The Network Effect: How To Win The Battle For Market Share And Relevance [VIDEO]

Shelly Dutton

Without question, the level of competition and innovation that exists in today’s markets is nothing like we’ve ever seen before. But once you add the impact of suppliers’ decisions, actions, and performance, the fight for market share and relevance just got more complicated. Every supplier relationship is more than just a spend line-item; it’s a strategic opportunity to profitably grow and achieve market leadership.

During the SAPPHIRE NOW session “Digitize Your Supply Chain and Make Procurement Simple with SAP Ariba Solutions,” Alex Atzberger, president of SAP Ariba, observed, “the supplier side of the business is often misunderstood and undervalued. What companies need to do is deepen the relationship between buyers and suppliers in meaningful ways.”

This was the same realization that started Loblaws’ digital transformation of its procurement and supply operations. After spending 18 months scrutinizing its processes and lack thereof, Canada’s largest retailer decided to implement a supplier network that brought a strong set of centralized processes to drive down costs and mitigate risks in all vendor relationships.

Now, employees across Loblaws’ 2,000 stores can order supplies with three keystrokes and under one minute, which previously took upwards of 30 minutes. More important, the procurement office has the visibility to help ensure sure every purchase is a sound and compliant financial decision.

According to Atzberger, “this is the beauty of a business network. A ‘network effect’ in which you can find suppliers that compliment your operations and goals and access data that can help change your business going forward.”

To hear more about Loblaws’ approach, watch the replay of the SAPPHIRE NOW session “Digitize Your Supply Chain and Make Procurement Simple with SAP Ariba Solutions.”