Skip to content
You can only manage what you measure, they say—and rightly so. This is especially true when it comes to supply chain performance. Disruptive change and increasing demands for cost efficiency, quality, and speed present unique challenges. Only by measuring how well it is performing can the supply chain be properly aligned and optimized.This requires a comprehensive, holistic view of supplier performance which goes beyond traditional key performance indicators (KPIs). The evaluation scheme should also provide sufficient leeway and flexibility to respond quickly to internal and external changes. Most importantly, performance measures need to have impact. In other words, they need to shape the way we interact with each other. Therefore, evaluation criteria must be transparent and accessible to all stakeholders, and there must be a proactive, open exchange of information. Only then can both sides improve collaboration.So there are six factors that characterize good Supplier Performance Management: it must be holistic, flexible, binding, transparent, proactive and collaborative. But what does this mean in practice?Holistic Supplier ManagementMore than "just" performanceTraditional metrics such as on-time delivery (OTD), on-time, in-full (OTIF), unit cost, order fulfillment (PO collaboration), and first-pass yield (FPY) are certainly important. But there is more to a holistic picture: There are qualitative factors such as response time, service quality, complaint handling, price stability, and resilience to various risk factors.Another important evaluation category is determined by the supplier's capabilities. This includes factors such as agility and flexibility in the face of change, innovation and speed, the degree of digitization of its processes and, last but not least, sustainability aspects.Only the combination of all these factors provides a complete picture of a supplier’s performance. If you neglect one factor in the assessment, this can lead to significant competitive disadvantages or even serious compliance problems, for example with regard to the Supply Chain Acts in Germany or the USA. Flexible Supplier Performance ManagementCustomized and quickly adaptableEvery business is different. So are their supply chains and supplier relationships. This has an impact on Supplier Performance Management: which topics are important, which criteria are included in which scores and how they are weighted, and who has access to which data internally—all of this varies greatly from company to company.Accordingly, a Supplier Performance Management solution must be individually adaptable if it is to make a value-adding contribution. At SupplyOn, we have therefore placed particular emphasis on the high configurability of our Performance Management solution. With just a few clicks, companies can configure the content and data fields of a table, as well as filters, scorecards and hierarchies.Organizational structures can also be stored to enable multi-dimensional monitoring at the division, plant, or country level. The dashboard, too, is customizable. In the event of organizational changes or changes in the business environment, companies can easily adapt the configurations without any additional implementation effort—and optimally adapt their Supplier Performance Management to their changing needs at any time. Binding Supplier Performance ManagementProviding direction for procurementMeasuring supplier performance is not an end in itself. Supplier Performance Management can only function as an active control tool for supply chain quality if it is closely linked to all downstream procurement processes. In this sense, supplier performance is the supplier sentiment that companies use to decide which materials and processes (RFxs, auctions, orders and contracts) the supplier is qualified for.In this way, the purchasing department can ensure that only suppliers that comply with the company's internal specifications can be selected. This ensures compliance along the supply chain.SupplyOn Performance Management can be seamlessly integrated into internal systems via API, so that even global companies with very heterogeneous IT landscapes can benefit from this company-wide compliance enforcement. The solution also integrates with other SupplyOn solutions such as Supply Chain Collaboration, Sourcing and Quality Management.The aim of all these measures is to achieve an integrated workflow that leads to a continuous improvement in supplier performance—and thus in the entire supply chain.Transparent Supplier Performance ManagementA common understanding between customer and supplierSuppliers can only improve if they know — and above all understand! — how they are perceived by their customers. What metrics are most important, what factors go into a score, and what is actually measured? A supplier must be able to answer all these questions in order to adjust its own goals accordingly and initiate suitable improvement measures.With SupplyOn Performance Management, companies can share the evaluation categories and evaluation hierarchies with their suppliers. This customer-based structure makes it easier for suppliers to understand the reasons behind certain scores. Info buttons explaining the calculation of the respective KPI and traffic light functions also help to make this easier to understand.All of this ensures that both sides have the same view of the data and therefore the same understanding of supplier performance Proactive