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Growth Opportunity Act: Germany goes eInvoicing

On March 22, 2024, the Growth Opportunities Act was passed by the Bundestag and Bundesrat in Germany. With the introduction of this law, the federal government aims to boost Germany's attractiveness as a business center.Part of the Growth Opportunities Act is the introduction of mandatory eInvoicing in Germany. Domestic invoicing is to be digitized through the gradual introduction of electronic invoice formats. The clear goal: no more paper and no more PDFs.Two standard formats have been defined for electronic invoices: X-Rechnung and ZUGFeRD.X-Rechnung is a pure XML format and has already been known in the business-to-government environment for a few years.ZUGFeRD, on the other hand, is a hybrid format. Here, a human-readable and interpretable PDF invoice is embedded in a machine-readable XML file.An overview of the exact timeline for the introduction and who is affected and when:From 2025, all companies must be able to receive e-invoices in the formats defined by the government. Regardless of company size or turnover.In 2027, only smaller companies with an annual turnover of less than 800,000 euros will be allowed to send PDF and paper invoices.From 2028, these formats will no longer be permitted. X-Invoice and ZUGFeRD invoices will then be the new standard. The use of alternative electronic invoice formats remains permitted as long as the formats are compliant with EU standard EN16931.EDIFACT was controversial for a long time. Business associations have called for this transmission channel to be retained. The government has complied with this request and continues to allow EDI as a transmission channel - subject to the following conditions: EDI data formats must comply with EU standard EN16931 and a bilateral agreement between sender and recipient, i.e. customer and supplier, is required.Unlike other countries, Germany has decided against a central government platform for the eInvoicing model itself. Invoices must comply with the new formats, but the transmission channel can be chosen freely. Germany is therefore taking a different approach to countries such as Italy, where all invoices must be sent via a central government platform.The introduction of mandatory eInvoicing in Germany serves as preparation for the planned EU reform VIDA. VIDA stands for "VAT in the Digital Age" and is an EU initiative. According to the current schedule, from 2028, EU invoices exchanged between two EU countries will only be permitted in a structured and machine-readable format, i.e. EN16931-compliant.At the same time, the introduction of a standardized tax reporting system is planned via VIDA. The EU plan envisages the introduction of central tax reporting platforms at both national and EU level. Companies in each EU country will report their tax data to the national platform, which in turn will forward the data to the central EU portal. For Germany, e-invoicing therefore forms the basis for the introduction of the standardized tax reporting system as part of VIDA.SupplyOn is currently developing an invoicing add-on for Germany that will make it possible to process 100% of invoices received within Germany - regardless of whether the supplier is registered with SupplyOn or not. In addition to receiving the invoices and converting them into a desired target format, SupplyOn also takes over the complete validation of all invoices against previous documents such as the purchase order. SupplyOn can also enrich additional invoice data. All with the aim of achieving the fullest possible automation of incoming invoices on the customer side with a dark posting rate of over 90%.

Supplier Community

Introducing Performance Management for enhanced collaboration

On a vibrant and enlightening Supplier Community Event, industry professionals gathered to witness the unveiling of the new cutting-edge SupplyOn Performance Management. The event was designed to introduce this innovative solution, offer a sneak preview, and host a panel discussion with esteemed speakers from Bosch, ZF and Klüber Lubrication. This blog delves into the highlights of the event, the features of the new solution and insights from the panel discussionThe Supplier Community Event brought together suppliers, procurement specialists, and supply chain managers from various industries. The event aimed to foster collaboration, share best practices, and introduce the latest advancements in the development of Performance Management. Held at a state-of-the-art venue, the atmosphere was charged with excitement and anticipation as attendees eagerly awaited the big reveal. Hearing customer voicesThe event opened with a message from Andrei Antipov (Director Purchasing) and Andreas Alber (Senior Manager) from Bosch. They emphasized the importance of digital transformation in collaboration with suppliers and introduced their plans with the new SupplyOn Performance Management. Various functions such as real-time feedback and performance evaluations shall contribute to improving quality and efficiency. With this initiative, Bosch aims to build stronger, transparent and sustainable partnerships with its suppliers. Unveiling a new eraThe centerpiece of the event was the presentation of the new Performance Management. This innovative tool promises to revolutionize how businesses manage, evaluate, and improve supplier performance. Key features of the solution include: Real-Time Data AnalyticsThe solution leverages advanced data analytics to provide real-time insights into supplier performance. Users can monitor traditional key performance indicators (KPIs) such as quality, delivery, cost and service levels, but also several soft facts, strategic KPIs through an intuitive dashboard. Automated ReportingGone are the days of manual data collection and reporting. The solution automates these processes, ensuring accuracy and saving valuable time. Customizable reports can be generated with a few clicks, offering detailed performance summaries and trend analyses. Performance ScorecardsSuppliers receive performance scorecards that highlight their strengths and areas for improvement. These scorecards foster transparency and encourage continuous improvement. Risk MitigationThe solution includes robust risk management features. It assesses potential risks by monitoring suppliers' financial health, compliance with regulations, and adherence to contractual obligations, enabling proactive risk mitigation. Collaboration FeaturesBuilt-in collaboration tools facilitate seamless communication between businesses and their suppliers. Issues can be addressed promptly, and improvement plans can be developed collaboratively, ensuring alignment and mutual benefit.During the event the suppliers had the opportunity to volunteer for involvement in the further development of the solution and provide feedback during testing. In addition, they could also vote in polls on what additional functions they would like to see in the solution. Sneak Preview: Hands-On ExperienceAttendees had the opportunity to have a closer look at the solution through a live demonstration. Guided by myself, Maria-Pia (Product Owner), and the valuable questions from Patricia (Supplier Onboarding specialist) suppliers explored the solution's functionalities and experienced firsthand how it can streamline their supplier management processes. The sneak preview generated enthusiastic feedback, with many attendees expressing excitement about the solution’s potential to enhance their supply chain operations. Panel Discussion: Insights from industry expertsA highlight of Supplier Community Event was certainly our panel discussion featuring industry experts in our area of focus: Monitoring and anaging delivery and quality performance.Bruno Paris (Quality Engineer, Corporate Supplier Quality Management) explained ZF's use of several SupplyOn solutions in the area of supplier quality management such as Project Management, Problem Solver and Performance Monitor for managing APQP projects, complaints, 8D and performance data, highlighting that over 4,500 suppliers use their performance monitor for monthly quality and logistics KPI updates for globally monitoring their quality and logistics performance on a monthly basis.Marcus Hylla explained the usage of the Performance Monitor at Klüber Lubrication from a supplier’s point of view. He described how they work with the solution for exchanging data with their customers and expressed the need for an automated solution to save even more time in the future.Among other topics the discussion covered AI's potential in streamlining processes, offering proactive analysis and providing interactive chatbots. I would like to thank all our speakers for revealing insights from many different perspectives. As businesses continue to navigate the complexities of the global supply chain, the new Performance Management solution stands out as a powerful tool to drive performance, reduce risks, and foster stronger supplier relationships. In terms of AI SupplyOn sees a high potential in making data analysis faster and decision making easier within Performance Management. The Supplier Community Event not only showcased this innovative solution but also highlighted the collaborative spirit and forward-thinking approach that will shape the future of Performance Management.

