Illustrating Value Creation with SAP Business Network for Procurement for Industries through Customer Examples

So far, we have learned that the SAP Business Network for Procurement helps organizations overcome industry-specific challenges by enhancing supplier collaboration, streamlining procurement processes, and improving visibility across the supply chain. The platform provides automation, real-time insights, and compliance support, addressing key industry pain points.

Customers can leverage SAP’s deep expertise and significant industry footprint, especially in consumer products, high-tech, life sciences, and industrial manufacturing. Prepackaged industry-specific use cases paired with industry best practices can help customers implement and use the network quicker, allowing them to extract value much faster.

Now, let’s see the impact of the SAP Business Network for Procurement on industry-specific challenges and how SAP Business Network for Industry empowers businesses to overcome industry-specific challenges, enabling stronger collaboration, improved efficiency, and resilient supply chains.

The SAP Business Network for Procurement can help Consumer Products companies gain greater visibility across the supply chain, improve planning processes with contract manufacturers, trace raw materials through the supply chain effectively, and meet sustainability goals.

Watch this video to get an overview of consumer product companies' trends and challenges, and how the SAP Business Network for Procurement can help them gain real-time supply chain visibility and efficiency, quickly identify risks, monitor early disruption indicators, and respond rapidly.

Let’s summarize what you have learned:

• The consumer products industry faces pressures from innovation demands, transparency, labor shortages, and material availability. Environmental factors like inflation and trade policies disrupt supply chains, requiring advanced technology for real-time visibility and efficiency.
• The SAP Business Network for Procurement enhances supplier collaboration, digitizes logistics and warehouse operations, and provides predictive insights. It allows companies to diversify suppliers, gain critical insights, and better meet consumer expectations with high-quality products.

Let's examine the challenges this customer, Blue Diamond Growers, faced and how they created a collaborative and efficient supply chain with digitalized solutions, connected processes, and integrated automation processes.

Blue Diamond Growers, the world's largest almond processing cooperative, represents over 3,000 growers and exports to 100+ countries. To maximize returns, it operates the first "almond innovation center" to develop new products and enhance efficiency.

• Managing the supply chain and logistics was time-consuming and error-prone, costing US$300 million annually.
• Difficulties in obtaining accurate visibility for customer interactions and planning promotions.

• SAP S/4HANA and related solutions enable efficient processes and prepare businesses for the future.
• XpertMinds and project44 provide expertise and communication skills, enhancing real-time visibility for transportation.

• Automated processes and improved delivery assurance reduce costs and enhance efficiency.
• Achieved a 20% reduction in supply on hand, US$1 million in savings in transportation, and a 99% customer-order fill rate.

"Using the SAP Business Network for Procurement Consumer Products solution, we have created the ideal foundation for an intelligent, data-driven cooperative that provides the best value for our growers and customers." - Steve Birgfeld, Vice President of IT and Services at Blue Diamond Growers.

The SAP Business Network for Procurement can help High-Tech companies respond quickly to supply chain disruptions, synchronize collaboration with contract manufacturing partners, improve planning and forecasting with suppliers, provide reliable customer order confirmations, and meet customer and regulatory sustainability requirements.

Watch this video to get an overview of the trends and challenges the High-Tech industry is facing and how the SAP Business Network for Procurement can help drive transparency and connectivity to simplify operations, reduce lead times, optimize inventory, mitigate potential supply chain risks, and pivot processes and resources quickly to respond to market dynamics.

Let’s summarize what you have learned:

• The SAP Business Network for Procurement enhances real-time collaboration, improving innovation and transparency in the supply chain to optimize operations and reduce lead times.
• The platform mitigates supply chain risks, promotes sustainability through material traceability and logistics collaboration, and fosters a resilient ecosystem to meet consumer demands and adapt to market changes.

• Microsoft encountered major challenges, such as pricing and margin pressures, supply chain uncertainties, increased customer service expectations, and shorter product life cycles.
• Outdated manual processes and disconnected systems exacerbated these issues.

• Microsoft addressed supply chain challenges by implementing the SAP Business Network for Procurement and Digital Supply Chain Integrated Business Planning tools.
• Key tools include Managed Gateway, Purchase Order Collaboration, and IBP S&OP.

• Achieved an 87% reduction in planning and execution cycle time, resulting in over $200 million in annual inventory savings.
• Improved forecast accuracy by over 20% and enhanced supplier onboarding efficiency by 75%.

The SAP Business Network for Procurement can help Life Sciences companies increase visibility across the supply chain, streamline collaboration with contract manufacturers, comply with quality regulations, and improve inventory management. It supports business processes that are essential to the Life Sciences industry, including planning and forecasting collaboration, supplier-managed inventory, contract manufacturing collaboration, quality collaboration, and material traceability.

Watch this video to get an overview of the industry challenges facing a Life Sciences company, and how strategically the SAP Business Network for Procurement can assist across supplier integration, asset maintenance, regulatory compliance, and logistics.

Let’s summarize what you have learned:

• The SAP Business Network for Procurement addresses challenges in Life Sciences by enhancing supplier collaboration, streamlining operations, and digitizing logistics and maintenance management. It also ensures regulatory compliance and sustainability through features like material traceability and smart alerts.
• Utilizing the SAP Business Network for Procurement enables Life Sciences companies to build a resilient, intelligent enterprise that supports co-innovation and improves business outcomes, enhancing trust and value for patients globally.

• Boston Scientific faced inconsistent supplier collaboration, limited visibility of incoming supplies, and manual, offline quality data processes.
• Outdated systems and manual tasks hindered strategic supply chain functions and overall efficiency.

• They implemented the SAP Business Network for Procurement capabilities such as PO Collaboration and Quality Collaboration with e-signature.
• These solutions aimed to automate processes and improve visibility, addressing key inefficiencies.

• With SAP, Boston Scientific automated key procurement and quality management tasks, improving component visibility and reducing supply disruptions.
• They achieved streamlined cycle times from PO creation to invoice reconciliation, enhancing overall efficiency and reducing quality inspection issues.

The SAP Business Network for Procurement aids Industrial Manufacturing companies in quickly addressing supply chain disruptions, tracing components, improving asset utilization, and meeting sustainability regulations. It supports key processes like planning and forecasting, supplier-managed inventory, subcontracting collaboration, material traceability, and asset management.

Read this info sheet, which provides an overview of the SAP Business Network for Procurement's value for companies in the industrial manufacturing industry.

The SAP Business Network for Procurement for Industrial Manufacturing

• Vestas needed to expand their supplier base across complex global markets and unify procurement operations to accelerate product cycles and reduce lead times.
• Simplifying and standardizing supplier management, engagement, and collaboration were required.

• SAP Ariba solutions offered device-accessible procurement, the largest global supplier network, and capabilities to manage both direct and indirect spend.
• Integration with SAP ERP and digital document management via DocuSign enhanced operational efficiency.

• Vestas achieved unified supplier, procurement, and supply chain data, with built-in compliance protocols reducing PO delays and blocked invoices.
• Automatic PO and invoice matching, enhanced contract management, and e-auction functionality reduced handling time for parked invoices by 75%.