Supply Chain Strategies for Bottom-Line Growth in Nigel Taylor Marketing Director, GXS EMEA
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1 Supply Chain Strategies for Bottom-Line Growth in 2013 Nigel Taylor Marketing Director, GXS EMEA
2 The Agile Supply Chain A diverse global economic landscape.. Slide 2 GXS, Inc.
3 The Agile Supply Chain A diverse global economic landscape.. Slide 3 GXS, Inc.
4 The Agile Supply Chain A diverse global economic landscape.. Slide 4 GXS, Inc.
5 The Agile Supply Chain A diverse global economic landscape.. Slide 5 GXS, Inc.
6 Agenda Background How do companies do business? What is it costing you? Why do business electronically? Doing Business Electronically What is B2B e-commerce? B2B 101 for Executives Easier to do business with what next? Some successful companies Slide 6 GXS, Inc.
7 How do Companies do Business? B2B Communication is still largely a manual process Order to Pay Over 50% of the information exchanged between business partners travels over fax, and phone Order to Cash Finance is still a paper-heavy business function. nearly 77% of all incoming invoices are still paperbased 96% of companies plan to expand their use of B2B e-commerce Slide 7 GXS, Inc.
8 What is it Costing You? B2B Communication is still largely a manual process 53% of companies reduce order processing costs by over 40% 48% of companies reduce incoming shipment costs by over 40% 56% of companies reduce invoice processing costs by over 40% Approx. 16bn B2B invoices in Europe 200bn in corporate savings possible Approx. 12bn B2B invoices in US $230bn in corporate savings possible Companies typically spend up to $1,000 per supplier per year in supplier management costs 73% of UK businesses were paid late in 2010/11 EDI can save a business at least 14 per order, 8.50 per invoice, and 12 per order with a despatch advice 650m annual savings in the UK Grocery sector Slide 8 GXS, Inc.
9 Why Do Business Electronically? Compelling benefits across different business units Reduce Costs Order processing savings of over 40% Incoming shipment process savings of over 40% Invoice processing savings of between 60-80% Automate Processes Gain Strategic Value Regulatory Requirements Reduce cycle times Eliminate data entry and errors Improved data quality & matching Simple supply chain & financial reporting Increase prompt payment to terms Speed dispute resolution Improve customer experience Optimise working capital Manage supply chain financial risk Corporate social responsibility Global customs & tax legislation European late payments legislation Government e-invoicing mandates Slide 9 GXS, Inc.
10 Why Do Business Electronically? It is the next evolutionary step Decentralised High cost Fragmentation Non-standard processes & systems Regional/Global Consolidation Process & ERP standardisation Labour arbitrage Integration EDI Trading Partner On-Boarding Procure to Pay Order to Pay Order to Cash Slide 10 GXS, Inc.
11 Why Do Business Electronically? It is the next evolutionary step Supply Chain Automation Decentralised High cost Fragmentation Non-standard processes & systems Regional/Global Consolidation Process & ERP standardisation Labour arbitrage Integration EDI Trading Partner On-Boarding Outsourcing Managed Services Data Quality Visibility 100% Adoption Integration In the Cloud e-invoicing Community Management e-procurement SupplyChain Finance Single ERP Instance Analytics Procure to Pay Order to Pay Order to Cash Slide 11 GXS, Inc.
12 What is B2B e-commerce? What is the process? Different perspectives for the buyer and seller You order the goods or services The customer pays YOU You get the invoice You send the invoice You pay the supplier Your Business You ship the goods or services Order to Pay (Buyer Side) Order to Cash (Seller Side) Slide 12 GXS, Inc.
13 What is B2B e-commerce? What is the process? Different perspectives for the buyer and seller You order the goods or services The customer pays YOU You get the invoice You send the invoice You pay the supplier Your Business You ship the goods or services Order to Pay (Buyer Side) Order to Cash (Seller Side) Slide 13 GXS, Inc.
14 Order to Cash What is B2B e-commerce? Driving bottom-line growth by doing business electronically Information Purchase Orders Change Orders, Acknowledgements Advance Shipping Notices, Deductions Invoices, Credit/Debit Notes Customs, Shipping, Logistics Trade Finance Payments, Remittances Services Order to Pay Supplier Connectivity Customer Connectivity Connection options for enterprise to SMEs Supply Chain Optimisation Solutions Purchase Order Management Financial Process Automation Community Management Working Capital Optimisation Compliance/Legal Management Data Analytics Slide 14 GXS, Inc.
