From Procurement Visibility to a Connected, Intelligent Supply Network: Sky Chefs Case

LeverX helped Sky Chefs evolve from procurement visibility to a connected supply network, enabling real-time supplier collaboration, faster response to disruptions, and more efficient operations.

Client

LSG Sky Chefs, the world’s leading airline catering provider, operates a highly complex “order-to-plane” supply chain across global locations. Following its procurement transformation accomplished in close collaboration with the LeverX team, the company established a centralized, transparent procurement framework across 46 US locations and 1,800+ users.

Challenge

Although we helped Sky Chefs successfully achieve procurement visibility and process standardization, the company continues to operate in a highly volatile, time-sensitive environment where real-time coordination across the supply chain is critical.

The nature of the company’s industry of operation — airline catering — introduces additional challenges:

• Demand is directly tied to flight schedules and can change rapidly due to flight delays, cancellations, or external disruptions.
• Since the company’s inventory consists predominantly of perishable goods, its operations require precise delivery planning, timing, and coordination at all times.
• Procurement, production, and logistics must operate in continuous, tight synchronization.

Despite improvements in procurement, several challenges remain:

• Limited end-to-end supply chain visibility: While procurement spend is now transparent, visibility does not fully extend across supplier commitments, inventory flows, and real-time supply conditions.
• Reactive supply chain execution: Changes in demand or operations (e.g., flight disruptions) require rapid adjustments. Existing processes rely on reactive communication, rather than real-time actions.
• Dependence on supplier responsiveness: Supplier confirmations, changes in delivery schedules, and quantity adjustments are not fully integrated into a collaborative, real-time framework.

While SAP Ariba provides strong transactional capabilities, Sky Chefs needs end-to-end supply chain synchronization to fully optimize its operations.

Solution

Supply Chain Collaboration (SCC) represents the next logical step in Sky Chefs’ digital transformation, extending its SAP Ariba foundation toward real-time, network-driven supply chain orchestration.

The solution focuses on building a connected, responsive supply network.

Extension of visibility beyond procurement

SCC expands visibility from internal procurement processes to the broader supply chain, enabling shared access to demand, order, and supply data across all stakeholders.

• Provide end-to-end visibility from supplier to aircraft
• Enable transparency into supplier commitments and supply availability
• Support real-time monitoring of supply chain status

Real-time supplier collaboration

Suppliers are more deeply integrated into operational processes, enabling continuous communication and faster decision-making.

• Enable real-time order confirmations and updates
• Allow suppliers to adjust quantities and delivery dates dynamically
• Synchronize changes instantly across systems

Dynamic supply chain execution

The solution enables rapid response to operational disruptions inherent in airline catering.

• Adjust procurement and production plans based on real-time events
• Improve responsiveness to flight delays, cancellations, and demand shifts
• Reduce operational risks related to perishable goods

Collaborative planning and forecasting

SCC supports closer alignment between Sky Chefs and its suppliers through shared planning processes.

• Enable joint demand and supply planning
• Improve forecast accuracy
• Align procurement with production and logistics requirements

Inventory optimization and waste reduction

By synchronizing supply with actual demand, SCC reduces inefficiencies and waste.

• Minimize spoilage of perishable goods
• Optimize inventory levels across locations
• Improve product availability without overstocking

Automation and exception management

Routine coordination is automated, allowing teams to focus on critical issues.

• Automate supply updates and confirmations
• Enable proactive identification and resolution of exceptions
• Reduce manual communication and coordination efforts

Foundation for intelligent supply chain operations

SCC builds on clean procurement data to enable advanced, data-driven capabilities.

• Support predictive analytics and demand forecasting
• Enable future AI-driven optimization
• Strengthen long-term supply chain resilience

Technology Stack

The SCC solution builds on the existing SAP ecosystem and extends it to enable real-time, network-based collaboration.

Supply chain collaboration network: SAP Business Network (SCC capabilities)

SAP Business Network serves as the collaboration layer, enabling real-time exchange of demand, order, and supply data between Sky Chefs and its suppliers.

Procurement foundation: SAP Ariba (B&I, SLP)

Existing SAP Ariba capabilities provide standardized procurement processes, supplier management, and clean master data as a foundation for SCC.

ERP backbone: SAP ECC / SAP S/4HANA (future-ready)

The ERP system remains the system of record for financials, logistics, and operational execution, ensuring consistency and control across processes.

Integration layer: SAP Integration Suite with Managed Gateway (CIG)

CIG ensures seamless, real-time data exchange between SAP Ariba, SAP Business Network, and ERP systems.

Business Value of Supply Chain Collaboration

• Real-time supply chain visibility and synchronization: The solution enables continuous visibility into supplier commitments and supply status, allowing for faster and more informed decision-making across operations.
• Improved responsiveness to operational disruptions: Real-time collaboration ensures immediate adjustments to procurement and production plans in response to flight changes and external factors.
• More accurate demand and supply planning: Collaborative forecasting improves alignment between procurement, production, and logistics, reducing uncertainty and inefficiencies.
• Reduced waste and optimized inventory: Better demand alignment minimizes spoilage of perishable goods and improves inventory utilization across locations.
• Stronger supplier collaboration and reliability: Suppliers become active participants in planning and execution, improving delivery accuracy and performance.
• Increased automation and operational efficiency: Automated communication and exception handling reduce manual coordination efforts, resulting in more efficient processes.
• Foundation for intelligent, data-driven supply chain: SCC enables advanced analytics, predictive capabilities, and AI-driven optimization. 

ERP Prerequisites for Successful SCC Implementation (Checklist)

To successfully implement SCC, Sky Chefs must ensure the following prerequisites on the SAP / Cloud ERP side:

• Master data readiness: Harmonized material master data, standardized supplier records, and consistent product hierarchies to enable accurate planning and collaboration.
• Standardized procurement processes: Consistently used PR → PO → GR → Invoice processes, supported by guided buying and catalog-based procurement functionalities.
• Integration readiness: Stable, real-time integration between SAP Ariba, SAP Business Network, and ERP via SAP Integration Suite (CIG), ensuring seamless data exchange.
• Supplier enablement: Suppliers onboarded to SAP Business Network with the ability to electronically exchange confirmations, updates, and transactional documents.
• Financial and logistics alignment: Accurate GL account setup, automated invoice matching, and reliable goods receipt processes ensure smooth end-to-end operations.
• Data governance and clean core: Standardized processes without heavy customizations, while ensuring strong governance of procurement and supplier data.
• Organizational readiness: Full alignment across procurement, logistics, and finance teams, with clear and transparent collaboration and quick user adoption.

Building on its procurement transformation, Sky Chefs is advancing toward end-to-end supply chain collaboration, with real-time coordination, improved resilience, and a fully connected, intelligent supply network.