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 1. Home
 2. Whitepaper asset: IDC Secure the Future: Leveraging Today's Insights for
    Tomorrow's Supply Chain


WHITEPAPER ASSET: IDC SECURE THE FUTURE: LEVERAGING TODAY'S INSIGHTS FOR
TOMORROW'S SUPPLY CHAIN

In this paper, we share takeaways and propose four key actions based on the four
trends in the IDC eBook, Securing Today’s Supply Chain for the Future. Download
the Document

8

100%


Is your supply chain
prepared for
what lies ahead?
Four key actions to
help you prepare
Insights from
IDC Research



Mitigate supply
chain risk
Build resiliency with supply
chain transparency
Drive business outcomes
via sustainability
Increase workforce
resiliency
If your response is, “it’s been challenging,” you’re in good company.
The disruption over the last few years has turned “supply chain” into
a household word.
As we roll through the third year of the pandemic, a few more
challenges have been added into the mix. It’s clear that disruption is
the new normal, especially in our global, interdependent supply chains.
According to IDC, 60% of industrial organizations have ongoing
apprehension about supply chains, inflation, and labor shortages.1
Companies need to have a long-term strategy and plan to
weather whatever disruption comes next.
In this paper, we share takeaways and propose four key actions based
on the four trends in the IDC eBook, sponsored by SAP, Secure the
Future: Leveraging Today’s Insights for Tomorrow’s Supply Chain,
June 2022.
We hope this provides you with some new ideas to get ahead.
We’re here to help.
Introduction
How has your supply chain
fared over the last few years?
Businesses need to rapidly adjust to disruptions by leveraging
digital capabilities, enabling them to restore business
operations promptly and turn changed conditions into
a competitive advantage.
IDC2
Speak with one of our supply chain experts
to help you prepare for what’s ahead:
Jump to key action
1
2
3
4
“
”
2



Given the global disruption and instability over the last few years,
organizations are prioritizing risk mitigation. Business continuity
has become the watchword.
Companies that have digitalized their supply networks to enable
visibility and collaboration with trading partners were much
better positioned to pivot. According to IDC, digital technology
is credited with playing a significant role in improving
agility and resilience for 85% of global organizations
over the last two years.3
Mitigate supply chain risk
Action 1
1 3 Conclusion42
Back to intro
The digitalization of procurement prior to COVID allowed for
mobility of the procurement function immediately. We could
find new suppliers, manage existing suppliers, run auctions,
run contracts, and pay suppliers — having that agility when
everything else was uncertain was a major success for us.
Mohamad Saker
Global Head of Procurement, Al Dahra Group
Read about Al Dahra
• Aim for end-to-end supplier visibility. Automation and
integration are key.
• Diversify your supply base, products, and modes of
transportation.
• Embrace predictive analytics to gain actionable insights,
so you can pivot quickly.
• Retool your organization so that you can act with
speed and agility. Data-driven insights are only valuable if
you can act on them.
• See risk management as a continuous exercise. Have
a back-up plan – you’ve likely needed several over the last
few years.
There’s a whole new intensity around risk because
of COVID-19, cyber security attacks, and supply
chain shortages.
Matt Heinz
Procurement Strategist, IBM
3
“
”
“ ”
Manage risk more effectively:



Nearly 4 in 10 (37%) executives say that most or all of their
procurement processes are manual.4 When it comes to direct
spend, 3 in 10 (32%) still use phone, email, and spreadsheets as
their primary means of collaborating with external partners on
key supply chain processes.5
IDC discusses the need to strive for transparency throughout the
supply chain, sharing data with broader supply chain participants
and stakeholders, often in real time, and enabled through
integration to internal systems. This is not possible when relying on
manual processes & off-line data.
“Ultimately, companies that invest in supply chain data, and
the insights it brings, will see increased visibility, transparency,
and traceability among supply chain partners,” per IDC.
Build resiliency with supply
chain transparency
Action 2
Supplier mapping and monitoring
with IBM
In 2016, well before the pandemic, IBM started
mapping its direct suppliers and gained a holistic
view, which enabled it to continue delivering
throughout the COVID-19 disruptions.
IBM’s mapping of its direct suppliers shows supplier
information, location, and types of parts supplied.
This map is integrated with a tool that monitors
over 3 million media outlets to identify supply chain
disruptions that can potentially affect suppliers.
The analysis includes supplier location and what
is procured. This information is automatically
presented to key personnel. Such information
supports decisions and actions that can mitigate
disruptions, including locating alternate sources
of supply. This mitigation may at times lead to
increased costs, especially for goods in short supply.
However, IBM benefits from the resulting trust
built with clients, and when the pandemic hit,
IBM’s supplier mapping strategy enabled an
understanding of where suppliers are located,
what is procured from each, and level of
supplier resiliency.
1 3 Conclusion42
4
Move towards transparency:
• Continue to automate and integrate – table stakes for
supply chain transparency.
• Create a global map of your supply chain so that you
understand the entire ecosystem and dependencies, and
monitor it in real time (see sidebar).
• Digitalize trading partner collaboration so that you
can communicate in real time or near real time about
requirements, changes, delays, etc.
• Treat suppliers as partners, so it’s easier to be agile
and jointly problem-solve.
Back to intro



Customers are placing increasing importance on the values,
ethics, and practices of businesses they buy from. In order to
achieve environmental, social, and governance (ESG) objectives, visibility,
transparency, and traceability deep into the supply base are required.
Sustainability initiatives must extend from raw materials sourcing, to
last-mile logistics, and even to product returns and recycling processes.
Per IDC, digital technology plays a significant role in accelerating
sustainability outcomes. As organizations pursue ESG projects,
compliance and reporting, transparency, monitoring, and audit
requirements will necessitate digitalization to scale resources and
results across the enterprise. When a supply chain collaborates digitally,
an enterprise is not only able to measure their own sustainability effort,
but the enterprise can compile the overall sustainability of their product
from raw material origin in the chain through to delivery to the end
consumer.
IDC analyzed the profit and revenue performance of 680 manufacturing
organizations against their digital transformation journey and
sustainability performance. Those manufacturers that were digitally
mature, and had high levels of sustainability, outperformed
their non-digital and non-sustainability or low-sustainability
counterparts for both revenue and profit performance.6
Drive business outcomes
via sustainability
Action 3
1 3 Conclusion42
ESG as a corporate initiative is here to stay. The business
benefits are clear, as is the overall goal for global good. Development
of an ESG approach must incorporate both internal and external
initiatives, and it can be seen as a journey rather than an end state.
IDC
5 Back to intro
Drive sustainability throughout your business:
• Build sustainability into business processes.
It’s a journey, not an end-state.
• Demonstrate the business value. Show the link between
investments and achieving ESG goals.
• Source responsibly. See how each supplier fares on forced
labor, environmental, human rights, and ethical sourcing
indexes before you onboard them.
• Work with trading partners to drive ESG objectives
throughout your supply network. Building a sustainable
future takes a village – or rather, a global ecosystem.
You can’t improve what you can’t measure, and digital
collaboration improves measurement along the supply chain.
“ ”
Creating value with SAP
Speak with one of our experienced employees
to help you build a case for change or find some
quick wins to help you with your journey:




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