15 Order to Cash What is B2B e-commerce? Driving bottom-line growth by doing business electronically Information Greater audit & control Transact within a secure environment No infrastructure overhead Services Order to Pay A complex problem simplified Easier to do business with Greater control over your supply chain Less for IT to do Solutions Happier customers and suppliers Greater control & visibility over processes Improved working capital A socially responsible supply chain Stronger audit controls Slide 15 GXS, Inc.
16 B2B 101 For Executives Hey Mr. CEO, what do you know..? Community / Collaboration Business Process Information Network Complexity Cloud Connectivity Slide 16 GXS, Inc.
17 B2B 101 For Executives Hey Mr. CEO, what do you know..? Community / Collaboration Business Process Information Network Complexity Cloud Connectivity Slide 17 GXS, Inc.
18 B2B 101 For Executives Hey Mr. CEO, what do you know..? Community / Collaboration Business Process Information Network Complexity Cloud Connectivity Slide 18 GXS, Inc.
19 B2B 101 For Executives Hey Mr. CEO, what do you know..? Community / Collaboration Business Process Information Network Complexity Cloud Connectivity Slide 19 GXS, Inc.
20 B2B 101 For Executives Hey Mr. CEO, what do you know..? Community / Collaboration Business Process Information Network Complexity Cloud Connectivity Slide 20 GXS, Inc.
21 Easier to do Business With Global corporate trends Supply Legal Corporate 100% Logistics Chain Compliance Social Risk Responsibility Introduction of new Improve visibility of Recent natural New legislation Corporate oversight global manufacturing shipped goods to disasters have led to is forcing companies is becoming hubs is leading to a improve customer companies needing to adapt their an ever vital need to ensure 100% satisfaction levels to improve supply e-commerce part of supply chain supplier automation chain disaster solutions management response procedures Slide 21 GXS, Inc.
22 Easier to do Business With What Comes Next..? Information Services Solutions Cost savings through electronic data Reduced complexity Streamlined business processes Increased number of connected trading partners Scalable with production A focus on core business A scalable, secure and reliable platform to meet market demands and international growth Slide 22 GXS, Inc.
23 Corporate Case Study Divested European Automotive OEM builds platform for growth Company Overview Business Issues Divested from parent company in early 2008 Requirement to establish their own B2B infrastructure Following divestiture needed to maintain continuity of operations and management of global community of suppliers One of the world s leading manufacturers of luxury, sports and off road vehicles. Manufacture at multiple sites across the UK and export across the world. They are currently evaluating expansion into India. Solution Deployed Outsourced Services which allowed this company to outsource management of its entire B2B environment/supporting services B2B partner for on-boarding of 1000 suppliers in N. America/Europe and provide mediation between global standards 80 suppliers connected via value-add e-commerce solution Business Benefits Obtained Future proof B2B solutions, global capabilities, many business partners already connected to GXS information network Flexible and scalable solution to allow for future growth B2B environment can be integrated to an ERP system at a later date Slide 23 GXS, Inc.
24 SME Case Study Original Editions expand into North American market Company Overview Business Issues A leading supplier of beauty products established in Europe, Middle East, Australasia and Africa Wanted to expand into the North American market Needed help to support new processes Solution Deployed GXS Freeway to map message types and integrate with internal systems GXS knowledge of North American retail market GXS information network connects new customers, exchanges new business messages Business Benefits Obtained Original Additions is a leading supplier of beauty and salon products Existing business/resources could continue without negative impact All trading messages dealt with in a timely fashion Customer demands met Growth in North American business Slide 24 GXS, Inc.
25 Summary Supply chain strategies for bottom-line growth Go Electronic Outsource the Complexity Capitalise on Your Information Network Slide 25 GXS, Inc.
26 Additional Resources Stanford Reports s/thought_leadership/white_ papers/stanford-universityresearch-study-b2bmanaged-services Fieldworks Report hought_leadership/white_pap ers/a-rush-and-a-push-andthe-land-is-ours Billentis Report urces/thought_leadershi p/white_papers/einvoicinge-billing-thecatalyst-for-arapautomation Slide 26 GXS, Inc.
27 Thank You for Your Participation! For More Information Contact GXS Web: Phone: +44 (0) Slide 27 GXS, Inc.
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