aberdeen slides final.vics[1]

8/10/2019 Aberdeen Slides Final.vics[1]

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The Destination of Choicefor Actionable Research

New Strategies for GlobalTrade Management

Beth Enslow

Vice President, Enterprise Research

[email protected]


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2005AberdeenGroup 2

About Aberdeen Group

Research frm helping companies benchmark andimprove technology-enabled business strategies

Specialize in procurement, supply chain, globaltrade, and retail research

Benchmarked more than 13,000 enterprises

Research is used by 0! o" the #ortune 1000 Beth EnslowVice President

Enterprise Research

About half were consumer-oriented companies (consumer goods and retail)

A third were $1 billion+ in revenue

Most were suppl chain and procurement !"s and directors

#odas benchmar% data is from 1&' companies we surveed

for theNew Strategies for Global Trade Managementreport


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2005AberdeenGroup

Topics

Global Trade Growing Pains

Best in Class Practices

Building Preemptie Business Networ!s


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2005AberdeenGroup *

Globali"ation #$ceeds the %&pe

$hina is the most popular trade destination'() of all respondents * and + out of ,- companies withoer ./- million in reenue * currentl& hae actiit& inChina

/-

01

1(

/,

-

,-

2-

1-

3-

/-

0-

'-

)o

fRespondents

42/) 5nt6l Suppliers 42/) 5nt6l Customers

Toda&

2--(

% of Companies With >25% International Vendors or Customers


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2005AberdeenGroup

The Suppl& Chain Conundrum

7ocali"ation of DemandTailored Products8ust95n9Time Shipments

Globali"ation of Suppl& Continued Pressure on Costs 7ead Times 4 :rder Times

Speed; Accurac&;

Agilit&

Slower; More


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2005AberdeenGroup ,

>hat Are >inners Doing?

33

%&

1&

-

,-

2-

1-

3-

/-

0-

'-

'ross (argin

Best in Class

5ndustr& Aerage

7aggards

CorporatePerformanceManagement


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2005AberdeenGroup &

>hat Are >inners Doing?

$losed-)oop *er"ormance (anagementShine the laser on performance issues and mar!et

opportunities as soon as possible

+&

,13%

-

,-

2-

1-

3-

/-

0-

'-

'ross (argin ! *roftable(arket Segments

Best in Class

5ndustr& Aerage

7aggards

CorporatePerformanceManagement


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2005AberdeenGroup

>h& Companies =eel Pressure to ReisitTheir Global Trade Strategies

1! suer une.pectedly higher costs and are challenged

to respond to market demands


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Global Trade 5s Tremendousl&5ne@cient

/ uarter o" large companies have problemsith more than 1 out o" 10 shipments 1-) of retailers and apparel manufacturers sa& the&

hae problems with more than , out of 0 shipments

+3! o" companies manage their global tradeprocess using paper and spreadsheets :ften combined with a hodgepodge of department9

leel homegrown software

20! do not manage global trade cross-

"unctionally

&! do not measure their global tradeper"ormance

*lus, companies pay brokers and "orarders to hand-keydata into disconnected systems multiple times in a

shipment4s 5ourney


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>h& >e Are Poised on the Brin! of Global

Trade Management 5nnoationSuppliers; forwarders;bro!ers and carriersare now 5nternet9enabled

Goernments areupgrading s&stems andmoing to electronicdocument processing

isibilit& and eentmanagement can nowbe embedded intowor!ow

5ntegration hubtechnolog& and on9demand options ma!econnecting easier

6cosystemis ready "orautomation

7echnology ismaturing tosupport multi-party

automation#inancinginstrumentshave matured

Man& alternaties to7etters of Credit

Treasur& S:scrutin& on globalcash ow and wor!ingcapital mgmt


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Changes in Corporate Attitude

E>e recentl& automated our global trade processesF Thiseort; coupled with implementation of Si$9Sigmaprinciples; has and continues to deliver hugedividendsFH

* P suppl& chain; medical deice compan&

EA &ear ago; trade compliance as vieed as atactical, necessary evil8Now we understand that wemust operate global business processes and stop thin!ingof ourseles as a



Topics






Global Trade 7eaders Successfull&

Reduce


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Best9in9Class Practices

5n9process and in9transit order isibilit&

Aggressie inentor& management

7ogistics e$ibilit& Corporate9wide automation

Corporate9wide measurement

Global trade competenc& center

Trade Inance



Supplier min/max

replenishment or

consignment inventory

Component risk pooling and

intermediate postponementPostponement of

finished goods

Virtualinventory bin

Supplier drop ship

Virtual

inventory

bin

istribution bypass

V!" hub

!erge in

transit#"$

delivery

%ow Do Kou Create 7ow Cost andResponsieness?

