Microsoft transforms logistics chain with Ariba

Microsoft has one of the most complex logistics chains of all. To keep it running and ensure the constant supply of its products, the company is now taking a completely new approach.

Together with SAP Ariba and Intrigo Systems, Microsoft aims to create a scalable, contemporary platform on which to efficiently and cost-effectively manufacture such popular products as the Xbox and Surface.

"Microsoft wants to empower every person and every organization on the planet to achieve more. To make that happen, we develop industry-leading systems, platforms and productivity software."

Ali Khaki, Principal PM Supply Chain Engineering at Microsoft, describes his company's drive.

"Looking at our supply chain, we realized we needed a flexible, scalable platform that was appropriate for the complexity of our hardware business."

With Ariba's direct spend solutions, Microsoft has found the right tool to make this wish a reality.

"The Ariba Network acts as the backbone for the logistics chain for our Xbox and Surface products"

Persimmon continued.

With the Ariba Network and the cloud applications it provides, such as Ariba Supply Chain Collaboration, Microsoft created a modern platform that enables it to collaborate securely and easily with its contract manufacturers and suppliers at all levels.

All key planning and execution aspects of the logistics chain are covered - such as shared access to manufacturing forecasts, purchase orders, quality and inventory data, early detection and resolution of impending supply bottlenecks, and onboarding of new suppliers.

The first positive results are already being seen. Since adopting Ariba solutions with support, Microsoft has been able to implement cross-stage planning and collaboration with contract manufacturers and suppliers, reduce the reconciliation process with its suppliers from three days to 30 minutes, reduce onboarding time for new suppliers from four months to four days, standardize vendor engagement through B2B, simple flat files and a web-based user interface.

"The process is exceptionally clear and transparent, as all communication takes place within the SAP Ariba system"

praises Ali Khaki.

"The result is an extremely positive user experience for everyone involved."

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