How Cloud B2B Integration Enables Michelin s International Operations

Transcription

1 How Cloud B2B Integration Enables Michelin s International Operations Jean-Luc Faye, IS Functional Domain Manager, Michelin Mark Morley, Industry Marketing Director, GXS

2 Introduction to Today s Presenters Jean-Luc Faye IS Functional Domain Manager Member of Michelin s worldwide EDI service centre and is responsible for the delivery of EDI services across Michelin s Global operations. Mark Morley Industry Marketing Director Heads up GXS go to market strategy for the manufacturing sectors. Extensive experience of working with global companies looking to expand their B2B platform into different markets. Slide 2 GXS, Inc.

3 Agenda Introductions Today s Manufacturing Industry How Cloud B2B Integration Enables Michelin s International Operations How GXS Helps Manage International Expansion Conclusions Slide 3 GXS, Inc.

4 Today s Manufacturing Industry Slide 4 GXS, Inc.

5 Manufacturing 2.0, Rebooting Today s Global Supply Chains Global recession, wage strikes, natural disasters and changing consumer demand are leading to manufacturers having to restructure their global supply chains Slide 5 GXS, Inc.

6 What is Going on in Today s Manufacturing Supply Chain? Engineering R&D Engineering R&D Sales Regional Marketing & Finance Sales Manufacturing Manufacturing Global HQ Manufacturing Engineering R&D Manufacturing Back Office Sales Back Office Sales Western Expansion Near-Shoring China Expansion Slide 6 GXS, Inc.

7 Expansion into China Wage rises and continued strikes causing some companies to re-shore manufacturing back home Chinese manufacturers looking to reduce costs by setting up operations in other countries Government introducing tax and relocation incentives to encourage investment in western China, ie spreading wealth across the country Slide 7 GXS, Inc.

8 Expansion into Brazil Brazil is currently receiving significant inward investment from global manufacturers Establishing manufacturing hubs as a stepping stone in to the lucrative North American Market Brazilian government introducing various import taxes to encourage more locally sourced content Chinese companies, particularly automotive, regard Brazil as a key growth market Slide 8 GXS, Inc.

9 Expansion into India Key global manufacturing hub, particularly for labour intensive processes such as machining Greater consumer wealth leading to increased domestic sales of manufactured goods Land locked to the North by Himalayas means all goods have to be imported/exported by sea Extensive use of manual based business processes and limited use if EDI Slide 9 GXS, Inc.

10 General Emerging Market B2B Trends Hesitation to move towards a completely outsourced environment, prefer hybrid approach Emerging markets keen to learn about B2B standards used in more developed markets Extensive use of home grown XML standards, now interested in deploying EDIFACT/ANSI Trading partner on-boarding is a key driver for using B2B Managed Services Slide 10 GXS, Inc.

11 Infrastructure Related Issues Utilities, particularly power supply networks suffer regular outages Telephone communications and networking infrastructure are relatively poor and slow New 3G/4G mobile networks are being setup as they quicker than building fixed lines networks Road and rail networks are generally poor quality and offer unreliable service Slide 11 GXS, Inc.

12 How Cloud B2B Integration Enables Michelin s International Operations Slide 12 GXS, Inc.

13 MICHELIN A better way forward Source: Annual and sustainable development report Michelin & GXS Webinar How Cloud B2B Integration Enables Michelin s International Operations 13

14 EVERYWHERE AROUND THE WORLD WE EQUIP EVERYTHING ON WHEELS, TO SERVE EVERY MOBILITY NEED 184m TIRES PRODUCED 69 PRODUCTION FACILITIES IN 18 COUNTRIES No.1 IN THE WORLD IN HIGHPERFORMANCE TIRES FOR CARS 170 MARKETING OPERATIONS IN MORE THAN 170 COUNTRIES No.1 IN THE WORLD IN RADIAL TIRES FOR TRUCKS, EARTHMOVERS, AIRCRAFTS 14.8% SHARE OF THE GLOBAL TIRE MARKET BY VALUE Tire Business 2011 Global Tire Company Rankings No.1 IN EUROPE IN TIRES FOR FARM MACHINERY, MOTORCYCLES Source: Annual and sustainable development report Michelin & GXS Webinar How Cloud B2B Integration Enables Michelin s International Operations 14

15 ACTING LOCALLY WE FACILITATE MOBILITY FOR EVERYONE, EVERYWHERE AND IN EVERY WAY PRODUCT AND SERVICE DEALERSHIPS IN 27 COUNTRIES 10m MAPS AND GUIDES IN 15 LANGUAGES PUBLISHED IN 2011 No.1 IN RETREADING 950m ITINERARIES CALCULATED BY VIAMICHELIN No.1 IN SERVICE CONTRACTS FOR TRUCKS, EARTHMOVERS AND AIRCRAFT FLEETS Source: Annual and sustainable development report Michelin & GXS Webinar How Cloud B2B Integration Enables Michelin s International Operations 15

