Transformation

The business environment has been changing more rapidly in the last few years than ever before. Industrial Machinery & Component companies don’t compete only on the products and services they provide to their customer base, but more and more on the business networks that Industrial Machinery & Components companies are able to manage more efficiently.

Business process improvements were mainly driven in streamlining the internal procedures and organizations while working on a consistent set of data accessible from various sources.

Looking beyond the company boarders, more than 80% of the transactions like purchase orders, and invoices are still paper-based in the Industrial Machinery & Component industry.

Nevertheless, IM&C companies have also implemented automated processes among external business partners like suppliers.  However, those processes were often singular processes using costly point-to-point connections.

Additionally, due to less harmonized business processes with limited insight, maverick spending, delayed payments, and overpayments can occur, while working capital can be tied-up and not used to support a growth strategy.

Business in a Networked World

With the latest technology developments, real business networks, which go beyond the traditional way of connecting companies, people and processes, can be realized.  Business Networks are the sources of differentiation resulting in a new level of competitive advantage.  Additional insights into the dynamics of the networked economy can be gained by clicking here.

Business in a networked world means:

  • 100% Digitized transactions across end to end processes for all types of trading partners
  • Access to a network of suppliers to meet any business need globally
  • Better approaches to manage working capital
  • Lower spend, lower risk, and greater visibility

Customer Value 

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Specific Benefit Examples

  • Cut sourcing, procurement & finance costs by over 70% through efficient supplier processing
  • Lower unit prices by as much as 14% in some categories, lowering costs, & increasing margins
  • Tighten controls of terms with suppliers by over 60%, resulting in up to 4% compliance savings
  • Speed up the process, freeing up capital by over 20%, yielding higher internal rate of return on payables cash, & strengthening the cash conversion cycle

SAP Provides a Holistic Supplier Collaboration Solution centered on the ARIBA Network

Ariba is the leader in cloud-based procurement, invoice solutions, and business networks.  The problem it solves is quite straight forward.  Ariba eliminates all the hassles, paper, phone calls, and other manual or disjointed activities companies perform each day to find new suppliers or business opportunities, place or manage orders, collect money, and collaborate with trading partners.  The ARIBA network enables more than 50,000 active suppliers in the Industrial Machinery & Components Industry.

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Buy

Manage Cash

Sell

  • Supplier Discovery
  • Strategic Sourcing & Contracting
  • Procurement & Order Collaboration
  • Commodity Management
  • Collaborative Invoice to Pay
  • Dynamic Discounting
  • Supply Chain & Receivables Financing
  • Marketing
  • Sales
  • Servicing
  • Fulfillment
  • Bill Presentment
  • Payment

The on-demand ARIBA procurement solution is supported by the ARIBA network. The ARIBA network is the largest and most global business networks connecting buyers and suppliers to discover, connect, collaborate, and interact more efficiently than ever before.

The ARIBA networks simplifies and eliminates the burdens of business-to-business connectivity by providing customers with a single, standard, and integrated solution to manage all their purchase, invoice, and payment transactions with all of their trading partners.

The ARIBA network is the perfect solution to connect all your suppliers in a single and cost effective way and not limiting the automated collaboration activities to only key suppliers.

The ARIBA solution is integrated with the SAP Business Suite, providing the foundation that Industrial Machinery & Components manufacturers need to leverage their existing IT investments while anticipating and taking advantage of the emerging trend toward on-demand applications.

New Revenue Opportunities for Industrial Machinery & Components

Industrial Machinery & Component companies are continually searching for new business opportunities and ways to eliminate waste.  ARIBA provides solutions than can also be used to explore new routes-to-market.  The ARIBA solution provides capabilities that Industrial Machinery & Components companies can use to offer customers spare, service, and maintenance parts to their customers, above and beyond simply selling them the original equipment. This type of solution selling and offering different market channels could result in as much as 15% in increased sales and a greater overall market share.

The Ariba Cloud & Network Solution Portfolio

You can start leveraging the Ariba cloud & network solution portfolio right now.  Below please find the key solution portfolio items that Industrial Machinery & Component companies could apply to establish a network-driven business model.

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More information about the ARIBA solution and customer successes can be found at www.ariba.com

I look forward to receiving your comments and insights around business networks in the IM&C space.

Sincerely,

Patrick Lamm

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1 Comment

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  1. James Marland

    Great intro to the value of Networks in IM & C. We are seeing huge potential for Plant-based spend (belts, motors etc.) essentially hooking up SAP PM to the Ariba Network. This is non-disruptive and high value, and can lead to lower safety stock levels.

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