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Supplier Onboarding is Core to a Digital Supply Chain Transformation

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Supplier Onboarding Is Core To A Digital Supply Chain Transformation

When you talk to companies that have implemented enterprise or supply chain applications, executives will usually admit that they have under-invested in training and preparing users to use the new technology. People issues are always challenging. But change management is significantly more difficult when the technology deployed is used not just internally, but also by key trading partners.

Molex implemented a multi-enterprise supply chain network platform from SAP called SAP Business Network. Molex’s story is interesting because they excelled at overcoming these cultural issues.

MESN is a solution built on a many-to-many architecture that supports a community of trading partners. The most common form of trading partner collaboration is purchase order collaboration. With PO collaboration, buyers send digital purchase orders over the network to suppliers or other trading partners. They gain visibility into whether a supplier can fulfill the complete order in the requested time frame or not. Once the order amount and timeline are agreed upon between the parties, advanced shipping notices are used to track delivery. This collaboration allows for better optimization of the supply chain, ensuring the right products are available at the right time.

Molex is a private company headquartered in Lisle, IL in the US. Molex is a global electronics manufacturer that makes and sells over 100,000 distinct products – connectors, cable assemblies, and a wide variety of other products. They sell to the automotive, data communications, medical, industrial, consumer electronics, and other industries. The company generates over $7 billion in revenue based on a presence in more than 40 countries. 18,000 suppliers ship 70,000 different types of parts to 72 Molex manufacturing plants across the globe.

Tony Gainsford, a supply chain director at Molex, said that before implementing SAP Business Network, 70% of their purchase orders were not confirmed. For goods associated with those POs, they did not know when a shipment would arrive or whether it would be complete. “We needed assurance of supply,” Mr. Gainsford said. Since implementing SAP Business Network, the confirmation rate has gone from 30% to 88% for those on the Network. But getting there was not easy.

Molex began in October of 2022. They started by focusing on the largest and most important suppliers. They explained that they were digitizing their end-to-end requisition to payment process. Mr. Gainsford pointed out that the existing method, with PDFs attached to emails, was cumbersome not just for them but for their suppliers. “It took 7 days on average for a supplier to get a PO.” With a digital process, Mr. Gainsford explained, “we chopped that down by 4 to 5 days.”

Change management was not solely focused on suppliers, buyers, and material managers all had to change how they operated. Change management goes much easier if you can answer the question, “what is in it for me?” There were 65 material managers included in the initial rollout. He painstakingly spoke to each of them to get their buy-in. For material managers, he made the case that they would be much more likely to get their inbound supplies on time.

The buyers don’t report to Mr. Gainsford. He needed to influence them. Getting the buy-in of the material managers helped with this. The task management in SAP Business Network also helps. The application sends reminders to the buyers about actions they need to take. For example, the application sends three auto reminders to a buyer if a PO they cut does not have a corresponding purchase order confirmation associated with it. If no confirmation is received promptly, the buyer must press the supplier to send it.

Suppliers understand that the amount of future business they do with Molex is contingent upon participation. “We have not fired any supplier yet,” Mr. Gainsford said. “But the chief procurement officer has been made aware of the 10% of suppliers not participating. It will certainly be a subject of conversation” before the next contract is cut.

Training is critical. “We took a YouTube approach. We created bite-sized videos. And we had visibility to who took training and who did not.” Those who had ot viewed the videos, Mr. Gainsford explained, were told, “You did not take the training; this will be difficult for you.”

The overall impression one gains from talking to Mr. Gainsford is a systematic and methodical approach to change management. Molex knew that success with the SAP Business Network application was contingent on the successful onboarding of suppliers. The company onboarded suppliers at twice the rate they expected. Molex’s change management program is also one based on continuous improvement. The company continues to refine supplier onboarding; what used to take 6 months now takes 3 weeks.

The tool Molex used to drive adherence to the new process was, without a doubt, a major contributor to the success of this program. The company uses a process monitoring tool called Celonis. With the tool, visibility is gained when the POs are sent out, and again when the confirmations come back in. This tool helped increase supplier delivery performance by double digits. There is a dashboard that shows suppliers lit up as green – performance is good, orange, or red – there are major problems.

But it is not just the performance of suppliers that matters, the performance of their 400 buyers also matters. Mr. Gainsford explained that there is a way the PO collaboration process is supposed to work – there is a “happy path.” Participants in the process must do a series of tasks, often in a defined manner.

The tool provides visibility of what percentage of orders were confirmed, and beyond that, when there are issues, where those issues occurred. Where and how often, for example, did a buyer deviate from the happy path? The tool provides visibility to conformance by plant, supplier, and buyer. With Celonis you can view how long each step took and compare it to how long it was supposed to take. For example, once a PO is confirmed, a tender to carriers should occur within 24 hours? Did that happen? There is a digital thread with the date of the tender confirmation and the time stamp.

