Every company wants to collaborate with suppliers and manage the entire supply process—from procurement through receipt. The benefits of doing this are huge - all the way from reducing costs to avoiding disruptions and even identifying bill of materials changes in real-time to change product requirements before it's actually ordered.
Today, we will discuss the #1 most important factor that can transform your organization to achieve multi-tier supplier control.
B2B Integration is the #1 most important factor as it forms the basic foundation for supplier connectivity. If this connectivity layer is slow and does not scale well, it is not going to support any initiative that requires better communication with partners.
The biggest benefits of multi-tier supplier control are to manage supplier impacts on your supply chain by increasing your visibility into supplier inventory, planned production, order fulfillment and shipments.
To achieve these benefits you need to exchange more data with partners and this requires more updates to information as things change. B2B Integration typically is used in some shape or form to connect companies and their partners.
Companies use different mechanisms such as VAN Providers, managed services (outsourcing) etc. to connect with Partners and exchange information. What they totally ignore is the fact that supply-chain excellence initiatives require superior B2B integration with faster connectivity and response time that these VAN and Managed Services providers can deliver. That means that you can reduce the cost of doing B2B Integration but cannot use the sub-standard connectivity to build a multi-tier supplier control solution on top of it.
At Software AG, we take pride in the manufacturing excellence and B2B Integration forms the foundation of our Integration driven supply-chain excellence. Take a look at our solutions page to learn more about our multi-tier supplier control solution