SAP Ariba Supply Chain Collaboration (SCC)

There’s been a growing interest in the topic of Supply Chain Collaboration (SCC) lately, and with good reason. It automates every step of the supply chain process to improve flow, increase visibility, and react quickly to issues that may disrupt operations.

What is Supply Chain Collaboration?

Supply chain collaboration is about coordinating with internal departments and external partners to sustain an optimized flow through the supply chain in order to efficiently meet demand and ensure on-time, in-full delivery. That’s where SAP Ariba’s Supply Chain Collaboration (SCC) solution shines.

A Fragmented Supply Chain

Many companies still manage their supply chain, no matter how complex, one step at a time.

For example: a semiconductor manufacturer has part of its chip assembly done in Taiwan, the second step done in Japan, and the final step done in the U.S.

Without automation, each of those steps is a fragment of a whole. They require separate orders and shipments. Rerouting has to be managed manually with separate purchase orders and communications via email or custom tracking site or whatever the existing protocol might be.

In other words, you’d place one order to the company in Taiwan, then place another to the company in Japan, and then you need to manage each and try to keep track of where the part was in the supply chain.

Automated Supply Chain Collaboration

SAP Ariba’s Supply Chain Collaboration solution creates a seamless, easy-to-track flow that virtually eliminates manual inputting, communication, and tracking. This creates a true, unbroken, “chain” with exceptional collaboration and communication opportunities.

With SCC, you place one order. That order contains full instructions for every step of the way: to Taiwan, then to Japan, then to the U.S. Monitoring is simple: you’re able to see when it ships from Taiwan to Japan. When Japan receives it you know because they do an order confirmation. When their part in the chain is complete, you get an alert that the shipment is on its way to the U.S. and you can watch its progress.

Invoicing is also part of this automation all along the line as well.

This offers complete visibility into the supply chain without chasing orders manually and inputting its progress into a separate spreadsheet or manufacturing log.

And, while this example uses just 3 stops – Taiwan, Japan and the U.S. – SCC can handle much more complex international logistics. Or, for that matter, simpler logistics like tracking an order inhouse as it moves through the various stages of completion.

SCC on the Ariba Network

The SAP Business Network, formerly known as the Ariba Network is a digital marketplace where buyers and suppliers connect, collaborate, and transact business.

This is also where SAP Ariba’s Supply Chain Collaboration solution lives.

Prior to this, SAP’s supplier collaboration solution was the SAP Supply Network Collaboration (SNC). SNC is an on-premise application where one customer connects to multiple vendors.

SCC represents a huge improvement over that. It’s a cloud application that enabling connections with multiple customers and vendors.

In fact, SAP Ariba has decided SCC is the future of supplier collaboration on their platform. SNC will be supported through 2025, but there will be no new functionality after that time. And don’t forget: SAP also has deadlines for migrating to S/4HANA (2027) and for moving to Ariba’s Cloud Integration Gateway (CIG) from CI9 (2023).

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