16 AN ENGAGED ENTERPRISE, WE INNOVATE TO FOSTER SAFE, CLEAN, CONNECTED MOBILITY No.1 IN THE WORLD IN FUEL-EFFICIENT TIRES 15bn LITERS OF FUEL SAVED SINCE m TONNES OF CO 2 NOT EMITTED SINCE TH MICHELIN CHALLENGE BIBENDUM 6,000 PARTICIPANTS, 10,000 VISITORS 2011/2020 OFFICIAL PARTNER OF THE UNITED NATIONS DECADE OF ACTION FOR ROAD SAFETY AND THE ROAD SAFETY CAMPAIGN ORGANIZED BY THE FÉDÉRATION INTERNATIONALE DE L AUTOMOBILE (FIA) Source: Annual and sustainable development report Michelin & GXS Webinar How Cloud B2B Integration Enables Michelin s International Operations 16

17 MICHELIN ESTABLISHED Close to its Global Customers employees ( Full-time equivalent employees) 69 production facilities in 18 countries North America 17 plants 10 for passenger car and light truck tires 4 for truck tires 3 for specialty tires 2 for components and semi-finished products South America 4 plants 2 for passenger car and light truck tires plus 1 under construction 3 for truck tires 1 for specialty tires Source: Annual and sustainable development report Western Europe 32 plants 10 for passenger car and light truck tires 12 for truck tires 7 for specialty tires 6 for components and semi-finished products Africa, India and the Middle East 1 plant 1 for truck tires plus 1 under construction Michelin & GXS Webinar How Cloud B2B Integration Enables Michelin s International Operations Eastern Europe 8 plants 5 for passenger car and light truck tires 3 for truck tires 3 for specialty tires 1 for components and semi-finished products 17 Asia (without India) 7 plants 4 for passenger car and light truck tires plus 1 under construction 3 for truck tires plus 1 under construction 2 for specialty tires 2 for components and semi-finished products TC : Tourisme camionnette PL : Poids lourd SP : Pneus de spécialités

18 : A NEW PHASE OF DYNAMIC GROWTH TO SUCCEED IN THIS NEW PHASE OF ASSERTIVE GROWTH AND MEET ITS OBJECTIVES, MICHELIN CAN CAPITALISE ON SUCH SOLID COMPETITIVE ADVANTAGES AS ITS TECHNOLOGICAL LEADERSHIP, SUPERIOR PRODUCTS AND SERVICES, DEMONSTRATED BRAND APPEAL, OPERATIONAL EFFICIENCY AND ROBUST BALANCE SHEET. Source: Annual and sustainable development report Michelin & GXS Webinar How Cloud B2B Integration Enables Michelin s International Operations 18

19 AN ASSERTIVE STRATEGY BASED ON PRIORITY GOALS INNOVATE TO MEET CUSTOMER NEEDS MORE EFFECTIVELY DRIVE STRONG, DIVERSIFIED GROWTH ENHANCE COMPETITIVENESS ENSURE RESPONSIBLE GROWTH Source: Annual and sustainable development report Michelin & GXS Webinar How Cloud B2B Integration Enables Michelin s International Operations 19

20 AN ASSERTIVE STRATEGY BASED ON GROWTH DRIVERS A GLOBAL R&D THE RIGHT TIRE FOR ANYTHING ON WHEELS THE MICHELIN BRAND AND THE BRAND PORTFOLIO EMPLOYEE PROFESSIONALISM AND COMMITMENT Source: Annual and sustainable development report Michelin & GXS Webinar How Cloud B2B Integration Enables Michelin s International Operations 20

21 MAIN OBJECTIVES FOR 2015 MORE THAN +25% Unit sales growth, days of training per year for everyone (on average) 2 bn Annual capital expenditure 33% of women among new hires (excluding production operators) 2.5 bn 30% Operating income Dividend payout rate in 2015 of around 30% of Before non recurring items consolidated net income Before exceptional items -45% Reduction in the environmental footprint as measured by the Michelin sites Environmental Footprint (by 2016 compared with 2005) Source: Annual and sustainable development report Michelin & GXS Webinar How Cloud B2B Integration Enables Michelin s International Operations 21

22 KEY FIGURES Michelin sites Environmental Footprint reduced by -33 % Employees 115,000 New hires 14,036 Hours of employee training 7.2 million Lost-time incidents 0 In Group plants Net sales 20.7 bn In volume In value Up 6.7 % Up 15.8 % Operating income bn Net debt-to-equity ratio % Before non recurring items Capital expenditure 1.7 bn Source: Annual and sustainable development report Michelin & GXS Webinar How Cloud B2B Integration Enables Michelin s International Operations 22

23 B2B Integration Platform in 2011 (Europe) Michelin & GXS Webinar How Cloud B2B Integration Enables Michelin s International Operations 23

