For many years, Molex has been on the forefront of connectivity innovation, pushed by the idea that each connection has the facility to remodel. With greater than 80 years of expertise within the interconnect business, Molex has grown into a worldwide chief offering superior interconnect options used throughout a large number of industries, together with transportation, telecommunications, shopper machine, knowledge middle, industrial, and healthcare. In the present day, the Illinois-based firm has greater than 100,000 merchandise supporting buyer innovation and connectivity on a worldwide scale. Regardless of this deep experience and in depth product portfolio, one vital space of the enterprise required next-level assist: provide chain administration.

A case  for provide chain enhancements

For years, Molex relied on a custom-built provide chain answer combining guide processes with legacy software program. Whereas this technique supported operations prior to now, it struggled to maintain tempo with the calls for of a contemporary, digitally linked provide ecosystem. The answer hindered real-time communication and collaboration with suppliers worldwide, limiting visibility and making it tough to handle half on-time supply and reliably.

A possibility to boost communication

Molex yearly sources 70,000 components from suppliers worldwide. Nonetheless, adoption of the legacy Molex provide chain answer by suppliers has been restricted, with solely 30% of buy orders (POs) being confirmed by means of the system. With out a manner of confirming the opposite 70%, Molex staff estimated when and the place these related components can be delivered, with the opportunity of creating a series response that had the potential to impression buyer deliveries and introduce pointless danger. 

The uncertainty of dates and areas for components supply might have an effect on the corporate’s potential to successfully handle its “clear-to-build” means of figuring out the variety of merchandise Molex can produce in a given timeframe. In that course of, Molex analyzes stock ranges, POs, and provider lead occasions to assist keep away from manufacturing delays and clean workflows throughout manufacturing crops. 

Any guesswork about components supply couldn’t solely impression the clear-to-build course of however, in flip, the scheduling of merchandise for cargo and the on-time supply to clients. This case jeopardized supply reliability and heightened the chance of buyer dissatisfaction. 

To maintain manufacturing shifting, and guarantee each provider and clients expertise, Molex staff spent every week manually inputting and confirming POs on behalf of its suppliers. Almost 90% of confirmations have been created manually—a time-consuming, repetitive job that diverted priceless worker focus from different vital duties.

As well as, the legacy answer was unable to attach with the suppliers’ ERP techniques, hampering Molex staff’ potential to collaborate with the suppliers. And the answer lacked the aptitude to supply Molex with visibility or insights into international challenges that would assist with managing provide and demand.

Making the reference to SAP

Since Molex creates merchandise that hold industries working, it’s important that it rely on a direct half provide that’s obtainable when and the place wanted. There isn’t a room for guesswork, which is why Molex turned to SAP for a brand new answer. The corporate adopted SAP Enterprise Community as a part of a broad digital transformation initiative to replace its home and abroad operations. A business-to-business (B2B) cloud platform, SAP Enterprise Community connects corporations, processes, and techniques throughout the availability chain, digitizing transactions, together with PO ordering, streamlining procurement, enhancing visibility into networks and provide chains, and boosting collaboration amongst groups and techniques. The community was first carried out in Asia, the place a good portion of Molex’s provide chain is predicated. 

A win-win for patrons, staff, and suppliers

By adopting SAP Enterprise Community, Molex has reworked its provide chain course of from requisition to bill. The community has linked Molex’s SAP ERP with suppliers’ ERP techniques to enhance system accuracy and provide chain alignment. It has boosted the corporate’s order affirmation fee, which improves visibility, components supply, and the clear-to-build course of, benefiting everybody concerned—together with clients, Molex staff, and suppliers.

Suppliers are actually coming into 90% of order confirmations versus the 30% of orders when the Molex earlier answer was in use. The SAP answer has additionally led to a deep collaboration between Molex and suppliers that wasn’t attainable earlier than. 

“We needed to transcend the pure tactical facet of collaboration and transfer into constructing an clever collaboration software—not simply passing data backwards and forwards however bringing intelligence to it,” says Tony Gainsford, Director of Procurement Enterprise Programs, Knowledge, and Processes at Molex.

Because of the SAP answer with automation, Molex staff have nearly fully eradicated guide affirmation dealing with. This has diminished the time spent on repetitive administrative duties from a number of hours every week right down to just about none, enabling them to deal with higher-value actions and considerably increase their productiveness.. 

A clean, worthwhile transition

Suppliers have been onboarded to SAP Enterprise Community with minimal disruption. As well as, US $1 billion in transactions have been processed through the first 18 months after the answer’s deployment, reaching a run fee of $200 million per thirty days.  

The numbers converse 

The corporate that grew to turn into a connectivity chief has moved past its preliminary provide chain challenges, gaining credibility and business recognition from its digital transformation.  

Connecting with a Efficiency Award

For its success in reworking its provide chain course of, Molex was named the winner of the Enterprise Community Innovator class on the SAP Innovation Awards 2025. The award is introduced to corporations that undertake SAP cloud options to enhance provide chains, processes, or enterprise networks. 

To be taught extra in regards to the Molex transformation, entry the corporate’s entry pitch deck.