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SAP Business Suite for Spend Management
SAP Business Suite for Spend Management High Tech Ind
h Tech Ind Tech Indus High Tech I
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High Tech Industry at a Glance
The high-tech industry operates at a rapid pace, driven by consumer demands for innovative and personalized products from trusted brands. Supply chains are becoming increasingly complex due to the global network of suppliers and co-manufacturers, who face challenges such as resource scarcity, intricate inventory management, and stringent sustainability regulations. In APAC, countries like Taiwan and South Korea are key players in the high-tech supply chain, with a focus on semiconductor manufacturing and electronics. Procurement and supply chain management are critical in driving digital transformation and achieving business objectives in this sector. By leveraging advanced technologies like AI and IoT, high-tech companies can enhance supply chain visibility, improve forecasting, and ensure compliance with sustainability standards, ultimately supporting the development of cutting-edge products and services.
Opportunities
45%
45% of the C-Suite identified digitalization as procurements primary value proposition with 70% identifying spend analysis as the top driver of procurements digital transformation.
53%
53% identified AI strategy & integration as a top strategic priority for procurement, and 38% said they had seen significant improvement in procurement productivity through AI. 10% are highly confident in procurements ability to leverage effectively for productivity gains.
77% identified AI proficiency as the top skill being sought by procurement for the next 18 months and 52% identified Generative AI as the top technology trend to be implemented in procurement.
77%
65%
65% identified geopolitical dynamics as the top risk area for procurement to focus on. And only 24% are highly confident in procurement ability to manage global risks and only 27% are highly confident in procurements ability to manage risk strategies for different categories.
67% identified access to specialized skills was the top driver for using external workforce, and in the short term, 56% identified improving SOW as an urgent priority for external workforce.
67%
Source: Economist Impact study, The Resilient Edge – Procurement in an era of polycrisis
POs transmitted via Business Network
Best in Class Metrics*
Sourcing Savings Rate
Invoices without exceptions
97.5%
14.5%
99.9%
*SAP Customer Benchmarking program
Spend Management Solutions
In the high-tech industry, where speed, innovation, and global supply chain agility are critical, the SAP Strategic Procurement package coupled with the SAP Ariba direct materials sourcing add on offers significant strategic value. It supports end-to-end sourcing, contracts and supplier management processes, enabling high tech companies to manage complexity, reduce time-to-market, ensure supply continuity, and drive cost efficiencies across a fast-moving and highly competitive landscape. Key benefits: Streamline processes for faster, more agile sourcing. Shorten cycle times and improve decision making Leverage key supplier relationships and engage strategic suppliers early in product design and innovation. Anticipate risk, manage regulatory compliance in an ever changing and ever challenging world. The SAP Strategic Procurement package with the direct materials sourcing add-on empowers high tech companies to build resilient, cost-effective, and innovation-driven supply networks. It’s especially valuable in an industry marked by rapid obsolescence, global competition, and intense pressure to innovate, helping sourcing teams move from tactical execution to strategic value creation. In the high-tech industry, where supply chains are complex, global, and time-sensitive, the SAP Business Network for Supply Chain delivers a transformative value proposition. It connects companies with a vast ecosystem of trading partners in real time, enabling collaboration, visibility, and agility across the entire supply network. For high tech firms managing volatile demand, short product lifecycles, and multi-tier supplier networks, this network is key to achieving resilient, intelligent, and responsive supply chains. Key benefits: Gain end to end insight into your supply chain, with real time visibility of inventory, orders, shipments and supply constraints. Proactively manage sources of supply
Source High quality components for complex BOM’s, ensure end to end supplier connectivity and logistics visibility
Top Spend Categories
TRAVEL EXPENSE 8%
RECURRING SERVICES 5%
OPERATIONAL “CATALOG” SPEND 11%
TACTICAL SOURCING 4%
DIRECT MATERIALS 60%
EXTERNAL LABOR 12%
Spend Management Solutions
