For decades, Molex has been at the forefront of connectivity innovation, driven by the belief that every connection has the power to transform. With more than 80 years of experience in the interconnect industry, Molex has grown into a global leader providing advanced interconnect solutions used across a multitude of industries, including transportation, telecommunications, consumer device, data center, industrial, and healthcare. Today, the Illinois-based company has more than 100,000 products supporting customer innovation and connectivity on a global scale. Despite this deep expertise and extensive product portfolio, one critical area of the business required next-level support: supply chain management.
A case for supply chain improvements
For years, Molex relied on a custom-built supply chain solution combining manual processes with legacy software. While this system supported operations in the past, it struggled to keep pace with the demands of a modern, digitally connected supply ecosystem. The solution hindered real-time communication and collaboration with suppliers worldwide, limiting visibility and making it difficult to manage part on-time delivery and reliably.
An opportunity to enhance communication
Molex annually sources 70,000 parts from suppliers worldwide. However, adoption of the legacy Molex supply chain solution by suppliers has been limited, with only 30% of purchase orders (POs) being confirmed through the system. Without a way of confirming the other 70%, Molex employees estimated when and where those associated parts would be delivered, with the possibility of creating a chain reaction that had the potential to impact customer deliveries and introduce unnecessary risk.
The uncertainty of dates and locations for parts delivery could affect the company’s ability to effectively manage its “clear-to-build” process of determining the number of products Molex can produce in a given time frame. In that process, Molex analyzes inventory levels, POs, and supplier lead times to help avoid production delays and smooth workflows across manufacturing plants.
Any guesswork about parts delivery could not only impact the clear-to-build process but, in turn, the scheduling of products for shipment and the on-time delivery to customers. This situation jeopardized delivery reliability and heightened the risk of customer dissatisfaction.
To keep production moving, and ensure both supplier and customers experience, Molex employees spent each week manually inputting and confirming POs on behalf of its suppliers. Nearly 90% of confirmations were created manually—a time-consuming, repetitive task that diverted valuable employee focus from other critical tasks.
In addition, the legacy solution was unable to connect with the suppliers’ ERP systems, hampering Molex employees’ ability to collaborate with the suppliers. And the solution lacked the capability to provide Molex with visibility or insights into global challenges that could help with managing supply and demand.
Making the connection with SAP
Since Molex creates products that keep industries running, it’s essential that it count on a direct part supply that is available when and where needed. There is no room for guesswork, which is why Molex turned to SAP for a new solution. The company adopted SAP Business Network as part of a broad digital transformation initiative to update its domestic and overseas operations. A business-to-business (B2B) cloud platform, SAP Business Network connects companies, processes, and systems across the supply chain, digitizing transactions, including PO ordering, streamlining procurement, enhancing visibility into networks and supply chains, and boosting collaboration among teams and systems. The network was first implemented in Asia, where a significant portion of Molex’s supply chain is based.
A win-win for customers, employees, and suppliers
By adopting SAP Business Network, Molex has transformed its supply chain process from requisition to invoice. The network has connected Molex’s SAP ERP with suppliers’ ERP systems to improve system accuracy and supply chain alignment. It has boosted the company’s order confirmation rate, which improves visibility, parts delivery, and the clear-to-build process, benefiting everyone involved—including customers, Molex employees, and suppliers.
Suppliers are now entering 90% of order confirmations versus the 30% of orders when the Molex previous solution was in use. The SAP solution has also led to a deep collaboration between Molex and suppliers that wasn’t possible before.
“We wanted to go beyond the pure tactical side of collaboration and move into building an intelligent collaboration tool—not just passing information back and forth but bringing intelligence to it,” says Tony Gainsford, Director of Procurement Business Systems, Data, and Processes at Molex.
Thanks to the SAP solution with automation, Molex employees have almost completely eliminated manual confirmation handling. This has reduced the time spent on repetitive administrative tasks from several hours each week down to virtually none, enabling them to focus on higher-value activities and significantly boost their productivity..
A smooth, profitable transition
Suppliers have been onboarded to SAP Business Network with minimal disruption. In addition, US $1 billion in transactions have been processed during the first 18 months after the solution’s deployment, reaching a run rate of $200 million per month.
The numbers speak
The company that grew to become a connectivity leader has moved beyond its initial supply chain challenges, gaining credibility and industry recognition from its digital transformation.
Connecting with a Performance Award
For its success in transforming its supply chain process, Molex was named the winner of the Business Network Innovator category at the SAP Innovation Awards 2025. The award is presented to companies that adopt SAP cloud solutions to improve supply chains, processes, or business networks.
To learn more about the Molex transformation, access the company’s entry pitch deck.
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