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Supplier Performance Management: how to systematically strengthen your supply chain

You can only manage what you measure, they say—and rightly so. This is especially true when it comes to supply chain performance. Disruptive change and increasing demands for cost efficiency, quality, and speed present unique challenges. Only by measuring how well it is performing can the supply chain be properly aligned and optimized.This requires a comprehensive, holistic view of supplier performance which goes beyond traditional key performance indicators (KPIs). The evaluation scheme should also provide sufficient leeway and flexibility to respond quickly to internal and external changes. Most importantly, performance measures need to have impact. In other words, they need to shape the way we interact with each other. Therefore, evaluation criteria must be transparent and accessible to all stakeholders, and there must be a proactive, open exchange of information. Only then can both sides improve collaboration.So there are six factors that characterize good Supplier Performance Management: it must be holistic, flexible, binding, transparent, proactive and collaborative. But what does this mean in practice?Holistic Supplier ManagementMore than "just" performanceTraditional metrics such as on-time delivery (OTD), on-time, in-full (OTIF), unit cost, order fulfillment (PO collaboration), and first-pass yield (FPY) are certainly important. But there is more to a holistic picture: There are qualitative factors such as response time, service quality, complaint handling, price stability, and resilience to various risk factors.Another important evaluation category is determined by the supplier's capabilities. This includes factors such as agility and flexibility in the face of change, innovation and speed, the degree of digitization of its processes and, last but not least, sustainability aspects.Only the combination of all these factors provides a complete picture of a supplier’s performance. If you neglect one factor in the assessment, this can lead to significant competitive disadvantages or even serious compliance problems, for example with regard to the Supply Chain Acts in Germany or the USA. Flexible Supplier Performance ManagementCustomized and quickly adaptableEvery business is different. So are their supply chains and supplier relationships. This has an impact on Supplier Performance Management: which topics are important, which criteria are included in which scores and how they are weighted, and who has access to which data internally—all of this varies greatly from company to company.Accordingly, a Supplier Performance Management solution must be individually adaptable if it is to make a value-adding contribution. At SupplyOn, we have therefore placed particular emphasis on the high configurability of our Performance Management solution. With just a few clicks, companies can configure the content and data fields of a table, as well as filters, scorecards and hierarchies.Organizational structures can also be stored to enable multi-dimensional monitoring at the division, plant, or country level. The dashboard, too, is customizable. In the event of organizational changes or changes in the business environment, companies can easily adapt the configurations without any additional implementation effort—and optimally adapt their Supplier Performance Management to their changing needs at any time. Binding Supplier Performance ManagementProviding direction for procurementMeasuring supplier performance is not an end in itself. Supplier Performance Management can only function as an active control tool for supply chain quality if it is closely linked to all downstream procurement processes. In this sense, supplier performance is the supplier sentiment that companies use to decide which materials and processes (RFxs, auctions, orders and contracts) the supplier is qualified for.In this way, the purchasing department can ensure that only suppliers that comply with the company's internal specifications can be selected. This ensures compliance along the supply chain.SupplyOn Performance Management can be seamlessly integrated into internal systems via API, so that even global companies with very heterogeneous IT landscapes can benefit from this company-wide compliance enforcement. The solution also integrates with other SupplyOn solutions such as Supply Chain Collaboration, Sourcing and Quality Management.The aim of all these measures is to achieve an integrated workflow that leads to a continuous improvement in supplier performance—and thus in the entire supply chain.Transparent Supplier Performance ManagementA common understanding between customer and supplierSuppliers can only improve if they know — and above all understand! — how they are perceived by their customers. What metrics are most important, what factors go into a score, and what is actually measured? A supplier must be able to answer all these questions in order to adjust its own goals accordingly and initiate suitable improvement measures.With SupplyOn Performance Management, companies can share the evaluation categories and evaluation hierarchies with their suppliers. This customer-based structure makes it easier for suppliers to understand the reasons behind certain scores. Info buttons explaining the calculation of the respective KPI and traffic light functions also help to make this easier to understand.All of this ensures that both sides have the same view of the data and therefore the same understanding of supplier performance Proactive Supplier Performance ManagementAutomatic trend monitoringThe sooner companies and suppliers can take action on performance issues, the better. This requires up-to-date data. SupplyOn Performance Management uses automated processes and API connections to continuously collect all data in real time. Trend analyses provide a quick overview of improvements or deteriorations compared to historical data, making lengthy analyses a thing of the past. This enables companies to proactively take appropriate development and improvement actions for their suppliers and store them directly in the system.In the future, AI functionalities will further expand this proactive approach in SupplyOn Performance Management by automatically identifying optimization potential for suppliers and suggesting appropriate measures.Collaborative Supplier Performance ManagementWorking as a teamThe customer-supplier relationship is not a one-way street. It thrives on productive collaboration on both sides. Supplier Performance Management should reflect this collaborative approach. After all, different perspectives can quickly lead to misunderstandings and feelings of unfairness if not discussed.For example, last month's on-time delivery (OTD) score may have been 80 instead of 100 according to the customer's data, but when discussed with the supplier, it turns out that the late delivery was due to weather-related accidents and traffic jams—factors beyond the supplier's control. Both parties can then agree to adjust the score accordingly.For this exchange between customer and supplier, SupplyOn Performance Management offers convenient comment functions, the option of setting up measures and an integrated supplier self-assessment. Here, suppliers can present their own performance or capabilities and initiate a collaborative exchange with their customers.But collaboration is not just about individual scores. It is also about the customer and supplier working together to improve overall supplier performance.Bottom lineEmbedding all six aspects into Supplier Performance Management leads to more harmonious relationships because it enables collaboration on an equal footing. Suppliers are seen as equal business partners, pulling in the same direction as their customers, with the goal of continuously improving processes and collaboration. Suppliers can tailor their activities and actions to the needs of their customers and continuously analyze their progress. This enables companies to develop their suppliers efficiently and strengthen their own competitive position.The combination of these two perspectives makes Supplier Performance Management a powerful lever for increasing the resilience, efficiency and sustainability of the entire supply chain. At SupplyOn, we integrate these two perspectives through close cooperation with companies and suppliers. In this way, we continuously gather valuable feedback from both sides to continuously expand the SupplyOn Supplier Performance Management solution, integrate the latest technological advancement and improve it even further. As a result, companies and suppliers can work most efficiently and always stay one step ahead of the competition.
Supplier Performance Management: how to systematically strengthen your supply chain

