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

• Web: www.gxs.eu

• Email: info@gxs.eu

• Phone: +44 (0)1932 776047

Thank You for Your Participation! For More Information…

US

• Web: www.gxs.com

• Email: info@gxs.com

• Phone: 1-800-334-5669 (option 3)

Visit our Blog - Putting B2B to Work: www.gxsblogs.com/rochellecohen