Microsoft reinvents supply chain with SAP Ariba

Microsoft is reinventing its supply chain, and teaming with SAP Ariba and Intrigo Systems to create a scalable, modern platform to support the efficient, cost-effective manufacture of products such as the Xbox and Surface.

“At Microsoft, our mission is to empower every person and organisation on the planet to achieve more. And our strategy to achieve this is to build best-in-class systems and platforms and productivity systems,” said Ali Khaki, principal PM, supply chain engineering, Microsoft.

“When we looked at our supply chain, it was clear we needed to build a flexible, scalable platform that could support the complexity of our hardware business.”

It is using SAP Ariba solutions for direct spend to do it.

“The Ariba Network is the backbone for Xbox and Surface line of products supply chain,” Khaki said.

Microsoft is using the Ariba Network and the cloud-based applications delivered on it – including SAP Ariba Supply Chain Collaboration, to collaborate with multiple tiers of contract manufacturers and suppliers across key supply chain planning and execution processes, including: sharing production forecasts, orders, quality, and inventory information; anticipating and resolving supply assurance problems; and on-boarding suppliers.

Since implementing the solutions with Intrigo’s support, Microsoft has enabled multi-tier planning and collaboration with contract manufacturers and suppliers; reduced the supplier commit process from three days to 30 minutes; and cut the time it takes to onboarding for suppliers from four months to four days.