sap ariba infographic final v3 · an idc infographic, sponsored by sap ariba for additional...

Today’s Best-in-Class Business PerformanceWon’t Cut It Tomorrow

Bottom-Line Impact on Non-Digital vs. Digital Manufacturers

60%of companies expect to be disrupted

are not ready to meetthese changes

want personalized andsustainable products

and shopping experiences

can mean the di�erencebetween being able to adapt to

new business models andnot being able to adapt

by digitally enabled competitors within 3 years

Digitalconsumers

Manufacturing supply chains

Digitally enabledsupply chains

1.2%2.3%

-3.1%-2.1%

Digital ManufacturersNon-Digital Manufacturers

Revenue Growth

Profit Growth

Supply Chain Performance ImpactsChallenges and Priorities

Top 3 Challenges for Manufacturers

Top 3 Priorities for Manufacturers

35% 31% 25%

New markets

New markets Flexibility Managingoperational risk

Supplier costsSupply chaindisruption

31% 29% 21%

The Solution:An Intelligent Digital Supply Chain

It begins with product or service design and ends with post-sale support.

Intelligent procurementis critical to enabling

the thinking supply chain.

Supply ChainDesign

Supply ChainPlanning

Supply ChainExecution

ManufacturingOperations

Management

Scenario/What If

Inventory Optimization

Factory Run Strategies

Transportation

Order Management

Global Trade

Warehousing

Quality

MES

PLMControl

Source: IDC, 2018

Process Planning

Product Planning

S&OP

Supply Planning

Demand Forecasting & Sensing

LSP Network Optimization

Supply Network Optimization

CAD, CAM, CAE

How Organizations Getto a Collaborative Supply Chain

Supply Chain Maturity Progression

1 2 3 4 5

AD HOC OPPORTUNISTIC REPEATABLE MANAGED OPTIMIZED

Resistant Reactive Connected Resilient Proactive

Supply chain is focused solely onfunctional metricsand performance,without due consideration of the power and disruptive potentialof digital technology.

Some digital capabilities are inplace and the beginnings of supplychain resilience areestablished, but toolsare underutilizedand disconnects still exist.

Cross-functionalalignment drives theadoption of digitalcompetencies;e�iciency ismaximized and thesupply chain isresilient to externaldisruption.

Digitally enabled, thinking supply chainis part of enterprise-wide functional engagement, to respond to external supply chain disruptions and drive new, innovative supply chain approaches.

The importance ofdigital transformationin the supply chainis understood, butthere is still a predominant focuson cost e�iciency, and the ability tomove beyond supplychain functional silosis limited.

The Potential for Dramatic Benefits

More e�ectiveproduct innovation

Superior financial performance

Better service performance

Faster, more nimble responses

Less system disruption, better response

Less waste

About SAP Ariba SAP Ariba is how companies connect to get business done—across direct, indirect, and MRO spend.Leading enterprises use SAP Ariba Solutions for Direct Spend to extend their intelligent enterprisetransformation to their raw material, ingredients, and components suppliers; contract manufacturers; spare parts providers; third-party logistics providers; and other key trading partners. These industry-specific solutions help companies manage source-to-contract processes and collaborate on supply chain planning and execution processes. This helps them gain more value from their ERP, PLM, and supply chain planningsystems while controlling spending, reducing inventory, and improving on time in full. And trading partners connect with profitable customers and e�iciently scale existing relationships—simplifying sales cycles and improving cash control.

All IDC research is © 2019 by IDC. All rights reserved. All IDC materials are licensed with IDC’s permission and in no way does the use or publication of IDC research indicate IDC’s endorsement of SAP’s products or strategies. Document #US45748719

in the Modern Digital Economy

Supply Chain

CompetitiveDi�erentiator

An IDC infographic, sponsored by SAP Ariba

For additional information, please see how SAP Ariba Solutions for Direct Spend supportcompanies in chemicals, life sciences, high tech, industrial manufacturing, consumer products,

retail industries, and more:

http://ari.ba/discrete-manufacturing-solutions http://ari.ba/process-manufacturing-solutionshttp://ari.ba/consumer-industries-solutions http://ari.ba/mro-solutions

&Direct Procurement as a

Source: IDC 2018 Supply Chain Survey, N = 502

Source: IDC 2018 Supply Chain Survey, N = 502

Source: IDC 2018 Supply Chain Survey, N = 502