Increase Supplier Compliance with Sustainable Business Networks

  • by William Newman, Managing Principal, Newport Consulting Group
  • July 18, 2011
Brands and manufacturers maintain complex supply chains of material, service, and component vendors. To demonstrate compliance with a myriad of social, economic, and environmental regulations, maintaining accurate records of supplier compliance in procurement and ongoing supplier management activities is necessary. Likewise, suppliers to multiple brands receive duplicative compliance requests simultaneously, driving up compliance reporting and business improvement activities when resources are not available to accommodate such requests.
Key Concept
SAP’s sustainable business network represents the next generation of analytic reporting by providing a membership-driven social or business environment in which brands, manufacturers, and suppliers exchange information based on defined relationships. This sharing of information increases reporting and compliance management accuracy, allows standardization of scorecards and supplier management ratings, and provides core content in areas of business improvement methods and training opportunities with partner organizations. Membership may be driven by industry or manufacturer or via an opt-in approach that provides access to this cloud-based business network environment.

Traditional multinational value chain models have matured and increased in complexity over the past 20 years. We saw a rise in new development of management and governance with the advent of new trade agreements and the World Trade Organization (www.wto.org). As the need for companies to grow revenue and add new customers continues to increase, new markets emerge, creating demand for products and services. The result is an integrated network value chain shown in Figure 1 where each block represents a specific organization, facility, or plant that are tightly woven together. 



Figure 1
An integrated network value chain, with the organization located in the center

William Newman

William Newman, MBA, CMC is managing principal of Newport Consulting Group, LLC, an SAP partner focused on EPM and GRC solutions. He has over 25 years of experience in the development and management of strategy, process, and technology solutions spanning Fortune 1000, public-sector, midsized and not-for-profit organizations. He is a Certified Management Consultant (CMC) since 1995, qualified trainer by the American Society of Quality (ASQ) since 2000, and a trained Social Fingerprint consultant in social accountability since 2012. William is a recognized ASUG BusinessObjects influencer and a member of SAP’s Influencer Relations program. He holds a BS degree in aerospace engineering from the Henry Samueli School of Engineering and Applied Science at UCLA and an MBA in management and international business from the Conrad L. Hilton School of Management at Loyola Marymount University. He is a member of the adjunct faculty at both Northwood University and the University of Oregon with a focus on management studies and sustainability, respectively.

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