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Manufacturer explains the benefits of SAP SNC

Tami Loughren, a project manager with hydraulic pump manufacturer Sauer-Danfoss, talks about her company’s recent deployment of the SAP Supply Network Collaboration (SNC) portal, which she says has helped them reduce inventory and lead times and reduce shipment errors before they arrive. Learn more about SNC in this video shot at the recent Supply Chain Management Summit at SAP’s U.S. headquarters in Newtown Square, Pa.


Read the full transcript from this video below:

Manufacturer explains the benefits of SAP SNC

Tami Loughren: We started implementing SNC approximately three years ago with the 5.1,
and have just recently upgraded to the newest release, 7.0 Enhancement Pack 1.
What we were trying to do when we implemented SNC was solve some of our
business process issues, as well as have one way to communicate with our
suppliers who were not capable of doing traditional EDI. So, what SNC has
allowed us to do is truly collaborate with our supply base. We send our
purchase orders real time, update forecasts, once a day. We do ERS, or
Evaluated Receipt Settlement, in North America which allows us to be truly
paperless and procure-to-pay. We've implemented a lot of controls that have
helped with our inventory accuracy. We've cut down on invoicing
discrepancies. In the invoicing world, we have eliminated 13 touch points
that our invoices take, from time of receipt until payment, truly making
that a paperless process.

Interviewer: What kind of challenges have you encountered implementing SNC? Any
obstacles, any tough things about that?

Tami Loughren: OK, some of the difficulties we faced during our SNC implementation, is just [that]
change itself is hard for people. So, we had suppliers who weren't used to
having to truly collaborate, they were used to getting information from us
but not having to communicate back to us doing ASNs or order confirmation.
So, there were difficulties selling our suppliers on the increased benefit
of truly collaborating in a paperless environment. We had a lot of the
internal difficulties, based around a change of this magnitude. We revised
our procurement process so we actually stopped defects at the receiving
dock. So if there's a discrepancy in quantity or part number, we actually
do not allow that into our business system. That was a change in
philosophy, where in the past we were just receiving whatever was
delivered. So I think the typical types of resistance you see with change
of this magnitude.

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