Business Continuity: contingency plan in case your supplier is the victim of a cyber attack

Unfortunately, cybercriminals continue to gain access to corporate IT infrastructure, encrypt data, and then demand large sums of money to "decrypt" it. The impact on affected companies is devastating! It often takes several months before they can operate as they did before the attack.Even if your company has planned for this eventuality: What if one of your key suppliers is affected? How long can you produce without them? How can you continue to manage the relationship if EDI is down and email is out?True to the motto "better safe than sorry", we at SupplyOn offer our customers the creation of an emergency plan for such cases - before the disaster strikes. The aim of the plan is to implement and support an orderly and monitored cooperation with the affected companies within 24 hours. All order types such as JIT/JIS, orders, KANBAN or VMI, etc. can be integrated.In the first step, our experts work with the client to develop a customized contingency plan and define the necessary adjustments and actions. The second step is to define the preparations for the emergency. Once all the necessary actions have been defined, the plans are communicated - in paper form, of course - along with all the key contact information. This ensures that the right people in your organization are notified in the event of an emergency, for example, via their personal cell phones.In the event of an emergency, you and the supplier concerned initiate immediate measures and determine the next steps together with SupplyOn. This includes the immediate registration and activation of the supplier on the SupplyOn platform as well as the transfer of open and current orders and delivery schedules to the Supply Chain Collaboration solution. Together with our consultants, the first steps with the supplier are then carried out and monitored. The support provided by SupplyOn gives the suppliers concerned peace of mind and avoids unnecessary delays and queries to Customer Support.The package offered by SupplyOn supports your suppliers in the first steps out of the chaos and on the way to an orderly production process. In addition, the SupplyOn platform prevents the malware from spreading to your company and ensures that business can continue to be conducted electronically as before.Got curious? Then get in touch with us below.
Business Continuity: contingency plan in case your supplier is the victim of a cyber attack

