Building Efficiencies Through Collaboration
“Lean operations” is no longer a concept, but a necessary practice for companies today. As a result, the pressure to reduce costs while increasing innovation may challenge organizations with the new task of doing business in regions and countries where costs are lower, develop and maintain relationships with global suppliers, or outsource nonstrategic activities to suppliers. In order to do this successfully, a company must be able to easily foster collaborative relationships with suppliers, outsource manufacturers, and customers.
SAP Supply Network Collaboration, included in SAP SCM, provides an efficient way for companies to connect to and collaborate with:
- Suppliers – will have easy access to supply chain information to assist in the process of synchronizing supply with demand.
- Customers – will be provided with broad capabilities for replenishment, including min/max-based vendor managed inventory (VMI) and for exclusion of promotions and transport load building.
- Contract manufacturers – will be provided with seamless access to supply chain information by extending visibility and collaborative processes to their manufacturing processes.
The collaboration benefits that companies will gain by using SAP SCM include the ability to:
- Streamline collaboration with your suppliers, contract manufacturers, and customers
- Significantly decrease procurement, sales, and inventory costs
- Enhance supply chain visibility and increases overall speed, accuracy, and adaptability of your supply network
- Reduce inventory levels while managing variations in supply and demand
- Improve communications and reduces errors and processing costs