Supplier Performance ManagementAutomatic trend monitoringThe sooner companies and suppliers can take action on performance issues, the better. This requires up-to-date data. SupplyOn Performance Management uses automated processes and API connections to continuously collect all data in real time. Trend analyses provide a quick overview of improvements or deteriorations compared to historical data, making lengthy analyses a thing of the past. This enables companies to proactively take appropriate development and improvement actions for their suppliers and store them directly in the system.In the future, AI functionalities will further expand this proactive approach in SupplyOn Performance Management by automatically identifying optimization potential for suppliers and suggesting appropriate measures.Collaborative Supplier Performance ManagementWorking as a teamThe customer-supplier relationship is not a one-way street. It thrives on productive collaboration on both sides. Supplier Performance Management should reflect this collaborative approach. After all, different perspectives can quickly lead to misunderstandings and feelings of unfairness if not discussed.For example, last month's on-time delivery (OTD) score may have been 80 instead of 100 according to the customer's data, but when discussed with the supplier, it turns out that the late delivery was due to weather-related accidents and traffic jams—factors beyond the supplier's control. Both parties can then agree to adjust the score accordingly.For this exchange between customer and supplier, SupplyOn Performance Management offers convenient comment functions, the option of setting up measures and an integrated supplier self-assessment. Here, suppliers can present their own performance or capabilities and initiate a collaborative exchange with their customers.But collaboration is not just about individual scores. It is also about the customer and supplier working together to improve overall supplier performance.Bottom lineEmbedding all six aspects into Supplier Performance Management leads to more harmonious relationships because it enables collaboration on an equal footing. Suppliers are seen as equal business partners, pulling in the same direction as their customers, with the goal of continuously improving processes and collaboration. Suppliers can tailor their activities and actions to the needs of their customers and continuously analyze their progress. This enables companies to develop their suppliers efficiently and strengthen their own competitive position.The combination of these two perspectives makes Supplier Performance Management a powerful lever for increasing the resilience, efficiency and sustainability of the entire supply chain. At SupplyOn, we integrate these two perspectives through close cooperation with companies and suppliers. In this way, we continuously gather valuable feedback from both sides to continuously expand the SupplyOn Supplier Performance Management solution, integrate the latest technological advancement and improve it even further. As a result, companies and suppliers can work most efficiently and always stay one step ahead of the competition.
Unfortunately, cybercriminals continue to gain access to corporate IT infrastructure, encrypt data, and then demand large sums of money to "decrypt" it. The impact on affected companies is devastating! It often takes several months before they can operate as they did before the attack.Even if your company has planned for this eventuality: What if one of your key suppliers is affected? How long can you produce without them? How can you continue to manage the relationship if EDI is down and email is out?True to the motto "better safe than sorry", we at SupplyOn offer our customers the creation of an emergency plan for such cases - before the disaster strikes. The aim of the plan is to implement and support an orderly and monitored cooperation with the affected companies within 24 hours. All order types such as JIT/JIS, orders, KANBAN or VMI, etc. can be integrated.In the first step, our experts work with the client to develop a customized contingency plan and define the necessary adjustments and actions. The second step is to define the preparations for the emergency. Once all the necessary actions have been defined, the plans are communicated - in paper form, of course - along with all the key contact information. This ensures that the right people in your organization are notified in the event of an emergency, for example, via their personal cell phones.In the event of an emergency, you and the supplier concerned initiate immediate measures and determine the next steps together with SupplyOn. This includes the immediate registration and activation of the supplier on the SupplyOn platform as well as the transfer of open and current orders and delivery schedules to the Supply Chain Collaboration solution. Together with our consultants, the first steps with the supplier are then carried out and monitored. The support provided by SupplyOn gives the suppliers concerned peace of mind and avoids unnecessary delays and queries to Customer Support.The package offered by SupplyOn supports your suppliers in the first steps out of the chaos and on the way to an orderly production process. In addition, the SupplyOn platform prevents the malware from spreading to your company and ensures that business can continue to be conducted electronically as before.Got curious? Then get in touch with us below.
