Top 5 B2B Integration Issues for Manufacturers to Plan for ... · PDF fileTop 5 B2B Integration Issues for Manufacturers to Plan for in 2012 . ... JLR had 18Tb of emails ... • Companies

Mark Morley, Industry Marketing Director

Top 5 B2B Integration Issues for Manufacturers to Plan for in 2012

Slide 2 © Copyright 2011 GXS

Agenda

• Today’s Manufacturing Industry

• Why Should Manufacturers Move Their

B2B Environments to the Cloud?

• Top 5 B2B Integration Issues to Plan for

in 2012

• Customer Examples

• Conclusions


Today’s Manufacturing Industry


General Manufacturing Industry Trends

• Continued globalization of

manufacturing hubs

• Increased pressure to reduce costs

and streamline supply chains

• Co-location of suppliers next to major

manufacturing hubs

• Increasing demand for outsourcing

non-core business processes

• Continued requirement to improve

inventory control and visibility


General Manufacturing Industry Trends

• Increased demand for spare parts as

customers are keeping equipment in

service for longer

• Convergence of manufacturing sub-

sectors is changing supply chain

dynamics

• Increasing use of light weight materials

will impact business of the traditional

raw material providers

• Requirement to develop green and

sustainable supply chains


Today’s Automotive Industry

• Demand for more fuel efficient,

greener vehicles is leading to the

development of more global small car

platforms

• Establishing car plants in new

emerging markets, e.g., Vietnam,

Indonesia, South Africa, Thailand,

Argentina (VISTA countries)

• Continued co-location of suppliers

next to major automotive plants to

reduce logistics costs



• Increasing consumer demand for

connecting mobile devices to in-car

entertainment systems

• Introduction of electric vehicles is

changing automotive and high tech

supply chain dynamics

• Increasing use of light weight materials

such as carbon fibre will impact

business of the traditional raw material

providers



• Continued globalization of vehicle

plants requires improved end-to-end

visibility of parts and finished vehicle

shipments

• Improved collaboration required

across automotive trading partners in

both developed and emerging markets

• Continued merger and acquisition

activity will see consolidation of

suppliers across the supply chain


Today’s High Tech Industry

• Cloud computing/storage market is

fuelling demand for high-end servers

• Strong demand for parts /contract

services to support Tablet PC market

• Growing interest in green based

initiatives, e.g., recycling components

/ re-designed packaging

• Consumer demand for integrating

mobile devices to vehicles is driving

convergence of high tech and

automotive supply chains



• Dual component sourcing strategies are

being evaluated to minimize disruptive

effect caused by recent natural disasters

• Increase in wage costs and strikes in

China will lead to more companies

looking for alternative production

locations, e.g., Brazil and India

• The “Reverse Globalization” effect will

shorten logistics networks and

associated supply chains



• Continued requirement to improve

visibility and transparency across

global high tech supply chains

• Move towards more build-to-order

rather than build-to-stock products in

order to reduce inventory levels and

improve supply chain efficiencies

• Increased use of external contractors

and all forms of outsourcing in

general, from IT to contract

manufacturing


Why Should Manufacturers Move Their B2B Environments to the Cloud?


What is the Cloud?

Business

Applications

Application

Infrastructure

Compute &

Storage

“A standardized IT capability (services, software or infrastructure) delivered via Internet technologies in a pay-per-use, self-service way.”


How Can Cloud-Based B2B Environments Help Manufacturing Companies?

Global Accessibility

Scalability

Consistent User Experience

Low Cost

Easy to Maintain

Rapid Deployment

Flexibility

Central Authentication

“By 2015, cloud-based solutions will be growing at a faster rate than on-premises solutions.” Source: PaaS, a Continent Emerging, Gartner January 2011


CIOs Are Embracing Cloud Computing

• Following divestiture from Ford, JLR

had 18Tb of emails to extract from

Ford’s Microsoft Exchange Server

• JLR’s CIO saw this as an opportunity

to do things differently

• Adoption of cloud-based applications

has helped to simplify their ICT/B2B

infrastructure

"The strategy will be one of

simplification, standardisation

and modernisation. Where I can

deem services and technology

as being commodity I will seek

to externalise, outsource or

place them in the cloud."