Inside

Focus on innovation: An interview with board member Dr. Stefan Brandner

Innovation is one of our five leadership values. In an interview with SupplyOn board member Dr. Stefan Brandner, find out how we define innovation, the role it plays in our long-term strategy, and how we ensure that all employees across hierarchies and in all areas can participate in it. Learn about internal best practices and how we deal with challenges such as lack of time and failure to constantly question the status quo and proactively seek opportunities to improve our service offerings. How does SupplyOn define innovation?Stefan: We are guided by common definitions. We differentiate between innovations where the degree of technological novelty is very high. This includes, for example, innovations that are disruptive to existing markets and can completely change the market. The smartphone, the software-as-a-service concept, and platform business models are typical examples of this.On the other hand, there are innovations that use existing technologies to continuously increase customer value. These innovations are divided into incremental innovations, which are minor optimizations of existing products, and sustainable innovations, which are significant enhancements to a product to secure the company's market position in the long term. Applied to the examples mentioned, this means that providers in these originally disruptive markets must continuously improve. Customers do not opt for the provider that was first to define a new market with a disruptive product, but for the one they expect to offer the greatest benefit in the future.What role does innovation play in our long-term strategy?Stefan: Our customers are facing ever-increasing challenges. Disruptions in the supply chain are now the order of the day. Cost pressure is constantly increasing due to high development costs, e.g., in electromobility. Short development cycles increase the risk of quality problems. And for some years now, compliance with environmental and social standards and the industry's decarbonization targets have added to these challenges. As a solution provider, we must therefore always have our finger on the pulse.We were already focusing on the disruptive platform business model when we were founded in 2000, and its relevance is greater today than ever before. Our main focus is therefore the continuous optimization of existing solutions and services, including the new possibilities of artificial intelligence, as well as the regular development of new solutions as part of our still innovative business model. However, we must not ignore disruptive innovations either. We must closely monitor and evaluate technological developments and also test them ourselves. This is the only way we can develop a sound strategy that is sustainable in the medium and long term. To what extent is innovation seen as a shared responsibility of all employees, and how is this responsibility encouraged and supported? Stefan:It is very important to us that as many employees as possible are in direct contact with customers at all levels. Their diverse perspectives and experiences serve as a basis for recognizing needs and trends at an early stage and developing innovative solutions. This customer-oriented approach forms the foundation of our shared responsibility for innovation in our products and services.In line with our understanding of leadership "LOVE TO LEAD", which also includes the value of self-development, we actively encourage our employees to continuously expand and improve their skills.As part of this, we are currently intensively promoting personal development in the field of artificial intelligence, for example. Internal company hackathons and participation in conferences are also essential to give as many employees as possible the environment and time to broaden their perspectives.We see innovation as independent of the hierarchy and expect appropriate innovations to be identified and driven forward at every level. We place a strong emphasis on taking ownership at work and welcome every employee who takes the initiative and makes bold suggestions.Managers play a crucial role here as role models and are responsible for living and promoting our understanding of how to deal with innovation.How do we deal with failure and mistakes, which are often part of the innovation process, and how do we use these experiences to develop and improve?Stefan: By using the Scaled Agile Framework (SAFe) in our product development, we are able to manage innovations in a structured way. Personally, the process is very important to me. The better we understand the customer's problem and the more closely we coordinate the solution concept with the customer, the higher the probability of success when implementing innovations.Nevertheless, innovations can encounter unexpected hurdles that lead us to pause or even completely stop certain projects. However, we do not see this as a failure, but rather as a structured process to capitalize on potential opportunities while also limiting bad investments early on.There are also issues where we have to shorten the process for time-to-market reasons. It is then important that we regularly evaluate our progress and quickly adapt our approach based on new findings. This makes regular reviews all the more important to continuously learn and improve. We know that we will also make mistakes with this much more agile approach. We consciously accept this. As we are competing against start-ups on some topics, we have decided to work like a start-up on selected topics. The advantage, however, is that our start-up division has access to a complete operations and support organization as well as a business network with over 140,000 companies in 70 countries.What specific examples of best practice do you know of, or do you have any further tips for our readers on the topic of innovation?Stefan: We have many examples: With our SRM suite, we are probably the only provider that maps purchasing and quality processes so broadly and integrates them so deeply at the same time. The same applies to the integration of supply chain and transport management processes, for which we won the VDA Logistics Award together with Bosch and Eurolog. I was also very impressed by the digital product twin, which was initially developed for the traceability of quality problems and is now the technological basis for many other applications.However, consistent digitalization also requires a comprehensive range of services in addition to SupplyOn solutions. That's why we need to start innovating here too. A best-practice example comes from the onboarding team with the supplier community model. Here we regularly broadcast information events on current supply chain topics from SupplyOn's own studio. These can be expert talks on sustainability, for example, or discussions with customer representatives who present their digitization strategy. The idea of the supplier community model was developed independently by the team and implemented perfectly. Of course, there were also critical voices when the investment decision was made, but the team consistently fought for their idea and we are now looking forward to around 1,000 participants per event.The most recent example of best practice I would like to mention is the development of our comprehensive ESG suite. Here we have adapted to the specific market conditions with a new lean organization. The team has been given a great deal of responsibility, but also the corresponding decision-making authority. It has accepted this challenge in an exemplary manner and is breaking new ground not only in product development, but also in other processes, such as go-to-market or user support. Innovation also means that we have to question our organization and our processes and, where necessary, take fundamentally different paths.I recommend that external readers and potential applicants get to know our corporate culture and working methods better by actively engaging with our current projects and success stories.If you would like to be part of an innovative team and contribute your skills in a dynamic environment, we invite you to apply to us as an employer and shape the future of the supply chain together: to our job offers

