streamline your supply chain communications with portal and dashboard visibility we bring order to...
TRANSCRIPT
Streamline your supply chain communications with portal and dashboard visibility
We bring order to your orders.
Date: December 6, 2006
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Where Losses Occur
• 20% of all orders across all industries are in error*– 26% for electronics manufacturers*
– 62% for CPG/retail suppliers**
– 43% result in deductions or overpayments**
• Suppliers attribute 6% of selling, general, and administrative expenses to resolving invoicing issues**– Deductions account for nearly 10% of invoiced sales**
• Lost sales represent 3.5% of annual revenues due to stock outs***
• Cost to resolve item data and invoice errors ranges from $40-$80***
* AMR 2006**GMA – 2004 ***GS1 2006
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It Used To Be Simple
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What Does That Mean To You?
Leverage integrated system-i solutions that standardize document formats and synchronize product data for streamlined information flow across the order-to-payment lifecycle.
CollectBillShipOrder
Purchase Order PaymentAdvanced Shipping Notice
Invoice
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Supply Chain Spending Priorities 2006-2008
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Dashboard Visibility and Integration
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Assembling The Right Solution Set
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Optimizing Supply Chain Communications
Business Analytics- Historical reporting- Deep transaction reporting- Online optimization tools- Rich data export capabilities
Process Automation-Not just for the traditional supply chain
- Internal operations support- Supporting the “Final Customer”
- Rule-based execution
Business Activity Monitoring- Reconciliation tools- Transaction lifecycle visibility and alerts- Real-time interactive alerts- Interactive reporting
Trading Community Management- Partner management- Connectivity- Content translation
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Visibility: Driving Results
• Synchronizing data
– Item baselines for RFID benefit
– Images for aiding in identification when dispensed
• Consolidating connectivity
– Increased control
– Consistent monitoring
• Achieving certificate-based authentication
– Internet-driven
– Standards-based
• Event management and BAM
– Exception-based action
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Trading Community Management: Visibility
• Compliance Guidelines Well Known
• Real-Time Transaction Visibility
– Notifications of Production Errors
– Proactive Error Management
• Understand the Full Transaction Lifecycle
– A document is not the transaction
– Get ahead of transaction errors
• Actively Monitor Production Activities
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Automating and Extending Processes
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Understanding Business Activity Monitoring
One alternative to expanding the mesh is to use value-added networks (VANs). Many enterprises already use VANs to exchange transaction information. VANs offer a common format of exchange with assured security and message integrity. BAM can be deployed within the VAN, analyzing message flow and alerting its members when significant events occur.
- Bill Gassman, Gartner
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Events: Impacting Business
• Translator Errors– Delaying Payments– Impacting Fulfillment– Inability to take advantage of Payment Discount Terms
• Communication Errors– Missing Acknowledgements
• Manual Intervention
– Delayed ASN’s• Chargebacks• Supplier Rating Impact
• Content Errors– Back Office Integration Failures– Invoice Errors
• Payment Delays
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BAM: Your Rules, Your Way
• Define Your Events– Define the what and when according to your business needs
• Internal Rules
• Partner Rules
– Multiple warning and violation conditions for each trading partner’s unique requirements
• Leverage Notifications– Define who gets notified, both internally and externally
• Utilize Dashboards
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Proactive Exception Management
• Business Activity Monitoring
– Leverage exceptions to get ahead of the transaction
• Proactively monitor the order fulfillment process
• Reduce Payment Cycles
• Gain confidence that business critical events will occur on schedule
– Fulfillment of Items
– The Truck will be Accepted at the Dock
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Analytics and Optimization
• Harvest production metrics from existing data flow.
– Make Real-Time Decisions Based on Facts
• Leverage Rule and Violation Data to identify Vendor compliance issues
– Prioritize Issues for Resolution
• Identify Opportunities for Continuous Improvement.
– Ability to validate the ROI of an initiative
• Increase the velocity of your supply chain
– Enable more participants
– Automate more processes
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Strategic payoff: Execution Efficiency
• Identify problems before impact your business: visibility preempts execution breakdowns via early warning alerts
• Shrink the number of exceptions, out of stocks, chargebacks, negative supplier ratings
• Single version of the truth: visibility of the complete picture
• Simplify and automate exception handling and resolution
• Improve the reliability, adaptability and timeliness of transaction and document flow across your trading network
Deep visibility = Execution excellence
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Visible Results: Demonstrable ROI
• A Community Analysis– Over 4000 Partners
– 39,000+ Documents per month
– Supplier Scorecards and Dashboard
Results: 60 Days Later
187 Errors Identified
109 Compliance Violations
Problem: 30 Day view
1,002 Errors were identified
524 Compliance Violations
$16,600 Savings in Error Resolution Costs
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Efficiency Adds Value• Lower Costs
– Increase Productivity• Focus on Exceptions only
– Reduce Charge Backs and Revenue Impact Events
• Improve Customer Service
– Reduce Time to Resolution
• Increased Production Control
• Optimize the Supply Chain
– Use and Analyze Historical Events
– Prioritize Improvement Initiatives based on Facts
Streamline your supply chain communications with portal and dashboard visibility
We bring order to your orders.
Date: December 6, 2006