Jeremy Vincent, CIO JLR

Link to Article

http://www.silicon.com/management/cio-insights/2009/10/26/how-google-apps-helped-jaguar-land-rover-keep-motoring-after-ford-sale-39597173/


How the Cloud Simplifies B2B Complexity


B2B Operations •Automation •Validation •Visibility & Control

Line of Business •Demand & Sales •Shipments •Payments

Web Portal

Bulk Files

XML EDI

IDOC

SWIFT

TIFF PRODUCT

DESIGN

INVENTORY POSIITION

POINT-OF-SALE SHIP NOTICE

& STATUS

INVOICES & FACTORING

PAYMENTS & BANK REPORTING

WARRANTY CLAIMS

CONTRACT MANUFACTURERS

SUPPLIERS

DISTRIBUTORS CUSTOMERS CARRIERS

& 3PLS

FINANCIAL INSTITUTIONS

INSURERS

GXS Trading Grid® Improves Global Information Flows


B2B Operations •Automation •Validation •Visibility & Control

Line of Business • Sourcing & Procurement • Supply Chain Compliance • Corporate Partner Mgmt.

GXS Trading Grid® Improves Human Interaction and Results

Your People

Community Information Management

On-boarding & Self-service Registration

Workflow

Collaborative Dispute & Issue Management

Unified Communications

Compliance, CSR & Risk

Relationship & Performance

Your Enterprise Systems

Introducing GXS RollStream®

CONTRACT MANUFACTURERS

SUPPLIERS

DISTRIBUTORS CUSTOMERS CARRIERS

& 3PLS

INSURERS

FINANCIAL INSTITUTIONS


Top 5 B2B Integration Issues to Plan for in 2012


Industry/Process Complexity

Just-in-Time Kanban SILS

Regional Complexity

NA 10+2 Customs

Mexico E-Invoicing

EMEA E-Invoicing

Technology & Standards Complexity

SAP ERP

Oracle ERP AS2

HTTPS

X.25 Barcode Labelling

Oracle TMS

B2B Requirements Across Today’s Manufacturing Supply Chains Are Complex

RFID

OFTP

RosettaNet

ANSI EDIFACT

SWIFT EBICS

ASNs ERS

VDA

HULFT

ANX ENX


Which B2B Challenges Should Manufacturers Look to Address in 2012?

1. Increasing ROI on ERP Projects

2. Connecting the Supply Chain

3. Improving Visibility of Global Shipments

4. Digitizing Accounts Payable

5. Supporting Expansion into New Markets



• Significant amounts of information

entering an ERP system is sourced from

outside the enterprise

• High availability of B2B systems is

critical to the smooth operation of ERP

environments

• Poor quality external data needs to be

reworked before entering an ERP system

• B2B systems are vulnerable when

resources are diverted towards ERP

projects



GXS provides – Scalable resources to ensure ERP projects

remain on schedule and within budget

– “Firewall” around ERP instances to check

accuracy of inbound data

– Achieve faster ROI from new modules and

transaction types with rapid on-boarding of

trading partners

– High availability infrastructure reduces the

risk of losing B2B transactions from

external trading partners


AMR Research ERP/B2B Study

• 80 percent of respondents plan to move to highly

consolidated ERP environments

• 48 percent of respondents said they had lost B2B

connectivity

• 34 percent of respondents said B2B integration staff were

supporting ERP related projects

• 34 percent of the data feeding ERP systems is generated

externally

• 29 percent of respondents said that they had to prematurely

terminate B2B testing programs relating to external trading

partners

• 79 percent of respondents have exceptions or problems on

more than one percent of inbound B2B transactions


Units of Measure

Transform Carrier Codes

Out of Sequence

Documents

Logistics Providers

Split Orders

Consolidate Invoices

Confirm Required

Fields

Translate Customer

Data

Confirm Valid Data

Customers and Distributors

Conforms to Business

Rules

Check within

Tolerances

Confirm Required

Fields

Confirm Valid Data

Direct & Indirect Material Suppliers

Split by Payment

Types

Aggregate Account Balances

Fina

ncia

l Ins

titut

ions

Link Invoice

to Payment

B2B Helps to Establish an “ERP Firewall” ERP Information Comes from Many Different Sources



• Connect with trading partners anywhere

in the world

• Support ALL document formats and

communications protocols, both legacy

and Internet-based

• Exchange very large files, for example

CADCAM engineering data

• Provide interconnectivity to regional

automotive networks around the world

to support electric car projects



GXS provides – Any to any document and

communications mediation

– Managed File Transfer capabilities to

support exchange of large files

– Highly available, multi-data center

infrastructure including data replication

and failover


GXS OFTP2 Outsourcing Service Enables OFTP2 Trading Without Adding Infrastructure

• Suppliers comply with OFTP2 mandates without adding infrastructure, expense & expertise

– Connect the way you prefer – NO OFTP2 software, hardware, firewalls, special skills, etc. needed!

