supply chain connect overview
TRANSCRIPT
Supply Chain Solutions Overview
Supply Chain Solutions Overview
Michael EreliSupply Chain Connect, [email protected]
Focused on Innovating and Improving the Buying Process Worldwide• Through a unique combination of
– Market information– Industry expertise– E-commerce solutions– Active network of trading partners
• With two primary business lines:– Collaboration Hubs– eNegotiation Solutions
• Backed by strong global presence: – Privately held, founded in 1995– Employees in US, Europe– Serving over 100 companies worldwide, in chemicals,
cable & wire, and other manufacturing industries
Supply Chain Solutions Overview
• Collaboration Hubs– Hosted transaction processing and supporting
supply chain applications:• Order management• Inventory visibility• VMI
• eNegotiation Solutions– Managed Events– Professional services– Trading Center
eNegotiation Solutions
eNegotiation Solutions Provide Efficient and Effective Negotiation
Online eBid – What and When?• Any product, service that is paper biddable with value of more
than $100,000• Item to be auctioned must be clearly and completely described• Buyer has the ability to choose between bidders• Switching cost is substantially below expected benefits• Minimum of two interested bidders• Use in any market condition when you must negotiate
• Event-based transaction model for either simple or very complex electronic reverse (buy) auctions
• Extremely effective for time efficiency, process optimization and liquidity concentration
On-line Bidding facilitates these negotiation characteristics
• Interactive Competition - bidders compete on neutral platform
• Transparent Feedback - all bidders receive unbiased information on the quality of their bids
• Dynamic Bidding - Market dynamics at work• Expressive Bidding permits introduction of
creative offers from bidders into on-line bid format
On-line bid negotiations are successful for many categories of direct and indirect materials and services
Chemicals• Acids, solvents• Pigments• Stabilizers, additives• Commodity resins• Specialty inorganics• Anti-oxidants• Commodity olefins,
feedstocks
Services• Security• Survey• Temp Labor• Janitorial• Printing• Hotel Rooms• Auto Leases
Services• Security• Engineering• Temp Labor• Janitorial• Printing• Hotel Rooms• Auto Leases
Industrial Equipment
• Reactors• Injection Molders• Autoclaves• Tanks
Packaging• Drums, pails, semi-
bulk containers• Metal, Plastic, Fiber• Corrugated
Packaging• Pallets, Wrap
Energy• Electricity• Natural Gas• Coal
On-line bids produce results Cost Reduction/Avoidance: 5-15% depending on commodity Market dynamics determine final price Level playing field for all suppliers- Incumbent supremacy is
challenged by the market Non-price soft factors are assessed quantitatively
Select eNegotiation Customer List
• HB Fuller• Ecolabs• DuPont• Dow• Clariant• Celanese• Basell• BP
• Shell• Rubbermaid• Rohm & Haas• Solutia• Solvay• Tyco Plastics• GE Plastics• Honeywell
Collaboration Hubs
Collaboration hubs maximize efficiency and optimize costs
• Single electronic communications hub to automate exchange of transaction data With customers, suppliers, third party service providers Allow companies to concentrate on core competencies
• Streamlines processes and reduces costs Reduced errors and rework Increased supplier and customer satisfaction Need for costly private connections eliminated Logistics costs cut Improved replenishment decisions based on more timely and accurate
information
Supply Chain Connect CredentialsSCC has deployed over 50 distinct collaboration hubs in the chemical, cable, and other manufacturing industries:
• Including General Cable, Honeywell, Lubrizol, Lyondell, Corning, and Pirelli
• Processing over 30,000 transactions per month
• Supporting over 350 suppliers & buyers connected to hubs
• With offices in US, UK, and Europe
• Integrated with many different ERP and operational systems, including SAP, Oracle, and AS/400 systems
• Using a variety of standards and protocols: CIDX, RosettaNet, AS2, EDI (ANSI X.12), NAED
We have blue chip alliance partners to help deliver overall solutions:
• Packaging: Mondi Packaging
• RFID Hardware: Paxar US
• ERP Integration: Atos-Origin
• Demand Planning: Supply Chain Consultants - Zemeter
• Logistics Optimization: Barloworld - Optimus
Customer benefits are real and measurable
• Inventory & working capital reduction
• Reduction in administration costs and paper processing. Case studies have shown:
• 50% reduction in cost of purchasing
• 75% reduction in time taken to produce and share forecast data
• 45% reduction in time taken to process a purchase order
• Opportunity for headcount reduction
• Less staff needed to send & receive telephone, fax or email orders
• Customers order electronically from all suppliers
Multiple business processes supported• Order Fulfillment
– Order Create through Invoice
• Order Settlement– Invoice through Payment
• Logistics– Load Tender through
Freight Bill
• VMI– Inventory through Invoice
• Collaborative Planning– Forecast through Shipment
How it works• We provide an integration interface into a client's ERP system to extract
order, planning, logistics, inventory, or billing data. This can then be shared between the client and their suppliers. This approach means that the client can continue to use their existing systems, with no training required.
• Our connectivity technology securely routes client data and makes it accessible via a web browser to specified suppliers, with no need for integration.
• For automation of transactions, we also provides capability to integrate into relevant supply chain partners’ systems: via EDI or direct ERP connections.
• Our order management, inventory and demand visibility applications provide web-based tools to review information and receive exception alerts.
• Our systems are fully RFID enabled and can provide full data layer visibility of inventory tracked using RFID technologies.
Flexible Connectivity Alternatives: An Example
SAP R/3
B2B GatewayCollaboration Hub
Web Browser
150 Supply Chain PartnersRaw material suppliersMRO/Indirect suppliers
Logistic providers
ERP
Connection Types:• FTP (Flat File)• FTP (EDIFACT)• AS2 (XML)• AS2 (EDI)• XML (RNIF – RosettaNet)• XML (HTTP Post)• Fax (XML conversion)
Hub/VAN
Current Customer Base and Volume
• Approximately 9 active collaboration hubs, including:– Chemical, Cable, and other industries– Direct and indirect materials– Connecting to over 500 suppliers– Automating order management, logistics, inventory and
production planning processes
• Current production transaction volume is approximately 30,000 transactions per day
Collaboration Hubs – Offering Summary• Order management automation
– Various commonly used processes can all be automated through the collaboration hub as order placement, acknowledgements, advanced shipping notifications, receipts
• Supply Chain Visibility– Sharing critical data and applications with multiple supply chain partners
outside the company’s own firewall• Vendor Managed Inventory & Replenishment Ordering
– By providing inventory, forecast and usage information, suppliers can be confident in taking responsibility for managing supply and inventory, often with the added advantage of reducing overall inventory levels
• Connectivity Hub– Cost efficient and future proof way of integrating large number of supply
chain partners• RFID inventory tracking
– We offer RFID solutions, including event management and sharing of RFID-based inventory data with supply chain partners
We provide a full scope of services to identify and deploy collaboration solutions
• eBusiness Strategic Planning
• Opportunity Assessment
• Customer/Supplier Analysis
• Planning Workshops• Process Redesign and
Improvement• Tool Evaluation and
Selection• Architecture Design
• Custom Development• Supplier/Customer on-
boarding• Supplier/Customer
Training• Project Management• Performance analysis• Testing and
Certification
• Service Level Maintenance
• System enhancements• Problem resolution and
escalation• Ongoing process
improvement and compliance
• Performance measurement and reporting
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