Savvy companies have come to view suppliers not just as sources of goods and services, but as key partners in driving innovation and value. At a time when supply chains are being pressed by tariffs, sourcing volatility, ESG regulations, and other challenges, ensuring deeper supplier collaboration has become essential. 

But poor integration, limited supply chain visibility, and slow communications are hampering many organizations’ ability to collaborate with their supplier networks to respond with speed and agility. Their current technology infrastructure was simply not built for today’s demands.

These pressures are driving organizations to invest in multi-enterprise supply chain networks. Inviting suppliers to engage on these platforms is both efficient and strategically advantageous.

“Creating a digital ecosystem helps integrate key suppliers, supports the organization in becoming a customer of choice and can enable the free flow of information that differentiates leading-class supply chains,” according to an article by consulting firm EY.

Shared benefits

Companies and suppliers have long lacked centralized, efficient ways to connect, collaborate, and transact day-to-day business. Manual and one-to-one processes, such as email, phone, and electronic data interchange (EDI), are costly and time-consuming to manage for every participant. 

In contrast, multi-enterprise business networks enable organizations and their suppliers to execute a wide variety of communications and transactions in one place, elevating the quality of their relationships. Suppliers benefit from their customers’ engagement with the network to optimize and streamline their own processes using an automated and AI-enabled many-to-many platform. 

Maintenance, repair, and operations (MRO) and industrial products supplier Grainger Inc., for example, uses the business network adopted by many of its customers to integrate its product catalogs with its customers’ procurement systems, making the purchasing and fulfillment process faster and more streamlined.

“Each day, Grainger helps thousands of customers connect with the products they need through SAP Business Network,” says Sean Foran, director of e-commerce for Grainger. 

But it’s not just about gaining easy access to a supplier’s product catalog. Electrical, communications, data networking, and industrial products distributor Graybar uses the business network that many of its customers are on to digitize its processes for customer orders, order changes, order confirmations, advanced ship notices, and invoices. The company can also respond electronically to requests for quotes and proposals, as well as provide catalog solutions to connected trading partners.

“By providing a variety of robust transaction and integration options, SAP Business Network allows Graybar to continue to serve our customers as a vital link in the supply chain and provide value for customers with solutions and services,” says John Tintera, director of business performance for Graybar.

Deepening supplier engagement

Business networks facilitate many facets of customer-supplier relationships, including: 

• Planning collaboration, including forecast capabilities and external manufacturing visibility
• Contract manufacturing management, including purchase order collaboration, discrete PO, consignment purchase order, subcontracting purchase order
• Full order confirmation, ship notice, and invoicing capabilities
• Quality processes with inspections, reviews, and notifications
• Supplier-managed inventory

Global aerospace leader Embraer S.A. uses SAP Business Network to collaborate with about 2,100 suppliers and trading partners in more than 60 countries. SAP Business Network is enabling Embraer to strengthen its bond with suppliers by modernizing and simplifying its processes and offering optimized, interconnected systems. It also supports suppliers' own digital transformation objectives thanks to process standardization, the use of best market practices, and the development of new business models.

IDC set out to quantify the business value of working with suppliers using a business network. In “The Business Value of SAP Business Network — for Buyer Organizations¹,” the research firm found companies using this platform reported 30% faster go-to-market speed, 27% faster product/order delivery, 70% faster new partner onboarding, and a 404% three-year return on investment. A companion study² found similar payoff for suppliers, including 20% faster go-to-market speed and a 416% three-year ROI.

Companies become buyers of choice for many suppliers when they deploy highly impactful resources, such as SAP Business Network. This can be a key advantage in critical moments, says Eugene Mack, network deployment lead, SAP Business Network supply chain collaboration for SAP. That’s true for small and large suppliers alike.  

“The nice part about the business network is the fact that it supports any type of supplier. So if it's a less technically capable supplier, they can use the portal very simply. And if it's a more technically inclined supplier that wants the full capability of automation, they can choose to go the integration route.”

Next-gen collaboration

Analysts say market volatility shows no sign of abating, making effective procurement and supply chain management mission-critical. This requires closer collaboration with suppliers on everything from strategy and forecasts to daily transactions, but many organizations’ current tech stacks are not up to the task. Supply chain organizations are accessing substantial business value and operational efficiencies for both buyers and sellers by leveraging business networks to automate processes, enhance relationships, and drive revenue. 

Discover how you can drive business continuity and growth by collaborating with your trading partners in real time to infuse speed, agility, and resiliency into your supply chain. Visit SAP.com to learn more.

Sources:

1 IDC White Paper, sponsored by SAP, “The Business Value of SAP Business Network — for Buyer Organizations,” Doc #US52679524, March 2025

2 IDC White Paper sponsored by SAP, “The Business Value of SAP Business Network — for Selling Organizations,” Doc #US53181425, April 2025