ebfm presentation
TRANSCRIPT
Profit from Electronic Business Flow Management
Skip SteinManagement Systems Consulting, Inc.
http://www.msc-inc.net
Copyright © 20103 Management Systems Consulting, Inc.
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Vision Statement
EBFM – Electronic Business Flow Management
EBFM for electronic transaction processing can implement cost reduction and enhanced cash flow opportunities with it’s integration into business processes.
Apply enhanced electronic transactions to your business processes, to reduce expenses, decrease time to cash receipt, eliminate error prone data entry applications, and reduce the order to cash depository process.
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EBFM StructureElectronic Business Transactions
Infrastructure is well founded upon open standards like EDI, LC (letter of credit), Open Purchase Order and VMI (vendor managed inventory)
Established standards (ebXML/EDI) and electronic
infrastructure (Internet, VPN’s, secure networks)
capitalize on existing processes and expand beyond
paper and manual order processing techniques.
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Business Process ModelGlobal Transaction Integration
Alternate Sources of Supply - dynamically balanced through inventory, order entry, distribution & control systems.
AOT (always on time) replaces JIT (just in time).
Constant information flow from multiple sources of supply – 24 x 7.
Global in scale – uninterrupted by regional boundaries supported by worldwide networks and the Internet.
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Purpose -> Profit
It is NOT a dirty word!
Profit - The mechanism by which two or more
business enterprises form enhanced trading
partner relationships for the purpose of
increasing revenue and reducing costs while
in the business of producing a saleable
product at a profit!
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Yesterday’s SituationSupply Chain Processes
JIT – just in time is insufficient
Developed as an inventory control/reduction method
Focused on ‘key suppliers’
Produced critical inventory shortages
Affected by strikes, weather, wars
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New Model - EBFM
More Efficient and Timely
AOT – always on time – supplies always available when and where needed
Supply forecast linked to variable sources – balanced by availability and lead times
Electronic orders based on projected manufacturing
& distribution forecast
Flexible/adaptable in a constrained material supply situation
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How Do We Get There?Business Process Change
Consolidate and focused business enterprise operations
Function focused business units
Autonomous operations linked Globally through dynamic networks
Workforce balanced by need and operational focus –not regional or centralized bureaucracy
Adaptive organizations with flexibility to implement change - rapidly
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Electronic Transactions
Open Up the Electronic Gateway
Electronic Data Interchange – EDI
Internationally recognized and adopted as a secure and functional business process
Supported by open standards
Updated and maintained on current basis by international standards groups
Evolving technology support – ebXML Standards, Internet Security enhancements and more
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The BasicsElectronic Transaction Flow Integration
Electronic transactions replace laborious, time
consuming, and error prone movement and handling
of paper
‘Untouched by Human Hands’ – standard formats
transmitted in seconds instead of days – routed and
handled automatically
Order to Cash - process product orders and cash
receipts in minutes, not days, weeks or months
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Technology – Underutilized
Eliminate the Paper and Manual Processes
Fully implemented existing capabilities of electronic transactions - EDI & ebXML
Implementations must leverage the dynamic capabilities of machine to machine data transfer
Reduce/eliminate increasing costs of manpower to support old infrastructure
Filing cabinets, paper take up unnecessary and valuable space – electronicise records and documents
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Available SolutionsUtilize Available Technology
ebXML, EDI and electronic commerce is just the communication & document transport layer of a more complete infrastructure change
Electronic image processing, scanning, CDRW, EPR systems are available to support infrastructure demands
Available technology provides the ability to work anywhere with ‘COMPLETE’ information retrieval resources at hand
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RecommendationIdentify Replaceable Manual Processes
- Walk the floor -
Order Processing – how much data entry
Invoicing and Receipts Processing – paper & postage
Procurement and Receiving – automatic inventory
Shipping & Distribution – BOM, lists and packaging
Stand by the printer – why do you need paper
See what’ being copied – why do need copies
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Resources
Electronic Transaction Standards
Complete business process supportPre-existing transaction sets defined for virtually any business processOpen standards make communication across international boundaries (language, time zones and climate) possibleTested and Proven methodologyWith lower entry costs, available to even the smallest business enterprise today
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MandatoryElectronic Document Exchange
Electronic Data Interchange –EDI – is becoming a mandatory mode of business operations
Available to even the ‘QuickBooks’ enterprise
Secure transaction exchange supported by a variety of methodologies, processes and service organizations
Government Contracts and HIPAA (healthcare) legislation requires it
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Implementation
Plenty of Implementation Options Available
Available as SAAS
Browser or enterprise/legacy system interface options
TCP/IP communication using FTP or SMTP
Internet or VPN access
Pass transactions to/from/through traditional VANs
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Room to Grow
Current Systems Support EDI
Many existing implementations only encompass the basics: Purchase Order & Invoice
Revision documents, Shipping Information, and Payment processing have yet to be implemented
True ROI begins HERE~!
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Cost Reduction - Potential
Electronic Transaction Expansion
Full implementation of EDI capabilities provide the basic framework for substantial cost reduction
Leverage existing workforce in more profitable activities
Reduce/Eliminate paperwork, forms, filing and filing cabinets
Machine to machine transaction processing at light speed
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Profit Enhancement - PotentialMake a Profit with Quicker Response Times
Process Orders & Cash Receipts faster
Automate order processing to manufacturing and distribution systems
Reduce on-hand inventory with AOT (Always on Time) assurances provided by multiple source of supply & distribution
Enhanced payment processing with EFT Order to Pay processing
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More Profit Potential
Shrink Supply Times
Automate requests for quote
Model/Forecast and manage bids/proposals
Interface with in-house procurement systems
Attach and publish specifications documents
Manage procurement activity
Integrate seamlessly with procurement communities and catalogs using EDI & ebXML-based architectures
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Success Based ProvisionsYou Can’t Do it Alone
Establish Trading Partner Relationships –beyond customer/supplier contracts
Open up organizations and business relationships to fuller, more complete information exchange
Deploy secure communications infrastructures to support ongoing linkages
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Implementation RequirementsDo it NOW Rather than Later
Select a set of tools – standards, translator, communicator, application interfaceObtain expertise during deployment – don’t re-invent the wheel!!!Deploy structured and reliable application system interfacesOffer enhanced career opportunities to available personnel with existing business knowledgeMake the process repeatable
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Key Factors
Standardize the Process
This is NOT brain surgery, although a rocket scientist would be an asset
The biggest expense is on initial deployment –don’t stop short
Train to maintain – support staff should maintain electronic based applications
TEST TEST TEST
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Trading Partners
Develop Business Partnerships
Share common goals – Profit
Define the relationship – contracts & agreements
Work together to improve business communications
Co-develop inter company standards for electronic information exchange
Share Ideas
Work together!
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Summary
Utilize EBFM to Enhance your Electronic
Transaction Processing Relationships
Focus on Global Business Partner Relationships
Feedback is vital to success – Train to maintain
Charter involves the whole community –
partnerships
Fulfill the Future, Build from Today
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Thank You
For more information on the EBFM electronic business process model, please visit our web
site:
http://www.msc-inc.net
Thanks!
Management Systems Consulting, Inc.800-856-3193