• GXS does all the OFTP2 work – Exchange of OFTP2 setup information – Testing – Help Desk – Real-Time document exchange

• Optional Translation Services • Often lower cost than implementing direct OFTP2 when considering

the total cost of ownership and risk-avoidance

GXS OFTP2 Outsourcing Service OFTP2 Trading Partner

Internet

Your Company

®


3. Improve Visibility of Global Shipments

• Globalization demands improved

visibility into spare part movements

around the world

• Performance of logistics carriers needs

to be continually assessed

• Excessive paperwork at country

borders and customs agencies leads to

delays in parts shipments

• Customers require improved visibility of

part arrival times and inventory levels in

remote locations


3. Improve Visibility of Global Shipments

GXS provides – Real-time, exception based, visibility of

shipments anywhere in the world

– Connection to a broad network of

transport providers, third party logistics

providers and border control agencies

– Ability to measure performance of third

party logistics carriers across multi-modal

methods of transportation


Providing Support for Aftermarket Service Parts Operations - Track and Trace for Multi-Modal International Shipments

GXS Managed Services

Service Parts Visibility Solution Retailers / Service Centers

Customs / Border Controls 3PL Carriers

Spare Parts Manufacturer

OEM Provides real-time visibility of inventory

levels across the supply

chain

Ability to integrate with

dealer management

systems

Pre-configured connections

to many customs and

border control agencies

Pre-configured connections to 80% of the

world’s freight transportation

carriers



• The manufacturing industry processes

billions of invoices each year

• Invoices are processed according to

various country specific tax and

compliance regulations

• Companies are keen to automate manual

processes to speed up payment to

suppliers

• Many companies are keen to introduce

greener ways of working across their

supply chains



GXS provides – Electronic exchange of invoice-related

documents with suppliers and straight

through processing to accounting

systems

– Compliance with country-specific

requirements relating to tax, digital

signatures, archiving

– Automating the invoicing process helps

to significantly reduce paper-based

transactions across the business


Archiving and Audit

Secure electronic data warehouse for all invoice-related documents

Transaction audit trail Management

information for buyers and suppliers

VAT Compliance

Invoice complies with country-specific tax authorities

Backed by team of analysts and accounting specialists

Digital Signature and Security

Digital signature per country rules

Guarantees identity of sender

Signed digital image or data file

Legal VAT document

Country-Specific e-Invoicing Requirements



• Manufacturing companies need the

ability to on-board suppliers in any

country around the world as quickly as

possible

• Need to provide support for new

generation of emerging markets, e.g.,

Vietnam, Thailand and Middle East

• Connecting to a diverse range of

trading partners with differing levels of

technical capability can be a time

consuming process



GXS enables – Reduced time to on-board trading

partners in any location around the

world

– Multiple ways for trading partners to

connect with your B2B environment

– Global, multi-lingual 24/7 support

– Increased collaboration between

trading partners with new human-

centric B2B capabilities


GXS RollStream® – B2B Community Management

B2B Community Management

Community On-boarding

Community Visibility

Community Performance

Aligning People

Across Global Supply Chain

Networks

Integrating Data &

Transactions Across Global Supply Chain

Networks


Customer Examples


Supporting General Manufacturing Companies

• CNH Global • Caterpillar Inc • GE Industrial

• Yanmar • OTIS Elevators

• Hitachi Power tools

• Indesit • Whirlpool

• Aga/Rangemaster • Electrolux

• Twyford Bathrooms • Hoover

• Siemens Healthcare • GE Medical Systems • Philips Healthcare

• Johnson & Johnson Medical • Tyco Healthcare

Industrial Household Medical/Healthcare


Industrial Equipment Manufacturer Customer Case Study – GXS Managed Services

Company Overview

This company is one of the world’s largest producers of construction and agricultural equipment. Formed from a merger of several large industrial companies, they have 25,000 employees, operating with 160 dealers and 39 manufacturing plants around the world.