SCM Insights

5 Key Takeaways from the Gartner Supply Chain Symposium/Xpo 2024

SupplyOn joined over 4,000 attendees at the 2024 Gartner Supply Chain Symposium/ Xpo in sunny Orlando. Together, we were all on a mission to connect and gather knowledge and insight about the latest supply chain trends and technology to bring resiliency to their organization's supply chain. These are my 5 key takeaways from this inspiring event:Resilience & Risk: The supply chain has always been challenging and fragile, even before the global pandemic. Still, today, disruptions have become more frequent and severe. Analysts advise making changes in supply chains to depart from an “antifragile” state. There must be a focus on resilience and risk management while adopting proactive strategies to achieve resilience.AI/Data-driven Decision-Making: Accurate, up-to-date data has always been critical for supply chains. Organizations must harness the power of data analytics to gain actionable insights, optimize operations, and drive informed decision-making at every level of the supply chain.Digital Transformation: Organizations must fully embrace digital transformation in their supply chains. Technology must be leveraged to enhance visibility, agility, and efficiency across the supply chain.ESG/Sustainability: In my opinion, the US has been slower to move forward with ESG requirements, but this topic is gaining traction, especially as global requirements are impacting the US in multiple ways. Gartner highlighted that ESG is growing recognition within the supply chain. Beyond being kind to our planet, it is clear, organizations must reduce carbon footprint, ensure ethical sourcing practices, and promote social responsibility in order to remain competitive in the global marketplace, while reducing costs.Partnerships: Partnerships are essential for growth and collaboration within the supply chain. Forging strategic alliances with suppliers, customers, stakeholders, and solution providers is critical to driving innovation, mitigating risks, and creating shared value.Partnering with SupplyOn can transform your supply chain to become resilient.SupplyOn offers a comprehensive suite of digital supply chain solutions that align with the key takeaways from this latest event. For over 20 years, SupplyOn has been partnering with organizations to accelerate their digital transformation journey, enhance resilience, promote sustainability, foster collaboration, and leverage data-driven insights to drive competitive advantage in today's dynamic business landscape.

SCM Insights

Embargoes in the supply chain: increase efficiency, minimize risks

Embargo compliance and increased efficiency in the supply chain: identifying potential risks at an early stage and reacting proactively to minimize the potential impact on business processes - this is how it works!International trade often confronts companies with complex legal frameworks. In particular, the transportation of goods to countries with embargoes requires increased attention. This is because these economic sanctions have the potential to significantly affect trade. A precise understanding of the relevant regulations is necessary when it comes to exports, imports and contracts with the countries concerned. It's essential to maintain an overview of which transport processes are impaired or even impossible.However, how can companies fulfill these requirements and ensure efficient processes at the same time?Within the Supply Chain Collaboration solution, there is a customized way for companies to ensure compliance with embargoes. By integrating specific restrictions and requirements into the transportation and delivery processes, companies can ensure that they operate in accordance with the applicable regulations at all times.Automatic ASN blockingIf a supplier selects an embargo country during transport and delivery notification, either an error message or a warning appears, depending on the configuration.In case of an error message, the supplier is prevented from sending a shipping or dispatch notification if he has selected an affected country.If there is a warning, the supplier is informed that there are restrictions for the selected country of origin.This function can be adapted flexibly to the individual requirements of compliance strategies. Companies have the option of adding further embargo countries and determining the system's response.Would you like to avoid embargo violations in your transportation processes? Get in touch with us!

