Google adopts SAP Ariba’s Cloud-based Technology Solution
SAP and Google have had a strategic partnership since 2017. Two companies have joined forces to help SAP’s customers digitally transform their business and digitise their processes. The partnership intends to help customers adopt a cloud-based strategy and build robust and innovative IT solutions that achieve short and long term goals.
The transition to SAP Ariba Network is happening in waves, with the finished date planned to be the 24th August. This change in it’s supplier management process aims to make comprehensive business transactions and further strengthen Alphabet Inc. and Google’s partnership with improved communication.
Alphabet Inc. is the parent company of Google and with this transition means that they will both be creating accounts with SAP Ariba Network. SAP Ariba alongside SAP Fieldglass and SAP Concur make up SAP’s intelligent spend platform, the largest commerce platform in the world. With over $3.8 trillion in global commerce annually in more than 180 countries.
With the adoption of SAP Ariba, Alphabet and Google’s suppliers will receive better visibility of the status of their orders and invoices. The platform allows suppliers to access and update their information as well as take action on business transactions. This means that enterprise and standard suppliers can easily manage their account and contract information with Alphabet and Google.
The supplier management platform features include, for suppliers:
- Contract management and updating account information
- Receive and manage new purchase orders
- Digitally submit invoices for processing and payment against purchase orders
For Alphabet Inc and Google, the transition will help manage supplier information, lifecycle and performance. The companies will also receive:
- Accurate supplier information records
- Ability to integrate supplier qualifications such as cost, quality, delivery and more.
- Supplier and supply risk management
According to SAP’s 2020 2nd Quarter Statement, the SAP Ariba Network platform is adopting Qualtrics technology into its system. This will be a huge help for SAP’s partners, especially Alphabet Inc and Google in enhancing suppliers’ experience. This allows for a continuous and seamless feedback loop for suppliers and buyers in the network, making business transactions easier.
Biden establishes Supply Chain Disruptions Task Force
The US government is to establish a new body with the express purpose of addressing imbalances and other supply chain concerns highlighted in a review of the sector, ordered by President Joe Biden shortly after his inauguration.
The Supply Chain Disruptions Task Force will “focus on areas where a mismatch between supply and demand has been evident,” the White House said. The division will be headed up by the Secretaries of Commerce, Transportation, and Agriculture, and will focus on housing construction, transportation, agriculture and food, and semiconductors - a drastic shortage of which has hit some of the US economy’s biggest industries in consumer technology and vehicle manufacturing.
“The Task Force will bring the full capacity of the federal government to address near-term supply/demand mismatches. It will convene stakeholders to diagnose problems and surface solutions - large and small, public or private - that could help alleviate bottlenecks and supply constraints,” the White House said.
In late February, President Biden ordered a 100 day review of the supply chain across the key areas of medicine, raw materials and agriculture, the findings of which were released this week. While the COVID-19 health crisis had a deleterious effect on the nation’s supply chain, the published assessment of findings says the root cause runs much deeper. The review concludes that “decades of underinvestment”, alongside public policy choices that favour quarterly results and short-term solutions, have left the system “fragile”.
In response, the administration aims to address four key issues head on, strengthening its position in health and medicine, sustainable and alternative energy, critical mineral mining and processing, and computer chips.
Support domestic production of critical medicines
- A syndicate of public and private entities will jointly work towards manufacturing and onshoring of essential medical suppliers, beginning with a list of 50-100 “critical drugs” defined by the Food and Drug Administration.
- The consortium will be led by the Department of Health and Human Services, which will commit an initial $60m towards the development of a “novel platform technologies to increase domestic manufacturing capacity for API”.
- The aim is to increase domestic production and reduce the reliance upon global supply chains, particularly with regards to medications in short supply.
Secure an end-to-end domestic supply chain for advanced batteries
- The Department of Energy will publish a ‘National Blueprint for Lithium Batteries’, beginning a 10 year plan to "develop a domestic lithium battery supply chain that combats the climate crisis by creating good-paying clean energy jobs across America”.
- The effort will leverage billions in funding “to finance key strategic areas of development and fill deficits in the domestic supply chain capacity”.
Invest in sustainable domestic and international production and processing of critical minerals
- An interdepartmental group will be established by the Department of Interior to identify sites where critical minerals can be produced and processed within US borders. It will collaborate with businesses, states, tribal nations and stockholders to “expand sustainable, responsible critical minerals production and processing in the United States”.
- The group will also identify where regulations may need to be updated to ensure new mining and processing “meets strong standards”.
Partner with industry, allies, and partners to address semiconductor shortages
- The Department of Commerce will increase its partnership with industry to support further investment in R&D and production of semiconductor chips. The White House says its aim will be to “facilitate information flow between semiconductor producers and suppliers and end-users”, improving transparency and data sharing.
- Enhanced relationships with foreign allies, including Japan and South Korea will also be strengthened with the express proposed of increasing chip output, promoting further investment in the sector and “to promote fair semiconductor chip allocations”.