In today’s dynamic marketplace, staying ahead of the competition means being agile, efficient, and customer-focused. Achieve unparalleled supply chain excellence by integrating sales and operations planning (S&OP) on the buyer's side with robust capacity management on the supplier's side with SupplyOn Capacity Management. This strategic alignment not only optimizes resources but also drives substantial financial benefits.Why integrate S&OP with supplier capacity management?Enhance forecast accuracy: Synchronize your sales forecasts with supplier production plans to accurately manage demand. The benefits include minimizing stockouts and excess inventory, boosting customer satisfaction and reducing costs.Optimize resource utilization: Leverage your supplier's capacity knowledge to ensure resources are used efficiently. This reduces operating costs and increases productivity by balancing workloads.Improve market responsiveness: Quickly adapt to market changes with real-time data sharing and collaborative planning. Reduce lead times and improve your ability to respond to customer demands quickly, resulting in greater customer satisfaction.Reduce costs and maximize profits: By optimizing stock and avoiding supply chain disruptions you can capitalize on improved profit margins and cash flow for greater profitability.While the benefits of integrating S&OP with supplier capacity management are clear, achieving these advantages requires a structured approach and the right tools. Organizations need a systematic strategy to transform their supplier relationships from traditional buyer-seller interactions into true strategic partnerships. The following steps outline how to build and maintain such an ecosystem, leveraging digital solutions like SupplyOn Capacity Management to enable seamless collaboration and real-time visibility.Strategic steps for building a successful ecosystem with your suppliersBuild collaborative relationships: Foster strong partnerships with your suppliers through transparent communication. Establish regular joint meetings and collaborative platforms such as SupplyOn Capacity Management for seamless information exchange.Develop joint forecasting processes: Align demand forecasts with supplier capacity capabilities through collaborative planning and management. Conduct monthly meetings where buyers and suppliers jointly review and adjust forecasts and capacity plans, supported by seamless integration of S&OP planning with SupplyOn Capacity Management.Conduct regular capacity assessments: Assess and understand the capacity constraints and capabilities of your suppliers. SupplyOn Capacity Management provides early warning of impending shortages and helps to proactively manage potential bottlenecks.Leverage advanced analytics and scenario planning: Evaluate different demand and capacity scenarios to prepare for market fluctuations. What-if analysis tools for stress testing supply chain scenarios, developing contingency plans and SupplyOn Capacity Management's simulation of best capacity strategies help to avoid bottlenecks and ensure financial benefits.Align performance metrics: Establish common Key Performance Indicators (KPIs) to measure and drive performance across the supply chain. Collaborative monitoring of metrics such as forecast accuracy, lead time, and service level performance ensures a reliable supply chain and reduces costs.Enhance flexibility and responsiveness: Implement agile supply chain practices to quickly adapt to changes in demand. Digitization with SupplyOn Capacity Management enables flexible manufacturing agreements and agile production schedules.Realize the full potential of your supply chainBy integrating S&OP with SupplyOn Capacity Management, you can create a resilient, responsive, and highly efficient supply chain. This strategic alignment will not only optimize the use of resources, but will also lead to significant financial gains.Experience the transformation:Demand management: Achieve accurate forecasts and optimal inventory levels.Capacity management: Utilize supplier capacity efficiently to reduce costs.Financial outcomes: Increase revenue, improve cash flow, and maximize profitability.Take the next step towards supply chain excellence. Contact us today to learn how our integrated S&OP and Capacity Management solution can drive your business forward.Your success is our priority. Let's build a better supply chain together.
