The SAP Business Network: A Game-Changer for Supply Chain Efficiency and Predictability

As the host of the Digital Supply Chain podcast, I was thrilled to have the opportunity to speak with Muhammad Alam , the Product and Engineering Leader and General Manager for SAP's Business Network. Muhammad is a seasoned veteran in the technology industry, having spent 18 years at Microsoft before joining SAP just 10 months ago.

Muhammad's role at SAP is a unique one, as he is responsible for product engineering and product strategy for a portfolio of products that include Ariba (SAP's procurement applications), Field Glass (SAP's external workforce application), Concur (SAP's travel and expense application) as well as SAP Business Network. He also leads the go-to-market sales, customer adoption, and services aspects of the Business Network.

For those who may be unaware, SAP Business Network is a powerful tool that brings down silos within a company's value chain to create value for the organization and its trading partners. It allows for seamless collaboration, rather than just transactional relationships, with tier one trading partners, such as indirect suppliers, direct material suppliers, equipment suppliers, carriers, financial payment providers, and talent providers. But the real value of SAP Business Network lies in its ability to go beyond tier one, into what they call "tier N" or tier two, and onward.

During the podcast, I asked Muhammad about the challenges of joining a business network and implementing it. He acknowledged that it can be a difficult task, but emphasized that SAP has a unique advantage in that they already have a large network in place with Ariba, which has millions of trading partners, thousands of buying organizations, trillions of dollars of transactions, and hundreds of millions of transactions happening on a quarterly and annual basis. Additionally, SAP powers the systems of execution, such as their ERP applications and procurement applications. The magic, according to Muhammad, is in the seamlessness of connecting the network with the systems of execution, which creates a viral effect and makes it easy for organizations to de-risk their supply sources and plan more predictability.

Muhammad also shared some of the successes that customers have had with SAP Business Network, such as increased on-time delivery by up to 6%, reduced fulfillment lead time by 8-23%, and reduced money spent on expediting goods by 40%. These are significant improvements that can have a major impact on an organization's bottom line.

But it's not just buying organizations that benefit from SAP Business Network, trading partners also see value in being part of the network. It provides them with a low-cost channel for acquiring new customers and fulfilling orders in a more predictable way.

Overall, the value that SAP Business Network brings to organizations and trading partners is clear. It's about breaking down silos and creating a seamless collaboration across the value chain, which leads to improved efficiency and cost savings. As the next step, the focus will be on increasing adoption and continuing to drive value for customers.

I hope you found this podcast episode and this blog post informative and engaging. If you want to learn more about SAP Business Network and how it can benefit your organisation, check out the case studies and resources available on SAP's website, and be sure to follow the Digital Supply Chain podcast for new episodes with expert insights and industry news every Monday and Friday.