Complex Supply Chains

Objective

After completing this lesson, you will be able to explain the challenges of complex supply chains

Explain the challenges of complex supply chains

Complex supply chains inhibit visibility into supply:

  • More outsourcing
  • More trading partners
  • More tracking
  • More geographies
  • More technologies

Define why complex supply chains inhibit visibility into supply

Supply chains are becoming more and more complex. There is more outsourcing involved in the supply chain:

  • There are more trading partners, more requirements for tracking, more partners in different geographies, using different technologies
  • Manufacturers are worried about manufacturing capacity and warehousing capacity
  • Manufacturers are looking for diverse suppliers, they're outsourcing, globalizing, and finding new sources of supply
  • And as supply chains become more complex, the risk of losing visibility into the available supply increases
  • So that's why visibility is so important!

As supply chains become more complex, the risk of losing visibility into the available supply increases. That is why Buyers, Suppliers and partners of all types need to see what is going on in the supply chain. That is exactly what SAP Ariba Supply Chain Collaboration provides!

Benefits of SAP Business Network for Supply Chain

Improve Collaboration

  • Collaborate in real-time
  • Increase automation
  • Reduce manual touches

Enhance End-to-End Visibility

  • Ensure network visibility across all partners
  • Anticipate supply disruption
  • Respond to demand changes

Increase Control

  • Manage by exception
  • Improve Risk Management
  • Improve capacity utilization

Improve Customer Service

  • Improve order fill rates

Reduce Cost = Increase Margin

  • Improve processing time and cost
  • Reduce supply chain operating expenses
  • Improve working capital by optimizing inventory carrying costs