On March 22, 2024, the Growth Opportunities Act was passed by the Bundestag and Bundesrat in Germany. With the introduction of this law, the federal government aims to boost Germany's attractiveness as a business center.Part of the Growth Opportunities Act is the introduction of mandatory eInvoicing in Germany. Domestic invoicing is to be digitized through the gradual introduction of electronic invoice formats. The clear goal: no more paper and no more PDFs.Two standard formats have been defined for electronic invoices: X-Rechnung and ZUGFeRD.X-Rechnung is a pure XML format and has already been known in the business-to-government environment for a few years.ZUGFeRD, on the other hand, is a hybrid format. Here, a human-readable and interpretable PDF invoice is embedded in a machine-readable XML file.An overview of the exact timeline for the introduction and who is affected and when:From 2025, all companies must be able to receive e-invoices in the formats defined by the government. Regardless of company size or turnover.In 2027, only smaller companies with an annual turnover of less than 800,000 euros will be allowed to send PDF and paper invoices.From 2028, these formats will no longer be permitted. X-Invoice and ZUGFeRD invoices will then be the new standard. The use of alternative electronic invoice formats remains permitted as long as the formats are compliant with EU standard EN16931.EDIFACT was controversial for a long time. Business associations have called for this transmission channel to be retained. The government has complied with this request and continues to allow EDI as a transmission channel - subject to the following conditions: EDI data formats must comply with EU standard EN16931 and a bilateral agreement between sender and recipient, i.e. customer and supplier, is required.Unlike other countries, Germany has decided against a central government platform for the eInvoicing model itself. Invoices must comply with the new formats, but the transmission channel can be chosen freely. Germany is therefore taking a different approach to countries such as Italy, where all invoices must be sent via a central government platform.The introduction of mandatory eInvoicing in Germany serves as preparation for the planned EU reform VIDA. VIDA stands for "VAT in the Digital Age" and is an EU initiative. According to the current schedule, from 2028, EU invoices exchanged between two EU countries will only be permitted in a structured and machine-readable format, i.e. EN16931-compliant.At the same time, the introduction of a standardized tax reporting system is planned via VIDA. The EU plan envisages the introduction of central tax reporting platforms at both national and EU level. Companies in each EU country will report their tax data to the national platform, which in turn will forward the data to the central EU portal. For Germany, e-invoicing therefore forms the basis for the introduction of the standardized tax reporting system as part of VIDA.SupplyOn is currently developing an invoicing add-on for Germany that will make it possible to process 100% of invoices received within Germany - regardless of whether the supplier is registered with SupplyOn or not. In addition to receiving the invoices and converting them into a desired target format, SupplyOn also takes over the complete validation of all invoices against previous documents such as the purchase order. SupplyOn can also enrich additional invoice data. All with the aim of achieving the fullest possible automation of incoming invoices on the customer side with a dark posting rate of over 90%.
SupplyOn joined over 4,000 attendees at the 2024 Gartner Supply Chain Symposium/ Xpo in sunny Orlando. Together, we were all on a mission to connect and gather knowledge and insight about the latest supply chain trends and technology to bring resiliency to their organization's supply chain. These are my 5 key takeaways from this inspiring event:Resilience & Risk: The supply chain has always been challenging and fragile, even before the global pandemic. Still, today, disruptions have become more frequent and severe. Analysts advise making changes in supply chains to depart from an “antifragile” state. There must be a focus on resilience and risk management while adopting proactive strategies to achieve resilience.AI/Data-driven Decision-Making: Accurate, up-to-date data has always been critical for supply chains. Organizations must harness the power of data analytics to gain actionable insights, optimize operations, and drive informed decision-making at every level of the supply chain.Digital Transformation: Organizations must fully embrace digital transformation in their supply chains. Technology must be leveraged to enhance visibility, agility, and efficiency across the supply chain.ESG/Sustainability: In my opinion, the US has been slower to move forward with ESG requirements, but this topic is gaining traction, especially as global requirements are impacting the US in multiple ways. Gartner highlighted that ESG is growing recognition within the supply chain. Beyond being kind to our planet, it is clear, organizations must reduce carbon footprint, ensure ethical sourcing practices, and promote social responsibility in order to remain competitive in the global marketplace, while reducing costs.Partnerships: Partnerships are essential for growth and collaboration within the supply chain. Forging strategic alliances with suppliers, customers, stakeholders, and solution providers is critical to driving innovation, mitigating risks, and creating shared value.Partnering with SupplyOn can transform your supply chain to become resilient.SupplyOn offers a comprehensive suite of digital supply chain solutions that align with the key takeaways from this latest event. For over 20 years, SupplyOn has been partnering with organizations to accelerate their digital transformation journey, enhance resilience, promote sustainability, foster collaboration, and leverage data-driven insights to drive competitive advantage in today's dynamic business landscape.