Inside

LOVE TO LEAD: Employees provide insight into actively practiced and shaped leadership culture

At the beginning of February 2024, our SupplyOn Leadership understanding was rolled out at a kick-off meeting with all employees. Developed by employees for employees, a team consisting of 16 change agents - with and without management responsibility - and the SupplyOn Vice Presidents played a key role in defining and developing the SupplyOn Leadership values and principles.Today, three of them are answering our questions about the impact and application of the LOVE TO LEAD leadership initiative: Korbinian Reng is Vice President of Portfolio Strategy & Marketing, Marian Wilken is Team Leader in Consulting and Dominik Maier is Product Manager and responsible for AirSupply Quality. Dominik, Marian and Korbinian, you have played a key role in shaping SupplyOn's leadership values and principles. Can you describe why leadership affects all employees across the hierarchy and not just managers? Marian: I don't think a change initiative can work if everyone just looks at their manager and waits to see what they do. Otherwise, all that's left at the end is the Management Board, which is then supposed to somehow lead the way.However, we have many substantive topics and we have experts for these topics. These tasks need to be led and driven forward. We need leaders who lead the way. And these must be the thematic specialists, they must be every single one of us. Because that's the only way we can develop.Dominik: In the role of Product Manager or Product Owner at SupplyOn, you have technical responsibility for the product even without disciplinary leadership. You also manage the product in the sense that it is constantly improving, which puts you in a functional management role.Korbinian: I think that's exactly the core of it. People often talk about ownership - but leadership goes a bit further: for example: I not only take responsibility for my topic, but I also lead my topic to success. I lead my colleagues, I lead my customers, I lead my boss. That is also something you can and must do. That's why all of our employees have a leadership role, regardless of their position within SupplyOn.Anchoring this as a leadership value now empowers every employee once again. True to the motto: "Do it and lead yourself."How do you interpret the "LOVE TO LEAD" approach in your day-to-day work in relation to how you live leadership?Korbinian: LOVE TO LEAD stands for passion. As a manager, I believe it has to be fun to work with people and to want to tease out the best possible potential from each person. At the same time, I am also an employee and project manager. I am passionate about driving my topics forward, and this can be broken down into all five leadership values - innovation, self-development, co-creation, customer value and long-term thinking.A few examples:Innovation: I want our solutions to be better, smarter and simpler.Self-development: I want to continue my professional development, both internally and externally.Customer value: I want to build something that offers our customers real added value.LOVE TO LEAD can therefore be found everywhere in my day-to-day work and I can apply it in many places.Marian: For the consulting sector and my team, LOVE TO LEAD means above all leading the customer. I see LOVE TO LEAD as going beyond the values and into leadership. To take the customer with us and lead them towards the goal that we have very specifically in the respective project. To simply live "leading"! Can you pick out one of the five leadership values and describe how it influences your decisions in your area of work and interactions with team members on a daily basis?Dominik: For me, co-creation has always been very important. We have now codified the value and refined it through the principles, but the principle of achieving very good results as a team - and not as a lone fighter - still influences me. The result is better thanks to the different perspectives from the team. I think it's great that the value as a leadership topic has been given this importance, as it also encourages people to get involved, to express other perspectives or concerns, which further strengthens collaboration.Marian: As change agents, we have formed teams for certain values. As I am in the co-creation team, I would also pick out this value in my example. For me, working on co-creation within the leadership initiative has led me to think even more specifically about dependencies and synergies:I am increasingly asking myself questions such as: What are the departments relevant to me, the teams relevant to me that we work with a lot? Do these teams have conflicting goals and how can we identify and address these internally together in advance?How can we present to the customer together in the same direction so that the best possible result is achieved for all departments and, of course, especially for the customer?Korbinian: I would like to talk about the value of innovation. You have to be hungry and enthusiastic to innovate. You have to be willing to question things and keep trying out new ideas.Because in everyday life, it's rarely the case that a great idea is thrown into the room and everyone shouts "hurrah" and runs off. This brings us back to the value of co-creation: you have to approach your colleagues to understand how you can convince and inspire them. That's exciting because everyone has a different way of thinking. And of course, when it comes to innovation, you also need staying power. The leadership values and principles provide support here and encourage everyone: "Keep at it and keep going."How do you experience the implementation of "LOVE TO LEAD" in your daily work? Are there any examples you would like to share?Dominik: I think that the formulation of the leadership values and principles has an impact on our day-to-day work. A personal example I gave last week, for example, was when a customer communicated a new requirement to me regarding the data exchange of documents. Coincidentally, the customer communicated this new requirement to me. But I realized that this would also affect many other departments at SupplyOn that work for this customer. So, I took responsibility for this and, in the spirit of co-creation, felt obliged to inform all other affected teams about the upcoming change. The other teams were very happy because they were not yet aware of this requirement and now had the opportunity to act with foresight. In my view, this sharpening of a shared sense of responsibility is also what makes the values so important.Korbinian: Absolutely! I'm fascinated by what has already happened in the short time since the presentation in February 2024. I've seen employees stand up in meetings and say: "Guys, why are we discussing this now, why should we wait here for hierarchical decisions, let's take the lead ourselves, live leadership and decide together."And I have already seen an invitation to an appointment being canceled with the explanation: "I'm blocking this time slot for my personal development, this webinar is important to me. You said we should take responsibility for our self-development 😉."Marian: I can confirm that! I've also noticed a lot of discussion about leadership values and principles. People are thinking about them, questioning their meaning and looking for answers to the questions:What does this mean in concrete terms for us as a team?What measures can we take within our team?How can we bring the values to life in our everyday lives?Or to put it another way: what do we need to bring them to life?I receive feedback that colleagues feel that the leadership initiative has added value for them. They are motivated to work on things, to help shape their entire working day and the future against the backdrop of the leadership values.It is tangible that LOVE TO LEAD increases commitment and satisfaction within the company. People are keen to drive issues forward and that makes me even happier as a manager in my day-to-day work.Dominik: The great thing about the initiative is that it was broadly based right from the start and that a cross-section of employees was involved. Even without disciplinary leadership, I personally found it very exciting to be part of it. There was a positive energy right from the start. And that has carried people along and is now helping us to drive this topic forward.Incorporating so many different perspectives was probably the key to anchoring these topics in a sustainable way so that everyone at SupplyOn can identify with the values and principles.As change agents, you are also mentors for a specific leadership value and are available to all employees for questions and in-depth knowledge. What tips can you give employees to bring the leadership values to life in everyday life and actively contribute to the further development of the leadership culture?Korbinian: Be brave, dare to do it! Do you have a good idea? Talk about it with your manager, with division heads, with vice presidents - with whoever - if you are convinced that you have a good idea, then push it forward!Marian: It's a matter of type. You have to want to help shape things in order to fully exploit the potential of LOVE TO LEAD for yourself. And of course, it's okay if you don't see yourself in an active role. Nevertheless, I recommend that you don't sit down and wait for someone else to make you happy but use the opportunity to fill the values with life and get the most out of them for the company and for yourself personally.Korbinian: In my opinion, it's important to involve every employee. There are many people who don't like to push themselves to the fore as spokespeople, who tend to be quiet in groups or workshops. But these employees often have real treasures inside them in terms of ideas, opinions and observations. As managers, we have the opportunity to involve these employees, to encourage them to be bold so that we can unearth this treasure together.Marian: Some questions keep coming back to me:What's next for LOVE TO LEAD?What comes next?How will this be put into practice now?The short, concise answer to this is: There are topics that we are working on from the values teams. But ask yourself the same question: What do the leadership values and principles mean to you? Which topics are important to you and would you like to advance yourself? Do you want to break new ground, take charge of your own topics and take responsibility for advancing yourself and your career?Then you'll fit in with us! Apply now for one of our vacancies.

