May 17, 2020

SAP Ariba and SAP launch Manufacturing Network procurement collaboration platform

SAP
SAP Ariba
Manufacturing Network
Procurement
James Henderson
2 min
SAP Ariba and SAP have announced the launch of Manufacturing Network, a cloud-based platform
SAP Ariba and SAP have announced the launch of Manufacturing Network, a cloud-based platform that connects companies with manufacturing service provider...

SAP Ariba and SAP have announced the launch of Manufacturing Network, a cloud-based platform that 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 optimise 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, the business commerce conference that kicked off today at the RAI 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.”

SEE ALSO:

Simon Ellis, Programme Vice President – Supply Chain IDC Manufacturing Insights, commented. “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.

“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 3.3mn buyers and suppliers are connected to the Ariba Network and use it to transact over $1.6trn in commerce on an annual basis.

Share article

Jun 10, 2021

Will Public Procurement Budgets Increase in 2021?

supplychain
Procurement
budgets
strategies
3 min
Often overlooked, government procurement professionals will play a critical role in helping communities, and local businesses recover from the pandemic

Procurement is more than just a private enterprise. COVID-19 reminded us that sourcing materials is an essential part of the government’s role. Throughout 2022, tiny departments sourced massive amounts of personal protective equipment (PPE), medical supplies, and emergency vaccines and testing kits. Even non-procurement professionals were pulled into the fray, as frantic timelines demanded nothing less. 

According to Celeste Frye, co-founder and CEO of Public Works Partners, the crisis brought procurement to the attention of skilled employees who had never considered it. As non-procurement personnel stepped up to help their coworkers, many found that they’d stumbled upon a critical and rewarding job. “Existing public employees have seen the essential nature of the work”, Frye said. “[They’ve] gained some critical skills and possibly [grown] interested in pursuing procurement as a longer-term career”. 

Small, Local Suppliers Take Charge

Frye, whose firm helps organisations engage stakeholders and develop long-term procurement strategies, thinks it well worth the effort to open one’s mind to new opportunities. Cooperative contracts, for instance, can help public departments and municipalities save money, time, and effort. By joining together with other towns or cities in the region, public procurement teams aggregate their purchasing power and can drive better deals. 

These cooperative contracts have the added benefit of advancing equity. Smaller suppliers that struggle to compete with established firms for government contracts can act as subcontractors, helping big suppliers fulfil bits of the project. Once they get their foot in the door, small, local, and disadvantaged suppliers can then leverage that government relationship to take on additional projects. 

Especially as governments start to pay attention to procurement resilience, public procurement departments must expand their requests for proposals (RFPs) to take into account innovative solutions and diverse suppliers. According to Frye, Public Works Partners—a certified female-owned firm—has benefitted from local and state requirements that specify diversity. 

Post-Pandemic Funding Swells Procurement Budgets 

And the pandemic won’t be the end of it. City governments need to build sustainable energy infrastructure such as solar panels, charging stations, and recycling plants, ensure that masks and medicines are never in short supply, and source new technologies to keep up with cloud and cybersecurity concerns. 

Public procurement budgets will likely increase to match demand. As Peter Ware, Partner and Head of Government at Browne Jacobson, explained, “in a non-pandemic world, the [U.K.] government spends on average around £290 billion on outsourced services, goods, and works...anywhere between 10% and 14% of Gross Domestic Product (GDP). Post-pandemic, city procurement will only increase as national governments provide local divisions with emergency funding.
And in truth, government employees might jump at the opportunity. Frye noted that public procurement could give immediate feedback on new programmes: “[Procurement] is where new laws and policies ‘hit the road’ and are implemented”, she said. “Professionals in these fields get the satisfaction of creating real change and seeing quantifiable outcomes of their work”.

Share article