How should complex supply chains be designed so that they are resilient to risks of all kinds and adapt agilely to dynamic market conditions? How can a cost-efficient procurement strategy be implemented that leads to tangible cost savings thanks to intelligent demand bundling and optimized operational procurement processes? How can the interaction with suppliers be optimized so that both sides benefit from maximum efficiency and transparency? One of the key prerequisites is the seamless integration of the entire supplier network into your own business processes - end-to-end via just one central platform.Discover here how an global player in the automotive supply industry managed this balancing act - even though the organization was characterized by a high degree of inhomogeneity due to numerous takeovers. In the course of this project, a uniform IT infrastructure was created and standardized processes implemented for numerous single entities with large differences in terms of degree of digitalization, process design and IT landscape.The first strategic decision on the path to harmonization was to replace the heterogeneous IT system landscape with the company-wide introduction of SAP S4/Hana. It quickly became evident that the harmonization of internal processes and systems would be only the first step and that the supplier processes, which until then had largely been run via Excel sheets and e-mail, would also require optimization. This led to the second strategic decision: to use the migration to digitize and automate collaboration with suppliers at the same time. An established industry solution and a partner with extensive experience in the automotive sector were required here.SupplyOn was chosen for several reasons: Firstly, because of its decades of experience in the automotive business and the resulting numerous best practices. Secondly, because of the comprehensive process coverage and the ability to handle all supplier communication via one platform. And thirdly, due to the high number of connected suppliers and the associated overlap with the company's own supplier base.Reduce complexity with SupplyOnMixed scenarios with several providers were also examined during the selection process, but these were quickly rejected. Not only because external consulting companies such as Gartner clearly spoke out against them, but also because the advantages and synergy effects of a centralized solution were obvious to all parties involved:for suppliers: centralized access to all processes and datafor everyone: no additional and superfluous interfaces that would need continuous updating and be a constant source of errorsAnother advantage of SupplyOn for the customer was the fact that the complexity of the SAP project could be reduced, as SupplyOn offers some of the S4/Hana functionalities including supplier integration as standard. This eliminates the need for additional supplier connections to SAP and customizing, which saves the customer time and money with every SAP update. This applies, for example, to the VMI and complaints process as well as the sourcing process. The target scenario: an end-to-end digitalized world instead of Excel messThe customer's goal was to extend its internal SAP processes end-to-end to the supplier and create a seamless data flow from the internal systems to the supplier and back again - globally, for all plants, for all supplier-related processes, for all suppliers, across departmental and company boundaries. Where Excel sheets were previously exchanged, in future data will be sent directly from the internal systems to the supplier - and the return processes will be correspondingly seamless.This starts with the approval process for a new supplier and extends across the entire supplier lifecycle in all strategic and operational matters - from development and series production through to phase-out.The processes in detailSupplier qualification: The starting point of a customer-supplier relationship is the qualification and approval of the supplier. SupplyOn maps this process, taking into account specific regions and commodities. Upon approval, the supplier is classified and the supplier data is transferred to the internal SAP S4/Hana.Supplier master data management: All relevant data that characterizes a supplier is collected here - contact details, plants, production capabilities, certificates, audit results, classifications, approvals, contracts, etc. A duplicate check rounds off this service to ensure that a unique data record is attributed to each supplier.Sourcing of production material - including technical feasibility check: In addition to the price and commercial conditions, numerous other aspects can be queried during the inquiry process and other divisions can be integrated into the process, for example the development or quality department.Sourcing of indirect materials: The main aim here is to structure and standardize processes throughout the company, in particular to bundle volumes across the entire organization (demand pooling), adhere to compliance guidelines and prevent maverick buying.Start of series production: Standardized processes such as APQP or PPAP can be used to check readiness for mass production, ensuring a smooth ramp-up.Procure-to-pay: An end-to-end process from requirement to invoice enables a highly efficient, largely trouble-free and error-free supply chain. Subsequent processes are based on predecessor documents, which not only eliminates manual effort but also minimizes potential input errors.Supplier lifecycle management: In day-to-day collaboration, SupplyOn can be used to map a permanent control loop that aims to continuously optimize processes and products. The initiative does not originate exclusively from the customer. The supplier can also make suggestions for improvement and