Over the first two decades of this century, globalization has grown along with the use of computers in business. This has been a huge advantage for businesses of all sizes on both ends of the supply chain.

A quick online search can bring up hundreds of companies that can supply the raw materials required to build finished goods, as opposed to the past when manufacturers had to rely on local suppliers or utilize the phone book to locate those farther away. And for those suppliers, the chance to expand their networks and diversify their revenue sources can help keep them in business when one client goes out of business or chooses to buy from a different supplier.

To overcome the above-mentioned issues and enforce digitalization to set goals for your business SAP announced a strategy to establish a global business network integrating the SAP Ariba Network, SAP Logistics Business Network, and SAP Asset Intelligence Network to fulfill the requirements of businesses looking to strengthen their supply chains and streamline procurement processes in a difficult business environment.

Let’s examine the new SAP effort in greater detail and its advantages for suppliers and buyers.

SAP Business Network

Detailing on the SAP Business Network

Sales, procurement, planning, logistics, fulfillment, production, service, and finance will all be under the control of the Business Network. Additionally, it will include sustainability, supplier management, compliance, and risk management. All of the above functionality is tailored to the requirements of particular sectors and geographical areas.

On the supply side, the Business Network will manage the massive operations involved in product sourcing, production, and delivery.

On the demand side, the Business Network guarantees support for nearly any size business, in any industry, during the lead-to-cash mega process.

Accordingly, components of products like S/4HANA, Customer Experience, SuccessFactors, Integrated Business Planning, and Fieldglass will all be incorporated with SAP Business Networks along with everything else SAP has to offer a business user.

Goals of SAP Business Network:

  •  Improved organization-to-organization collaboration
  •  A platform for swiftly adapting to shifting market conditions
  •  Assistance for sustainable development

Components of SAP Business Network:

The components of SAP Business Network are classified under five integrated solutions namely, procurement, supply chain, logistics, asset management, and capital management. Let’s have a deeper view of the 5 solutions and their role in the SAP Business Network.

Components of SAP Business Network

  • SAP Business Network for Procurement:

It is simple for buyers and suppliers to collaborate on transactions, deepen existing connections, and find new business prospects with SAP Business Network, formerly known as Ariba Network to millions of businesses worldwide.

● By automating the entire procurement process from source to settlement, buyers may keep costs under control, discover innovative ways to save money, and create a strong, moral supply chain.

● With cloud-based collaboration, suppliers and buyers can work together to increase customer satisfaction, streamline the sales process, and maximize cash flow.

  • SAP Business Network for Supply Chain:

A crucial component of the SAP Business Network is the SAP Ariba Network. Businesses can improve supply chain visibility with the help of the Ariba Network and the SAP Ariba Supply Chain Collaboration for Buyers.

● The SAP Ariba Network streamlines transactions and builds ties between buyers and sellers by providing a thorough picture of strategic and operational procurement procedures and document flow.

● The networks improve procurement workflow efficiency, capacity, and inventory optimization, and help strengthen supply chain resilience.

  • SAP Business Network for Logistics:

An open logistics network called SAP LBN connects a variety of corporate partners for cross-company cooperation and insights. It offers role-based access based on the various requirements of various partners.

● In order to capitalize on synergies, develop shared knowledge, and optimize their operations for cost savings and better capacity utilization, diverse supply chain partners can exchange data with one another globally through SAP LBN.

● Collaboration between shippers and carriers is made possible by SAP Business Network, allowing for enhanced insight into goods while they are in transit and thorough material tracking.

● Stakeholders can automate logistical coordination and cut costs by managing transactions through a single point of access.

  • SAP Business Network for Asset Management:

Secure asset collaboration with asset stakeholders is made possible by asset networks and collaborations across the entire asset lifecycle. OEMs, service providers, and procurement vendors are connected in a single network route for the electronic transfer of technical assets and maintenance data.

● Collaborate your asset information with manufacturers, operators, and service providers across the network.

● Provide OEMs, service providers, and procurement vendors with a single network route for the electronic transfer of technical asset and maintenance data.

● Increase asset availability while maintaining lower master data maintenance costs.

  • Working Capital Management solutions from Taulia:

Working capital management is the process of enhancing a company’s payables, receivables, and inventory cash conversion cycle. The amount of time it takes for a business to turn expenses into cash flow is known as the cash conversion cycle and is often expressed in days. Each stage of the cash conversion cycle has options that can aid the business’s liquidity issue.

Payable Solution: Early payment can be significantly less expensive for suppliers than alternative financing methods that are dependent on the supplier’s own creditworthiness because buyers are typically major corporations with access to favorable financing circumstances.

Receivable Solution: These are “seller-led” and enable companies to get advance payments from part or all of their clients.

Inventory Solution: This kind of short-term financing aids in financial inventory optimization.

Final Thoughts:

You’ll get real-time access to information about customer demands, shipment locations, and order status through streamlining collaboration. In addition to streamlining procurement operations, network participants will be able to schedule preventative maintenance for equipment, manage risks and opportunities based on a consistent version of the data, and increase supply chain transparency. The upshot will be the development of a networked economy on a global scale.

The SAP Unified Business Network will serve as a key center for corporate communication. With a worldwide partner network, businesses may more effectively use their resources and confidently make collaborative decisions based on the analysis of shared data. These values will outweigh what each organization could do when added together.

Contact our experts to know more about SAP Business Networks and how they can improvise your business!



What is SAP Business network?

The SAP Business Network includes a number of solutions that help buyers and their trading partners collaborate in areas such as supply chain, logistics, asset management, direct and indirect procurement, and services procurement.

What are the components of SAP Business Network?

SAP Business Network is a suite of cloud-based solutions that include SAP Ariba, SAP Fieldglass, SAP Logistics Business Network, SAP Asset Intelligence Network, and SAP Sustainability Control, which enable businesses to collaborate, connect, and automate processes across their supply chains.

What are benefit of SAP business network for SCM?

SAP Business Network helps companies collaborate, connect, and automate supply chain processes, providing benefits such as improved visibility, collaboration, automation, and decision-making.

What objectives does SAP Business Network aim to achieve?

The goals of the SAP Business Network include improved organization-to-organization collaboration, a platform for swiftly adapting to shifting market conditions, and assistance for sustainable development.