SCM Insights

Increasing the resilience of global supply chains through holistic approach

How should complex supply chains be designed so that they are resilient to risks of all kinds and adapt agilely to dynamic market conditions? How can a cost-efficient procurement strategy be implemented that leads to tangible cost savings thanks to intelligent demand bundling and optimized operational procurement processes? How can the interaction with suppliers be optimized so that both sides benefit from maximum efficiency and transparency? One of the key prerequisites is the seamless integration of the entire supplier network into your own business processes - end-to-end via just one central platform.Discover here how an global player in the automotive supply industry managed this balancing act - even though the organization was characterized by a high degree of inhomogeneity due to numerous takeovers. In the course of this project, a uniform IT infrastructure was created and standardized processes implemented for numerous single entities with large differences in terms of degree of digitalization, process design and IT landscape.The first strategic decision on the path to harmonization was to replace the heterogeneous IT system landscape with the company-wide introduction of SAP S4/Hana. It quickly became evident that the harmonization of internal processes and systems would be only the first step and that the supplier processes, which until then had largely been run via Excel sheets and e-mail, would also require optimization. This led to the second strategic decision: to use the migration to digitize and automate collaboration with suppliers at the same time. An established industry solution and a partner with extensive experience in the automotive sector were required here.SupplyOn was chosen for several reasons: Firstly, because of its decades of experience in the automotive business and the resulting numerous best practices. Secondly, because of the comprehensive process coverage and the ability to handle all supplier communication via one platform. And thirdly, due to the high number of connected suppliers and the associated overlap with the company's own supplier base.Reduce complexity with SupplyOnMixed scenarios with several providers were also examined during the selection process, but these were quickly rejected. Not only because external consulting companies such as Gartner clearly spoke out against them, but also because the advantages and synergy effects of a centralized solution were obvious to all parties involved:for suppliers: centralized access to all processes and datafor everyone: no additional and superfluous interfaces that would need continuous updating and be a constant source of errorsAnother advantage of SupplyOn for the customer was the fact that the complexity of the SAP project could be reduced, as SupplyOn offers some of the S4/Hana functionalities including supplier integration as standard. This eliminates the need for additional supplier connections to SAP and customizing, which saves the customer time and money with every SAP update. This applies, for example, to the VMI and complaints process as well as the sourcing process. The target scenario: an end-to-end digitalized world instead of Excel messThe customer's goal was to extend its internal SAP processes end-to-end to the supplier and create a seamless data flow from the internal systems to the supplier and back again - globally, for all plants, for all supplier-related processes, for all suppliers, across departmental and company boundaries. Where Excel sheets were previously exchanged, in future data will be sent directly from the internal systems to the supplier - and the return processes will be correspondingly seamless.This starts with the approval process for a new supplier and extends across the entire supplier lifecycle in all strategic and operational matters - from development and series production through to phase-out.The processes in detailSupplier qualification: The starting point of a customer-supplier relationship is the qualification and approval of the supplier. SupplyOn maps this process, taking into account specific regions and commodities. Upon approval, the supplier is classified and the supplier data is transferred to the internal SAP S4/Hana.Supplier master data management: All relevant data that characterizes a supplier is collected here - contact details, plants, production capabilities, certificates, audit results, classifications, approvals, contracts, etc. A duplicate check rounds off this service to ensure that a unique data record is attributed to each supplier.Sourcing of production material - including technical feasibility check: In addition to the price and commercial conditions, numerous other aspects can be queried during the inquiry process and other divisions can be integrated into the process, for example the development or quality department.Sourcing of indirect materials: The main aim here is to structure and standardize processes throughout the company, in particular to bundle volumes across the entire organization (demand pooling), adhere to compliance guidelines and prevent maverick buying.Start of series production: Standardized processes such as APQP or PPAP can be used to check readiness for mass production, ensuring a smooth ramp-up.Procure-to-pay: An end-to-end process from requirement to invoice enables a highly efficient, largely trouble-free and error-free supply chain. Subsequent processes are based on predecessor documents, which not only eliminates manual effort but also minimizes potential input errors.Supplier lifecycle management: In day-to-day collaboration, SupplyOn can be used to map a permanent control loop that aims to continuously optimize processes and products. The initiative does not originate exclusively from the customer. The supplier can also make suggestions for improvement and initiate changes. This is made possible by a collaborative approach in both directions.Audit Management: Both existing and new suppliers can be qualified and categorized here. The result is saved in the Business Directory. This makes it transparent for everyone what status the supplier has: "preferred", "standard" or "on hold". From there, the supplier can be efficiently developed further.Performance management: Performance data from several sources - from the SAP system, from SupplyOn and from external data providers - is bundled here and displayed to the supplier in a consolidated way for targeted performance improvement. At the same time, scoring is calculated from this data and made available internally, for example to Purchasing and Quality Assurance. This creates full transparency across departments at the level of parts, component lists and suppliers.Complaint management with action tracking: Here, errors are analyzed in a structured manner and resolved systematically - in a way that not only solves the current problem, but also ensures that repeat errors are avoided thanks to process or system adjustments.Risk management: By integrating external risk data providers, threatening situations - natural disasters, crisis hotspots or similar - can not only be identified very quickly, but it is also possible to immediately analyze which plants and parts are affected in order to immediately find solutions and alternatives for potential shortfalls. This makes the company more resilient to risks of all kinds and gives it completely new options for managing and responding to escalation situationsThe interlinking of all these supplier processes via one platform provides insights that were previously not achievable in the silo structure. Processes can be optimized end-to-end for the first time. To give an example, a buyer can no longer enquire about a supplier that has been set to "red" by the quality department. Or they can initiate necessary downstream processes with system support during the sourcing process.Implementation and rolloutA pragmatic approach was chosen for the implementation in order to get up and running quickly: Processes that do not necessarily require backend integration were started immediately via the web interface. These include, for example, the sourcing and complaints process. The interface to the backend systems is planned for a later date.As the S4/Hana rollout at the customer extends over several years - 160 plants are affected worldwide - this approach offers the major advantage that SupplyOn use can be started immediately in all plants, regardless of the status of the SAP rollout. At the same time, the integration of processes that are only manageable from the backend was tackled immediately.On the supplier side, SupplyOn takes care of all the necessary steps to get the 3,000 strategically important suppliers up and running quickly. This includes, for example, a comprehensive communication package, a specific training concept and support for suppliers during registration and day-to-day use. In the long term, a further 7,000 suppliers are to be connected in order to benefit from digitized processes in the long-tail area as well.Strategic goals achieved with SupplyOnIncreased competitiveness through the rapid introduction of proven, industry-standard end-to-end processes with suppliers, which SupplyOn continuously develops and adapts to new requirementsIncreased resilience to risks and in escalation and crisis situationsIncreased agility in order to be able to react quickly to changing economic conditions. Also rapid integration of other acquired entities.Improved cross-departmental collaboration between purchasing, quality management, finance and logistics through the use of one central platformReduced purchasing costs through intelligent bundling of demands across several areas.Higher product and process quality through close involvement of suppliers in improvement processes - including those initiated by the supplierLess frictional and administrative effort thanks to a holistic approach: everything from a single source and all processes via one system

