Greg kicked off the session by introducing the Ariba Company ( and explaining the business reasons and go forward plan for the new Ariba (Leader in Business Networks & Spend Management) as part of SAP (The leader in enterprise applications) and how “we are combining the best of both companies for unsurpassed business collaboration and performance”.
Greg explained the concept of the Ariba Network and how “commerce Graph-aware business applications, like Ariba Network, are inherently more intelligent and will affect the next wave of business productivity”. He discussed haw a true business network is:
Greg used findings from a recent McKinsey report (“The Rise of the Networked Enterprise) to make the point that “networked enterprises were 50% more likely than their peers to have increased sales, higher profit margins, gain market share, and be a market leader.”
Hans took over the session to delve more deeply into what that means to a supply chain executive. He discussed how ”companies are doing business in an
environment where supply chains are under increased pressure and where EVERYTHING is a balancing act”. He gave some examples of this and how we are balancing a demand picture that is increasingly volatile and supply and resulting logistics processes that are increasingly complex and
difficult to quickly respond to this volatility. He also explained that with the advent of the internet and social media consumers and customers are more informed than ever before, and this raises customer service expectations. From a logistical perspective delivering the “perfect order” is a balancing act between on-time delivery and the cost of profitably delivering the agreed level of customer service. And on the supply side, customers are again demanding higher quality products, but we face the eternal request to “reduce supply chain and production costs”
On top of all this, we are in an era of ongoing economic uncertainty fraught with changing buyer behavior and consumer spending that is increasing only
marginally. Balancing costs with prices, service levels, and promotion within the supply chain has never been so critical.
It’s time to rethink our Supply Chains
Hans explained that “the companies thriving in this environment treat the supply chain as a strategic initiative and use their understanding of the market and
fluctuating demand patterns to adjust their supply plans in real time”. Supply chain decisions must be made in context, with full visibility into potential
impacts on financial targets and KPIs. That means harnessing the wealth of big data — structured and unstructured — and turning it into insights in real time.
In addition, collaboration and agile responsiveness across global networks, as well as the ability for business users to quickly and easily sense, analyze,
and simulate information, must become the norm.
In short, he said, “we need to rethink our supply chains and the processes that drive them”:
Road to a Real-Time Supply Chain
Hans went one to talk about the Supply Chain Value map and three main areas that SAP see as strategic moving forward.
Hans finished the session by concluding "Innovations in the supply chain space provides a new opportunity for supply chain executives and IT professionals to rethink their companies supply chain and move to the Real-time supply chain processes".
Thanks to both Greg and Hans for this great introduction to the event.
Follow the supply chain activities on twitter @SCMatSAP