edi: workhorse of the value chain a closer look at b2b ... · a closer look at b2b connectivity...
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EDI: Workhorse of the Value Chain A Closer Look at B2B Connectivity Benchmarks in the
Extended Supply Chain
Guest Speaker:
Lora Cecere
Founder & CEO, Supply Chain Insights
Slide 2 | © GXS, Inc.
New Independent B2B Benchmark Study EDI: Workhorse of the Value Chain
A Closer Look at B2B Connectivity Benchmarks in
the Extended Supply Chain
Conducted by Supply Chain Insights
Key challenges in conducting business with
suppliers and customers
Quantitative data on use of EDI solutions in
procurement, logistics, and finance
Key findings and insights to help you plan your
B2B projects
New EDI Hard Facts to Empower
Your B2B Programmes
Supply Chain Insights LLC Copyright © 2013, p. 3
Who is Lora Cecere?
• Founder of Supply Chain Insights
• Partner at Altimeter Group (leader in open
research)
• 7 years of Management Experience Leading
Analyst Teams at Gartner and AMR Research
• 8 years Experience in Marketing and Selling
Supply Chain Software at Descartes Systems
Group and Manugistics (now JDA)
• 15 Years Leading Teams in Manufacturing and
Distribution Operations for Clorox,
Kraft/General Foods, Nestle/Dreyers Grand
Ice Cream and Procter & Gamble
EDI: Workhorse of
the Value Chain
Supply Chain Insights LLC Copyright © 2013, p. 5
Where are You?
Supply Chain Insights LLC Copyright © 2013, p. 6
Current State
Supply Chain Insights LLC Copyright © 2013, p. 7
In this webinar, we will help companies
benchmark their current state on B2B
connectivity.
Our Goal
Supply Chain Insights LLC Copyright © 2013, p. 8
Agenda
Supply Chain Insights LLC Copyright © 2013, p. 9
Study Overview
Supply Chain Insights LLC Copyright © 2013, p. 10
The Majority of Respondents Work at
Manufacturers and Average Revenue is $4 Billion
Supply Chain Insights LLC Copyright © 2013, p. 11
Over Half of Respondents Work
in a Discrete Industry
Supply Chain Insights LLC Copyright © 2013, p. 12
Half of Respondents Work in IT, Nearly Half are
Managers and Over ¾ Work in the US
Supply Chain Insights LLC Copyright © 2013, p. 13
Four in Five Report Having a
Formal Supply Chain Organisation
Supply Chain Insights LLC Copyright © 2013, p. 14
Respondents Identify an Average of
6 Functions that Report through the Supply Chain
Supply Chain Insights LLC Copyright © 2013, p. 15
Agenda
Supply Chain Insights LLC Copyright © 2013, p. 16
Definitions
Supply Chain Insights LLC Copyright © 2013, p. 17
All Respondents Have EDI/XML and are
Somewhat Familiar with their B2B Solutions
Supply Chain Insights LLC Copyright © 2013, p. 18
Most Respondents are Familiar with the Use of
EDI/XML for Order-to-Cash and Procure-to-Pay
Supply Chain Insights LLC Copyright © 2013, p. 19
Agenda
Supply Chain Insights LLC Copyright © 2013, p. 20
For Both Sales and Purchase Orders,
Over Half of Orders are Exchanged via EDI/XML
Supply Chain Insights LLC Copyright © 2013, p. 21
On Average, EDI/XML Sales Orders
are Faster with No Manual Intervention
Supply Chain Insights LLC Copyright © 2013, p. 22
For Both Sales and Purchase Orders,
Over 1/3 Report Tracking Internal Costs of Orders
Supply Chain Insights LLC Copyright © 2013, p. 23
Awareness of Internal Order Costs
is Low for Both Order Types
Supply Chain Insights LLC Copyright © 2013, p. 24
The Top Challenge for Orders
Not Processed via EDI/XML Is Added Time
Supply Chain Insights LLC Copyright © 2013, p. 25
About Half Report the Orders Change at Least
Once; About 60% Process Changes via EDI/XML
Supply Chain Insights LLC Copyright © 2013, p. 26
The Top Challenge for Order Changes Not Using
EDI/XML Is Having More Imperfect Orders
Supply Chain Insights LLC Copyright © 2013, p. 27
EDI/XML Benefits Accuracy Most
for Both Sales and Purchase Orders
Supply Chain Insights LLC Copyright © 2013, p. 28
Business Partner Relationships is Top Supply
Chain Element to Improve with EDI/XML
Supply Chain Insights LLC Copyright © 2013, p. 29
ASNs and Purchase Order Acknowledgements
are Most Important Elements of EDI/XML
for Improving Supply Chain Performance
Supply Chain Insights LLC Copyright © 2013, p. 30
Non-Discrete Industries and Non-IT Roles
are More Likely to Consider
Purchase Order Acknowledgements to be Important
Supply Chain Insights LLC Copyright © 2013, p. 31
Customer Order Captures and ASNs are Top
Performing Elements of EDI/XML
for Improving Supply Chain Performance
Supply Chain Insights LLC Copyright © 2013, p. 32
Greatest Gaps in Performance:
ASNs and Purchase Order Acknowledgements
Supply Chain Insights LLC Copyright © 2013, p. 33
Only 6% Report Offering a Discount to
Customers for Use of EDI/XML
Supply Chain Insights LLC Copyright © 2013, p. 34
Agenda
Supply Chain Insights LLC Copyright © 2013, p. 35
82% of Respondents are at Least Slightly
Familiar with Company’s Distribution Centre
Supply Chain Insights LLC Copyright © 2013, p. 36
2/3 Report Receiving Shipments without
Advanced Shipment Notices or Dispatch Advices
Supply Chain Insights LLC Copyright © 2013, p. 37
Top Challenges When Don’t Have ASNs
are Longer Receiving Times and
Inability to Plan Labor Schedules
Supply Chain Insights LLC Copyright © 2013, p. 38
Without ASN, Biggest Impact to Supply Chain is
Need to Expedite Shipments More Frequently
Supply Chain Insights LLC Copyright © 2013, p. 39
On Average, Shipments without ASNs
Cost $78 per Order Extra
Supply Chain Insights LLC Copyright © 2013, p. 40
Nearly Half of Inbound Shipments are not
Labeled with Barcodes or RFID Tags
Supply Chain Insights LLC Copyright © 2013, p. 41
On Average, Shipments without Barcodes or
RFID Tags Cost $57 per Order Extra
Supply Chain Insights LLC Copyright © 2013, p. 42
Agenda
Supply Chain Insights LLC Copyright © 2013, p. 43
• EDI and B2B connectivity matters. Progress
is slow
• EDI is the workhorse of the extended supply
chain. Business networks are in their infancy
• Most companies are looking at pennies and
missing the dollars
Summary
Supply Chain Insights LLC Copyright © 2013, p. 44
Questions?
Supply Chain Insights LLC Copyright © 2013, p. 45
Where Do You Find Lora?
Contact Information:
lora.cecere@supplychaininsights.com
Blog: www.supplychainshaman.com
(4000 pageviews/month)
Twitter: lcecere 4640 followers.
LinkedIn: linkedin.com/pub/lora-
cecere/0/196/573 (5650 in the network)
Slide 46 | © GXS, Inc.
EMEA
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Thank You for Your Participation! For More Information…
US
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• Email: info@gxs.com
• Phone: 1-800-334-5669 (option 3)
Visit our Blog - Putting B2B to Work: www.gxsblogs.com/rochellecohen
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