By Tony Harris, Senior Vice President and Head of Marketing & Solutions, SAP Business Network
In the wake of global supply chain disruptions, supply chain executives worldwide have turned to digital transformation to enhance the flexibility and robustness of their networks. A study by Economist Impact, sponsored by SAP, revealed that 57% of procurement executives consider digitalization a top priority over the next 12-18 months.
Molex, a global leader in electronics and interconnectivity solutions, is a shining example of how manufacturing companies can leverage advanced technologies to overcome supply chain challenges and meet soaring customer demand to grow exponentially.
With over 70,000 separate items – from resin and metal to electronics – sourced from every corner of the earth, Molex’s operations are a complex web requiring seamless supply chain management and timely delivery. To achieve this, the company embarked on a multi-year transformation journey, centered around SAP Business Network, to digitalize transactions and interactions across its vast supply chain.
Enabling Intelligent Collaboration Across the Supply Chain
As Molex outgrew its legacy supplier portal, it sought a solution that could foster real-time supplier collaboration, improve visibility, and drive data-driven decision-making. By implementing SAP Business Network, the company aimed to eliminate traditional silos and expand connection points, facilitating real-time communication across its entire supply chain.
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“This move significantly improved visibility into purchase orders, inventory, quality defects, and invoices,” said Tony Gainsford, Director, Supply Chain at Molex. “Near real-time data sharing provided us with up-to-date supply levels and delivery schedule confirmations, enabling us to anticipate potential disruptions and ensure timely deliveries to customers.”
A Strategic Approach to Transformation
Molex’s successful journey was guided by a clear strategy and strong organizational alignment. With a dedicated committee uniting supply chain leaders and offering visionary guidance from the Chief Supply Chain Officer, the project gained momentum and maintained focus through its execution.
A key aspect of Molex’s approach was its commitment to user-centric tools and training. The company created concise, native-language training videos for both buyers and suppliers, along with a digital scorecard providing a real-time overview of the program’s progress. By prioritizing alignment, innovation, and user engagement, Molex set a strong foundation for scalable, long-term success.
Comprehensive, Collaborative Roll-Out
Molex’s transformation began in Asia, home to a significant portion of its supply chain. The company adopted an agile approach, separating deliverables into workstreams and focusing on building stronger supplier relationships through clear, seamless processes.
Within the first year and a half of deploying SAP Business Network, Molex onboarded over 900 suppliers and transacted more than $1 billion of its business on the platform. Previously, manual processes burdened buyers, requiring eight to nine hours per week of processing supplier confirmations. Now, nearly 90% of POs are confirmed through SAP Business Network, reducing order confirmation cycle time by a third.
Gainsford added, “These time savings have strengthened our ability to meet customer commitments, ensuring orders arrive on time and production schedules stay on track.” Through the project, a tight-knit relationship with SAP enabled Molex to continuously refine and elevate capabilities.
A Foundation for the Future
Molex’s transformation was deeply rooted in its principles: delivering connectivity, high-quality components, engineering expertise, and collaborative customer relationships. By leveraging SAP Business Network for Supply Chain Collaboration, the company has streamlined operations, enhanced supplier collaboration, and improved overall efficiency.
Molex’s story serves as a powerful testament to how manufacturers across industries can create a robust, future-ready supply chain capable of thriving amidst uncertainty. By strategically investing in technology, fostering strong organizational alignment, and engaging suppliers, companies can enhance customer satisfaction and build resilience against supply chain disruptions.
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In an ever-changing global landscape, embracing digital transformation is not just an option – it’s a necessity. Molex’s innovative approach to supply chain management demonstrates the immense potential that lies in harnessing the power of advanced technologies and collaborative networks. As the company looks to the future, its revamped supply chain positions it strongly to navigate challenges and capitalize on new opportunities, ultimately driving growth and success in the competitive manufacturing sector.
By following in Molex’s footsteps, other manufacturers can unlock the doors to enhanced customer satisfaction, increased operational efficiency, and a more resilient supply chain – key ingredients for sustained success in today’s dynamic business environment. The future of supply chain management is here, and it’s digital.
