supply chain in the cloud kurt cavano ceo, tradecard
TRANSCRIPT
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Supply Chain in the Cloud
Kurt Cavano
CEO, TradeCard
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Defining “Cloud Computing” - Wikipedia
A style of computing in which dynamically scalable and often virtualized resources are provided as a service over the Internet. Users need not have knowledge of, expertise in, or control over the technology infrastructure "in the cloud" that supports them.
The concept incorporates infrastructure as a service (IaaS), platform as a service (PaaS) and software as a service (SaaS) as well as Web 2.0 and other recent (ca. 2007–2009) technology trends that have the common theme of reliance on the Internet for satisfying the computing needs of the users.
Examples include Salesforce.com, Google Apps or Windows Azure which provide common business applications online that are accessed from a web browser, while the software and data are stored on the servers.
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Growing Trend of Interest
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The Bottom Line
– Changes the economics of Computing from being a Capital investment to a Utility• You buy electricity you don’t buy generators
– Changes the way software is developed• Hardware provisioning, deployment, and scaling now part of the development
lifecycle• Not a Purchase Order / Requisition process
– Automates a huge layer of infrastructure tasks • Backup• Disaster Recovery• Systems Management / Monitoring / Internet Security
– The Rule:• If your application needs more capacity and you cannot get it instantly, then it is not
cloud computing. • If there is no programmatic way to provision hardware, no pooled capacity and
even worse a purchase order to get new hardware/software, then it is not cloud computing.
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Why Cloud Computing in the Supply Chain?
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Extensive Challenges to Execute Exist
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Complexity Challenges
Source: AMR
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Business Challenges
Complex global supply networks
Massive amounts of transaction documents & information across multiple parties
Ever-increasing supply chain risk– Delays– Liquidity bottlenecks– Trading partner viability
Vendor compliance
Regulatory compliance– SOX– 10+2– CPSIA
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Obstacles to Supply Chain Goals
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Consider the Risk Involved in All Processes
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A Better Model is Needed That Can:
Connect multiple networks of trading partners
Deliver agility to shift suppliers, regions, logistics, financing
Provide a single version of the truth
Allow true collaboration across multiple layers in the supply chain
Activate parties anywhere in the world
…WITHOUT REQUIRING EXTENSIVE RESOURCES OVERSEAS
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A Cloud Network Approach
With traditional software, adding trading partners and service providers requires– On-site installation and service visits from vendor service teams
– Dedicated server hardware
– Support staff to manage it
– Therefore, larger trading partners and service providers that can afford to pay get this level of attention.
But for every large enterprise that purchases a line-of-business solution, there are dozens of smaller and medium-sized businesses that could benefit from such a solution, but that cannot afford the expense.
A Cloud platform with a built-in trading partner and service provider network can be a competitive edge– Uniquely positioned to service the long tail of the extended supply chain
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New Information Model for the Supply Chain
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Ties Together Networks of Networks
HT Code
Packing List
Customs
Purchase Order
Containers Port of Entry
HT Code Hong Kong
Commercial Invoice
Carton IDLocation Code
Long Beach, CA
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Supply Chain in the Cloud is the Future
Connect all parties without overseas presence, IT headaches and costs
Agility to upgrade modules and technology painlessly to meet new challenges– 10+2
– CPSE
– 24 hr manifest
– RFID
– EDI
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TradeCard: A Global Business Network
Visibility into ALL parties
Rapid communication of changes
Financial services to eliminate credit- & liquidity- related risk
Ability to rapidly respond to shifts in demand
Speed to market support
Vendor & regulatory compliance
Faster time to shipment strategies
Raw Materials Manufacturer
A strategic global business network for supply chain collaboration.
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Collaboration Platform for Brands & Retailers
The global leader in on-demand supply network collaboration
Secure & accurate transactions.
Supply chain visibility.
Automated workflow.
6,000 Members. 60 countries. $10 Billion settled in 2010.
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Sell MoreOperate For Less
• Manage Raw Material Commitments/Purchases
• Leverage financial strengths to reduce costs
• Quickly react to new sourcing trends
• Invoice Discount Programs
• Automated multi-party collaboration
• Process efficiencies via an integrated platform
• Exception management
• Payables Automation
• Impact Free Cash Flow
Enabling the Productivity Loop
Buy For Less
TradeCard’s MultiEnterprise Collaboration Value
Grow Sales
+ =
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Established Network of 6,000+ Members
NIKE
SERVICE PROVIDERS SUPPLIERS BRANDS & RETAILERS
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DC Bypass at Columbia
Fully automated process
Enables floor-ready merchandize to skip DC
Increases packing accuracy
Generates compliant carton labels
Ensures accurate and timely ASN creation
Reduces handling charges and lead times
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Staying Close to the Source at Bauer
Facilitates custom engraving in Asia
Uses one seamless process to ship direct to customer
Automates order processing from online customer order thru factory & carrier
Eliminates storage and handling in North America
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PO Agility at Belk
Adjusting supply to latest demand picture
Provides portal to help suppliers meet change requests
Increases packing accuracy
Ensures compliant carton labels
Enables accurate and timely ASN creation
Fully integrated with LSP
Reduces document errors
Provides visibility to factory activity
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Guess Eliminates Capital Costs & Risks
Obtains transaction transparency with suppliers and financial institutions
Deploys self-funded early payment program to provide suppliers immediate access to cash– Guess obtains discount & strong return
on cash
– Supplier cuts financing costs & knows when cash will be available
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Benefits of a Collaborative Cloud Platform
Streamlined/automated PO and amendment delivery
Multi party collaboration-visibility Standardization of all documents &
processes Improved chargeback processing Significant early payment discounts
due to automated payment approval process
Best data from the source is delivered immediately to all parties
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TradeCard by the Numbers
Growth for 2010 & Forecast for 2011+30%
Platform uptime99.989%
Transactions processed per month$1 Billion
Supported by TradeCard60 countries & 32 languages
Transactions per month30,000
Clients+6000
Total individual users+31,000
By the Numbers
+1,200 Supplier activations in past 12 months
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More Information
Cloud Computing for CFOs article in Financial Executive Magazine, October 2010
Contact:– Kurt Cavano (
– Steve Ford ([email protected])