Differentiating Business Value Drivers and Benefits of the SAP Business Network for Procurement

Objective

After completing this lesson, you will be able to differentiate SAP's business value drivers and benefits of the SAP Business Network for Procurement.

Benefits of the SAP Business Network for Procurement

SAP's business value drivers and the benefits of the SAP Business Network for Procurement differ in their core focus areas and intended outcomes.

Benefits of the SAP Business Network for Procurement

  • Faster onboarding and deployment for easier procurement integration.
  • Enhanced compliance through automated spend management and improved transparency.
  • Increased operational efficiency and cost reductions via digital collaboration with suppliers.
  • Improved supply chain assurance and regulatory compliance through greater procurement transparency.
  • Access to a global supplier community for better buyer discovery and quicker responses.
  • Standardization and automation of procurement processes for improved document quality.

SAP's Business Value Drivers

  • Improved customer service levels and the ability to manage complex supplier relationships through data-driven decisions.
  • Optimized inventory levels and increased cost efficiency and capacity utilization.
  • Enhanced environmental impact, creating a more resilient and circular value chain.
  • Reduced waste and increased compliance with regulations.
  • Digitalized collaboration with suppliers, reducing paperwork and improving efficiency.
  • Streamlined procurement processes to cut costs and eliminate waste, supporting sustainability requirements and better order fulfillment.

Procurement Business Drivers and Benefits

  • Cost Savings
    • After addressing the low-hanging fruit opportunities and controlling primary spending categories, find new sources of savings and cost reductions.
  • Risk Mitigation
    • Manage the inherent yet, often hidden risks that exist in your supply chain and with your suppliers’ suppliers.
    • Anticipate and avoid any service or production disruptions.
  • Compliance
    • Find new ways to connect your organization and all of your users with approved suppliers with negotiated and contracted prices.

Watch the following video for an overview of the Procurement Persona.

Let's summarize what you have learned:

  • SAP Business Network simplifies procurement and compliance by connecting millions of suppliers and automating processes from sourcing to payment.
  • It integrates third-party risk data, providing alerts for supply chain risks and enabling proactive risk mitigation with suppliers.

Value Proposition: SAP Business Network for Procurement

Tagline: Collaborate digitally with your suppliers for increased efficiency, enhanced spend transparency, and improved compliance.

Positioning Statement: Access a marketplace of suppliers, improve operational efficiency, and enhance spend visibility and compliance through seamless collaboration and digital information exchange with suppliers. Greater visibility, enhanced connectivity, and improved collaboration over transactions, cash, and working capital all contribute to stronger trading partner relationships.

Value Proposition
Pillar

Automate your procurement collaboration workflows

Gain process efficiencies with automation and standardized workflows that benefit both buyers and suppliers.

Achieve greater procurement collaboration and visibility

Improve supplier management with a centralized collaboration platform and increased visibility.

Simplify spend compliance

Increase spend compliance with configurable business rules and network validation.

Customer promise and description

  • Automate routine paper-based transactions to realize operational efficiencies, decrease operating costs, and free up FTE capacity

    Fact: Flipping and auto-matching purchase orders, ship notices, and invoices improve document quality and accuracy, reducing manual rework and follow-up.

  • Gain faster time to value with standardized workflows and document types, while reducing supplier onboarding cycle time

    Fact: Self-service onboarding allows suppliers to set up their invoicing processes and supports document types, including POs, functional acknowledgments, order confirmations, ship notices, invoices, and remittance advice.

  • Digitize invoice transmissions to speed approvals, help ensure compliance with procurement policies and contracts, and provide suppliers with invoice status visibility

    Fact: Rules-based automation ensures invoices can be processed without manual intervention, eliminating processing delays; Invoice Status Portal provides suppliers with invoice visibility and reduces supplier inquiries.

  • Access a community of global suppliers and buyers to connect, collaborate, and transact on the network

    Fact: Quickly find and on-board new suppliers through the network.

  • Optimize supplier invoice collaboration and visibility to reduce supplier inquiries and to leverage early-payment discounts for better working capital management

    Fact: Invoice Status Portal feature enables suppliers to digitally view the invoice status, reducing follow-up calls and inquiries.

  • Provide a self-service portal for all your suppliers with true, many-to-many collaboration

    Fact: Suppliers can connect once, then transact immediately with multiple buyers to grow their business.

  • Leverage network validation and configurable business rules to eliminate errors and ensure spend compliance

    Fact: Ensure compliance with tax and regulatory requirements across regions with country-specific mandated documents; Auto-matching of invoices, order receipts, and POs decreases errors and manual processing, increasing document match rate.

  • Visibility into all orders and invoices in one platform gives you a holistic view of organizational spend

  • Terms negotiated in the sourcing process are exe cuted in ERP-generated POs and sent to suppliers over the network to ensure compliance with negotiated rates and contracts

    Fact: Supplier catalogs, invoices, and other documents are validated based on configured business rules, reducing the need for manual intervention and exceptions.

Reasons to Believe
  • Denios (Supplier): Reduced manual processes, with 80%–90% of some customers’ orders transmitted automatically, increasing efficiency, cutting costs, and freeing teams to focus on providing great service and consulting
  • Royal DSM: 50k+ POs sent through SBN annually – 75% of POs, with nearly 5,000 suppliers onboarded
  • Mary Kay: SAP Business Network provides a single platform of collaboration for customers and their trading partners; 70% of supplier invoices now digital
  • Organizations in more than 190 countries, with over 70 currencies and in 24 languages, execute transactions that comply with tax legislation and other e-invoicing requirements
  • Royal DSM: 3-way matching of POs, invoices, and good receipts; increased compliance; spans 83 sites across 20 countries

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