VALUE CHAIN MANAGEMENT
The traditional supplier relationship – built on purchase orders and delivery schedules – is rapidly evolving into something far more strategic. According to Tony Harris, SVP and Head of Marketing & Solutions at SAP Business Network, we are witnessing a fundamental shift where suppliers are becoming true innovation partners rather than mere order fulfillers.
This transformation is being driven by connected platforms that enable realtime data sharing, joint forecasting and integrated workflows across supplier tiers.
The result? Companies are moving from reactive processes to proactive problemsolving and co-development, whether accelerating product design or meeting ambitious sustainability targets.
The numbers tell a compelling story: organisations are seeing forecast accuracy improvements of 19 %, invoice processing times slashed by nearly 50 % and suppliers reporting an average of US $ 2m in additional annual revenue. This represents more than operational efficiency – it signals a new era of supply chain orchestration where collaboration drives resilience, agility and innovation at scale.
19 %
improvement in forecast accuracy
Q. HOW IS TECHNOLOGY TRANSFORMING SUPPLIER COLLABORATION FROM A TRANSACTIONAL PROCESS INTO A TRUE INNOVATION PARTNERSHIP?
» Supplier collaboration is shifting from transactional exchanges to longterm value creation. This transformation is driven by connected platforms that enable real-time data sharing, joint forecasting and integrated workflows across supplier tiers.
With technologies like SAP Business Network, buyers and suppliers move from reactive processes to proactive problem-solving and co-development. Whether it’ s accelerating product design or meeting sustainability targets, suppliers are becoming strategic partners. This transformation reflects a broader move toward supply chain orchestration, where collaboration drives resilience, agility and innovation at scale.
Q. WHAT CAPABILITIES WITHIN SAP’ S ECOSYSTEM ARE MOST CRITICAL FOR FOSTERING CO-INNOVATION BETWEEN BUYERS AND SUPPLIERS?
» Innovation starts upstream. SAP’ s strength lies in engaging suppliers early and consistently across the value chain, from product development through sourcing to execution. Co-innovation thrives on shared data, automated transactions and end-to-end visibility. When suppliers are part of forecasting, design and change management cycles, they can contribute to better outcomes, not just fulfill orders. procurementmag. com 91