ebook The Digital Supply Chain Digitization enables real transformation
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1 ebook The Digital Supply Chain Digitization enables real transformation
2 Global Trade is Fast The world of global trade is fast-paced, ever-changing, always evolving. In order to keep pace, your supply chain processes and technology need to evolve too. The processes during sourcing, transportation, and import/export are unique to every organization, consisting of multiple layers of suppliers, vendors, and service providers; each adding additional complexity and the accompanying tasks to move products across borders. As companies expand global operations to take advantage of cost savings in other regions, they are put under pressure to deliver the right product at the lowest price into the waiting hands of customers. To address this complex environment, organizations need to take a holistic, integrated approach to digitizing their supply chain to uncover four components of agility to keep pace: Collaboration Automation Analytics Flexibility 24h 1
3 The Digitized Supply Chain Digitization makes it possible to share (collaborate), process (automate), and analyze (analytics) the information. A digital model of the global supply chain creates the ability to quickly and easily adapt to the real world (flexibility). Digitizing global trade management (GTM) processes can be more closely aligned to business policies and objectives unlike traditional methods of outsourcing processes and/or managing disparate systems. Best-in-class companies have then challenged customary thinking of GTM being a cost of doing business, to finding opportunities in the logistics, legislation and financial functions. 2
4 Methods of Transformation - Collaboration Collaboration in the supply chain network is challenging when more than one communication method or tool is used to connect with your supply chain partners. Disparate systems cause operational inefficiencies, bottlenecks and labor intensive dialogues. Centralizing the flow of information across the end-to-end network will improve real-time visibility and accelerate time-to-market by: Sharing product specifications with suppliers Communicating cross-border transaction data with freight forwarders and customs brokers Receiving trade agreement details about a product Making electronic bookings with international carriers Filing information with customs electronically 3
5 Methods of Transformation - Automation Automation of recurrent processes in sourcing, logistics, cross-border trade and compliance can dramatically improve operating efficiencies and financial performance. With the information digitized, it can be handled quickly and processes can be executed in a timely manner with added transparency. Where digitization can make the difference: Purchase Order alerts that are in danger of delays or other issues Determination of carrier rate and schedule, and booking Alert supply chain resources when an interesting event has occurred Determination of import regulations of a given product to a given country Determination of trade agreement eligibility 4
6 Methods of Transformation - Analytics You have planned your work, and worked your plan. Now its time to analyze performance metrics for insight. Prioritize your efforts by determining the opportunities for and risks to further improving supply chain efficiencies. Start gathering the below metrics: Measure your multi-tier supplier upstream and downstream relationships Historical analysis of carrier/3pl performance Historical analysis of supply chain performance relative to specific products, countries, ports and more Identification of opportunities for duty savings through trade agreements or other government programs Identify potential supply chain risk factors 5
7 Methods of Transformation - Flexibility Your supply chain is digital. This means the information is centralized and can be more easily adapted to regulation changes, the requirements of your partner network or expansion to new territories. Where flexibility really matters: During the onboarding of new suppliers In corporate acquisitions and divestitures When changing of supply chain logistics partners For expansion into new markets/countries Achieving efficiencies in new sourcing countries When handling non-standard requirements 6
8 Value Factor: Improve Margins Improve margins up to.5% of your company s annual revenue with the opportunities your digital supply chain opens up. The chart below details where you can improve margins across your organization. This table exemplifies where we have helped leading companies in multiple industries improve margins..5%.4%.3%.2% Industry Industrial Manufacturing Automotive Pharmaceuticals Consumer Goods Savings up to (within 5 years) $1 Billion $114 Million $230 Million $50 Million.1% GTM Savings Opportunity Duty Savings Penalties, Fines, Legal Inventory Reduction Operational Efficiencies Risk Management Supply Chain Visibility Sourcing Optimization Fashion Life Sciences $8 Million $4.3 million 7
9 Value Factor: Improve Margins Amber Road delivers tangible cost-savings to improve margins with the opportunities your digital supply chain opens up. Some leading companies have realized up to.5% savings annually. 100% 80% 60% 40% 20% GTM Savings Opportunity Duty Savings Operational Efficiencies Inventory Reduction Supply Chain Visibility Risk Management Transportation Optimization Sourcing Optimization 8
10 Value Factor: Agility Agility is a value factor to be gained by digitizing your supply chain. A centralized point for your end-to-end supply chain process creates control-tower visibility, providing decision makers with the real-time awareness and insight they need to take effective action. Benefits include: Quick access to information for effective and faster decision-making Straight-through processing to increase speed, while reducing cost and errors Predictability by visibility: supply chain alerts, lower dependence on safety stock and in-transit inventory Real-time communication with globally-dispersed suppliers and internal teams This type of flexibility is important more than ever with the rapidly changing trade environment. Uncertainties from BREXIT and trade policies from the Trump Administration will force companies to adapt without the agility and relief of a digitized supply chain. To have the capabilities to understand and manage change is the key to sustained prosperity in the face of volatility. Agility Centralization Control Tower Standardization Flexibility 9