Feedback for career growth: Sabine’s top tips for success

In this interview, Sabine Moudilou, Manager Portal UI/UX, who has advanced her professional development at SupplyOn through openness and targeted feedback, shares her valuable experience and tips on feedback and self-development. Find out how constructive feedback can help you achieve your professional goals.Can you briefly outline your career at SupplyOn and describe what feedback means to you personally?Sabine: Sure, of course. I started at SupplyOn in 2016 as a working student. After graduating from university, I supported our customers as a consultant with the implementation of our SCC solutions. I then moved to the Supplier Onboarding team and took on my first team lead position. For about three years now, I have been working as a Manager in Product Development at SRM & Portal, supporting UX Designers, Product Managers and Product Experts in their daily work.Feedback has always been incredibly important to me. I am open to feedback and also like to give timely feedback myself. I see it as an opportunity to learn and develop. The feedback I received from my colleagues was particularly valuable because I was able to learn from great experts in their fields. This helped me enormously, especially at the beginning of my career.What strategies have you used to get constructive feedback from colleagues and managers? Are there any specific methods you would recommend?Sabine: I try to actively seek feedback, be it after presentations or in preparation for important meetings. I often ask directly what they think of my work, whether I have conveyed the content clearly and what I could improve. I find it particularly important to explicitly ask for feedback at the end of the year, independently of formal target agreement meetings. This gives me the opportunity to reflect comprehensively on my achievements and challenges of the year.Last year, I initiated 360-degree feedback for myself. I asked around 35 colleagues from various departments and hierarchy levels for their anonymous feedback. At the time, I had moved into my new position and wanted to make sure that I was heading in the right direction in the way I was living this role.It was an exciting experience and really helped me to get different perspectives. It was not only valuable for my professional development, but also very appreciative for me personally. Once again, it showed the good collegiality at SupplyOn, because my colleagues invested a lot of time and effort in my assessment, for which I am very grateful.I find joint reflection and the broadening of perspectives and perceptions extremely valuable. I also give my manager feedback relatively often, for example on my perception of presentations, events or meetings. Our regular weekly jour fixe meetings in particular provide an opportunity to give structured feedback.These perceptions and reflections are very well received. Of course, feedback can also be spontaneous, for example directly after a successful presentation. However, in my opinion, the key to high-quality feedback is good preparation. If feedback is well thought out and prepared, it is particularly helpful.How do you personally deal with feedback from colleagues and managers, especially when it is critical or challenging?Sabine: First of all, listening is essential for me. I try to really understand the feedback and if it's difficult, I sleep on it. Then I talk to the person again to clarify any ambiguities. Sometimes I also discuss the feedback with other colleagues to get a second opinion and better understand it.Can you give an example of how you were able to grow based on specific feedback?Sabine: One specific example is my current position in the product area. I was open to new opportunities. But without the recommendations and feedback from my colleagues and managers regarding my strengths, for example, I wouldn't have had the idea of applying for this position in a specialist area that was still foreign to me.I saw the feedback to develop myself in this position as an opportunity to develop further. The new position has been a great learning curve and I am grateful for the opportunity to think outside the box and prove myself in a new area.What advice would you give to people who are afraid to ask for feedback because they feel vulnerable?Sabine: I understand this fear very well. Getting feedback takes courage, but it's a valuable opportunity to get out of your comfort zone and grow. It helps to trust that most colleagues want to give honest and constructive feedback to be supportive. It also shows that you really want to develop.Good preparation for feedback meetings can also provide additional reassurance. The more often you ask for feedback, the more courageous you become in the process. I recommend using the projects and initiatives of the past year as a guide when asking for feedback if you are unsure.Reflect on the challenges you faced, as well as your successes and moments of happiness. Where did you get stuck, where did you reach your limits, but where did you surpass yourself? Think about specific questions that you want to ask in order to receive targeted and helpful feedback.It can also be helpful to obtain feedback outside of the regular goal-setting meetings, for example through 360-degree feedback. This not only shows your willingness to develop yourself, but also strengthens teamwork.For your own career development, I can only recommend that you listen to how others see you and how they assess your strengths. I would be delighted if my experience report helps you to deal with feedback more courageously, to dare to ask for it and to advance your own career.Ready to take the next step in your career? Apply now and experience how valuable feedback and a strong team culture can drive your professional development! To our job offers
Feedback for career growth: Sabine’s top tips for success

Kick-off: SupplyOn at the Charity Company Championship 2024

If my Outlook hasn't hidden any emails and if my memory serves me right, SupplyOn took part in the MCCC (Munich City Company Championship) for the first time in July 2014. This was also the time of the World Cup, in which the German team won the title. We all certainly remember the 7:1 win against Brazil in the semi-finals 🙂But back to this year - ten years later: For the first time, the MCCC took place in Aschheim instead of the Nymphenburg Sports Park. According to the organizers, they were not sure whether the change of location would meet with acceptance. But their worries were unfounded.24 teams attended the event, ensuring an optimal tournament schedule. As in 2023, Jimmy Hartwig took over the patronage. He was once again present to welcome the players in person. The traditional photo with all the teams was taken and then the group phase began. But we couldn't speak of good luck in the draw: Accenture and Hartmann Consulting (2023 tournament winners) were two very strong opponents in our group.Fortunately, the SupplyOn team had five newcomers. As in previous years, we didn't have the opportunity to practice together in advance. Thus, the other teams had an advantage, and the sporting successes were absent on our side. In fairness, it must be said that some colleagues still had the B2run (Wednesday, 17.07.2024) in their bones.Sadly, there was also an injury, not caused by an opponent, but by an inconspicuous hole on the otherwise well-maintained field. Best wishes and a fast recovery to our colleague! Fair play was key in all games, and there were no serious fouls.The organization team (Pascal and the team Die Gastgeber) really went the extra mile and provided everyone with delicious food and drinks. Nothing was missing, a thousand thanks for that!The well deserved tournament winner was the team "Die Gastgeber". They prevailed against our group opponents Accenture. Congratulations on the title.We had a lot of fun at the MCCC 2024 and will certainly take part again in 2025!
Kick-off: SupplyOn at the Charity Company Championship 2024