Componeti"ed designsLrecipes Postponement and 85T strategies =rom outsource to EwisesourceH 5n9transit inentor& allocation and re9direction

Contingenc& plans and eent9based course corrections


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7eaders Are Building More Points of

=le$ibilit& into Their 7ogistics Networ!s18 Reroute goods to alternate portsto avoid

congestion companies arecalling this :portshopping8;

%8 (ove goods in-bondto a bonded warehouse in Chicago

toavoid recurring customs delaysat an #ast CoastairportF

38 Sitch the domestic leg "romrail to truck to meetS)/F

8


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Corporate9>ide Process AutomationPa&s

(any companies are doing redundant ork and under-leveragingtheir learnings because o" a decentralized and manual trade

process

Reduction in Metric



RenaultJs Drie for CorporatewideAutomation

=romO Separate import and separate e$port

databases in each countr& ToO :ne global database for all trade data

Ta!e full adantage of trade agreements in productdesign and sourcing to drie to /;--- #uro car

7ower compliance and documentation costs b&

automaticall& reappl&ing electronic data to dierentparts of the importLe$port process

Gain new e$ibilit& to update data while shipment in9transit

BeneItO Changed RenaultJs strategic position


19/29 2005AberdeenGroup 1.

%ow Global Trade 7eaders %ae BeneIted =rom

Automated Global Trade Technolog&Technology Benefit Area % Reporting ain

Shorter delivery times 68%

Improved customer satisfaction 68%

Improved import/export regulation compliance 62%

Increased profita!ility 5"%

etter shipment visi!ility for company and supplychain partners

5"%

Improved responsiveness to change 5#%$ecreased inventory reuirements 50%

Impro#ed cash flo$ %

Increased re#enue &5%


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Technologies Perceied as MostBeneIcial

common platform for e$ecuting trade processQ



Adoption Plans for Global TradeTechnolog&



-

2-

3-

0-

(-

)o

fResponde

nts

All Best in

Class

All Best in

Class

Plan to Adoptb& 2--'

Do Toda&

(inimize )$s and(ove to =pen

/ccounts

6arly *ayment*rograms

&+! o" best-in-class companies say their ne.t step is to

enhance >7 "or payment and cash ?o management

=inancial Suppl& Chain Best Practices *7eeraging Cash Credit Across the Suppl&

Chain



Topics





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%ow >inners S&nchroni"e Their Suppl&Chains

)ocalization o"



%ow >inners S&nchroni"e Their Suppl&Chains

'lobalization o" Supply

%ow fast can 5 recalibrate suppl& to support

new demand shaping tactics?

%ow uic!l& can 5 identif& suppl& issues andta!e preemptie action?

%ow eectiel& can 5 ow inentor& across

m&

end9to9end suppl& chain?


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Supplier #ents Monitored b& Companies

Final delivery

Raw material arrival at supplier

Supplier production process events

Order acnowled!ement matchespurchase order

"dvance shipment notice matchespurchase order

"dvance shipment notice created

#arrier picup o$ !oods

%n&transit status events

#ustoms clearance

'(( )( *(

+ o$ #ompanies

( -((

%ifecycle

of an

order


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Building a Preemptie Business Networ!

,+(- ,+(/ ,++- ,++/ 2--- 2--/2-,-

*ushed

*lanned

*reemptive

Suppl&9D

emandS&nc

hroni"ation

#ocus on inners, divest losers 'et nosy ith your suppliers /dopt netork vie o" inventory

?o *lan "or contingencies *redict and monitor to get ahead

o" demand and supply issues

Reactive


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2005AberdeenGroup 2

Summar&

=indings @o ell companies manage the supply chain

conundrum o" localization o" demand andglobalization o" supply ill determine theirsuccess over this decade

Ta!eawa&s +,) of businesses that source or sell goods internationall&

suer une$pectedl& higher costs

Companies want to automate and innoate because of theirgrowing inabilit& to react to changes in mar!et demand due

tolonger lead times and more unpredictabilit&

Global trade processes are still in the dar! agesO Automationis ust beginning within the enterprise and across the suppl&chain

The merging of the ph&sical and Inancial suppl& chains is the


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The Destination of Choicefor Actionable Research

Than! Kou

wwwaberdeencom

/eth 0nslow1.--1*'

bethenslowaberdeencom

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