enhancing customer centric supply chains - part 1
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Enhancing Customer Centric Supply Chains – Part 1
Mark Morley, Industry Marketing Director
Slide 2 | © 2013 GXS, Inc.
Introduction
• Today’s customer centric supply chains
are becoming incredibly complex
• Many suppliers do not have the internal
resources to support new customer driven
technologies and business processes
• Many suppliers are having to find new
ways to support their customers in order
to remain competitive in the market
• Suppliers require incredibly flexible B2B
platforms to service these customer
demands
Slide 3 | © 2013 GXS, Inc.
Third Party Research Institutions Validate the Value of B2B Outsourcing
TCO Study
by Hobson & Company
ERP Study
by AMR Research
• 84% experienced ERP project delay • 34% of data comes from B2B• 2.9% average error rate for B2B
ROI Study by Stanford University
• Average 250% ROI• 62% increase in customer
satisfaction• 75% increase in B2B capabilities
• Average savings of 20%- 40%• Cash flow analysis model• Net present value model
Slide 4 | © 2013 GXS, Inc.
Enhancing Customer-Centric Supply Chains Study
Led by Professor Martin Christopher
SCM World Speaker Faculty Member
Emeritus Professor of Marketing and Logistics at Cranfield School of Management
Slide 5 | © 2013 GXS, Inc.
Demographics – Primarily Manufacturing
High Tech & Electronics (19%)
Food & Beverage (11%)
Pharmaceutical & Biotech (8%)
Industrial Parts & Equipment (7%)
Aerospace & Defense (5%)
Automotive Parts & Vehicles (5%)
Medical & Surgical Supplies (4%)
Apparel & Footwear (3%)
Note: The remaining 38% of survey respondents did not specify an industry
Slide 6 | © 2013 GXS, Inc.
Customer-Centric Supply ChainsLarge Customers Large Customers
Supplier(Manufacturer)
Supplier(Distributor)
Point of SaleInventory Positions
Sales Forecast Cross-DockingFloor-Ready Merchandise
Mixed Pallets
Inventory PositionConsumption
Production ForecastVendor Managed InventoryLate Stage Configuration
Evaluated Receipts SettlementDemandPlanning
DemandPlanning
CustomServices
CustomServices
Slide 7 | © 2013 GXS, Inc.
The New Competitive Advantage
Product
Price
Promotion
Place
Customer Service
Process
94% of Respondents Agreed that
Increasingly companies will
compete as much through superior
processes and service solutions as
through superior products
Slide 8 | © 2013 GXS, Inc.
Complexity from Customers
73% Agreed0% Disagreed
Examples of New or Customised Processes• Custom Packaging• VMI• ASN• Drop Ship• Self Billing
In the past three years the number of requests from large customers for new or customised supply chain processes have
Decreased Significantly
Decreased Moderately
Stayed the Same
Increased Moderately
Increased Significantly
0% 20% 40% 60%
Slide 9 | © 2013 GXS, Inc.
The “Customised” Supply Chain
VMI
JIT
Floor ReadyMerchandise
EvaluatedReceipts
Settlement
Cross-Docking
SupplyChain
Finance
ScheduleAssignment
OpenAccount
Postponement & Late Stage Configuration
AuctionsReverse
Direct Store Delivery
Mixed Pallets
Direct-to-Consumer
e-RFQ
SILS
CorporateSocial
ResponsibilityCallOff
Supplier Managed Inventory
Wire Transfer
90% of Respondents Agreed that
Our Customers
Increasingly Demand
Customised Service
Solutions & Packages
Slide 10 | © 2013 GXS, Inc.
Order Management Technology
Source: 107 High Tech Respondents – SCM World Study – Enhancing Customer Centric Supply Chains - September 2010
Punchout
XML
Phone
Portal
Fax
EDI
0% 10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Which of the following technologies do you offer customers to place orders? Select all that apply.
No Dominant Approach Exists
Suppliers Must Support Many
Different Models
Slide 11 | © 2013 GXS, Inc.
Other Standard
GDSN
Portal
EDI
Spreadsheet
0% 10%
20%
30%
40%
50%
60%
70%
80%
Product & Price Sync Technology
No Dominant Approach Exists
Suppliers Must Support Many
Different Models
Source: 54 Food & Beverage Respondents – SCM World Study – Enhancing Customer Centric Supply Chains - September 2010
Which of the following methods do your customers require to share product catalog and pricing information? Select all that apply.
No Dominant Approach Exists
Suppliers Must Support Many
Different Models
Slide 12 | © 2013 GXS, Inc.
Differentiating with B2B E-Commerce
89% of Respondents Agreed that
Flexibility of our B2B e-
Commerce program enables
us to differentiate from
competitors on service
On-Time Delivery
ASN Timeliness
Correct Carrier
Authorised Substitutions
Barcode Label
ASN Accuracy
Supplier Scorecard
Perfect Orders Overall Score
2010
2009
2008
0 1 2 3 4 5 6 7 8 9 10
Perfect
Imperfect
Slide 13 | © 2013 GXS, Inc.
In Summary,Complexity will Grow; Service and Flexibility Will Differentiate
• New sources of low cost competition meanthat the pressure on price will continue
• Continued concentration of markets means that bigger, more powerful customers will demand more from their suppliers
• Conventional marketing strategies have lesseffect in a time-sensitive, on-demand world
• Companies will compete as much through superior process and service solutions as through superior products
• As complexity increases, manufacturers must further embrace technology to sustain high customer satisfaction ratings while maintaining appropriate profit margins
• A flexible B2B e-Commerce capability is a critical requirement in devising a strategy for managing complexity
Slide 14 | © 2013 GXS, Inc.
Further Information
NA – http://www.gxs.com/resources/insights/
EMEA - http://www.gxsinsights.eu/4th_edition/index.htm
Slide 15 | © 2013 GXS, Inc.
Thank You
Phones
US: 1-800-334-2255, option 3
EMEA: +44 (0) 1932 776047
GXS web sites
US: www.gxs.com
EMEA: www.gxs.eu
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