Unlock the power of integrated S&OP and Capacity Management

In today’s dynamic marketplace, staying ahead of the competition means being agile, efficient, and customer-focused. Achieve unparalleled supply chain excellence by integrating sales and operations planning (S&OP) on the buyer's side with robust capacity management on the supplier's side with SupplyOn Capacity Management. This strategic alignment not only optimizes resources but also drives substantial financial benefits.Why integrate S&OP with supplier capacity management?Enhance forecast accuracy: Synchronize your sales forecasts with supplier production plans to accurately manage demand. The benefits include minimizing stockouts and excess inventory, boosting customer satisfaction and reducing costs.Optimize resource utilization: Leverage your supplier's capacity knowledge to ensure resources are used efficiently. This reduces operating costs and increases productivity by balancing workloads.Improve market responsiveness: Quickly adapt to market changes with real-time data sharing and collaborative planning. Reduce lead times and improve your ability to respond to customer demands quickly, resulting in greater customer satisfaction.Reduce costs and maximize profits: By optimizing stock and avoiding supply chain disruptions you can capitalize on improved profit margins and cash flow for greater profitability.While the benefits of integrating S&OP with supplier capacity management are clear, achieving these advantages requires a structured approach and the right tools. Organizations need a systematic strategy to transform their supplier relationships from traditional buyer-seller interactions into true strategic partnerships. The following steps outline how to build and maintain such an ecosystem, leveraging digital solutions like SupplyOn Capacity Management to enable seamless collaboration and real-time visibility.Strategic steps for building a successful ecosystem with your suppliersBuild collaborative relationships: Foster strong partnerships with your suppliers through transparent communication. Establish regular joint meetings and collaborative platforms such as SupplyOn Capacity Management for seamless information exchange.Develop joint forecasting processes: Align demand forecasts with supplier capacity capabilities through collaborative planning and management. Conduct monthly meetings where buyers and suppliers jointly review and adjust forecasts and capacity plans, supported by seamless integration of S&OP planning with SupplyOn Capacity Management.Conduct regular capacity assessments: Assess and understand the capacity constraints and capabilities of your suppliers. SupplyOn Capacity Management provides early warning of impending shortages and helps to proactively manage potential bottlenecks.Leverage advanced analytics and scenario planning: Evaluate different demand and capacity scenarios to prepare for market fluctuations. What-if analysis tools for stress testing supply chain scenarios, developing contingency plans and SupplyOn Capacity Management's simulation of best capacity strategies help to avoid bottlenecks and ensure financial benefits.Align performance metrics: Establish common Key Performance Indicators (KPIs) to measure and drive performance across the supply chain. Collaborative monitoring of metrics such as forecast accuracy, lead time, and service level performance ensures a reliable supply chain and reduces costs.Enhance flexibility and responsiveness: Implement agile supply chain practices to quickly adapt to changes in demand. Digitization with SupplyOn Capacity Management enables flexible manufacturing agreements and agile production schedules.Realize the full potential of your supply chainBy integrating S&OP with SupplyOn Capacity Management, you can create a resilient, responsive, and highly efficient supply chain. This strategic alignment will not only optimize the use of resources, but will also lead to significant financial gains.Experience the transformation:Demand management: Achieve accurate forecasts and optimal inventory levels.Capacity management: Utilize supplier capacity efficiently to reduce costs.Financial outcomes: Increase revenue, improve cash flow, and maximize profitability.Take the next step towards supply chain excellence. Contact us today to learn how our integrated S&OP and Capacity Management solution can drive your business forward.Your success is our priority. Let's build a better supply chain together.
Unlock the power of integrated S&OP and Capacity Management

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%.
Growth Opportunity Act: Germany goes eInvoicing

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 managing 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.
Introducing Performance Management for enhanced collaboration

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

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.
5 key takeaways from the Gartner Supply Chain Symposium/Xpo 2024

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!
Embargoes in the supply chain: increase efficiency, minimize risks