SAP's Val Blatt Talks Modernizing Supply Chains to Prioritize Customers

Supply Chain Insights

The Big Themes:

• Customer-Centric Supply Chains: Customer-centric supply chains are about aligning every aspect of the supply chain to serve the ultimate consumer. Val describes this as keeping the "why" — the customer — at the forefront, rather than focusing solely on operational efficiencies. Companies that succeed here often find themselves leaders in their industries, regardless of size.
• Cultural and Technological Shifts in Supply Chain: Val underscores the need for cultural change within organizations to adopt customer-focused practices and leverage innovative technology. Businesses must move beyond outdated methods (e.g., fax orders) and embrace digital solutions. Leadership plays a vital role in fostering this transformation, promoting a culture of adaptability, and aligning employee incentives with customer-driven goals.
• The Role of Regulatory Compliance: Compliance with regulations, such as those preventing the use of goods linked to unethical practices like child labor, is becoming a non-negotiable aspect of supply chains. Val points out that meeting these requirements not only avoids legal penalties but also ensures long-term viability and trust in global markets. Compliance is a driving force for adopting modern supply chain technologies.

The Big Quote: “[SAP Business Network] really does modernize how companies connect and collaborate across the supply chain. More specifically, the platform integrates into a company's back-end system. It can be to their ERP system, it can be through their procurement system. It can integrate to their logistics system, their planning system, and it allows us to actually send transaction documents back and forth . . . and gives you visibility across that entire supply chain."