initiate changes. This is made possible by a collaborative approach in both directions.Audit Management: Both existing and new suppliers can be qualified and categorized here. The result is saved in the Business Directory. This makes it transparent for everyone what status the supplier has: "preferred", "standard" or "on hold". From there, the supplier can be efficiently developed further.Performance management: Performance data from several sources - from the SAP system, from SupplyOn and from external data providers - is bundled here and displayed to the supplier in a consolidated way for targeted performance improvement. At the same time, scoring is calculated from this data and made available internally, for example to Purchasing and Quality Assurance. This creates full transparency across departments at the level of parts, component lists and suppliers.Complaint management with action tracking: Here, errors are analyzed in a structured manner and resolved systematically - in a way that not only solves the current problem, but also ensures that repeat errors are avoided thanks to process or system adjustments.Risk management: By integrating external risk data providers, threatening situations - natural disasters, crisis hotspots or similar - can not only be identified very quickly, but it is also possible to immediately analyze which plants and parts are affected in order to immediately find solutions and alternatives for potential shortfalls. This makes the company more resilient to risks of all kinds and gives it completely new options for managing and responding to escalation situationsThe interlinking of all these supplier processes via one platform provides insights that were previously not achievable in the silo structure. Processes can be optimized end-to-end for the first time. To give an example, a buyer can no longer enquire about a supplier that has been set to "red" by the quality department. Or they can initiate necessary downstream processes with system support during the sourcing process.Implementation and rolloutA pragmatic approach was chosen for the implementation in order to get up and running quickly: Processes that do not necessarily require backend integration were started immediately via the web interface. These include, for example, the sourcing and complaints process. The interface to the backend systems is planned for a later date.As the S4/Hana rollout at the customer extends over several years - 160 plants are affected worldwide - this approach offers the major advantage that SupplyOn use can be started immediately in all plants, regardless of the status of the SAP rollout. At the same time, the integration of processes that are only manageable from the backend was tackled immediately.On the supplier side, SupplyOn takes care of all the necessary steps to get the 3,000 strategically important suppliers up and running quickly. This includes, for example, a comprehensive communication package, a specific training concept and support for suppliers during registration and day-to-day use. In the long term, a further 7,000 suppliers are to be connected in order to benefit from digitized processes in the long-tail area as well.Strategic goals achieved with SupplyOnIncreased competitiveness through the rapid introduction of proven, industry-standard end-to-end processes with suppliers, which SupplyOn continuously develops and adapts to new requirementsIncreased resilience to risks and in escalation and crisis situationsIncreased agility in order to be able to react quickly to changing economic conditions. Also rapid integration of other acquired entities.Improved cross-departmental collaboration between purchasing, quality management, finance and logistics through the use of one central platformReduced purchasing costs through intelligent bundling of demands across several areas.Higher product and process quality through close involvement of suppliers in improvement processes - including those initiated by the supplierLess frictional and administrative effort thanks to a holistic approach: everything from a single source and all processes via one system
With 100% of processes digitized and automated, a supply chain is a dream for every supply chain manager and the aim of many companies for many years. But why do so few reach the final goal of 100%? In the second episode of Inside Supply Chain, we get to the bottom of this question and also provide the solution - the 3+1 approach.On the home straight: With 80% so close and yet so far awayTaking a look at the example of a global company: Millions of transactions are processed annually in over 60 countries and in 20 different languages. As a result, digitization poses various challenges.Rare contact: The greatest difficulty lies in including business partners in the digital processes with whom only sporadic contact. According to the Pareto principle, these make up around 20% in most companies.Security gaps and the use of different communication channels: Due to the absence of regular exchange, communication often happens via channels such as telephone and e-mail. Not only is this inefficient, but security aspects also play a central role here. Especially in times of data and transactions protection being a top priority.Incorrect master data: If there is no regular contact, contact data is often incorrect or even missing - from changing contact persons to structural changes in the company. There are many reasons for insufficient data quality with infrequently contacted business partners.Increasing demand for compliance and fulfilling stricter ESG regulations: A 100% digital and automated process appears to be essential to ensure not only the efficiency but also the security of the supply chains.Achieving success with the 3+1 approachThe digitization of supply chain processes