How Cloud B2B Integration Enables - GXS Inc. · How Cloud B2B Integration Enables Michelin’s International Operations Mark Morley, Industry Marketing Director, GXS ... Manufacturing

How Cloud B2B Integration Enables

Michelin’s International Operations

Mark Morley, Industry Marketing Director,

GXS

Jean-Luc Faye, IS Functional Domain Manager,

Michelin

Slide 2 | © GXS, Inc.

Introduction to Today’s Presenters

Jean-Luc Faye IS Functional Domain Manager

Member of Michelin’s worldwide EDI service centre

and is responsible for the delivery of EDI services across Michelin’s Global operations.

Mark Morley Industry Marketing Director

Heads up GXS’ go to market strategy for the manufacturing

sectors. Extensive experience of working with global companies

looking to expand their B2B platform into different markets.


Agenda

• Introductions

• Today’s Manufacturing Industry

• How Cloud B2B Integration Enables


• How GXS Helps Manage International

Expansion

• Conclusions


Today’s Manufacturing Industry


Manufacturing 2.0, Rebooting Today’s Global Supply Chains…

Global recession, wage strikes, natural disasters and changing

consumer demand are leading to manufacturers having to

restructure their global supply chains



What is Going on in Today’s Manufacturing

Supply Chain?

Sales

Manufacturing

Sales

Manufacturing

Back Office

Engineering

R&D

Western Expansion Near-Shoring China Expansion

Back Office

Engineering

R&D

Regional

Marketing &

Finance

Engineering

R&D Sales

Manufacturing

Sales Manufacturing

Global

HQ


Expansion into China

• Wage rises and continued strikes causing some

companies to re-shore manufacturing back home

• Chinese manufacturers looking to reduce costs

by setting up operations in other countries

• Government introducing tax and relocation

incentives to encourage investment in western

China, ie spreading wealth across the country


Expansion into Brazil

• Brazil is currently receiving significant inward

investment from global manufacturers

• Establishing manufacturing hubs as a stepping

stone in to the lucrative North American Market

• Brazilian government introducing various import

taxes to encourage more locally sourced content

• Chinese companies, particularly automotive,

regard Brazil as a key growth market


Expansion into India

• Key global manufacturing hub, particularly for

labour intensive processes such as machining

• Greater consumer wealth leading to increased

domestic sales of manufactured goods

• Land locked to the North by Himalayas means all

goods have to be imported/exported by sea

• Extensive use of manual based business

processes and limited use if EDI


General Emerging Market B2B Trends

• Hesitation to move towards a completely

outsourced environment, prefer hybrid approach

• Emerging markets ‘keen to learn’ about B2B

standards used in more developed markets

• Extensive use of home grown XML standards,

now interested in deploying EDIFACT/ANSI

• Trading partner on-boarding is a key driver for

using B2B Managed Services


Infrastructure Related Issues

• Utilities, particularly power supply networks

suffer regular outages

• Telephone communications and networking

infrastructure are relatively poor and slow

• New 3G/4G mobile networks are being setup as

they quicker than building fixed lines networks

• Road and rail networks are generally poor quality

and offer unreliable service


How Cloud B2B Integration Enables


Michelin & GXS Webinar – How Cloud B2B Integration Enables Michelin’s International Operations

