So if you need to collaborate with suppliers on purchase orders or forecast or vendor tooling, packaging, anything really.
So image a shell around all these things, with any external collaboration that you need to do with suppliers. And then Ariba really encompasses all these things. PLM will house all of your product life cycle. All of your IOT and connected AI type things, artificial intelligence, machine learning type things are going to be in Leonardo. So SAPs vision for how supply chain is going to work is S/4HANA is going to be your core ECC system. So there are APIs into the S/4HANA system as well as the Leonardo solution, the IBP solution and the PLM solution. There are several APIs available within the Supply Chain Collaboration tool around these blue boxes, here.
There is a sorting and contract piece that's also part of the direct materials solution, but we will not be talking about that. It's the plan, the buy and the make, and the invoice and pay processes. So this video, though, we will primarily focus not only on direct materials, but specifically the Supply Chain Collaboration piece which is, in this picture up here, it's the last three chevrons in here. And like I said, I was told they were going to obsolete it by 2025. And so, as far as I know, they are not enhancing the SNC solution anymore. And so, the Ariba network is a lot better platform for them to build on. It had a lot of, I don't want to say issues, but it definitely had some limitations that the Ariba network overcomes. However, it was never really widespread adopted.
They have a number of large companies using it. And, while SAP won't ever put these dates in writing, what he was telling me was that they will probably be looking to obsolete the SNC product in 2025. As of 2017, when I was attending SAPPHIRE, I talked to the vice president of supply chain for SAP and got his take on it. It's the SNC Supply Network Collaboration tool. Some of you may be thinking, "okay, doesn't SAP "already have a product like this?" And they did and they still do. However, now, it is considered an all-in-one procurement solution because, in 2015, SAP decided to introduce the direct materials to the Ariba network, and so it's now an all-in-one procurement solution. Ariba's been around since the early 2000s and was the number one indirect procurement solution. So most people know Ariba as an indirect solution. And so, let me give you a little of the backstory on the Ariba Direct Materials solution. Welcome back to SAP Ariba Supply Chain Collaboration.
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