Inside

New functions in Program Increment (PI) 2024-01 developed

May we introduce you to our new functions? These show not only our commitment to continuous innovation, but also concrete progress in various areas of our product portfolio: Visibility & AnalyticsTo enhance customer interaction in our Corporate Carbon Footprint survey tool, we have integrated a chatbot. This chatbot can respond precisely to user inquiries and assist with survey completion in various languages. Further to this first concrete use case, the chatbot acts as a pilot project for the integration of generative AI into our product portfolio. Source-to-ContractNew features in Cost Breakdown Structure (CBS) within SupplyOn Sourcing enable even more flexible and efficient workflows. Users can now easily toggle specific sections on or off to access only relevant information. Additionally, they can specify cost components required for each part number, streamlining supplier responses and saving time. Supplier Quality ManagementThe solution Technical Review has enhanced valuable functions to increase efficiency and flexibility.One of these functions is the "bundling" function, now accessible via a customer system. This allows customers and suppliers to deal with similar materials with one Technical Review object, thus avoiding many duplicate entries.Moreover, two new columns will soon be integrated into the inbox table, displaying details such as the last modification and the person responsible for it.Another improvement involves the creation of new objects by customer users. It becomes easier to add necessary content immediately before activation, as the object is saved in "Create" status and only requires defined fields to be filled prior to activation. We look forward to introducing you to more exciting developments in the coming months. Stay tuned to see what innovations you can discover next time.