require not only technical solutions, but also a clear methodological structure. In this context, SupplyOn applies the 3+1 principles, which have proven to be a key strategy for an effective and secure conversion of the previously non-digitalized 20% of the supply chain processes.Principle 1: The transactional approachThe first principle, the transactional approach, extends further than the pure technical use and focuses on the targeted establishment of connections. Here any communication connection is only activated when essential for the process. This means a targeted reduction in unnecessary interfaces. It not only creates efficiency, but also minimizes potential vulnerabilities for security risks.Principle 2: Individual responsibilityThe second principle emphasizes individual accountability in gathering information. Instead of centralized data collection, the responsibility for researching and providing the required information lies with the respective parties. This not only promotes transparency, but also efficiency in fact-finding and reduces redundancies.Principle 3: Data clearing after each transactionThe third principle recommends consistent data clearing after completed transactions. Deleting contact data right after the transaction, ensures that only current and valid data is used for future business operations. This step is not only relevant from a data protection perspective, but also contributes to the quality of digital supply chain processes.The "Plus 1" principle: Monitoring and continuous improvementThe final step, usage monitoring and continuous improvement, closes the circle. It enables the analysis of past transactions, the identification of patterns and the continuous development of the system. By systematically evaluating the processes, weaknesses can be identified, security mechanisms optimized, and efficiency further increased. This iterative approach ensures that digital supply chain optimization is not seen as a singular measure but is continuously adapted to changing requirements.More than just closing a gapThe goal of these measures is not only to close the 20% gap, but also to provide incentives for users to further adopt digitization tools.This initiative also represents a pioneering step towards a digitally optimized supply chain structure in the context of global business activities. It demonstrates that the complete digitization of supply chains are not just steps towards increasing efficiency but also essential for closing security gaps. A consistent implementation of the 3+1 design principles focuses on efficiency, sustainability and security. It also creates a motivating incentive for partners and users to actively participate in this digital transformation.We are convinced that achieving 100% digitization brings challenges, but it is worth facing up to them: The result is a strengthening of competitiveness through increased efficiency - and thus securing the future viability of our customers.
In many companies, the accounting department often runs out of time to concentrate on value-adding activities. Instead, a lot of effort is invested in processing incoming inquiries. Time that is not spent on important tasks. Accounts Payable specialists are well trained and often solve complex financial issues. In most cases, the supplier requests are just about when an outstanding invoice will be paid. Checking the processing status takes up a lot of time, resources and ultimately costs companies unnecessary money.Together with Bosch as a pilot customer, SupplyOn has developed a new Invoicing add-on that provides all suppliers with information on the processing status of their invoices with just one click. The "Payment Status Overview" add-on solves this task via a freely accessible web portal that does not require a login. By entering the invoice number, amount and date, the information is retrieved directly from the customer ERP system and displayed to the user. This allows them to see whether the invoice has been successfully received, is still being processed or the payment is already planned. Any rejection is also displayed in the overview. Further status messages are also possible. Optionally, the payment date can also be retrieved from the customer ERP and displayed to the supplier. The added value of this solution benefits suppliers as well as customers. The resulting advantages include:Suppliers receive a transparent status of the processing status of their invoices at any timeYou no longer need to check the payment date with the customer's supplier accounting departmentFor customers, the solution offers a significant reduction in incoming inquiriesA considerable amount of time and effort can be saved in the accounts payable department this wayThe highlight of the Payment Status Overview solution is its free availability to all suppliers. No registration or password entry is required. By simply entering the necessary document data, it is ensured that no unauthorized access occurs, as only the supplying company and the customer are in possession of this data.Here is a business case calculation from the customer's perspective:Assuming it takes about 10 minutes to process a request - from opening the e-mail, reading the request, searching for the processing status of the invoice, and writing a reply to the supplier. In addition, an hourly wage for a bookkeeper of €30 per hour is assumed. As a result, the cost per inquiry is €5. With 20,000 inquiries per year from suppliers regarding the invoice status, this results an annual saving of €100,000.Further functionalities for the add-on are planned for 2024. These include the ability for suppliers to send specific queries to customers via the web portal in case of ambiguities. This information will be processed and answered by the customer in a targeted manner.
