MANILA, Philippines - As a supplier to an industry driven by strict safety standards and quality controls, Charles Seafoods Supply knows there is little room for errors. Gaining advantage requires flawless execution. And to fuel it, the company is going digital.
Like many small, family-owned enterprises, Charles Seafoods Supply took a largely manual approach to interacting with customers. Until recently, orders were faxed or called in by phone. Invoices were sent by mail. And while the company had successfully established itself as one of the best suppliers to the seafood industry in the Philippines, owner Mayette Yulo decided it was time for a change.
Manual processes were making orders difficult to track and manage and often caused errors that led to delivery delays. Paper invoices were tough to trace and provided little visibility into the status and timing of payments. So Yulo set out to digitize things.
The effort began with creating an online catalog on SAP’s Ariba Network, through which customers could view and order the company’s products with just a few clicks. Then the company started collaborating around invoices using cloud-based applications delivered on the network. And it quickly saw results, including:
• A 75 percent boost in order accuracy
• An 80 percent reduction in late or overdue payments
• A 30 percent reduction in days’ sales outstanding
“We now have smooth and transparent transactions with our customers and fewer errors in ordering and delivery,” Yulo said. “More importantly, we are getting paid faster and now have a positive cash flow to support and expand the growth of our business.”
Much like social networks allow us to shop, share and consume better, business networks are driving a new, more collaborative way of operating that is changing the game for companies around the world. With business networks, companies can eliminate the hassles, paper, phone calls, and other manual or disjointed activities they do each day to find new suppliers or business opportunities; place and manage orders; collaborate with customers, suppliers, and other partners; or just get paid.
Leveraging the connectivity that business networks provide, buyers and sellers are not only simplifying these processes, but enabling new ones that enhance their relationships and create value on both sides of the equation.
Processes like dynamic discounting that allow them to secure discounts that can be reinvested in research and development and funding to expand their business. Or contingent workforce management through which they can identify and manage highly-specialized resources needed to develop that next-generation product.
They are harnessing the connectivity and insights that networks provide to find the right partners and optimize their spend and supply chain. To engage with customers when, how and where they want to be engaged to increase satisfaction and wallet share. And to see the future and proactively shape it to their advantage by anticipating risks and trends in the market and developing plans to execute on them before anyone else.
And they’re seeing results. Beyond what their existing applications deliver, companies connected to the Ariba Network, for instance, report:
• Lower costs – 1 percent to 8 percent reduction in supply chain costs and a 60 percent reduction in operating costs, on average.
• Greater efficiency – 50 percent to 75 percent faster transaction cycles, with many customers achieving 90 percent fully automated (“touchless”) transaction processing.
• Real-time process transparency and greater data accuracy – 60 percent improvements in order accuracy, reducing risks for stockouts or the need to stockpile excess inventory.
• Improved working capital performance – 50 percent improvements in discount capture with suppliers and 20 percent faster payment cycles with customers.
• Increased sales – 5 percent to 20 percent revenue increase with new customers and 30+ percent greater share of wallet with existing customers.
• Better customer retention – 15 percent improvements in customer retention rates.
Business networks are among the most disruptive technologies of our day. But when you get right down to it, companies don’t really care about technology. What they care about is outcomes and solutions that can help deliver value – fast.