11 Value Factor: Risk Reduction Several risk metrics will be considerably reduced. We have segmented supply chain functions by area of specialism: Sourcing: transparency from collaboration with suppliers and audit companies. The information is clear and the reliance on disparate systems that are prone to communication faults is eliminated. Additionally, you are able to manage supplier and product risk assessment to ensure corporate and ethical standards are maintained. Logistics: lead times on international shipments become predictable. Errors are identified earlier and can be proactively managed, before flow is impacted. You have real-time visibility on the movement of goods. Export/Import: a standardized and auditable process for generating export/ import documentation reduces errors of classification, licenses, country controls or restricted party screening. Compliance: ensure enterprise-wide compliance through increased transparency and consolidated data, reducing potential fines and penalties for non-compliance. You are securing your brand s reputation. Customer satisfaction grows from improved processes and unimpeded flow of goods. 1 Reputation/Brand 3 Ethical, social & Environmental Global Trade Risk 2 Customer Satisfaction & Quality 4 Criminal and Civil Action 10
12 Learn More Digital Supply Chain Brochure Video: The Digital Supply Chain lobal Trade Academy aximize global supply chain performance and reamline compliance with exceptional expertise mber Road helps global organizations maximize global supply chain erformance and streamline global trade compliance processes, resulting faster time-to-market for new products, increased product innovation, gnificant duty savings, and reduced compliance risks. Amber Road s Trade dvisory Practice for global supply chain management delivers services to sist companies in effectively obtaining their C-TPAT certification, adhere to porter Self-Assessment requirements, leverage sustainable supply chain rategies and accurately classify products. What Does a Digital Supply Chain Look Like? Global Sourcing Consider all international sourcing factors to improve operational performance Concept Collaboration New products begin as a concept in a designer s head, and are then transformed into drawings and product specifications. Collaborative Product Design Facility Compliance Designers and buyers work jointly Procurement teams identify This information is then shared with all internal and external teams and track factory and supplier across the organization and to translate product concepts into a regulatory compliance, codes of with key suppliers Costing to start Management the new product. Production Tracking conduct and ethical requirements commercialization At this process. point, actual and simulated Real-time production information to ensure is timely production. product costs can be identified shared with suppliers to reduce the to compare all product, cost and impact of production delays and Material Library supplier Management information. ensure timely deliveries. Then materials and components are developed collaboratively Sample Management with suppliers to identify the right and Initial Costing combination and Vendor create Management the bill Now product managers Shipment and Preparation of material. Buyers and merchandisers designers manage samples When orders and are ready to ship, exchange purchase order, obtain a full understanding all required of information is collected, performance and other key material costs with suppliers including earlier ASNs, Customs clearance information with international the product process. data, container weight and Product other Testing suppliers to shorten cycle times, data. Throughout the sourcing and increase service levels and lower production processes, products costs. are thoroughly inspected to ensure safety standards. Sourcing Optimization Order Collaboration Sourcing teams identify and consider all costs, benefits, risks and other factors before selecting a supplier or production partner. $ $ Learn how Amber Road enables you to transform your global supply chain network with Global Trade Management solutions to improve margins, lower risks, enhance agility and improve speed-to-market. Global Transportation & Logistics IIdentify and remove inefficiencies to improve cycle time and reduce supply chain risk $ $ Amber Road Global Value Chain Excellence EU NO.indd 2 Production Management Improve collaboration and better leverage enterprise data for improved factory-level visibility and control Quality assurance personnel Contract & Rate Management catch product quality Transportation concerns analysts translate quickly with off-line ocean and mobile and air shipping contracts capabilities to ensure to a determine timely the best carriers at response to critical issues. optimal prices. Manufacturers, retailers and 6/2/2017 1:23:00 PM Quality Control Inspection distributors track orders and proactively identify production issues due to raw material delays across the supply chain network. Contract & Rate Management Transportation analysts translate ocean and air shipping contracts to determine the best carriers at optimal prices. Chapter Heading Subheading Statistical Suffix 11
13 About Amber Road Amber Road s (NYSE: AMBR) mission is to improve the way companies manage their international supply chains and conduct global trade. As a leading provider of cloud based global trade management (GTM) solutions, we automate the global supply chain across sourcing, logistics, cross-border trade, and regulatory compliance activities to dramatically improve operating efficiencies and financial performance. This includes collaborating with suppliers on development, sourcing and quality assurance; executing import and export compliance checks and generating international shipping documentation; booking international carriers and tracking goods as they move around the world; and minimizing the associated duties through preferential trade agreements and foreign-trade zones. Our solution combines enterprise-class software, trade content sourced from government agencies and transportation providers in 147 countries, and a global supply chain network connecting our customers with their trading partners, including suppliers, testing/auditing firms, freight forwarders, customs brokers and transportation carriers. We deliver our GTM solution using a Software-as-a-Service (SaaS) model and leverage a highly flexible technology framework to quickly and efficiently meet our customers unique requirements around the world. For more information, please visit Solutions@AmberRoad.com or call +49 (0) Luisenstraße Munich Germany Tel: +49 (0) High Holborn High Holborn London WC1V 6BX United Kingdom Tel: +44 (0) Molenweg 32A 8181 BJ Heerde Netherlands Tel: +31 (0) , rue de Londres Paris France Tel: +33 (0) Amber Road, Inc. All rights reserved.
ebook The Digital Global Supply Chain Digitization Enables Real Transformation
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