Business Networks in Supply Chain Management - … Manning.pdf · Business Networks in Supply Chain...
Transcript of Business Networks in Supply Chain Management - … Manning.pdf · Business Networks in Supply Chain...
Barry Manning, Business Development Manager APJ - May 25, 2016
Business Networks in
Supply Chain Management
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• SAP Ariba
• Customer Challenges in Supply Chain - visibility, complexity, cost
• How can Business Networks support end-to-end Automated Supply Chain Collaboration solution
• Quantify the benefits of an Automated Supply Chain Collaboration solution
Agenda
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The Digital Framework to Run Simple, Run Live
Through organic innovations, partnerships and strategic acquisitions over $30 Billion SAP has the best solution portfolio and expertise required to enable your organisations continued digital transformation in collaboration with SAP.
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Business Scope SAP Ariba addresses all spend categories across the source to pay lifecycle
Customer ChallengesSupply Chain Visibility, Complexity, Cost
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Increasing Globalisation Expansion into new markets
Global process standardisation
International supply chains
Increased off-/near-shoring
Economic Volatility Volatility in markets
Decreased stock valuation
Slow economic growth
High expense ratio
Pressure on Margins Pricing pressures
New sources of competition
Decreased budgets and spending
Greater Risk Supply chain disruption
Financial risk and fraud
Commodity risk
Accelerating Technological Changes Changing business models
Faster innovation cycles
Expanding partnerships and channels
Leveraging big data for decisions
Regulatory Constraints Increasing disclosure requirements
Country- and industry-specific regulations
Environmental requirements
Speed to Market Shortened selling cycles
Delivery driven by demand
Fast turnaround needed to respond to market opportunities
Category Complexity Detailed specs & design requirements
Extensive supplier qualification
Many line items and pricing variances
Changing Business EnvironmentIncreasing Pressures on Supply Chain and Procurement Functions
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Manual
Internal Processes Not Efficiently Integrated With Supplier BaseMultiple Outdated Supplier Collaboration Tools
Supply Chain Collaboration
Enterprise Portals EDI VANs Direct Connect
Challenges
High maintenance cost
of multiple – often highly
customised and outdated
– solutions
Different – often clunky
– systems make it
difficult and time-
intensive to use
Supplier resistance to
proprietary technology that
addresses only fragments of
the collaboration challenge
Costly and time-consuming
supplier onboarding causes
limited, incomplete supply
chain collaboration
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Traditional Linear Supply Chains Increasing in Levels of Complexity
Consignment/Forward Stocking
Contract Manufacturing
Traditional
Customer Manufacturer Suppliers
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outsourcing | trading partners | to track | geographies | technologies
Contractmanufacturers
Subassembly suppliers
Large
enterprise
OEM
Component suppliers
Raw material suppliers
Complex Manufacturing Supply Chains Inhibit Visibility Into Supply
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Distribution centers
Brand owners
Complex Retail Supply Chains Inhibit Visibility into Supply
More outsourcing
More trading partners
More to track
More geographies
More technologies
Consumer
Consumer packaged goods
supplier
Logistics provider
Packagingsuppliers
Retail stores
outsourcing | trading partners | to track | geographies | technologies
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Lack of visibility hits top and bottom line
of manufacturing is
outsourced in a typical
company
of buyers have poor
visibility into
source of supply
of suppliers lack visibility
into customer
order management
32%
65%
70%“Supply chains…need visibility across multiple
systems to synchronize manufacturing
and procurement.”
Without visibility, complex supply chains risk:
HIGHSAFETY STOCK LEVELS
HIGHINVENTORY CARRYING COSTS
STOCK-OUTS
SHIPMENTS
MISSED or DELAYED
&
Source: Supply Chain Insights 2014
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Business Networks Integrate Your Inside World With Your Outside World
EDI
Fax
Portal
Traditional Model
Complex optimisation inside the four walls, but limited coordination with you external partners.
Business Network Model
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EDI
Web UI
cXML
Paper
Smart PDF
CSV
xCBL
* Supply Chain/Direct Material Extensions ** Some limitations exist
Connect Once for End-to-end CollaborationSimplify Connectivity with Standardized Integration
any vendor | ERP | protocol any level of sophisticationall suppliers | processes |
geographies** | spend
Open Comprehensive Adaptable
Intelligenceautomated | real-time |
Big Data-driven
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Automated Collaborative Supply Chain Solutions Deliver Strong Efficiencies and Tangible Benefits
Savings
Impact Area Savings Opportunity
Supply Chain
Process
Improvement
• Reduced time scheduling and planning complex orders.
• Reduced time overseeing contract manufacturers and drop ship
suppliers.
• Reduced time tracking rescheduling and verifying changes.
Inventory Cost
Take-out
• Reduce idle materials (wrong balances or obsolescence).
• Reduce on hand materials (compressing supplier order cycle
times).
• Reduce finished goods inventory (production and in transit
delays).
• Re-allocate working capital to revenue generating programs.
Inventory Carrying
Cost Reduction
• Reduce the interest expense, reducing the cost of goods sold for
housing unneeded inventory.
EDI & Coll Cost
Reduction
• Eliminate Hardware/Software Maintenance and Support
(translator, config, mapping, etc.).
• Transaction Fees.
Based on Ariba’s benefits modelling, your Company can save every year in operating expenses, increase productivity
and reduce working capital.
Inv. Take-out, $MSC Process Improvement
EDI Cost Reduction, $KInventory Carrying Costreduction, $M
Thank you