Gaining Deeper Visibility into Your Value Chain with Supplier Infonet


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This is your opportunity to hear how SAP’s Supplier InfoNet has been integrated with the Ariba Network--aggregating data from online activity with external sources, and delivering actionable intelligence at the point of decisions. Deeper and more complicated value chains decrease visibility and the opportunity to quickly react to challenges and disruption. Supplier InfoNet will exponentially expand the collective intelligence of Ariba Network participants by compiling, analyzing, and interpreting the multi-tiered, inter-enterprise interactions within this global community. Supplier InfoNet is a cutting-edge solution that helps you mitigate supply risk to protect your company’s brand, market share, and shareholder value. It quickly identifies concerns that can cause significant disruption. Don’t miss this session to learn how Supplier InfoNet can benefit your organization.

Published in: Business, Technology

Gaining Deeper Visibility into Your Value Chain with Supplier Infonet

  1. 1. #AribaLIVE Gaining Deeper Visibility into Your Value Chain with Supplier InfoNet David Charpie, Vice President & General Manager, SAP Labs, Inc. March 19, 2014 © 2014 Ariba – an SAP company. All rights reserved. @ariba
  2. 2. Business disruptions create several pitfalls for executives  They can impact current and potential Market Share  They can have a significant effect on Shareholder Value  They can permanently tarnish your Brand The Impact of an Increasingly Integrated Global Economy Fundamental changes to the way firms do business today
  3. 3. Complex Value Chains Create New Risks Dependency on suppliers increases disruption potential • Companies must understand supply network to mitigate impacts of unexpected operational events • New systems needed to reveal relevant events, enabling near real-time responses  Revenue loss – Air India claimed revenue loss of around $1.5 billion due to 787 production delays  Reduced profits – Toyota’s profit crumbled over 75% after part suppliers shut down  Brand damage – Mattel experienced brand damage and costs of $30 million after recall for lead paint. • By enabling software with content, companies combine internal knowledge with external insight – and can act in real time upon unforeseen events 1 Gartner, IDC
  4. 4.  To address these critical issues, Ariba is offering a cutting edge solution that can leverage the intelligence resident in the Ariba Network to provide an early warning system to identify potential disruption in the value chain  Properly leveraging this solution will provide important benefits, including:  Establishing more trust with your customers by delivering increased transparency throughout your entire supply chain  Providing your executive team more peace of mind through early warnings of potential supply chain disruptions  Demonstrating organizational commitment to your shareholders by predicting and avoiding the unecessary costs associated with poor supplier performance  And because this is a cloud-based solution it is straightforward and cost-effective to deploy Ariba’s Solution – Supplier InfoNet
  5. 5. What is Supplier InfoNet? And how does it address my supply management needs?  A big data network for supplier intelligence that enables firms to attack potential disruptions and drive stronger performance across their multi-tiered value chain  Peer into the sub-tier and find the risk  Capture relevant news – as it happens  Compare your partner’s performance to how they perform for others  Mitigate risk from a variety of perspectives  Collaborate more effectively  Track the overall health of your value chain
  6. 6. Supplier InfoNet = Proactive Intelligence Cloud-based network to minimize supply chain risks Is there a problem with my supplier’s suppliers (sub –tier)? Do they perform well for me? For others? Will my suppliers behave the same in the future? Gain Instant InsightsProactively Monitor and Predict Risks Track and Manage Supplier’s Performance HANA based Content Factory Supplier Network Information Government / public data, Licensed 3rd party data, Newsfeeds Your Business Systems
  7. 7. Uniquely Informed Decision Making Big Data Analytics, Machine Learning Algorithms, NLP Supplier InfoNet Data Pools Your Business Systems Supplier Network Information 3rd Party Information Predict company performance using KPIs Machine learning algorithms Extract and classify news events Language processing and text analysis Combine structured & unstructured data Network Intelligence
  8. 8. Supply Chain Disruption Alerts Relevant & timely information on issues you care about • Acquisition • Bankruptcy • Business Selling Unit • Counterfeit Parts • Corporate Responsibility • Debarment • Environmental Issues • ERP Implementation • Layoffs • Leadership Change *Alerts types are frequently updated based on customer requests • Litigation • Site Damage • Site Disruption • Site Launch • Site Technical Problem • Workload or Production Change • Supply Problem • Contract Awarded • Patent Issued or Upheld
  9. 9. Understanding Trading Partners InfoNet to leverage the power of the Ariba Network External Events Tier 2 Supplier Tier 1 Supplier Customer & Supplier 1 Customer & Supplier 2 Supplier 3 Customer 1 Supplier 2 Supplier 1 Customers can be Suppliers, too Monitor external events Supplier Risk Exposure Collaborate with suppliers Drive Tier-1 supplier performance Understand and mitigate business disruptions. YOU Multi-tiered Supplier Risk Exposure
  10. 10. SAP Supplier InfoNet Multi-tier Business Network intelligence Cloud-based service Proactive supplier risk information HANA powered comprehensive database Demonstration
  11. 11. A Big Data Network for Supplier Intelligence Designed to help our customers stay informed  Supplier InfoNet is continuously updated from over 160,000 global sources  Intelligent algorithms created to stay on top of key events  Over 500,000 articles are processed daily  Alerts are received on suppliers and sub-tier suppliers
  12. 12. How Customers Use Supplier InfoNet A system to proactively address unexpected events • Key insight assisted in supplier negotiations  Situation: July 2013, auto manufacturer renegotiating with high intensity discharge ballast supplier receives notification of price-fixing conspiracy.. • Project timeline protected by immediate information  Situation: Electronics firm informed fiber-optic cable supplier sustained $35 million in flood damage, forced to close for 30 days • Firefighting costs reduced due to proactive notification of site shut down  Situation: March 15, 2012, rotating equipment manufacturer received alert that primary chemicals provider shutting down manufacturing site in Wesseling, Germany in October 2012
  13. 13. Simple to Deploy, Cost Effective to Use Reduce the cost of managing your supply base Content Factory: Enriches supplier information  Cleansed, harmonized and enriched data  Matched at event, supplier & commodity levels  Enhanced with predictions, insights and signals  Anonymized to ensure data security and privacy Visualization: Business context decision support  Real-time alerts and risk predictions  Powerful KPI benchmarks  Intuitive views into your sub-tier supply base Content Capture: Collect all relevant supplier data  Easily onboard suppliers and “suppliers’ suppliers”  Capture unstructured data from 160,000+ sources  Benefit from the “network effect”  Accurate information  Good coverage of “emerging markets”  Manage supplier risk well beyond Tier 1 N-Tier Network VisibilityAlerts Benchmarks Content Factory Cloud solutionHANA- based Supplier Network Information Government / public data, Licensed 3rd party data, Newsfeeds Your Business Systems
  14. 14. Special Ariba Live! Offer On Supplier InfoNet contracts signed before June 30, 2014 • Applies to: First 10 Ariba Spend Visibility customers to purchase InfoNet • Requirements: 1. Execute contract for Supplier InfoNet before June 30, 2014 2. Load all your Spend Visibility suppliers into Supplier InfoNet too 3. Identify 5 of your suppliers whose supply bases you want loaded/to link to • Offer: 1. Supply bases(1) for 5 identified suppliers loaded at no additional charge 2. One month of web-based implementation & training services provided free (1) Only the portion of the supply bases electronically matched to the Ariba master reference file (i.e., using computer algorithms and requiring no manual services) will be loaded into Supplier InfoNet
  15. 15. © 2014 Ariba – an SAP company. All rights reserved.15 Thank you Contact information: David W. Charpie Vice President (781) 852-9237
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