High Tech

How procurement and supply chain management are driving change

High Tech:
An Industry Facing Unprecedented Disruption

Today’s high-tech world moves at breakneck speed. Consumers constantly demand innovative and personalized products from brands they trust. Supply chains are becoming more complex as a growing network of global suppliers and co-manufacturers faces scarce resources, intricate inventory management requirements, and a tougher regulatory environment around sustainability.

As a result, procurement and supply chain management play an increasingly vital role in driving digital transformation. Explore how next-generation practices powered by intelligent technologies can help companies like yours grow profitably and sustainably.


Of global discrete manufacturers will offer smart connected products, driving the need for digital supply chain capabilities1


Industry ecosystems will see a 40% greater innovation rate of new digital products and services compared with traditional innovation approaches2

Sourcing and Contract:
Key Challenges and Opportunities

Standardize source-to-contract processes across your organization to identify savings opportunities and find new sources of supply – accelerating innovation, improving compliance, and mitigating risks.


  • Align with consumer demands for sustainable products
  • Monitor individual supplier social responsibility and supplier diversity
  • Ensure supplier environmental, social, and governance (ESG) and other compliance across the supply chain


  • Consolidate all sourcing, contracting and spend in one place
  • Make risk due diligence part of the procurement process
  • Move to local and sustainable suppliers where possible


  • Expand the choice of suitable suppliers
  • Improve material availability
  • Assess and monitor supplier suitability, quality, and risk


  • Access global directories to identify potential new suppliers
  • Gain visibility and improve collaboration with existing suppliers
  • Exchange demand forecasts and supply signals with suppliers over a business network


  • Meet growing consumer pressure for continuous innovation
  • Compress product lifecycles
  • Make constant revisions to product designs


  • Identify potential new suppliers through global directories
  • Improve collaboration and automate transactions with existing suppliers
  • Use a business network to exchange demand forecasts and supply signals with suppliers

Plan and Forecast:
Key Challenges and Opportunities

Respond effectively to changes in supply, demand, and market conditions and synchronize decisions across the organization with an integrated approach to planning across the supply chain.


  • Adjust to growing use of outsourced manufacturing
  • Increase use of highly engineered materials and products
  • Understand and orchestrate the supply chain flow


  • Improve collaboration with existing suppliers
  • Send planned orders and demand forecasts to suppliers ahead of time
  • Exchange inventory status information with suppliers


  • Minimize brand owner reputational damage and penalties
  • Get better visibility across the supply chain network
  • Reclaim responsibility for product planning and execution


  • Collaborate more closely with manufacturers and suppliers
  • Get greater visibility of the upstream supply chain
  • Anticipate and react to potential disruptions before they arise


  • Manage sell with no buffer inventory to rely on
  • Compensate for out-of-date supply and demand signals
  • React quickly and effectively to market changes


  • Collaborate more closely with manufacturers and suppliers
  • Get real-time supply and demand signals
  • Anticipate market changes to enable rapid response

Buy and Deliver:
Key Challenges and Opportunities

Reduce procurement costs, drive compliance, and gain greater visibility with visible and connected spending. Manage goods and materials more efficiently across multitier manufacturing and the wider supply chain.


  • Meet consumer demand for personalized products
  • Work with shorter product lifecycles
  • Cope with no buffer inventory and small stocks of
    finished goods


  • Deploy efficient postponement manufacturing
  • Implement contract-based purchasing
  • Reduce friction in procurement execution through automation


  • Orchestrate a multitier manufacturing model
  • Get better visibility of materials and parts at every level
  • React quickly and effectively to issues


  • Reduce friction in procurement execution through automation
  • Monitor material and product flows across the logistics chain
  • Improve delivery metrics through effective track-and-trace capabilities

Invoice and Pay:
Key Challenges and Opportunities

Automate your accounts payables and early payment discount processes to strengthen key supplier relationships, optimize cash flow, and improve profitability.


  • Ensure availability of components and materials required
  • Become the OEM of choice among suppliers
  • Maintain profit margins


  • Automate early payment discount processes
  • Increase earnings and optimize working capital at zero risk
  • Build stronger supplier relationships


  • Accelerate the current cash conversion cycle
  • Improve payment term management
  • Increase working capital and net income


  • Benchmark against industry and regional peers
  • Discount dynamically and offer supply chain financing
  • Eliminate slow and costly processes

How High-Tech Customers Are Achieving Value from SAP® Solutions

Todd’s I.T.: How flexible financing can help support business growth while reducing cash-flow risk

Read how the SAP® Supplier Financing solution, offered through SAP Business Network, enabled Todd’s I.T. to access funding at competitive rates quickly to improve cash flow and manage working capital more effectively.

Read more

NTT DATA Services LLC: How agile procurement can achieve $100 million in value

Watch a snapshot video to discover how this global IT services provider transformed its procurement with SAP Ariba® and SAP Fieldglass® solutions to manage 99% of its spend and realize US$100 million in value.

Watch now

Learn More About Procurement Software and Solutions for High Tech from SAP


Improvement in inventory turns from intelligent enterprise and supply chain transformation3


Lower revenue loss due to stockouts4


Higher on-time delivery rate5


Faster time to market for new products6

Learn more about how SAP procurement software and solutions can help you

Contact us today


  1. “IDC FutureScape: Manufacturing Product and Service Innovation 2021 Predictions,” IDC, October 2020.
  2. Ibid
  3. SAP Performance Benchmarking.
  4. Ibid
  5. Ibid
  6. Ibid