Every day at 7 am, the supply chain team looks at supplier scorecards. They can view overall performance and then drill down and look at problems purchase order by purchase order. They might tell a supplier, “Only 30% of purchase orders are confirmed because you are not creating them. This is actionable intelligence,” Mr. Gainsford commented. Celonis accelerated Molex’s “time to value” – their ability to get payback for their investment in SAP Business Network.

Molex has also used the tool to reduce supplier lead times. Long and variable lead times are the bane of a manufacturing supply chain. They lead to poor customer fulfillment, higher inventory, and higher shipping costs. With this tool, a supplier can be told, “Your lead time was supposed to take 10 days. You took 30 days.” Molex has an active lead time program, and they continue to work on reducing them.

Over 900 suppliers – representing $1 billion in spend, are now on the Network. But the work continues. And the benefits from the network will continue to increase with increased supplier involvement.

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Supply Chain Planning Is Collapsing Into Execution and That Changes the Software Stack

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Executive thesis. The traditional separation between planning and execution is becoming structurally obsolete. Competitive advantage is shifting from producing a better periodic plan to shortening the cycle from operating signal to decision to executable response.

Periodic planning is giving way to continuous decision cycles

The legacy model assumed that supply chain planning was organized around periodic cycles: assemble the data, produce a forecast, optimize a plan, publish it, and then let execution teams absorb the consequences. That model is difficult to sustain when demand, inventory, transportation capacity, labor, supplier performance, and customer commitments can change faster than the formal planning cadence. The material shift is not that planning disappears. It is that planning becomes a continuously refreshed decision process that sits much closer to execution.

Execution constraints now define whether a plan is credible

A plan is only as credible as its understanding of the constraints that determine whether it can be executed. Available inventory, dock capacity, carrier acceptance, labor, production status, supplier reliability, and warehouse throughput can no longer be treated as downstream details. As those signals move upstream, planning systems need tighter connections to systems of execution and a more explicit model of what is feasible now—not what is mathematically desirable.

The architecture is reorganizing around decisions, not application silos

This changes the technology architecture. Traditional planning platforms, control towers, visibility systems, decision-intelligence layers, and execution applications overlap around the same questions: what changed, what is the business impact, what alternatives exist, and which action should be taken? The answer is unlikely to be one monolithic application. It is more likely to be an architecture in which planning models, event data, enterprise context, decision logic, and execution services interact with far less latency than they did in the classic plan-then-execute model.

Decision latency is becoming a first-order performance metric

The implication for supply chain leaders is that planning quality cannot be judged only by forecast accuracy or optimization quality. Decision latency matters as well. A technically superior plan that arrives after the operating window has closed has limited value. Enterprises should therefore examine how quickly their architecture can detect a material deviation, recalculate the relevant alternatives, expose tradeoffs, obtain the required approval, and propagate the decision into execution.

Buyer criteria must move from module coverage to decision performance

The evaluation question is no longer whether a planning product has the right modules. Buyers need to test how the system behaves when the operating environment departs from the plan. As a result, using real constraints, real data dependencies, realistic exception scenarios, and the systems that will ultimately execute the response. The strongest planning architecture will not eliminate judgment. It will make judgment faster, better informed, and easier to convert into controlled action.

For organizations reevaluating planning technology, the practical starting point is to define the decisions the planning environment must support, the constraints that make those decisions executable, and the evidence required to trust the result. The Logistics Viewpoints Supply Chain Planning Software: Buyer’s Guide provides a structured framework for that evaluation, including planning scope, architecture, scenario analysis, integration, and buyer proof points.

Executive implication

Leaders should evaluate planning technology as part of a continuous decision system, with execution constraints, decision latency, and closed-loop response treated as core design criteria.

Go deeper: provides the durable buyer, architecture, and implementation reference for this topic. Planning, Execution & Visibility connects this analysis to the broader Logistics Viewpoints research architecture.

Related Logistics Viewpoints research

2026 Supply Chain Planning Market Map
2026 Supply Chain Decision Intelligence Market Map

Go Deeper

Read the full Supply Chain Planning Software: Buyer’s Guide.

Explore the broader Planning, Execution & Visibility domain for related Logistics Viewpoints research and analysis.

The post Supply Chain Planning Is Collapsing Into Execution and That Changes the Software Stack appeared first on Logistics Viewpoints.

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Why WMS Architecture Now Matters as Much as Feature Breadth

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Warehouse management systems are being pushed into a continuously changing execution environment, making architecture as important as feature breadth. The pressure is not simply to add more automation or AI, but to keep the operating plan aligned with physical reality as that reality changes.

Labor scarcity, tighter customer cutoffs, omnichannel fulfillment, higher sku complexity, automation investment, faster order cycles, and the need to coordinate people and machines in real time are shortening the useful life of any plan. A decision that was correct an hour ago can become wrong when a carrier rejects, a dock closes, an order changes, a piece of automation fails, or a priority customer needs a different response. That architectural emphasis follows naturally from The Warehouse Is Becoming a Cyber-Physical System, where software design directly shapes the behavior of labor, automation, inventory, and physical flow.

