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Supply Chain Visibility/Impact Analysis by Supplier Country, Region on Ariba Network

We are happy to announce enhanced reporting capability to help our customers of Ariba Network and SAP Ariba Supply Chain Collaboration for Buyers (For Buyers, Planners or Suppliers) to assess the impact of the current global crisis on their supply chains.

This is a simple effort by us to help customers by delivering pragmatic capabilities now in a self-service and secure way.

“Supply-chain visibility tools work only when the people who need the data can access it, without advanced database skills or support from IT specialists.” McKinsey

New Enhanced Capability

The report provides critical data needed by the customers to assess impact based on supply location like shown below

Order Information

  • Purchase Order
  • Purchase Order Line Item Number
  • Quantity
  • UOM
  • Amount
  • Currency
  • Part Number
  • Part Description
  • Customer Part Number
  • Manufacturing Part Number
  • Order Status
  • Delivery Date
  • Ship to Name
  • Ship to Street Address
  • Ship to City
  • Ship to State/Province/Region
  • Ship to Country

Supplier Information

  • Supplier
  • Supplier Email
  • Supplier Street Address
  • Supplier City
  • Supplier State/Province/Region
  • Supplier Country

Related Confirmation and Shipment/ASN Status Information

  • Total Confirmed Quantity
  • Total Unconfirmed Quantity
  • Total ASN Quantity
  • Pending ASN Quantity (Due Shipment)
  • Total Received Quantity
  • Pending Received Quantity (In-Transit)

Download the report to do further analysis.

 

Recommended Best Practices, use as applicable*

Define the Risk

pandemic

Identify the Risk

Develop a commodity-based strategy.

First, follow up with your key suppliers regardless of their location and have contingency plans in place to ensure smooth supply.

In the manufacturing industries, assembly operations shut down in most cases as a result of missing non-critical components instead of well managed critical components. Hence, As a next step ensure you analyze the overall supplier base including non-critical components.

Identify regions of the world that are impacted by the current crisis.

You could use the World Health Organization (WHO) provided current situation dashboard

Image Source: https://www.who.int/

Province/State level CSV files are available here

Assess the Risk 

Customers can use the downloaded report from Ariba Network to assess impact by filtering related suppliers from highly affected regions of the world. For example China, Hubei province or  Italy, Lombardia region or the United States, Washington State.

Based on the related information like Purchase Orders, Materials and related Confirmation or Shipment/ASN status, assess the impact from affected suppliers.

Suppliers of Ariba Network can also use the same report and assess the impact of the open demand/ fulfillment needs of all of their customers across the network based on the Ship-to information. This is a true differentiator of global many to many networks like Ariba Network.

Response Planning

Establish a cross-functional team and perform organizational risk analysis including assessing the impact on your end customers and financial impact analysis. In the current situation, none are completely immune from the impact of this crisis. In most cases, the overall demand for products/services is expected to change drastically. Hence it’s important to do holistic demand and supply analysis before taking any specific concrete measures.

Implementation

Customers can use this information to perform internal risk mitigation measures and take action like contacting the supplier to assess their ground situation instead of purely relying on data from other sources. For the initial pulse check, you could use Qualtrics Supply Continuity Pulse. (you could use the built-in messaging within Ariba Network or  Quality Review capability part of SAP Ariba Supply Chain Collaboration for Buyers for a closed-loop collaboration with impacted suppliers)

Based on the outcome, take appropriate actions to mitigate the risk. Following are a few options

  • Working with your suppliers review overall status, including labor, raw material, and logistics constraints. In case of anticipated disruptions in specific supplier regions, evaluate if alternative low-risk supplier locations from the same supplier or other dual sourced suppliers could meet your business needs.
  • Expediting shipments. Example: By Air instead of by Sea.
  • Re-evaluate inventory strategies across the supply chain.
  • Consider in house production and next-generation manufacturing technologies like 3D printed components (as a stopgap solution for low volume short term needs)
  • Finding alternative sources of supply. You could use SAP Ariba Discovery. Currently, SAP has opened this to anyone, free to post, free to respond.

In the case of new Suppliers, you could perform the following additional tasks depending on the commodities sourced and your related business needs.

  • Use SAP Ariba Strategic Sourcing suite to perform deeper strategic sourcing with potential suppliers and establish new contracts.
  • To address new constraints across the supply chain including demand, supply, and internal operations, use SAP Integrated Business Planning for Supply Chain to redo holistic planning.
    • Please review the related blog post for details. Section 3 covers how customers could use SAP Integrated Business Planning for Supply Chain integrated with SAP Ariba Supply Chain Collaboration for Buyers to develop a new un-constrained plan by collaborating seamlessly with their suppliers.
  • Drive MRP along with operational procurement from SAP S/4HANA and continue collaborating with new trading partners using SAP Ariba Supply Chain Collaboration for Buyers to ensure business continuity.

Review and update

As the situation stabilizes, do not forget to do a review and update your risk management procedures to ensure you have a formal risk management process in place to pro-actively deal with crisis situations in the future.

You could use SAP Ariba Supplier Risk to manage supplier risk.

 

Guidance on creating the report in Ariba Network

Step 1:  Go to Reports, Create a new report with Report Type – Open Order Report(Supply Chain Impact)

Step 2: Schedule it at your preference

Step 3: Set parameters as per your business needs

Step 4: Run the report. After status changes to “Processed”, you can download the file to your desktop and open it in Excel for further processing.

In addition, Customers also have the ability to send reminders to pre-selected suppliers for delayed ship notices/receipts and the ability to change logistics providers for current active orders**.
The following are some related business rules in Ariba Network.

If you have any additional requirements for this topic, please use the SAP Customer Influence channel.

For SAP Ariba Buying and Invoicing customers primarily focused on in-direct spend categories, Please refer to related guidance.

* Ariba Network and SAP Ariba Supply Chain Collaboration for Buyers have very diversified customers across all regions of the world from different industries transacting across all spend categories. The recommendations were made to cater to this diversified audience. Please do keep this in mind while evaluating the recommendations as some of them may or may not be applicable to your enterprise.
** Currently in Limited Availability,  customers can create Support Request to activate these features.
Note: Images shown in this blog post are screenshots from Ariba Network.
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