partners to connect to your internal processes
automatically, efficiently, and cost-effectively?
Best-practice collaboration models have
emerged across three different dimensions:
Visibility collaboration to provide accurate
status of inventory and inventory movements,
as well as production status and product quality
Planning collaboration to provide timely
information about forecasts and plans, receive
commitments that can be taken into account
in planning cycles, and support inbound-managed and outbound-managed vendor
Execution collaboration to share orders,
receive commitments, track material ship-
ments, and process receipts and payments
quickly and accurately
By streamlining collaboration between your
company and your partners, you can decrease the
cost of procurement, sales,
and inventory processes,
while reducing lead times.
The resulting enhanced
supply chain visibility
increases your network’s
speed, accuracy, and
adaptability, leading to
reductions in inventory,
better product quality,
and improved delivery
The benefits of transforming your
planning and collaboration process will
apply regardless of where your company
is positioned in the supply chain —
whether you’re a distributor, contract
manufacturer, or brand owner.
How SAP Can Help
Organizations searching for a way to develop better supply chain relationships can turn to SAP
Supply Network Collaboration (SAP SNC), an
application that enables cooperation and
knowledge sharing across the supply chain
to maximize visibility, control, and efficiency of
supplier and customer interactions.; Your company can realize several benefits by implementing
2 For a customer success story, see “Window to a New
World: How Lockheed Martin Aeronautics Bolstered
Supplier Collaboration and Revolutionized Its Supply
Chain” by David Hannon in the April-June 20;; issue of
insiderPROFILES ( insiderPROFILES.wispubs.com).
3 For more information about SAP Supply Network
Collaboration, see “ 3 Questions to Ensure You’re
Collaborating Effectively Across Your Supply Chain” by
Sarika Garg and Aviraj Bedi in the July-September 20;0
issue of SAPinsider ( sapinsider.wispubs.com).
collaborative processes enabled by SAP Supply
Network Collaboration. Through these processes,
Optimize visibility by providing a clear, accu-
rate view of supply and demand information to
all supply chain participants. Trading partners
can exchange information about inventories,
forecasts, and commitments, enabling accurate
and fast multi-tier planning.
Increase the speed, accuracy, and adaptability
of your supply network by streamlining and
automating transactional processes between
your company and your suppliers, contract
manufacturers, and customers. Orders can be
transmitted to trading partners and confirmed, and material notifications can be sent.
Alternatively, inbound and outbound vendor-managed inventory processes can be enabled.
Decrease the cost of your procurement, sales,
and inventory processes by improving communication and efficiency. Trading partners
can communicate via one of three mechanisms, depending on their size and the
volumes required: EDI, file upload/download
from the portal, or direct user entry through a
2. Optimize Inventory Across
Carrying appropriate inventory levels is essential
for any demand-driven company. To plan and
execute predictably across extended, complex
supply chains in the face of volatile demand,
companies must have sufficient inventory at critical stages of the supply chain as a hedge against
supply, production, and demand variability. Of
course, carrying inventory costs money, but too
little inventory can result in expensive stockouts
and customer service issues. At the same time,
too much inventory can result in expensive
“excess and obsolete” write-offs, especially in
today’s world of fierce competition and short
product life cycles.
To manage inventories effectively, organizations need optimization techniques and tools
that can analyze existing data to synchronize supply chain operational targets and obtain the
insight needed to make rapid, informed inventory decisions. Best-in-class techniques include
establishing inventory levels as a function of
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