Inside

Meetings that inspire: Savis and Dominik on designing interactive meetings

Integrating and activating employees in meetings is crucial to encourage diverse perspectives, creative ideas and valuable feedback. Find out in an interview with Senior Project Manager Savis Konrad, Team P2P and e-Invoicing and Dominik Halamoda, Product Owner in the UX, Supplier Quality Management & Supplier Management Solutions team at SupplyOn, how meetings can be turned into interactive and inclusive platforms for idea generation and feedback by using different methods. How do you ensure that employees are actively and inclusively involved in meetings in order to promote diverse perspectives and ideas?Savis: In my experience, precise formulation of expectations and targeted moderation are crucial. By clearly setting expectations at the beginning of the meeting, I can create an appropriate framework, promote interaction and inclusion and express appreciation.I communicate the meeting topic in advance and explain exactly what my expectations are for the meeting. Depending on the topic and work stream, I sometimes find it more efficient to work together on a draft version rather than starting from scratch.In terms of interactive discussion, I rely on direct communication. If I notice any reluctance or embarrassment during the meeting, I address the participants directly and ask for their opinion.This approach promotes effective communication and helps to ensure that meetings are successful and focused.Dominik: I agree with Savis, the preparation of meetings is particularly important if productive work results are to be achieved in the meetings. For me, this also means providing the participants with information about the meetings in advance so that they can prepare themselves. This makes more introverted colleagues in particular feel more confident about getting involved."Individuals and interactions over processes and tools", from the agile manifesto, is also my motto for successful collaboration. The focus is not on a rigid framework, but on individual appreciation. I try to involve everyone and address them in a targeted manner.To make this possible, I believe it is important to create a framework that builds trust and makes the meeting feel like a safe space.You mention psychological safety in meetings. How do you create an environment in which employees dare to share their thoughts and opinions?Savis: Ensuring a protected environment is the fundamental basis for the success of any exchange. In our department, the established error culture plays a key role as a success factor in creating a framework that promotes open communication. In the event of errors within our team, the focus is not on apportioning blame, but rather on finding solutions together. Both managers and team members work together to analyze the problem and strive for a common understanding of it.Once an issue has been successfully resolved, we focus on how we can avoid similar incidents in the future. This culture of dealing with mistakes strengthens the sense of togetherness in the team and encourages us to address critical issues. This creates a deep bond of trust that enables us to contribute ideas courageously and share opinions openly.Furthermore, in such a complex environment with constant changes and different fields of activity, we are aware that we cannot know everything. That's why we value feedback and the open discussion of concerns. This exchange enables us to complement each other and gain a broader perspective.Dominik: I can also say that in my role as product owner, I see myself as a central point of contact and try to shield my development team from external influences such as pressure or tension so that the team stays in the flow.This allows for concentrated and productive work and creates an interactive meeting atmosphere that encourages an open exchange of ideas.In our meetings, I experience respectful behavior and openness towards other opinions. It's a good human fit. It goes without saying that this also makes working together fun.We experience this fun in our meetings and also encourage it, for example through team-building events on the fringes of our PI planning events. This in turn deepens the trust relationship.What specific methods do you use to generate creative ideas interactively from your team and turn them into solutions?Dominik: I like to work with my development team using the Planning Poker method to estimate the effort required to meet customer requirements. In preparation for the meeting, we design the user stories and send them to the team in advance for review. That way, everyone is prepared and we can clarify any questions while playing poker.We then use a virtual planning poker tool in which the user stories are displayed one after the other. Our agile development team of developers and testers then have 30 seconds, similar to poker, to draw a card with the number of days they think they will need to implement the user story.If there are differences of opinion within the team, we then check why this is the case. At the end of the process, the team agrees on an average value, an estimate of the effort required that suits the entire team. I find this method particularly inclusive, interactive and very transparent because all team members have their say and share the background to their effort estimates.I like to write the user stories themselves in the format of the Gherkin scheme so that the three Cs: "Card, Conversation, Confirmation" are fulfilled. The requirement should be written in such a way that it is easy to understand and fits on a card.Conversation is one of the most important elements. I therefore do not formulate 100% of the requirements so that each team member can help shape and formulate them during the discussion process. This also promotes participation and acceptance within the team. Confirmation means that the acceptance criteria are also clearly formulated, as otherwise acceptance would not be possible later on.Savis: I achieve the best results in collaborative workshops where I deliberately bring together experts with different experiences and perspectives. The diversity of participants, both in terms of responsibilities and team affiliations (not just product owners, not just developer teams, etc.), has proven to be particularly effective so far.Diversity opens up the possibility of obtaining a differentiated picture. The different characters and perspectives complement each other. The exchange is particularly fruitful as everyone considers different aspects and sees different challenges.In terms of methodology, I often resort to classic brainstorming. The starting point varies depending on the participants. Some are most creative when they can brainstorm freely, while others prefer to be guided by an initial proposal. In such cases, I present an incomplete draft as a basis for discussion. Participants can then add their own ideas or make changes. In this way, I have already seen a rough block become a polished diamond.Dominik: That's my experience too, Savis. It's a matter of type. Some colleagues don't dare to fully express their own suggestions and prefer to use a template to discuss what specifically would have to be different in order to work. Sometimes I receive counter-suggestions that are a much better solution than I could have come up with on my own. Teamwork makes the dream work.To ensure that the idea generation process in interactive meeting design remains a good experience for all team members, it is important as meeting organizers to be open, accept the team's suggestions and put your own ego aside.What challenges have you overcome on your way to successfully shaping employee interaction in meetings, and what successes can you share that have come from your meetings?Dominik: One challenge is, of course, the continuous, inclusive involvement of all workshop participants. Always address the individual participants on a rolling basis. Employee activation does not happen ad hoc, but only over time.Savis: The challenge is to take limited resources into account across departments and to manage the issue with perseverance and commitment while maintaining high quality standards. Effective work management and positive communication are crucial. Time plays a key role and perseverance is essential.Another challenge is to create space for innovation and creativity in daily business, which requires conscious time management. Planning and conducting meetings, reviews and coordination sessions is a time-consuming task, and successful time management is crucial.Successes can be seen in the dovetailing and networking of different subject areas as well as in the reduction of silos through meetings in different compositions. This was particularly helpful in developing a more comprehensive understanding.Dominik: By using interactive methods such as the Planning Poker described above or the three Cs, the meetings within our Scrum sprints are productive and inclusive, the requirements are formulated more clearly for everyone and the effort estimates are more realistic. This promotes satisfaction in our teams and that is definitely a success. What tips do you have for other teams and employees who want to implement your methods and approaches in their own meetings in order to make meetings similarly interactive?Dominik: Be open to criticism and feedback!Savis: Despite a busy working day, it is important to allow enough time for preparation and follow-up to organize interactive meetings and to promote a culture of shared learning. The exchange brings great added value.To the meeting participants: Asking questions is by no means unintelligent; on the contrary, they help to improve the overall outcome.It is crucial not to rest on your laurels, but to always strive for innovation. Convince yourself that change is possible despite limited capacity or budget constraints, and your decision to do so can pave the way for change.Would you like to work for an employer where meetings are designed to be inclusive and interactive using modern methods? Go to our job advertisements: Jobs at SupplyOn

