Today’s Best-in-Class Business PerformanceWon’t Cut It Tomorrow
Bottom-Line Impact on Non-Digital vs. Digital Manufacturers
60%of companies expect to be disrupted
are not ready to meetthese changes
want personalized andsustainable products
and shopping experiences
can mean the di�erencebetween being able to adapt to
new business models andnot being able to adapt
by digitally enabled competitors within 3 years
Digitalconsumers
Manufacturing supply chains
Digitally enabledsupply chains
1.2%2.3%
-3.1%-2.1%
Digital ManufacturersNon-Digital Manufacturers
Revenue Growth
Profit Growth
Supply Chain Performance ImpactsChallenges and Priorities
Top 3 Challenges for Manufacturers
Top 3 Priorities for Manufacturers
35% 31% 25%
New markets
New markets Flexibility Managingoperational risk
Supplier costsSupply chaindisruption
31% 29% 21%
The Solution:An Intelligent Digital Supply Chain
It begins with product or service design and ends with post-sale support.
Intelligent procurementis critical to enabling
the thinking supply chain.
Supply ChainDesign
Supply ChainPlanning
Supply ChainExecution
ManufacturingOperations
Management
Scenario/What If
Inventory Optimization
Factory Run Strategies
Transportation
Order Management
Global Trade
Warehousing
Quality
MES
PLMControl
Source: IDC, 2018
Process Planning
Product Planning
S&OP
Supply Planning
Demand Forecasting & Sensing
LSP Network Optimization
Supply Network Optimization
CAD, CAM, CAE
How Organizations Getto a Collaborative Supply Chain
Supply Chain Maturity Progression
1 2 3 4 5
AD HOC OPPORTUNISTIC REPEATABLE MANAGED OPTIMIZED
Resistant Reactive Connected Resilient Proactive
Supply chain is focused solely onfunctional metricsand performance,without due consideration of the power and disruptive potentialof digital technology.
Some digital capabilities are inplace and the beginnings of supplychain resilience areestablished, but toolsare underutilizedand disconnects still exist.
Cross-functionalalignment drives theadoption of digitalcompetencies;e�iciency ismaximized and thesupply chain isresilient to externaldisruption.
Digitally enabled, thinking supply chainis part of enterprise-wide functional engagement, to respond to external supply chain disruptions and drive new, innovative supply chain approaches.
The importance ofdigital transformationin the supply chainis understood, butthere is still a predominant focuson cost e�iciency, and the ability tomove beyond supplychain functional silosis limited.
The Potential for Dramatic Benefits
More e�ectiveproduct innovation
Superior financial performance
Better service performance
Faster, more nimble responses
Less system disruption, better response
Less waste
About SAP Ariba SAP Ariba is how companies connect to get business done—across direct, indirect, and MRO spend.Leading enterprises use SAP Ariba Solutions for Direct Spend to extend their intelligent enterprisetransformation to their raw material, ingredients, and components suppliers; contract manufacturers; spare parts providers; third-party logistics providers; and other key trading partners. These industry-specific solutions help companies manage source-to-contract processes and collaborate on supply chain planning and execution processes. This helps them gain more value from their ERP, PLM, and supply chain planningsystems while controlling spending, reducing inventory, and improving on time in full. And trading partners connect with profitable customers and e�iciently scale existing relationships—simplifying sales cycles and improving cash control.
All IDC research is © 2019 by IDC. All rights reserved. All IDC materials are licensed with IDC’s permission and in no way does the use or publication of IDC research indicate IDC’s endorsement of SAP’s products or strategies. Document #US45748719
in the Modern Digital Economy
Supply Chain
CompetitiveDi�erentiator
An IDC infographic, sponsored by SAP Ariba
For additional information, please see how SAP Ariba Solutions for Direct Spend supportcompanies in chemicals, life sciences, high tech, industrial manufacturing, consumer products,
retail industries, and more:
http://ari.ba/discrete-manufacturing-solutions http://ari.ba/process-manufacturing-solutionshttp://ari.ba/consumer-industries-solutions http://ari.ba/mro-solutions
&Direct Procurement as a
Source: IDC 2018 Supply Chain Survey, N = 502
Source: IDC 2018 Supply Chain Survey, N = 502
Source: IDC 2018 Supply Chain Survey, N = 502