1 team in key areas crucial for gaining an advantage on the track.

As an official partner of the team, SAP collaborates with the Mercedes-AMG PETRONAS F1 Team to accelerate operational efficiency and unlock new insights into data for performance gains. SAP S/4HANA Cloud, Private Edition serves as the technological base for the team, enabling them to explore how artificial intelligence (AI) and cloud solutions from SAP can help inform and anticipate decisions, optimize resources, and strengthen IT infrastructure to be future-ready.

Efficiency is a fundamental pillar of success in Formula 1. Therefore, managing challenges related to cost capping and optimizing the team’s complex supply chain are two areas of interest in this partnership. The Formula 1 cost cap limits how much teams can spend each season, with severe penalties for exceeding it. The Mercedes-AMG PETRONAS F1 Team plans to navigate this complex path using SAP S/4HANA Finance to allocate, save, and more efficiently use resources. With embedded SAP Business AI technology, the team can forecast costs, predict final budget needs, and optimize both the supply chain and stored items.

To conduct its complex and innovative operations, the Mercedes-AMG PETRONAS F1 Team looks forward to using SAP S/4HANA Cloud, Private Edition, benefiting from a secure and future-ready cloud environment. Also, the team can take advantage of SAP Build and SAP Business Technology Platform solutions to implement a transparent and intelligent business architecture – bringing a unified vision of data and systems from various sources across the organization. This can lead to reduced lead times for critical car components, helping ensure a continuous flow of parts during race weekends.

“Formula 1 is one of the most technologically innovative sports in the world, where incremental advances bring significant results. Given the extreme conditions in which Formula 1 teams operate, motorsports offer a global platform to showcase skills and engineering excellence. But beyond race day performance, there is a lot happening behind the scenes. SAP is proud to collaborate with the Mercedes-AMG PETRONAS F1 Team to ensure that operations are as finely tuned as its cars,” said Julia White, member of the Executive Board of SAP SE and Chief Marketing and Solutions Officer.

This partnership has the potential to create a new model for the automotive industry. Formula 1 is the place where the latest innovations in this industry are invented and premiered. Together, SAP and the Mercedes-AMG PETRONAS F1 Team will offer new innovations based on their experience, continuing to serve and shape the businesses of other SAP customers.

“We are excited to announce SAP as an official partner of the Mercedes-AMG PETRONAS F1 Team. We share a common heritage and commitment to innovation and development, which will contribute significantly to our performance on the track. SAP is a global leader in its field, and we could not imagine a better partner to help us improve our efficiency in 2024 and beyond in the years to come,” said Toto Wolff, CEO and Team Principal, Mercedes-AMG PETRONAS F1 Team.