As the world’s largest B2B trading platform with over $6 trillion in transactions on a rolling 12-month basis, SAP Business Network taps into massive data sets and AI functionality that help customers maximize operational agility and supply chain resilience.
In part three of Cloud Wars’ ongoing analysis of SAP Business Network, Founder Bob Evans spoke with Manoj Swaminathan, President and Chief Product Officer for SAP Intelligent Spend and Business Network, about how companies are using the network to maximize visibility and agility in both internal operations and partner relationships.
Driving Resiliency, Trading Partner Collaboration
In order to stay competitive in a fast-changing business climate that has been turbocharged by the addition of AI, organizations need to optimize their supply chain visibility, operational adaptability, and regulatory compliance. At the heart of their business operations is the corporate ERP system, which automates internally focused operations, procurement, and supply chain processes.
But there’s a common challenge with some ERP systems: They’re siloed within the walls of an organization and, therefore, not necessarily enabling collaboration with suppliers or other partners. This means customers can encounter challenges harmonizing their procurement and supply chain processes with trading partners. Ultimately, this can degrade visibility and increase the risk of non-compliance.
“At SAP, we clearly understand the critical need for organizations to bridge gaps in collaboration and process management across their supply chains,” says Swaminathan. “That’s why SAP Business Network was designed to modernize how companies connect with their trading partners, leveraging AI and configurable business rules to enable seamless transaction exchanges.”
SAP Business Network integrates directly with companies’ ERP and other line of business systems, digitizing interactions that previously relied on manual emails, EDI, or portals that serve a single function. In so doing, the network reduces such inefficiencies.
Integration between SAP Business Network and back-end systems also optimizes supply chain resiliency in businesses that have been subject to many disruptions in recent years. The network provides visibility into Tier 1 and Tier 2 supply chain partners. “You can be a lot more proactive in terms of identifying the risk based off of all of this information across your value chain, something that you couldn’t do without such visibility,” Mr. Swaminathan says.
The network’s comprehensive data set — enhanced by AI — provides customers with proactive visibility into risks, as well as recommendations on how to respond. For customers, this translates to greater efficiency and operational resilience. “Being able to operate with the level of resiliency without having an impact to their business is what they are focusing on, and they are expecting SAP solutions to support their efforts in achieving that resilience,” he says.
Measurable Business Outcomes
In addition to improving supply chain resilience, Swaminathan described some of the quantifiable outcomes that SAP customers can expect when they leverage SAP Business Network. A recent IDC Business Value Snapshot, sponsored by SAP* provides these insights:
- Over a three-year period, organizations have been able to realize a remarkable 404% return on investment
- Organizations using SAP Business Network were able to accelerate delivery of products by about 27% and their go-to-market speed has improved about 30%
- A pharmaceutical industry customer improved supply chain visibility and achieved close to 50% reduction in safety stock.
AI First, Suite First
SAP is transitioning to an AI- and suite-first approach with its enterprise software to help customers meet growth and productivity goals. This means that critical capabilities are enabled out of the box and fully integrated from both a user experience perspective and within back-end systems.
“With the business AI on top of the kind of data that we’re able to get supporting network-enabled transactions, we have a level of visibility that we could provide as a command center for a supply chain persona, for them to be able to see, not just the immediate value chain, but also the network-enabled value chain,” says Swaminathan.
These advances collectively lay the foundation for smart, timely decision-making, Mr. Swaminathan says. “By connecting our trading partners in a unified platform, it’s a powerful enabler for seamless collaboration, agility, and supply chain innovation in the fast-changing world.”
As SAP Business Network continues to advance in terms of AI and suite functionality, as well as integration with back-end systems, customers are gaining new efficiencies, enhanced supply-chain resiliency, and a powerful weapon to compete in the AI era.
*IDC Business Value Snapshot, sponsored by SAP, Business Value of SAP Business Network Buy Side, doc #US52679524, October 2024
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