Microsoft Reinvents its Supply Chain by Leveraging SAP Ariba & Intrigo Systems

Microsoft Corp. has one of the most complex supply chains in the world.

And to keep it humming and ensure supply keeps up with demand for its hottest products, the company is reinventing its supply chain.

In a newly released Webcast (watch the video above), the company discusses how it is teaming with SAP Ariba and Intrigo Systems to create a scalable, modern platform to support the efficient, cost-effective manufacturing of its most popular products, including the Xbox and Surface.

“At Microsoft, our mission is to empower every person and organization on the planet to achieve more. And our strategy to achieve this is to build best-in-class systems and platforms and productivity systems,” said Ali Khaki, Principal PM, Supply Chain Engineering, Microsoft.

“When we looked at our supply chain, it was clear we needed to build a flexible, scalable platform that could support the complexity of our hardware business.”

And it is using SAP Ariba solutions for direct spend to do it.

“The Ariba® Network is the backbone for Xbox and Surface line of products supply chain,” Khaki said.

Through the Ariba Network and the cloud-based applications delivered on it – including SAP Ariba Supply Chain Collaboration™, Microsoft has created a modern platform from which it can safely and easily collaborate with multiple tiers of contract manufacturers and suppliers across key supply chain planning and execution processes, including:

  1. Sharing production forecasts, orders, quality, and inventory information.
  2. Anticipating and resolving supply assurance problems.
  3. Onboarding suppliers.

Read more at Microsoft Reinvents its Supply Chain by Leveraging SAP Ariba & Intrigo Systems

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The secret to making customers care about supply chain

Imagine a world where customers care about how products are sourced, made, and delivered, understand what goes into pricing, and generally take great joy in the experience. A world where customers are fluent in the language of supply chain.

It’s not as farfetched as you may think.

Supply chains solve complex problems. And in the company of supply chain professionals, we use big words and complicated terms to talk about it. Words like multi-modal logistics and global transportation, mass-customisation and postponement, procurement and letters of credit, demand management, the cost of inventory and buffer stock, assurance of supply, warehousing, and the last mile.

We nitpick over the differences between distribution and fulfilment centres, debate the true definition of supply chain visibility and the role of control towers to support orchestration across a complex network of suppliers, trading partners, and carriers. And we’re still not sure if our industries are facing an apocalypse or simply working through the growing pains of transformation in the digital age.

It’s a mouthful. And as we dive into the technical details and jargon that comprise the modern language of supply chain, one can’t help but picture the average consumer’s eyes glazing over.

But that’s not necessarily the case. There’s mounting evidence people care more about supply chain than ever – they’re just not using our words for it.

Therein lies the secret.

The words used to describe supply chain were different at the recent Shoptalk Europe conference in Copenhagen, Denmark, a gathering of more than 2,500 retailers, start-ups, technologists, and investors all focused on the worlds of retail, fashion, and ecommerce. Though most attendees weren’t purely in the business of operations and supply chain, all were exploring how to reach, engage, and enlighten the customer wherever and whenever they might choose to shop.

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A farm-level view on supply chain water risk

Managing any kind of risk starts with good information, but collecting and managing water use data up the supply chain can be a surprisingly tough nut to crack.

Agricultural supply chains are highly complex. Willoughby, for example, sells to four shippers who wash and bag his greens before moving them quickly up the supply chain to retailers such as Walmart and food service companies that supply restaurants, colleges and other institutions all over the country.

At the end of this supply chain, Willoughby’s greens are sold as branded bag lettuces, comingled with other growers’ greens. That means his farm level water use data is averaged in with many other growers’ data.

“The longer the supply chain, the weaker the connection between the farmer’s management information and the ultimate consumer,” said Daniel Mountjoy of Sustainable Conservation, which led a recent tour of Willoughby’s fields.

Inexact water use data is more of a problem in fragmented supply chains such as Willoughby’s, where each link acts independently and contracts are subject to change.

“My shipper may say I need five acres of red lettuce on May 30,” Willoughby explained, “but when May 30 comes around, they’ll say, ‘Actually I only need half of what you grew.’”

That’s because his shippers are at the mercy of restaurants and grocery store chains’ forecasting models.

Read more at A farm-level view on supply chain water risk

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