In the high tech sector, global supply chains are complex, fast-moving, and vulnerable to a wide range of risks — from component shortages to regulatory changes and ESG scrutiny. SAP Ariba Supplier Lifecycle and Performance in tandem with SAP Ariba Risk helps high tech companies proactively identify, assess, and manage supplier risks to ensure supply continuity, compliance, and resilience. Real-Time Risk Intelligence Across the Supply Base: Provides continuous monitoring of supplier financial, operational, geopolitical, and compliance risks through integration with trusted third-party data sources. Leverage Joule, SAP’s omnipresent co-pilot to see the overall supplier risk exposure by category and by individual supplier. Arm your buyers with AI generated insights to ensure early detection of disruptions that can affect production timelines. Accelerated, Risk-Aware Supplier Onboarding: Streamlines onboarding with dynamic risk-based questionnaires, AI generated supplier summarisation based on publicly available research, automated compliance checks, and configurable workflows — helping reduce cycle time without compromising governance. Leverage Joule for supplier management and supplier risk to gain insights into your supplier's risk profile and make informed decisions. Embedded Risk Controls in Procurement Processes: Integrate supplier risk insights into sourcing, contracting, and procurement workflows, allowing teams to make informed decisions and mitigate exposure before commitments are made driving informed risk aware procurement across your source-to-pay process. Support for ESG and Regulatory Compliance: Monitors supplier performance on ESG metrics, ethical sourcing practices, and regulatory compliance, supporting broader sustainability goals and helping manage reputational risk.
Enhanced Supply Chain Resilience: Delivers multi-tier visibility and scenario planning capabilities, empowering organizations to respond quickly to supply chain shocks and build long-term resilience.
SAP Ariba Supplier Risk enables high tech companies to reduce exposure to supplier-related risks, improve compliance, and build resilient, responsible supply chains — all while supporting speed to market and strategic growth objectives.
External Workforce Intelligence for Innovation-Driven Enterprises
Rapid Access to Specialized Talent Across Global Markets: Innovation in High Tech requires hard-to-find expertise—software engineers, chip designers, cybersecurity experts, and more—often sourced globally. SAP Fieldglass provides a centralized platform to source, onboard, and manage contingent labor and services, enabling companies to fill skill gaps quickly and efficiently, without long-term overhead. Intelligent resume recommendations, powered by AI, accelerate talent acquisition by aligning candidates’ experience and skills with project needs—enhancing hiring speed and precision, especially for niche technical roles. Workforce Scalability to Match Dynamic Business Demands: Product launches, M&A activities, or shifts in customer demand often require rapid scaling up (or down) of resources. SAP Fieldglass enables High Tech firms to flex their workforce capacity with speed and precision—mobilizing project teams faster and ensuring alignment with operational and R&D timelines. With Joule for Fieldglass, project managers can use conversational AI to create or modify Statements of Work (SOWs) on demand, helping quickly define deliverables, timelines, and budget parameters—drastically reducing administrative friction during periods of rapid growth or reorganization. Visibility and Control Over Workforce Spend and Performance: As external labor becomes a strategic part of the workforce, managing spend and performance is critical. SAP Fieldglass offers real-time analytics and dashboards to track cost, supplier performance, and workforce utilization across geographies and business units—ensuring cost control without compromising quality. AI-powered insights allow for predictive forecasting of workforce needs, risk exposure, and performance optimization, giving leaders proactive tools to manage budgets and outcomes more effectively. Built-in Compliance and Risk Mitigation Across Global Engagements: With High Tech companies operating in highly regulated environments (e.g., export controls, IP protection, data privacy), managing external workforce compliance is non-negotiable. SAP Fieldglass enforces consistent policies, automates documentation workflows, and reduces exposure to misclassification, co-employment, and regulatory risk. SOW translations are handled automatically to ensure consistency across regions and reduce delays in onboarding international service providers. Integrated Workforce Strategy Aligned with Enterprise Systems: SAP Fieldglass integrates seamlessly with SAP S/4HANA, SuccessFactors, SAP Ariba and other enterprise systems, enabling High Tech firms to align external workforce planning with overall HR, finance, and supply chain strategies—driving greater visibility, accuracy, and agility. This integration supports automated SOW creation workflows triggered by internal planning systems, ensuring that workforce planning and project execution stay tightly synchronized. In a market where speed, specialization, and scalability are key to competitive advantage, SAP Fieldglass provides High Tech companies with a strategic platform to manage and optimize their external workforce. It transforms how companies engage talent—improving time-to-market, reducing risk, and enabling innovation through workforce flexibility, intelligent automation, and AI-driven decision-making
