The Outside-In Supply Chain

Transcription

1 The Outside-In Supply Chain Ed Rusch Corporate Marketing

2 Presentation Agenda I. Inside-Out vs. Outside-In Supply Chain Enterprise Focused Approach Customer Focused Approach II. Enabling the Customer Focused Approach Needs of the Outside-In Supply Chain Combining Two Powerful Forces III. Evolving Market Requirements What Does the Future Hold?

3 Inside-Out vs. Outside-In Supply Chain Click to edit Master title style

4 Evolution In Market Accelerating For Manufacturers Flow of Goods and Information Becoming more Widely Distributed and Complex Reduced Demand and Supply Predictability Wider Fluctuations in Availability and Costs of Materials Increased M&A Activity RESULTS Increased Risk and Volatility Decreased Visibility and Predictability More Competitive Pressure Dispersed Assets

5 Evolution In Market Accelerating For Manufacturers Flow of Goods and Information Becoming more Widely Distributed and Complex Reduced Demand and Supply Predictability Wider Fluctuations in Availability and Costs of Materials Increased M&A Activity More Competitive Pressure Dispersed Assets RAMIFICATIONS Excess Material Inventories at Time of Falling Prices Incur Huge Losses Short Material Inventories at Time of Increased Demand Incur Loss of Sales

6 Evolution In Market Accelerating For Manufacturers REQUIREMENTS Customers What s Needed? Real Customer Driven Processes Suppliers Logistics Providers Real Trading Partner Integration Collectively Sense and Properly Respond to Demand and Supply Changes Real Supply Chain Visibility

7 Where Has The Investment Been? The Inside-Out Supply Chain Billions Invested Automating Internal Operations through ERP Systems like SAP and Oracle Designed around Standardized Enterprise Processes of Procure to Pay and Order to Cash Inflexible, yet Highly Efficient A One Size Fits All Approach

8 Reality of Inside-Out Supply Chain The Inside-Out Supply Chain Standardization & Efficiency Intra-Company Benefits: Enforces Corporate Requirements Standardizes Internal Processes Correlates Multiple Processes Across Departments Inter-Company Shortcomings: Partners Have Own Ways May Not Accept Your Demands Varying Capabilities and Technology Resources

9 Gartner's TOP 15: Integrated Supply Chains ) Apple 2) Amazon.com 3) McDonald s 4) Dell 5) Procter & Gamble 6) The Coca-Cola Company 7) Intel 8) Cisco Systems 9) Wal-Mart Stores 10) Unilever 11) Colgate-Palmolive 12) PepsiCo 13) Samsung 14) Nike 15) Inditex

10 Where Will More Investment Go? The Outside-In Supply Chain Significantly more Investments to make Supply Chains more Capable of Responding Directly to Customers Designed Around the Needs of the Customer Interdependent on the Operating Demands of Others Focuses on Sensing, Shaping, and Driving Intelligent, Fast Responses

11 Reality of Outside-In Supply Chain The Outside-In Supply Chain Flexibility & Speed Intra-Company Benefits: Inter-Company Results: Increases Speed and Accuracy of Interpretation of Partner Performance Compresses the Planning Horizon to Reduce Risk Respond Directly to Customers Correlate Multiple Processes Across All Trading Partners Recognize Impact of Resource Decisions on Entire Value Chain

12 Resolving Tension of Competing Demands Inside-Out Both Valid, Yet Competing Demands Outside-In STANDARDIZATION EFFICIENCY FLEXIBILITY SPEED Gap is Bridged Today Through: Manual Intervention Custom, Cumbersome and Costly Integration Projects Add-on Modules to ERP Web Portals These cannot scale efficiently enough for evolving customer needs

13 Enabling the Customer Focused Approach Click to edit Master title style

14 Resolving the Gap Resolving the Gap Between the Inside-Out and Outside-In Supply Chain Customers What s Needed? Real Customer Driven Processes Suppliers Logistics Providers Collectively Sense and Properly Respond to Demand and Supply Changes Real Trading Partner Integration Real Supply Chain Visibility

15 Resolving the Gap Achieving a Customer Focused Approach What s Needed? The combined power of a Real Supply Chain Network and Powerful Business Applications to Extend your Enterprise Elemica SmartLink Applications: Flexible Extension of your Enterprise Approach to become a Customer Approach Elemica QuickLink Network: Robust Intelligent Supply Chain Network

16 Elemica QuickLink Network Connect to All Connect Once Fast & Easy Partner On-Boarding Clean and Actionable Data Visibility into Business Issues Before they Develop

17 SmartLink Applications Connect to All Connect Once Powerful Business Applications across the Entire Supply Chain Designed to Meet Specific Supply Chain Functions

18 Architecture SmartLink Applications Portal Access Your Connection Customer Data Logistics Data Supplier Data Finance Data QuickLink Network EDIFACT AS2 CIDX HTTPS X12 VAN Odette sftp IDOC MQ PIDX HTTPS Word Excel Print QuickLink Network Customers 18

19 Evolving Market Requirements Click to edit Master title style

20 QuickLink Network: 2013 Major Enhancements The Elemica QuickLink Network is the foundation of Customer Focused Supply Chain Enhancements include: More Flexible and Powerful Network Backbone More Trading Partners being On-board, Faster And, a More Social Supply Chain

21 Architecture SmartLink Applications Portal Access Your Connection Customer Data Logistics Data Supplier Data Finance Data QuickLink Network EDIFACT AS2 CIDX HTTPS X12 VAN Odette sftp IDOC MQ PIDX HTTPS Word Excel Print QuickLink Network Customers

22 Flexible and Powerful Network Backbone VALIDATE SOURCE Extract to Business Concepts ENRICH Populate from Business Concepts RULES TARGET

23 In Conclusion Resolving the Gap Between the Inside-Out and Outside-In Supply Chain with Elemica Customers What s Needed? Real Customer Driven Processes Suppliers Logistics Providers Collectively Sense and Properly Respond to Demand and Supply Changes Real Trading Partner Integration Real Supply Chain Visibility

24 The Outside-In Supply Chain Elemica Sourcing and Supply Chain Conference - Frankfurt