Tell us what you think

We want to create the best possible experience for our learners. Your feedback helps us to improve the experience for everyone.

Explaining the Importance of the SAP Business Network for Procurement

Objective

After completing this lesson, you will be able to articulate an overview of the scope and importance of the SAP Business Network for Procurement.

SAP Business Network for Procurement

SAP Business Network for Procurement digitalizes the collaboration with Trading Partners.

It represents the world's largest trading community of over 4.5 million companies and allows you to collaborate and transact seamlessly with Trading Partners to bring speed, savings, and innovation to the entire source-to-pay process.

Select the link below to learn about SAP Business Network and how it helps companies compete in the global network economy.

SAP Business Network Solution Video: Introduction to SAP Business Network

Benefits

The benefits for Buyers and Suppliers are as follows:

Benefits for Buyers

4-15% Sourcing savings
70% Operating cost reduction
1-4% Compliance savings
$2-3M Discount savings for $1B addressable spend

Benefits for Suppliers

15% Increased sales & wallet share
40+% Operation Cost Reduction
6 days DSO reduction
Transparency into the customer procurement operations

SAP Business Network Value

Your ERP Needs a Network

With the S/4HANA implementation you have the state of the art ERP solution for your company.

Your ERP needs a Network like your phone needs a sim card: without it, you are detached from external communication. Your phone can have the best clarity photos and videos but without the sim card, you wouldn't be able to connect to external parties to share content.

SAP Business Network Trading Partners

Similarly to the SIM card, the SAP Business Network helps you connect with your Trading Partners, in this case, your Suppliers.

Value Proposition

Connecting to Trading Partners will help to increase the value proposition, which has been derived from our benchmarking programs.

In the following section, you will learn more about the benchmarking programs.

Assurance of Supply: 8-23% Lower Revenue Loss due to Stock Depletion

Process Efficiency: 40-60% in Operating Cost Reduction

Improved Asset Uptime: 3-5% improvement in return on assets

Cash Management: $1-2M saving per $1 billion on spend

Value Realization Examples

These value propositions will help you to increase your shareholder value and market cap. Through real-time digital access to your Trading Partners, you will in turn optimize your supply chain.

Some value realization examples are as follows:

Buyer visibility into shipment status.
Suppliers have real-time visibility on the order cycle.
Suppliers have the choice to transact via SAP Business Network Supplier account, or via integration.
Suppliers can collaborate from any location, from any device.
Efficiencies gained in compliance tracking and eliminated errors.

Next lesson