MICHELIN

A better way

forward

Source: Annual and sustainable development report

13


EVERYWHERE AROUND THE WORLD

WE EQUIP EVERYTHING ON WHEELS, TO SERVE EVERY MOBILITY NEED

184m TIRES PRODUCED

69 PRODUCTION FACILITIES

IN 18 COUNTRIES

170 MARKETING OPERATIONS IN

MORE THAN 170 COUNTRIES

14.8% SHARE OF THE GLOBAL

TIRE MARKET BY VALUE Tire Business 2011 Global Tire Company Rankings

No.1 IN THE WORLD IN

HIGHPERFORMANCE

TIRES FOR CARS

No.1 IN THE WORLD IN RADIAL TIRES

FOR TRUCKS, EARTHMOVERS,

AIRCRAFTS

No.1 IN EUROPE IN TIRES FOR

FARM MACHINERY,

MOTORCYCLES

14



3.300 PRODUCT AND SERVICE

DEALERSHIPS

IN 27 COUNTRIES

10m MAPS AND GUIDES IN

15 LANGUAGES PUBLISHED

IN 2011

No.1 IN SERVICE CONTRACTS

FOR TRUCKS, EARTHMOVERS

AND AIRCRAFT FLEETS

No.1 IN RETREADING

950m ITINERARIES CALCULATED

BY VIAMICHELIN

ACTING LOCALLY

WE FACILITATE MOBILITY FOR EVERYONE, EVERYWHERE

AND IN EVERY WAY

15



AN ENGAGED

ENTERPRISE, WE INNOVATE TO FOSTER SAFE, CLEAN, CONNECTED MOBILITY

No.1 IN THE WORLD

IN FUEL-EFFICIENT TIRES

38m TONNES OF CO2

NOT EMITTED

SINCE 1992

2011/2020 OFFICIAL PARTNER OF THE

UNITED NATIONS’ DECADE OF

ACTION FOR ROAD SAFETY

AND THE ROAD SAFETY

CAMPAIGN ORGANIZED BY THE

FÉDÉRATION INTERNATIONALE

DE L’AUTOMOBILE (FIA) 15bn LITERS OF FUEL SAVED

SINCE 1992

11TH MICHELIN CHALLENGE

BIBENDUM

6,000 PARTICIPANTS,

10,000 VISITORS

16



• TC : Tourisme camionnette • PL : Poids lourd • SP : Pneus de spécialités

MICHELIN ESTABLISHED Close to its Global Customers

69 115 000 employees (108 300 Full-time

equivalent employees)

production facilities

in 18 countries


17

Western Europe

32 plants 10 for passenger car and light truck tires

12 for truck tires

7 for specialty tires

6 for components and

semi-finished products

Eastern Europe

8 plants 5 for passenger car and light truck

tires

3 for truck tires


1 for components and semi-finished

products

Asia (without India)

7 plants 4 for passenger car

and light truck tires plus 1

under construction

3 for truck tires plus

1 under construction


2 for components

and semi-finished products

Africa, India

and the Middle East

1 plant 1 for truck tires plus

1 under construction

South America


and light truck tires plus 1

under construction

3 for truck tires


North America


and light truck tires

4 for truck tires


2 for components and

semi-finished products


2011-2015 : A NEW PHASE OF DYNAMIC GROWTH

TO SUCCEED IN THIS NEW PHASE OF ASSERTIVE GROWTH AND MEET ITS OBJECTIVES,

MICHELIN CAN CAPITALISE ON SUCH SOLID COMPETITIVE ADVANTAGES

AS ITS TECHNOLOGICAL LEADERSHIP, SUPERIOR PRODUCTS AND SERVICES,

DEMONSTRATED BRAND APPEAL, OPERATIONAL EFFICIENCY AND ROBUST BALANCE SHEET.

18



PRIORITY GOALS

INNOVATE TO MEET CUSTOMER NEEDS

MORE EFFECTIVELY

ENHANCE COMPETITIVENESS

DRIVE STRONG, DIVERSIFIED GROWTH

ENSURE RESPONSIBLE GROWTH

AN ASSERTIVE STRATEGY BASED ON…

19



AN ASSERTIVE STRATEGY BASED ON…

GROWTH DRIVERS

A GLOBAL R&D

THE MICHELIN BRAND AND

THE BRAND PORTFOLIO

THE RIGHT TIRE FOR ANYTHING

ON WHEELS

EMPLOYEE PROFESSIONALISM

AND COMMITMENT

20



+25%

Unit sales growth,

2011-2015

MORE THAN

10

days of training per year

for everyone (on average)

€2bn

Annual capital

expenditure

33%

of women among

new hires (excluding

production operators)

€2.5bn

Operating income

in 2015 Before non recurring items

-45%

Reduction in the environmental footprint

as measured by the Michelin sites

Environmental Footprint (by 2016 compared with 2005)

30%

Dividend payout rate

of around 30% of

consolidated net income Before exceptional items

MAIN OBJECTIVES FOR 2015

21



-33%

Lost-time incidents

115,000 Employees

€20.7bn Net sales

14,036 New hires

Up 6.7% Up 15.8%

In volume In value

7.2 million Hours of employee training

€1.945bn Operating income

0 In Group

plants 22%

Net debt-to-equity

ratio

€1.7bn Capital expenditure

Before non recurring items

26

Michelin sites Environmental

Footprint reduced by

KEY FIGURES


22


B2B Integration Platform in 2011

(Europe)

