SUPPLY CHAIN the Impact of SAP Business Network for Industries ’. “ And we ’ re now well placed to do that again by network-enabling business applications .”
Harris goes on to say that digital ecosystems are by their nature diverse and complex – that it ’ s not just suppliers but also service providers , logistics carriers , original equipment manufacturers , contract manufacturers , and many more .
“ This is why on SAP BN we use the term ‘ trading partner ’ to reflect the many types of businesses operating on the network ,” Harris says .
Neither is SAP BN built solely around suppliers , because it has process areas also around procurement , logistics , assets , finance and talent .
And as well as embracing multiple functions , the SAP BN ecosystem is multitiered . At the top level is the tier-one network , which are the immediate suppliers to a buyer , where the network helps customers achieve better working capital management , for example . Next , is the ‘ Tier N ’ network . “ This is where we are building value chains across an entire industry and often spanning industries ,” Harris explains . “ We ’ re helping customers gain insights into their end-tier
SAP BUSINESS NETWORK INVOLVES A TOTAL OF
US $ 4.9tn
IN SPEND ANNUALLY
“ SAP ’ s overall vision with Business Network is to help companies leverage intelligence to be more resilient ”
TONY HARRIS CHIEF MARKETING & SOLUTIONS OFFICER
SAP supply chain , via our material traceability solution that supports both batch and serial-number tracking at various stages of a product life cycle , from materials or components from one supplier up to the finished product sold by the final company .”
The third tier is the B2B marketplace . Many digital ecosystems claim such marketplaces but , says Harris , the truth is that many of them are in fact point-to-point networks , or private networks , whereby a supplier establishes unique connections over and over again with each buyer . That , says Harris , “ is purely about a transactional exchange ”.
He adds : “ Now with SAP BN we have a trading partner directory enabling every company on to market themselves with a rich profile that includes details such as their ESG credentials , which . “ They can also publish their entire catalogue , so buyers can more easily discover potential new suppliers .”
Another powerful benefit of supplier ecosystems is cost control , says Harris .
“ Disruption has exposed the fragility of supply chains ,” he says , “ but because a business network can provide visibility across the supply chain , companies can anticipate issues that may arise .”
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