Improving collaboration for a smarter, more agile supply chain
of organizations view a lack of visibility to see necessary changes in time to react to them effectively to be a challenge for their supply chain. 59% of organizations believe that a lack of effective collaboration with external suppliers is a significant impediment to better business performance. 43%
of organizations view collaboration as a work in progress. 79%
Business Network Solutions
SAP Business Network for Supply Chain
Planning and forecasting collaboration
High Tech OEMS need to constantly collaborate with suppliers on critical components, collecting confirmations to be able to create feasible plans for final assembly. Contract manufacturing collaboration Ability for Contract Manufacturers to respond back to the OEM with detailed updates on planned shipments of each finished product, production and supply status for each finished product, and supply status updates for product materials that are used in the assembly of a finished product. Material traceability High Tech companies are part of a complex value chain, and need to be able to track their product and components that are built-in. This is due to increasing regulatory obligations and demanding customer requirements. Examples: stopping or calling back end products after a problem with a component is detected; lock affected inventory in case of quality issues; finding the root cause of problems in end products, reported by the market; proving authenticity and genealogy of security relevant products. Additionally since High Tech OEMs need to be able to report the CO2 footprint of their products , component manufacturers will have to report their carbon data to all their OEMs. Semiconductors are part of every High Tech product and are very energy and resource intensive products. A consistent tracking and aggregation is key to fulfil these requirements and SAP Business Network Material Traceability and SAP Sustainability Footprint Management can track this today.
Spearheading the future of mobility for autonomous vehicles with SAP Ariba solutions Before: Challenges and opportunities Inefficiencies from reliance on manual processes for supplier management Data accuracy risk from scattered vendor management process and lack of automated supplier qualification evaluations and traceability Why SAP Proven capabilities for sourcing and supplier performance management offered by SAP Business Network and the SAP Ariba Sourcing and SAP Ariba Supplier Lifecycle and Performance solutions Native integration with SAP S/4HANA Cloud Private Edition, helping accelerate processes and access to data-driven insights for more-informed decision-making Simplified procurement and sourcing operations with an enhanced user experience for buyers and suppliers by digitalizing supply chain processes After: Value-driven results Reduced procurement cycle times by one week on average, using an online bidding system based on an English auction model Centralized access to accurate data, optimizing supply chain management processes with closer cooperation between upstream and downstream enterprises and stronger demand management Enhanced mass production capabilities with more agility, thanks to efficient supplier management capabilities
Molex LLC Lisle, Illinois www.molex.com
Industry High tech
Products and services Electronic components
Employees >38,000
“We have a global supply chain with thousands of supplier users. SAP Business Network Supply Chain Collaboration helps us bring this under control with standardized and intelligent processes, ultimately driving assurance of supply. When our suppliers are on time, we’re delivering to our customers on time, ensuring they meet their commitments.”
Tony Gainsford, Director, Supply Chain, Molex LLC
>900
>US$1 billion
Suppliers successfully onboarded on SAP Business Network
Of business transacted on SAP Business Network in 18 months
Featured solutions and services SAP Business Network Supply Chain Collaboration
ThankYou
* Research documentation has been used from work commissioned by SAP Ariba and produced by Economist Impact
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