23


Target Architecture for the Group

Bank Connectivity

Connectivity to

everyone else, eg

customers, suppliers,

raw material providers

24


Alignment with Michelin’s IS Strategy

• Use of standard solutions versus

customised packages

• Increased use of SaaS solutions and

integrate in a secure and efficient way

with our backend information systems

• Deploy faster everywhere with minimal

disruption to the business

25


Benefits from working with GXS

• Future proof and modern B2B Platform

• Scalable and flexible platform providing

a broad range of options in terms of

global connectivity and formats

• Global e-Invoicing solution to meet

local tax and compliance regulation

changes

• Multi-lingual Support and Trading

Partner on-boarding

26


Future Plans

• Complete European migration project

• Initiate migration of North America, Asia and

South America regions to our Managed Services

environment

• Offer high end B2B integration services to our

customers and suppliers in conjunction with the

global Up & Down stream supply chain initiative

roll-out

• Build a stronger partnership to embrace the B2B

capabilities that Michelin needs to succeed in a

challenging global economy

27


How GXS Helps Manage

International Expansion


Supporting Global Manufacturers

GXS mediates between any document and communication standards

100% of

Automotive

Companies in the

Fortune 500

84% of

Top 100 Global

Automotive

Suppliers

78% of

High Tech

Companies in

Fortune 500

80% of

Top 10 Mobile

Device

Manufacturers

http://www.oagi.org/dnn/oagi/Default.aspx


Improve Visibility of

Global Shipments

Provide Global

Interoperability

How GXS Addresses the B2B Challenges Faced by Manufacturers

Increase Supply

Chain Resilience

Consolidation and

Modernisation of B2B

Integration to Enterprise

Systems - ERP

Support Expansion

into New Markets


B2B Knowledge/Skills

Dedicated B2B Resources

Automating Manual Processes

Web Forms, Microsoft Excel

Problem Resolution

24/7 Multilingual Support

Local Standards Support

Any to Any B2B Mediation


Typical B2B Challenges How GXS Addresses This

How GXS Helps International Expansion Projects


GXS Managed Services A Better Approach for Managing International Expansion

GXS Managed Services Environment


Research Findings Validate ROI 3rd Party Validation From Leading Institutions

• 68% Said that Managed Services helped improve

the efficiency of on-boarding new customers

• 59% Said that Managed Services helped enable a

reduction in B2B integration costs

• 74% Said that replacing capital expenditure with

a monthly fee was valuable to their business

• 59% Said that Managed Services helped to

better meet/respond to change in customer

requirements

Managed Services

Trends Study by

Stanford University

96% Reported that

Managed Services Added

Significant Value to their

Overall B2B Integration

Programs

B2B Managed Services Value

& Trends Study conducted by

Stanford University – Global

Supply Chain Management

Forum


GXS B2B Community Management Automating Both Your Data Network and People Network


Increasing Pressure to Improve the People Aspect of Community Management

• No single source of supplier information

• Minimal automation of supplier setup &

registration

• Continuing need to onboard suppliers faster

Is an enterprise

community

management tool

that delivers people

and process

solutions across

GXS Trading Grid®

• Reduce supplier onboard and management

costs

• Monitor supply chain risk & performance

• Legal & Regulatory compliance

Problems:

Solution:


Full Spectrum of B2B Enabling Tools Integration Solution Matching Requirements of Each Supplier

Small Mid-Size Large

Very Small Small National Global

Size of Supplier

Medium

Complexity of B2B Enabler

* Future Release

Microsoft

Office

Web

Forms

Integration

Broker

Enterprise

Resource

Planning

Desktop

Translator

SMB

Accounting

Package

Mobile

Device*


Conclusions

• Cloud based B2B integration offers

many benefits to Michelin’s global

operations:

– Ability to scale their B2B infrastructure

according to the needs of the business

– Improves remote on-boarding and on-going

collaboration with global trading partners

– Removes complexity from their supply chain

– Allows their business to respond more

quickly to changing customer requirements

or market demands


Thank You

Jean-Luc Faye IS Functional Domain Manager

[email protected]

www.twitter.com/LatyrF

fr.linkedin.com/in/LatyrF

+33 473 302795

[email protected]

gxsblogs.com/morleym

www.twitter.com/markmorley

uk.linkedin.com/in/markmorley

+44 1932 776040

Mark Morley Industry Marketing Director

mailto:[email protected]



https://twitter.com/LatyrF





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http://blogs.gxs.com/morleym

http://www.twitter.com/markmorley

http://uk.linkedin.com/in/markmorley

http://uk.linkedin.com/in/markmorley

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Additional Resources

B2B Managed Services Website –

www.b2boutsourcing.co.uk

New Stanford University Reports on B2B Managed Services –

www.gxs.co.uk/stanford

New International Expansion Report –

www.gxs.co.uk/fieldworks


Thank You For Your Participation

Phones

US: 1 800 334 2255, option 3

EMEA: +44 (0) 1932 776047

ASPAC: +852 2884 6088

Brazil: +55 11 2123 2300

GXS web sites

US: www.gxs.com

EMEA: www.gxs.eu

ASPAC: www.gxs.asia.com

Brazil: www.gxs.com.br

http://www.gxs.com/

http://www.gxs.eu/

http://www.gxs.asia.com/

http://www.gxs.com.br/

Documents

How Cloud B2B Integration Enables - GXS Inc. · How Cloud B2B Integration Enables Michelin’s International Operations Mark Morley, Industry Marketing Director, GXS ... Manufacturing