Like most people this year, I had every intention of writing about the New Year in January, but honestly, the busyness of last year never stopped; it carried over not only from last year, but from 2022, through the holidays, and into this year. Now I feel like I blinked and landed in February. It seems only fitting to write about this new year during the Lunar New Year, especially since this is the Year of the Dragon. Dragons are a revered symbol of power and thought. It is considered the luckiest sign in the Chinese Zodiac. If you know me, then you know my pension for dragons. This year, the mythical creature is paired with the element of wood, which is said to bring good fortune, action and growth. What better way to get started on my old 2020 goals that have reemerged from lockdown and new goals than to blaze a new trail on the heels of a fierce dragon? After the pandemic crisis came to a screeching halt, organizations had to scramble and implement stopgap measures just to get by. When we emerged from the pandemic in 2021, it was paralyzing, with an uncertain world around us while we figured out the new normal. In 2022, organizations began to share more about the challenges they were facing and put effort into understanding new ideas and solutions that could change their current state. In 2023, I saw organizations get more serious about change, especially around digital transformation strategies and initiatives. Now, finally, 2024 is the year when organizations will be driven to change.10 success factors for digital supply chain transformationHere are my mission-critical, key factors for successful supply chain digital transformation in 2024 and beyond:True leadership: Digital transformation is more than a one-time mandate from headquarters; it is a true commitment. It requires an ongoing effort from a C-level leader to not only educate and drive this change, but also to bring their best street fighting skills and rocket science thinking cap to ultimately make the change happen.Strong team: Assemble the best teams that get it and share the vision, passion, and drive to work together to understand and document the current situation, research solutions, build a business case, plan deployment, lead internal and external change management, launch, and work to continually improve processes and the solution.Partnership: Digital transformation is an investment in every sense of the word. The right supply chain collaboration tool is a complex solution that connects data from multiple data points. It requires analysis, planning, design, mapping, configuration, testing, and training. To make this transformation a success, it's critical to choose a solution provider that can guide, educate, support, and share your vision and mission. One that will be with you before, during and after.Be open: With any type of change, it's critical to be open to different ideas, processes, and solutions. The digital world moves at lightning speed and has changed for the better. It can be hard not to get stuck in the past with old technology that maybe didn't work well and outdated concepts that are no longer relevant. Step back, explore, and look at the big picture to find a new way.Understand ROI: Return in Investment (ROI) is both tangible and intangible. It will also vary from one organization to the next. There is no quick ROI answer for a solution; it's going to take some work to build it so it's real and measurable. For the tangible part, the starting point must come from existing data and be aligned with financial goals. For example, simple goals might be to reduce inventory or emergency freight costs. This is easy enough to do the math with current costs and then figure out the reduction targets. The intangible ROI can be much harder to measure, but the benefits can be more impactful. For example, reducing manual effort could result in a happier team that can be proactive rather than reactive, which in turn could result in better planning, optimized build schedules, less overtime, better pricing, less downtime, more on-time deliveries, and some very surprising cost savings. For the intangible ROI, talk to your team and create an estimate. Then align that with some of their goals.Budget: Digital transformation is an investment and requires money to make it happen. A realistic budget with a twenty percent contingency is optimal. It's also critical to look beyond the annual fee for the solution and understand that there are not only external implementation costs, but also internal resources required to implement new solutions, such as a one-to-one ratio of days from your solution provider. It's also important to know what's really included in the package beyond the bottom line price tag. Also, do not forget to budget for change management if you want the project to be successful.Change Management: Implementing a new solution without a change management strategy is like buying a car without wheels and expecting it to go anywhere. Change management requires a solid plan that includes clear goals and messaging, an internal and external portal with information, training and progress. It requires a strong kick-off presentation from leadership and an ongoing, scalable dialogue both internally and externally with stakeholders.The right solution: Finding the right solution and tools takes some time and research. Make sure it meets your current needs, but is also scalable for your future. Configurable is definitely better than custom, as the latter can turn into something that cannot be updated later. Continual enhancements and updates are also a plus to avoid painful and costly migrations in the future. Make sure it works with any ERP and 3rd party solution. It should have plenty of support options. Most importantly, it should be easy to use—after all, it's no good if it's not used.Realistic goals: While there is an urgency to digital transformation, the process takes time and internal teams are working on this mission in addition to their full-time jobs. Depending on the day-to-day business, the research phase alone can have many starts and stops. Planning, budgets, internal approvals, legal, alignment, and preparation can also be delayed. Faster isn't better if the solution isn't right, the implementation isn't done right, and the whole project lacks change management.Solid roadmap: It's easy to get excited and geeked out about digital transformation. Don't skip the planning stages. Create a solid roadmap for your journey, and know that it's okay to make mid-course corrections if necessary. Be flexible, open and mindful.2024! Ready. Set. Go in like a dragon.
