- Real-time supply chain visibility and greater purchase order transparency help synchronize high-tech global supply chain while elevating customer service
- Within 18 months, 900 suppliers responsible for delivering 70,000 parts each year were onboarded, resulting in more than $1B in transactions
- Longstanding and successful collaboration with SAP and use of SAP Business Network facilitates development of new functionality to unlock increased business value
As
a
leading
developer
and
supplier
of
innovative
connectivity
products
found
in
automotive,
connected
healthcare,
consumer
electronics,
data
centers,
industrial
automation
and
other
demanding
applications,
Molex
buys
more
than
70,000
parts
and
components
annually.
Over
time,
the
company’s
legacy
supplier
portal
proved
insufficient
for
ensuring
the
delivery
of
timely,
accurate
information
about
purchase
orders,
inventory,
quality
defects
and
invoices.
Greater transparency about purchase orders and real-time visibility into inventory levels was essential to mitigating business risks quickly and decisively when confronted with unplanned supply-chain disruptions. With SAP Business Network, Molex closed the loop from purchase orders to invoices by removing barriers and complexities that impacted communications with direct material suppliers.
“We’ve moved more than $1 billion across SAP Business Network within 18 months of deployment,” says Tony Gainsford, director, Supply Chain, Molex. “We absolutely did not expect to get to this point so quickly, but a great team and effort brought it all together. Now, suppliers are on time, we are on time, and we deliver to our customers on time, empowering them to run production lines on schedule and meet their commitments.”
Intelligent Collaboration: A Better Way to Connect, Transact and Partner
With seamless digital connections between buyers and suppliers on SAP Business Network, Molex and its suppliers now readily confirm part and component quantities and delivery schedules. These real-time insights facilitate accurate “clear to build” directives, which spur operations and customer service to move forward with production timelines.
Now, more than 90% of all purchase orders are confirmed through SAP Business Network while the average turnaround time to complete confirmations has been slashed by a third. The number and frequency of PO confirmation changes also has been reduced dramatically. Close collaboration with suppliers via SAP Business Network has facilitated a series of ongoing enhancements, including a recently completed pilot on scheduling agreements.
Molex and SAP are continuing to finetune supplier interactions through elevated user experiences. The organizations co-innovated a purchase order reconfirmation process that synchronizes changes, which is vital in a high-tech supply chain.
“Together with Molex, we are co-innovating on solutions that solve real supply chain management challenges and propel the industry forward at an even faster pace,” said Val Blatt, chief revenue officer, SAP Business Network. “With SAP, Molex has realized significant improvements in supplier order confirmation rates and advance ship notice adherence. The company is also achieving tangible business value from increased consignment inventory, better resource productivity and improved on-time delivery.”
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