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What are the benefits of the Inventory Collaboration Hub?

I read that Inventory Collaboration Hub is now part of SCM. Marketing baloney aside, what are the real benefits of this? Should I care? Supply chain management expert Harish Narayanan explains.

I read that Inventory Collaboration Hub is now part of SCM. Marketing baloney aside, what are the real benefits of this? Should I care?
In today's businesses, supply chains have evolved into complex supply networks and collaboration between supplier and manufacturer is increasingly critical in reducing the costs while maintaining visibility and assuring better customer service. Getting an edge over the competition in any of these areas could potentially lead to better market share and profitability.

Inventory Collaboration Hub which is now a part of the SCM suite is Internet based and helps in sharing information...

between partners seamlessly and securely. The real benefits of ICH are:

  • Real-time synchronization of information – Changing demands and inventory levels
  • Ability to integrate with any Supplier IT infrastructure due to the interfacing technology
  • Use of various Web-based communication services to deliver proactive alerts
  • Ability to track and audit transactions online helps in quality assurance

ICH can cut costs through reduction in inventory and safety stock, reduction in overtimes, reduction in administrative costs due to lesser processing effort and reduction in expediting costs. There are lesser risks of stock-outs, production delays and increased accuracy in delivery dates thus increasing customer service levels.

This is not just marketing baloney but a worthwhile investment to make if you would like to use your existing planning and execution processes and tools to collaborate with the suppliers. SAP ICH enables you to standardize on your existing SAP solutions, has shorter implementation time and user-friendly functions.

This was last published in May 2007

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