The relevant operating events include a late inbound trailer, a constrained dock, a wave that threatens a carrier cutoff, an automation cell that goes down, or an urgent order that must be reprioritized without destabilizing the rest of the facility. These are not unusual edge cases; they are the normal variability of modern logistics. The market is therefore rewarding platforms that can absorb change without forcing every exception into a manual coordination loop.

Architecture is becoming a product differentiator

The operating architecture is ERP and OMS upstream; WMS at the inventory-and-work core; WES/WCS, robotics, conveyors, sortation, labor systems, YMS, parcel, and TMS around the execution edge. This means provider differentiation increasingly depends on event latency, API and network connectivity, data-model quality, workflow controls, and the ability to preserve a coherent operating state across boundaries.

Feature parity can hide large architectural differences. One platform may expose an event after the fact; another may use that event to re-evaluate priorities, prepare a response, and push a governed action into the next system. Both can claim visibility or AI. Only one has compressed the operating loop.

AI matters when it changes the decision cycle

The next layer of value is not AI as a separate product. It is intelligence embedded into the decisions the category already owns. WMS is moving from a transactional warehouse application toward a real-time execution and orchestration layer that coordinates inventory, labor, automation, and downstream transportation constraints The strongest use cases combine reliable execution data, explicit constraints, explainable recommendations, and controlled action rather than treating a model output as the endpoint.

A serious evaluation should test operational fit, configurability without excessive customization, automation integration, real-time work orchestration, data and API architecture, scalability, implementation model, upgradeability, and measurable warehouse outcomes. Buyers should also measure inventory accuracy, order cycle time, throughput, labor productivity, dock-to-stock time, order accuracy, exception volume, automation utilization, and recovery time after disruption. Those measures reveal whether the new capability is actually improving flow, responsiveness, cost, and service or simply creating more software activity.

The market shift is therefore structural. Technology boundaries are blurring because the work itself is becoming more connected. Providers that understand the operating loop will increasingly look different from products built around a static transaction model.

Architecture shows up in warehouse operating metrics

Architecture can sound abstract until it is translated into the measures a distribution center already cares about. Event latency affects how quickly supervisors react to a blocked zone. Integration quality affects whether automation receives the right work at the right time. Data integrity affects inventory accuracy and pick completion. Decision orchestration affects dwell, cutoff performance, backlog, and the amount of work managers have to manually resequence.

For that reason, buyers should connect architecture questions to measurable outcomes. Ask providers to demonstrate what happens when an inbound trailer is late, a work area becomes constrained, an automation cell stops, or an urgent customer order enters after work has been released. The stronger platform is the one that preserves a coherent operating state and adapts without requiring a chain of manual reconciliation.

Related Logistics Viewpoints research

2026 Warehouse Management Systems Market Map
The New Architecture of Logistics
Systems Engineering in Logistics
The Digital Backbone of the Warehouse: Trends Shaping the 2026 WMS Market
Previous in this series: What Is a WMS in 2026? The Warehouse Management System Is Becoming Something More

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The 2026 Market Map is designed to help organizations understand the structure of the WMS market, evaluate provider differences, and identify the capabilities most relevant to their operating environment. If your organization is evaluating WMS platforms or preparing a shortlist, I would be glad to provide the Market Map brochure and discuss the evaluation questions and provider differences most relevant to your requirements.

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The post Why WMS Architecture Now Matters as Much as Feature Breadth appeared first on Logistics Viewpoints.

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Shipsy Connects Transportation Orchestration With Exception Response

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Transportation management is expanding beyond planning loads and tendering freight. Modern platforms are increasingly expected to coordinate carriers, track execution, optimize routes, manage exceptions, communicate with stakeholders, and use live operating data to adjust decisions while freight is moving.

Shipsy is positioned around that broader logistics-orchestration model. Its cloud platform spans transportation management, carrier allocation, freight procurement, shipment tracking, route optimization, first-mile through last-mile workflows, and analytics. The company also emphasizes AI-enabled capabilities intended to automate planning and execution decisions across increasingly complex logistics networks.

The connection to exception management is significant. Transportation generates a constant stream of deviations: capacity changes, missed pickups, route delays, delivery risks, documentation problems, and customer-service exceptions. A platform that already coordinates transportation workflows has the opportunity to detect those events, assess their impact, and automate an appropriate response inside the same operating environment.

The buyer question is how well those capabilities scale across real-world complexity. Organizations should evaluate optimization quality, carrier and system connectivity, geographic depth, data latency, workflow configurability, and governance for automated actions. The most useful AI in transportation will be the AI that reliably improves execution, not simply the AI that adds another interface.

Shipsy is included in the Logistics Viewpoints Transportation Management Systems MarketMap and Autonomous Exception Management MarketMap. The combination reflects the increasingly close relationship between transportation management and the systems responsible for identifying and resolving operational exceptions.

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