Cutting costs and innovation are the driving forces behind the new Manufacturing Network. [hutterstock: 367703579, optimarc]
SAP Ariba and SAP recently announced the launch of their Manufacturing Network to allow companies to work together on design through procurement execution. The solution aims at cutting cost and make room for innovation and new operating models.
The cloud-based platform seamlessly connects companies with manufacturing service providers for collaborating on design through procurement execution. By collaborating on design, manufacturing and procurement in a coordinated way, companies can optimize production and costs and open the door to innovations and new operating models such as 3D printing and manufacturing as a service that can fuel business growth. The news came during SAP Ariba Live in Amsterdam.
“Manufacturing today is more distributed and global than ever before” said Vasee Rayan, Vice President, Solutions Management, Ariba Network. “To do it well, companies must connect people, processes, things and information, and that’s what networks are all about.”
Simon Ellis, Program Vice President – Supply Chain IDC Manufacturing Insights, agrees. “The digitally enabled, thinking supply chain is a critical journey to take for manufacturers, because while efficiency and effectiveness gains will enable returns on investment in the short term, new ways of doing business and the new capabilities they enable will be essential for the future,” Ellis said. “In leveraging domain specific networks and the technologies underlying them to drive an end-to-end process, manufacturers can drive better efficiency in their supply chains and use that to improve the customer experience.”
More than 3.3 million buyers and suppliers are connected to the Ariba Network and use it to transact over $1.6 trillion in commerce on an annual basis. With Manufacturing Network, companies can harness the power, scale and speed of this network alongside SAP’s deep domain expertise to collaborate in new and innovative ways that transform manufacturing.
Delivered as part of the SAP Digital Manufacturing Cloud Suite, Manufacturing Network integrates with SAP Ariba Sourcing and the Ariba Network, enabling manufacturers and service providers, including suppliers of 3D and computer numerical control (CNC) printing services and materials, original equipment manufacturers (OEM), and technical certification companies, to connect and collaborate across the entire manufacturing process, from design, quality objectives and part production through procurement execution, in a simple, efficient manner.
Using the platform, manufacturers can connect their design, sourcing, manufacturing and procurement processes and manage them in an integrated way to collaborate on design, highlight changes and suggest alternatives, link design discussions and data to request for quotations (RFQs) and obtain prices from one or multiple suppliers for part(s) and initiate the buying process. The solution also enables users to embed data and processes required for production part approval into the sourcing process and make it visible across all downstream procurement objects, share data and key performance indicators with all relevant parties and coordinate with suppliers on manufacturing changes.
Suppliers can forge new models for operating and expand their business by leveraging the platform to differentiate themselves through technical skills and capabilities, gain a clear understanding of customer needs for engineered and production parts, collaborate on early design to enable manufacturing of parts at optimized costs and provide manufacturing capabilities as a service.