24 Target Architecture for the Group Connectivity to everyone else, eg customers, suppliers, raw material providers Bank Connectivity Michelin & GXS Webinar How Cloud B2B Integration Enables Michelin s International Operations 24

25 Alignment with Michelin s IS Strategy Use of standard solutions versus customised packages Increased use of SaaS solutions and integrate in a secure and efficient way with our backend information systems Deploy faster everywhere with minimal disruption to the business Michelin & GXS Webinar How Cloud B2B Integration Enables Michelin s International Operations 25

26 Benefits from working with GXS Future proof and modern B2B Platform Scalable and flexible platform providing a broad range of options in terms of global connectivity and formats Global e-invoicing solution to meet local tax and compliance regulation changes Multi-lingual Support and Trading Partner on-boarding Michelin & GXS Webinar How Cloud B2B Integration Enables Michelin s International Operations 26

27 Future Plans Complete European migration project Initiate migration of North America, Asia and South America regions to our Managed Services environment Offer high end B2B integration services to our customers and suppliers in conjunction with the global Up & Down stream supply chain initiative roll-out Build a stronger partnership to embrace the B2B capabilities that Michelin needs to succeed in a challenging global economy Michelin & GXS Webinar How Cloud B2B Integration Enables Michelin s International Operations 27

28 How GXS Helps Manage International Expansion Slide 28 GXS, Inc.

29 Supporting Global Manufacturers 100% of Automotive Companies in the Fortune % of Top 100 Global Automotive Suppliers 78% of High Tech Companies in Fortune % of Top 10 Mobile Device Manufacturers GXS mediates between any document and communication standards Slide 29 GXS, Inc.

30 How GXS Addresses the B2B Challenges Faced by Manufacturers Consolidation and Modernisation of B2B Provide Global Interoperability Increase Supply Chain Resilience Integration to Enterprise Systems - ERP Improve Visibility of Global Shipments Support Expansion into New Markets Slide 30 GXS, Inc.

31 How GXS Helps International Expansion Projects Typical B2B Challenges How GXS Addresses This B2B Knowledge/Skills Dedicated B2B Resources Automating Manual Processes Web Forms, Microsoft Excel Local Standards Support Any to Any B2B Mediation Problem Resolution 24/7 Multilingual Support Slide 31 GXS, Inc.

32 GXS Managed Services A Better Approach for Managing International Expansion GXS Managed Services Environment Slide 32 GXS, Inc.

33 Research Findings Validate ROI 3 rd Party Validation From Leading Institutions Managed Services Trends Study by Stanford University 68% Said that Managed Services helped improve the efficiency of on-boarding new customers 59% Said that Managed Services helped enable a reduction in B2B integration costs 74% Said that replacing capital expenditure with 96% Reported that Managed Services Added Significant Value to their Overall B2B Integration Programs B2B Managed Services Value & Trends Study conducted by Stanford University Global Supply Chain Management Forum a monthly fee was valuable to their business 59% Said that Managed Services helped to better meet/respond to change in customer requirements Slide 33 GXS, Inc.

34 GXS B2B Community Management Automating Both Your Data Network and People Network Slide 34 GXS, Inc.

35 Increasing Pressure to Improve the People Aspect of Community Management Problems: No single source of supplier information Minimal automation of supplier setup & registration Continuing need to onboard suppliers faster Reduce supplier onboard and management costs Monitor supply chain risk & performance Legal & Regulatory compliance Solution: Is an enterprise community management tool that delivers people and process solutions across GXS Trading Grid Slide 35 GXS, Inc.

36 Full Spectrum of B2B Enabling Tools Integration Solution Matching Requirements of Each Supplier Size of Supplier Small Mid-Size Large Very Small Small Medium National Global Web Forms Microsoft Office SMB Accounting Package Desktop Translator Mobile Device* Integration Broker Enterprise Resource Planning Complexity of B2B Enabler * Future Release Slide 36 GXS, Inc.

37 Conclusions Cloud based B2B integration offers many benefits to Michelin s global operations: Ability to scale their B2B infrastructure according to the needs of the business Improves remote on-boarding and on-going collaboration with global trading partners Removes complexity from their supply chain Allows their business to respond more quickly to changing customer requirements or market demands Slide 37 GXS, Inc.

38 Thank You Jean-Luc Faye IS Functional Domain Manager fr.linkedin.com/in/latyrf Mark Morley Industry Marketing Director gxsblogs.com/morleym uk.linkedin.com/in/markmorley Slide 38 GXS, Inc.

39 Additional Resources B2B Managed Services Website New Stanford University Reports on B2B Managed Services New International Expansion Report Slide 39 GXS, Inc.

40 Thank You For Your Participation GXS web sites Phones US: EMEA: ASPAC: Brazil: US: , option 3 EMEA: +44 (0) ASPAC: Brazil: Slide 40 GXS, Inc.