Supply chains are morphing into supply networks as manufacturers look for visibility and flexibility from their trading partners
Multi-tiered global networks have replaced old, rigid supply chain models in an era of increased globalization. With more complex supplier bases, manufacturers are seeking real-time visibility into their partners. Many aim for lean networks, and so want a responsive network with access to as much supplier information as possible. These trends also lead to further automation to reduce errors, such as new developments in software around risk management. Online supplier networks are making doing business easier.
As technology around supplier networks develops, it can help to enable and optimize a manufacturer’s often extensive web of trading partners. New virtual supplier networks, dubbed business process networks (BPNs) by Gartner Research, are prebuilt communities accessed through a web portal or with direct application integration. These networks add automation and integrate with ERP systems to provide a breadth of data between buyers and suppliers, allowing for electronic exchanges of all kinds of information. Software can help find new supplier sources and help manage supplier risk.
Best-in-Class Supplier Networks Features:
- Supports information, integration and analysis in real time and enables simple onboarding of suppliers
- Eliminates paper, fax and phone transactions as much as possible
- Allows for exception management, risk alert and reduced inventory
Top Considerations before Buying Supplier Networks Products:
Products built around supplier networks should help users to pay attention to the integrity of their supply chain. As services and processes move to a cloud-based supplier network or community, so technology may move toward manufacturers using one interface to access all their trading partners. Direct B2B application integration is at the forefront of increasingly sophisticated online supplier networks. Supplier network technology may let users remove suppliers and investigate and add new ones. As green or ethical supply chain ideology becomes more mainstream, technology should support visibility and provide analytics into supplier practices in these areas.
Key Products:
1. Ariba Inc. provides spend management solutions, delivering sourcing, procurement and commodity expertise. Their Ariba Network, based on the Ariba Commerce Cloud, lets companies connect with more than 300,000 global businesses through as single user interface. The Ariba Network platform supports activities around B2B commerce, such as e-procurement, e-invoicing and working capital management. The SaaS-based Ariba Supplier Management solution incorporates use of the Ariba Network to deepen supplier information and find new sources.
2. Perfect Commerce offers sourcing and procurement solutions for companies of all sizes, using SaaS delivery. Their Open Supplier Network (OSN) consists of 8,000 suppliers and 21 million SKUs of content, enabling organizations to access those suppliers and trading partners. Perfect Commerce offers full-service supplier adoption and automated self-registration for companies to add trading partners. The OSN integrates with major ERP systems and includes self-service tools for suppliers.
3. TradeCard is a supply chain collaboration platform that automates transactions from purchase order through settlement. Retailers and brands communicate electronically with suppliers, factories and key service providers through a hosted platform. Trade Card offers online financial services, local support and a global network of buyers, suppliers and service providers. The Factory Xpress solution standardizes and automates processes to increase packing compliance, increase document accuracy, provide real-time visibility and enable cross-docking, among other features.
4. Verisae offers a sustainability resource planning (SRP) platform for organizations to manage and reduce costs related to facilities and their assets. SRP can help improve operating efficiencies, reduce energy consumption and lower carbon emissions. Verisae offers asset management, energy management and environmental management solutions. The Rebate & Incentives Manager, part of energy management, helps customers to identify and obtain financial incentives given by utility companies, automating the entire rebate process.
5. Exostar specializes in the supply chain and security requirements of the global aerospace and defense industry. Exostar's secure B2B network, the Exostar B2B Supplier Network, supports information sharing among 70,000 companies, connected through a web portal or with system-to-system integration. Processes carried out might include production forecasts, advance ship notices and invoices. Exostar guides suppliers through onboarding, supports transactional exchange management and uses an intelligent supplier web portal interface.
Supplier Networks
Definition: A supplier network is the network created amongst different companies producing, handling and/or distributing a specific product, with a supplier being an organization that delivers materials, components, goods, or services to another organization.
