In September, global car manufacturer Ford announced headline-making plans to restructure its global supply chain. This was just days after the company reported roughly $1 billion in unexpected supplier costs and in the midst of the company’s search for someone to fill the new “chief supply chain officer” position.
While this announcement grabbed plenty of attention, Ford is hardly unique: streamlined and resilient supply chains are increasingly recognized as a vital aspect of modern businesses, and the need for expertise in this area has never been so valued.
That is why SAP is proud to be recognized by Gartner as a Leader in Magic Quadrant™ for Transportation Management Systems and Magic Quadrant™ for Warehouse Management Systems, and why we continue to invest in supply chain specialties that help businesses take the next step.
Companies across industries and around the world recognize not only the role of supply chains but that supply chain management is a competitive advantage and critical for long-term success. To reduce costs over the past decade, companies have increasingly looked to their ecosystem of partners, contract manufacturers and logistics service providers to optimize their supply chains. These steps revolutionized many parts of the business world, lowering consumer costs and connecting suppliers over vast distances to optimize manufacturing.
Global supply chains can reduce costs but also can increase supply chain risks. Between 2019 and 2020, overall supply chain disruptions increased by 14%, according to a recent study from Procurement Tactics. This is attributed to a number of geopolitical and unprecedented natural events — chief among them the global COVID-19 pandemic, followed in quick succession by events like Brexit, a historic blockage of the Suez Canal, and an increase in extreme weather around the world. As a result, there have been multiple material shortages, from wood to minerals to parts such as semiconductors.
With this increased complexity and the direct impact on consumers, supply chains have been at the center of conversations far outside the board room. And just like at Ford, the need for chief supply chain officers is more widely recognized than ever. Supply chains are now understood as a strategic aspect of business that can differentiate a company from its competition and help to solve some of today’s thorny business conundrums.
Organizations turn to experienced partners like SAP as they re-imagine their supply chains.
SAP Offers the Expertise Needed Today
To make today’s supply chains work requires a strategic perspective, deep process experience, and technology leadership. SAP has all three. For well over a decade, Gartner has identified SAP as a Leader in its annual rating of “Market Share for Supply Chain Management Software, Worldwide.”
In the most recent report, SAP not only maintained its position, but held more than a 15% gap in market share between SAP and the next ranked vendors.
We believe this rating demonstrates that SAP is a true leading market provider in the supply chain and procurement space, and that customers can rest assured that one of the most vital aspects of business today is in expert hands.
Logistics Make Supply Chains Sing
Over the past two years, the role and importance of logistics in supply chain management has been elevated significantly. Many companies tend to begin their business transformation by focusing on supply chain solutions, such as warehousing and transportation, which can have a quick and noticeable impact.
As one of the leading providers in driving supply chain convergence, SAP offers a seamlessly integrated supply chain execution platform consisting of the SAP Transportation Management, SAP Extended Warehouse Management, and SAP Yard Logistics applications.
SAP Business Network for Logistics extends business process execution beyond company boundaries and synchronizes processes with carriers, third-party logistics, and other trading partners. This holistic approach, along with thousands of recognized companies using the solutions, is why SAP has been recognized as Leader by Gartner for eight consecutive years.
SAP was positioned as a Leader in 2022 Gartner Magic Quadrant reports, which we believe proves SAP’s continued commitment and investment in supply chain management.
Expertise Today, Resiliency Tomorrow
It takes leadership to look to the future, taking the time and expertise to adapt for the long haul rather than reacting to immediate concerns. SAP’s continued recognition as a Leader by Gartner in many areas of supply chain management show how the company prioritizes supply chain, the expertise it has built up over time, and the resiliency it takes to be an industry leader.
While no business can know what’s to come, they can prepare for next steps by partnering with today’s leaders. Join SAP in building the resilient supply chains modern businesses need now — and in the future.
Till Dengel is global head of Digital Logistics Solution Management at SAP.
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