EDI: Workhorse of the Value Chain A Closer Look at B2B ... · A Closer Look at B2B Connectivity...

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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

Transcript of EDI: Workhorse of the Value Chain A Closer Look at B2B ... · A Closer Look at B2B Connectivity...

Page 1: EDI: Workhorse of the Value Chain A Closer Look at B2B ... · A Closer Look at B2B Connectivity Benchmarks in the Extended Supply Chain Conducted by Supply Chain Insights Key challenges

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

Page 2: EDI: Workhorse of the Value Chain A Closer Look at B2B ... · A Closer Look at B2B Connectivity Benchmarks in the Extended Supply Chain Conducted by Supply Chain Insights Key challenges

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

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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

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EDI: Workhorse of

the Value Chain

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Where are You?

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Current State

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In this webinar, we will help companies

benchmark their current state on B2B

connectivity.

Our Goal

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Agenda

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Study Overview

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Supply Chain Insights LLC Copyright © 2013, p. 10

The Majority of Respondents Work at

Manufacturers and Average Revenue is $4 Billion

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Supply Chain Insights LLC Copyright © 2013, p. 11

Over Half of Respondents Work

in a Discrete Industry

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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

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Four in Five Report Having a

Formal Supply Chain Organisation

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Respondents Identify an Average of

6 Functions that Report through the Supply Chain

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Agenda

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Definitions

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All Respondents Have EDI/XML and are

Somewhat Familiar with their B2B Solutions

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Most Respondents are Familiar with the Use of

EDI/XML for Order-to-Cash and Procure-to-Pay

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Agenda

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For Both Sales and Purchase Orders,

Over Half of Orders are Exchanged via EDI/XML

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On Average, EDI/XML Sales Orders

are Faster with No Manual Intervention

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For Both Sales and Purchase Orders,

Over 1/3 Report Tracking Internal Costs of Orders

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Awareness of Internal Order Costs

is Low for Both Order Types

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The Top Challenge for Orders

Not Processed via EDI/XML Is Added Time

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About Half Report the Orders Change at Least

Once; About 60% Process Changes via EDI/XML

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The Top Challenge for Order Changes Not Using

EDI/XML Is Having More Imperfect Orders

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EDI/XML Benefits Accuracy Most

for Both Sales and Purchase Orders

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Business Partner Relationships is Top Supply

Chain Element to Improve with EDI/XML

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ASNs and Purchase Order Acknowledgements

are Most Important Elements of EDI/XML

for Improving Supply Chain Performance

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Non-Discrete Industries and Non-IT Roles

are More Likely to Consider

Purchase Order Acknowledgements to be Important

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Customer Order Captures and ASNs are Top

Performing Elements of EDI/XML

for Improving Supply Chain Performance

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Greatest Gaps in Performance:

ASNs and Purchase Order Acknowledgements

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Only 6% Report Offering a Discount to

Customers for Use of EDI/XML

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Agenda

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82% of Respondents are at Least Slightly

Familiar with Company’s Distribution Centre

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2/3 Report Receiving Shipments without

Advanced Shipment Notices or Dispatch Advices

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Top Challenges When Don’t Have ASNs

are Longer Receiving Times and

Inability to Plan Labor Schedules

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Without ASN, Biggest Impact to Supply Chain is

Need to Expedite Shipments More Frequently

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On Average, Shipments without ASNs

Cost $78 per Order Extra

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Nearly Half of Inbound Shipments are not

Labeled with Barcodes or RFID Tags

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On Average, Shipments without Barcodes or

RFID Tags Cost $57 per Order Extra

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Agenda

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• 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

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Questions?

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Where Do You Find Lora?

Contact Information:

[email protected]

Blog: www.supplychainshaman.com

(4000 pageviews/month)

Twitter: lcecere 4640 followers.

LinkedIn: linkedin.com/pub/lora-

cecere/0/196/573 (5650 in the network)

Page 46: EDI: Workhorse of the Value Chain A Closer Look at B2B ... · A Closer Look at B2B Connectivity Benchmarks in the Extended Supply Chain Conducted by Supply Chain Insights Key challenges

Slide 46 | © GXS, Inc.

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