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Case Study

Molex Drives Intelligent Supply Chain Collaboration Through SAP Business Network

Intelligent supply chain collaboration is essential for navigating today’s complex, global business environment. By leveraging real-time data and robust digital platforms, companies can improve operational agility, enhance transparency and build resiliency in the face of disruptions. Through a strategic partnership with SAP Business Network, Molex has transformed its supply chain operations, driving significant improvements in supplier relationships and overall efficiency.

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DIGITAL COORDINATION ACROSS THE GLOBE

Managing global supply chains is a complex challenge on many levels, demanding precise coordination of on-time, on-budget performance and navigation of market volatility. As a leader in innovative connectivity solutions used across key industries, Molex has built an expansive global supply chain that coordinates the efforts of 900 suppliers, moving 70,000 components per year worldwide. 

A long-standing partnership with SAP, powered by its industry-leading ERP platform, drives these global operations. Over the past eight years, SAP Business Network’s team of supply chain experts has played an increasingly pivotal role in solving critical procurement and supply chain challenges for Molex.

Matt Tichelaar
“[The SAP Business Network] allows Molex to digitally collaborate with suppliers, contract manufacturers and external service providers. It helps build that bridge and that connection that's essential for keeping your supply chain in sync.” 
Matt Tichelaar
Director, SAP Business Network
SAP

Challenges

  • Legacy supplier portal required time-consuming manual entry of purchase orders 
  • PO collaboration process was laborious, requiring emails to 900+ supplier email addresses
  • Limited visibility across global supply chain hampered responses to supply chain changes and disruptions with agility and speed  

Solutions

  • Molex enlisted SAP Business Network to digitize and standardize supplier information about purchase orders, inventory, quality and invoices
  • Steering committee, KPIs and native-language YouTube-style videos drove global deployment of 900 suppliers responsible for delivering 70,000 parts each year
Benefits
  • Within 18 months, $1 billion in transaction volume completed on SAP Business Network
  • Over 90% of POs confirmed through SAP Business Network in a third of the time required previously
  • Major productivity gains deliver tangible business value from increased assurance of supply and timely, accurate “clear to build,” which empowers customers to meet commitments

MOVING FROM TACTICAL TO INTELLIGENT COLLABORATION

Real-time supply chain visibility seamlessly connects a global network of suppliers and buyers, driving major advancements in operational agility, transparency and resiliency. Together, Molex and SAP Business Network rose to the challenge by breaking down business barriers and complexities that impacted near real-time communications with direct material suppliers.

SAP
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