Industry News

Carbon reduction in the supply chain – three fundamental challenges and solutions

Concepts such as decarbonization, net zero or carbon neutrality are now part of the common discourse in customer-supplier relationships. The influence of the supply chain on a product's final ecological footprint (product carbon footprint, PCF for short) is already well known and the efforts to reduce the emissions (Scope 3 upstream) have taken place in many industrial sectors.That's why this article is not about why reducing carbon emissions in the supply chain is the biggest lever to achieve their climate goals. Many studies already describe this and it has been discussed in webinars and at conferences. Rather, the following article will focus on the biggest challenges and highlight possible solutions.Challenge 1 - Data quality and availabilityTo reduce Scope 3 emissions effectively, correct decisions and a good data basis are required. As a company, I create this data by gathering as much real data (primary data) as possible from the supply chain and relying less on standard values or factors (secondary data).What sounds so simple, however, proves to be a significant challenge in practice.How do I retrieve the data?How do I consolidate them?Can my suppliers even deliver the data I need?Are the data I receive from my suppliers correct?Even this seemingly simple question is challenging for many companies - Gartner, in its report "3 Steps to Accelerate Scope 3 Carbon Emissions Reduction in the Value Chain", also identified data quality and availability as one of the most serious problems that companies have to overcome.The PCF data can be queried in different ways. Via e-mail for individual products, via Excel or with a special collaboration tool. Choosing the right way is essential for feedback. It has been shown that e-mail and Excel are often used to launch initiatives, but they quickly reach their limits for all parties involved. Due to the lack of plausibility checks, neither option allows any conclusions to be drawn about data quality and creates further data silos.For this reason, specialized software tools for the exchange of carbon data have become established, such as SupplyOn Product Footprint. In most cases, these tools offer an intuitive user interface, plausibility checks, are integrated into other business processes and are therefore part of an end-to-end collaboration process.This is especially beneficial for small and medium-sized companies (SMEs), as they do not have to introduce additional software, but can work in their familiar environment. Standardized query templates across several customers also ensure greater user acceptance.As a customer, I benefit from a higher return rate and high-quality data. If I want to ask for more details than those provided in the standardized templates, flexible software tools also offer the option of customization, so that I can obtain all the data I need from the suppliers to make my decision.However, care must be taken here not to overload SMEs with overly specific questions, which can either take a very long time to answer or, in case of doubt, cannot be answered.Challenge 2 - EfficiencyWhen I request primary data from my suppliers, it's important to consider what resources they have to deal with the topic of PCF as a whole. As an OEM or Tier 1, I usually have specialists for lifecycle assessment, so-called LCA experts, who deal with this professionally and in most cases have a significantly larger team compared to a Tier 2, Tier 3 or even Tier 4. Hence, it's crucial to recognize that my supplier does not have the same knowledge and resources as I do.Efficiency is a critical success factor in collaboration. Using software solutions for data retrieval is often deemed efficient. In most cases, this is also easier and saves time compared to collaborating via emails or Excel files. However, the journey cannot and should not end there, as the data is initially without context and detached from other business processes.Successful companies integrate the query of PCF values into existing processes along the product life cycle and thus create additional efficiency in collaboration. The purchasing process is a good example of this, as suppliers are already asked to submit their carbon data during the RfQ phase - parallel to the price information and integrated into the sourcing software. The supplier can use a tool to communicate with me as a customer, while I receive all the relevant data at the same time and in a bundled form.SupplyOn Product Footprint's seamless integration into the source-to-contract process provides decisive added value at this point, contributing to more efficient collaboration.However, efficiency is not just a question of the right software. Transparency and communication with suppliers are also crucial in view of the different levels of knowledge about PCF and the limited internal and external resources. The more understanding and knowledge in the supply chain on the subject, the better and faster the data feedback will be.Many companies therefore organize webinars, training sessions or entire supplier days specifically for their suppliers. SupplyOn supports its customers in this process and offers customized supplier community events to cover a wide range in an efficient and resource-saving manner.Challenge 3 - PriorityThe intensity with which companies advance decarbonization efforts is closely linked to the priority placed on sustainability. The importance of dealing with carbon data from the supply chain is influenced, for example, by the delivered industries, legal reporting requirements (keyword CBAM and CSRD) or the company's own corporate goals.Decarbonization competes with many other topics for attention and resources. Cost reduction, digitization, a shortage of specialists, delivery quality, availability - these are all challenges that also need to be overcome. It is therefore important to first define a clear strategy and prioritization within the company.In order to make the importance of PCF values clear to my suppliers, transparency and communication are once again important success factors. Without close cooperation and involvement of suppliers, sustainable carbon reduction along the entire supply chain is not possible. Again, community events and supplier days are among the best practices.In addition, the purchasing side can influence the priority given to suppliers by giving the PCF more weight in the award decision. It is already not uncommon today to take the carbon footprint of a product into account when making purchasing decisions. As the carbon price rises, the importance of the PCF will continue to increase.SummaryIn conclusion, it can be said that purchasing can make a major contribution to the decarbonization of the supply chain despite the major challenges. Selecting the appropriate software, implementing efficient, integrated internal and external processes, and maintaining transparent communication with suppliers are essential components.

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