The Mercedes-AMG PETRONAS Formula 1 team is partnering with SAP to optimize its operations, foster innovation, and ensure regulatory compliance as new FIA financial regulations loom in 2026. With the 2026 cost cap rising to $215 million to accommodate new technical regulations and previously exempt items, F1 teams face growing complexity in managing performance under strict financial limits.
To address this challenge, the Mercedes-AMG PETRONAS F1 team is adopting SAP Cloud ERP Private as its digital platform. This will provide the team with real-time strategic financial insights, predictive analytics, and optimized operations across the organization. The team will also leverage SAP Business AI to predict budgetary needs, optimize supply chains, and manage inventory with precision – essential capabilities under the new cost cap framework.
Streamlining Inventory Management
A key part of the project will be managing the team’s extensive inventory of over 14,500 racing car components. SAP Cloud ERP Private will serve as the foundation for tracking and valuing these parts, reducing manual effort in reporting to the FIA and ensuring accurate real-time part valuations – a critical requirement under the new regulations.
The cloud-based architecture will also ensure high availability, vital during race weekends when operations are most critical. «SAP’s technology gives us the agility and transparency we need to compete at the highest level, while staying within the sport’s financial guidelines,» said Michael Taylor, IT Director at the Mercedes-AMG PETRONAS F1 Team. «With SAP, we not only race faster, but smarter.»
Driving Sustainability and Operational Decisions
The team is leveraging SAP Business AI to bolster sustainability and operational decision-making, key priorities under the new regulations. Intelligent data models are being used to reduce the team’s carbon footprint and improve efficiency, while predictive capabilities optimize inventory and the supply chain.
Simultaneously, the team is utilizing SAP Business Technology Platform and SAP Build to develop custom applications that digitize workflows and enhance cross-departmental collaboration.
«The Mercedes-AMG PETRONAS F1 Team is setting the standard for digital transformation and AI-driven progress in motorsports,» said Sebastian Steinhaeuser, Member of the Executive Board and COO of SAP SE. «Together, we are demonstrating that operational excellence and innovation can go hand-in-hand, even at 300 km/h.»
