Molex Modernizes Operations with SAP Business Network for Industry Transformation

Molex’s digital supply chain overhaul leverages SAP Business Network for industry transformation, fostering seamless collaboration and enhancing efficiency across its global operations.

Molex, a renowned player in electronics and connectivity solutions, has been advancing its supply chain strategy in partnership with SAP, leveraging SAP Business Network to enhance digital transactions and streamline communication with suppliers worldwide. This collaboration aligns with Molex’s larger objective to create a robust, transparent supply chain, responding more effectively to modern business demands. Over the last 18 months, Molex has onboarded 900 suppliers to this network, allowing the company to conduct over $1 billion in transactions, impacting the delivery of 70,000 parts annually. This transition reflects Molex’s ongoing commitment to developing a digitally intelligent supply chain model.

The SAP Business Network connects Molex’s enterprise resource planning (ERP) systems with a diverse network of trading partners. By digitizing key supply chain functions, Molex has improved visibility across its network, with real-time updates on purchase orders, inventory, and other essential metrics that were previously hindered by legacy systems. Prior to implementing this network, Molex’s supplier portal struggled to maintain real-time information on inventory levels and order statuses, which often led to miscommunications and delayed responses to supply chain disruptions. With SAP Business Network, Molex aims to transform its supplier relationships, reduce these inefficiencies, and create a more resilient supply chain.

Enhancing Collaboration with SAP Business Network for Industry Transformation

One of the primary advantages Molex has gained from SAP Business Network is enhanced transparency and collaboration with suppliers. By digitizing supplier interactions, Molex has been able to streamline purchase order processes, reducing the need for manual adjustments and enabling real-time confirmation of orders. Molex’s supply chain team notes that this system has drastically reduced purchase order confirmation delays and minimized the frequency of changes to these confirmations. Such improvements, Molex believes, help their suppliers adhere to schedules more accurately, which in turn enables Molex to fulfill customer demands promptly.

The SAP Business Network also supports a feature that Molex calls “clear to build,” which is vital in the manufacturing sector, where each component’s timely availability impacts production schedules. By providing suppliers and Molex with shared access to up-to-date inventory levels and order requirements, the “clear to build” initiative aims to enhance productivity and coordination. Tony Gainsford, director of Supply Chain at Molex, indicates that the company’s transition to the SAP Business Network has accelerated its capacity to fulfill orders and reduce supply chain bottlenecks, ultimately supporting its objective of timely delivery to customers.

Real-Time Insights and Innovation in Supply Chain Management

Through SAP Business Network, Molex has also introduced scheduling agreements and order reconfirmation processes that improve supply chain responsiveness. For instance, Molex’s supply chain teams can now use automated order confirmations, which have reduced processing times by a third. This feature, developed in collaboration with SAP, ensures that purchase order changes are synchronized efficiently. According to Molex, these enhancements allow for quicker adjustments to unforeseen changes in demand or inventory, positioning the company to adapt its supply chain processes dynamically.

SAP and Molex continue to co-innovate, with both organizations contributing to ongoing technological developments in supply chain management. Val Blatt, SAP Business Network’s chief revenue officer, points out that SAP’s solutions are designed to help Molex address supply chain challenges, improve resource productivity, and enhance supplier coordination. Blatt states that Molex’s adoption of SAP Business Network has resulted in better adherence to shipment schedules and has streamlined consignment inventory management—two areas that are critical in high-tech industries.

Looking forward, Molex intends to further leverage SAP Business Network to deepen its supply chain capabilities and drive innovation. With the flexibility to integrate additional functionalities, Molex and SAP are exploring new ways to refine supply chain interactions and optimize supplier engagement. By focusing on areas such as resource productivity and user experience, Molex aims to maintain its competitive edge while continually improving operational efficiency.