New research from IDC shows how SAP Business Network can speed up product and order delivery, accelerate go-to-market speed, and deliver significant ROI to drive procurement success.
In today’s interconnected business landscape, procurement and supply chain management have evolved from back-office functions to strategic drivers of success. As organizations seek to build resilient, efficient, customer-centric supply chains, the adoption of innovative technologies becomes crucial. Enter SAP Business Network—a game-changing platform that’s revolutionizing how companies procure products and services and manage their end-to-end supply chains.
A recent IDC white paper, sponsored by SAP, titled “The Business Value of SAP Business Network—for Buyer Organizations,” reveals the remarkable impact of SAP Business Network on buyer organizations. The findings, based on in-depth interviews with existing customers across various industries, showcase the impressive improvements in efficiency, cost savings, and revenue growth. Let’s delve into the transformative power of this technology and how it’s reshaping the procurement landscape.
Accelerating revenue growth through agility and transparency
When organizations can better monitor and share global trend data across teams, they can respond to market demands quicker and accelerate their go-to-market strategy. According to the research, SAP Business Network empowered these organizations to:
- Launch products and services 30% faster than before
- Monitor global trends and redirect stock to high-demand areas with agility
- Share real-time data and analytics across teams for quicker market responses
The result? An average annual revenue gain of $66 million, or $1.2 million per 100 trading partners. This impressive growth contributes to an average three-year ROI of 404% for organizations using SAP Business Network, with a payback period of just 14 months.
Maximizing efficiency from partner onboarding to order processing
Global supply chain success relies on making repetitive, but essential, tasks as efficient as possible. The respondents indicated that SAP Business Network delivered substantial improvements in this area:
- Partner onboarding time reduced by 70% (from 54 days to 16 days)
- Invoice processing time cut by 59% (from 16.3 days to 6.7 days)
- Percentage of invoices processed without exception increased from 64% to 89%
- 60% reduction in full-time equivalents (FTEs) responsible for invoice-related processes
These efficiency gains were particularly significant given that procurement team sizes have remained steady despite increased focus on business strategy and execution. By automating repetitive tasks and providing real-time data for informed decision-making, SAP Business Network freed up team members to focus on strategic initiatives.
Similar effects were felt in procurement and supply chain planning, where respondents reported the number of FTEs necessary for these activities decreased by 19% and 47%, respectively.
Realizing millions in total cost savings
SAP Business Network provides capabilities to help streamline operations, reduce manual interventions, and optimize resource allocation across various functions. The result, as found through the research, was significant cost savings across departments for interviewed companies.
- IT maintenance: Average annual savings of $6.59 million
- Warehouse and logistics: Cost reductions totaling approximately $6.5 million annually
- Inventory management: Optimized stock levels, with one pharmaceutical respondent reducing on-hand safety stock by 50%
In total, respondents experienced average annual cost savings of $13.58 million through reduced operational costs and improved efficiency.
Streamlining operations for enhanced performance
The impact of SAP Business Network on operational efficiency was truly impressive:
- Unified IT infrastructure: Elimination of multiple systems, leading to streamlined operations
- Enhanced supplier collaboration: Freeing up team members for strategic tasks
- Improved order tracking and shipment utilization
- Better demand forecasting and stock management
Real-world success
The transformative power of SAP Business Network is best illustrated through the experiences of its users. One pharmaceutical company reduced its on-hand safety stock by half, while others reported significant improvements in transportation processes and demand forecasting.
These success stories underscore the network’s ability to deliver tangible benefits across various industries and business functions. Real-time data and analytics helped companies respond to shifting market demands and capitalize on new opportunities, allowing organizations to launch products and services and get to market on average 30% faster than they did previously.
The findings from the IDC white paper paint a compelling picture of the potential of SAP Business Network to revolutionize procurement and supply chain management. By enabling faster go-to-market strategies, improving operational efficiency, and delivering substantial cost savings, the network is helping organizations thrive in an increasingly complex business environment.
As we look to the future, it’s clear that platforms like SAP Business Network will play a crucial role in shaping the next generation of procurement and supply chain excellence. Organizations that embrace this technology stand to gain a significant competitive advantage, driving growth and innovation in ways previously unimaginable.
Next steps
Ready to explore the potential impact of SAP Business Network on your organization? Here are some resources to help you get started:
- Download the full IDC white paper for an in-depth look at the findings.
- Watch the webinar replay featuring representatives from SAP and IDC discussing key findings from the business value study.
- Try out the business value calculator developed by IDC for a personalized organizational assessment of the ROI SAP Business Network could deliver for your company.
Stay tuned for upcoming insights that will highlight the benefits of SAP Business Network specifically for suppliers, complementing the buyer-focused insights presented here. The future of procurement is bright, and SAP Business Network is leading the way in unlocking procurement and supply chain management potential and driving business success.
Tony Harris is SVP and head of Marketing & Solutions for SAP Business Network.