Solution Deployed

Business Issues

Business Benefits Obtained

• GXS Managed Services was deployed to help consolidate multiple EDI platforms on to one, seamless B2B platform that could be used globally

• GXS provided full integration to a new Oracle-based Transport Management System and SAP-based ERP environments

• GXS managed the global on-boarding of existing and new suppliers

• Extensive mergers and acquisition had seen the need to consolidate numerous EDI platforms and back-office business systems

• Needed to improve end-to-end visibility and tracking of business transactions and support for multiple languages/document types

• Provided scalable, flexible resource to support this company’s global B2B activities across multiple countries, supporting many standards

• Support for ASNs and e-invoicing helped to improve visibility of transactions and payment to its suppliers around the world


Japanese Engine Manufacturer Customer Case Study – GXS Active Logistics

Company Overview

This company is one of the world’s leading producers of industrial engines for agricultural equipment, marine products, energy systems and construction equipment. From their manufacturing base in Japan they export their products all over the world.

Solution Deployed

Business Issues


• This company deployed GXS Active Logistics to gain real time insights into global logistics operations from Japan to their dealers

• GXS were chosen due to three specific criteria: global reach, extensive access to a network of logistics providers and EDI expertise. GXS was the only vendor to meet all of these criteria

• Needed to improve customer satisfaction levels amongst their network of 26 overseas dealers and end users

• They lacked the ability to track precise delivery of parts, which prevented the company from executing customer supply schedules

• Solution was implemented very quickly due to number of existing pre-configured connections to logistics and shipping providers

• As a result, parts are shipped to dealers in a timely manner, leading to improved customer satisfaction in a relatively short period of time


European Appliance Manufacturer Customer Case Study – GXS Trading Grid Messaging Service

Company Overview

This European based company manufactures over 15 million home appliances each year. The company has 17,000 employees working across 17 production facilities across Europe and China. They also have 24 commercial branches. The company sells products across three main brands.

Solution Deployed

Business Issues


• GXS Trading Grid Messaging Service was deployed to consolidate multiple, “nationally” based, EDI platforms on to one common platform

• The platform is used to send orders, invoices and delivery notes to their retailers, online stores and catalogue companies. It is estimated that the new platform exchanges in excess of 100,000 documents a year

• This company was already a GXS customer but numerous acquisitions had led to a need to consolidate multiple EDI platforms

• Their goal was to try and consolidate all EDI platforms on to a single platform that could be used across their European operations

• Consolidation onto GXS Trading Grid has led to improved performance, efficiency and cost savings for all business transactions

• The new B2B environment offers a flexible platform that will allow this company to on-board new trading partners in regions such as Eastern Europe, in a much shorter time than before


Supporting Automotive Companies

• 95% of the automotive companies in the Fortune 500

• 75% of the Top 20 automotive OEMs

• 81% of the Top 100 global automotive suppliers

• 95% of the Top 20 NA-based automotive suppliers

• 90% of the Top 20 EMEA-based automotive suppliers

• 90% of the Top 20 ASPAC-based automotive suppliers

* Statistics created from Automotive News “Top100 Global Automotive Suppliers,” June 2011

GXS mediates between any standard and connects to the major automotive networks


European Automotive OEM Customer Case Study – GXS Managed Services

Company Overview

This company is one of the world’s leading manufacturers of luxury, sports and off road vehicles. They manufacture their vehicles at multiple sites across the UK and their cars are exported across the world. They are currently evaluating expansion into India.

Solution Deployed

Business Issues


• This company was divested from their parent company in early 2008

• They had a requirement to establish their own B2B infrastructure

• Following divestiture they needed to maintain continuity of operations and ongoing management of their global community of suppliers

• GXS deployed a Managed Services environment to allow this company to outsource the management of its entire B2B environment and supporting services

• GXS managed the on-boarding of over 620 EDI suppliers in North America and Europe and provide mediation between global standards

• Chose GXS for its future proof B2B solutions, global capabilities and many EDI suppliers were already connected to GXS Trading Grid

• Provides a flexible and scalable solution to allow for future growth

• B2B environment can be integrated to an ERP system at a later date


Supporting High Tech Companies

Supporting Global Standards and Industry Associations

• 82% of the high tech companies in the Fortune 500

• Top 5 PC Manufacturers

• Top 5 Enterprise Server Manufacturers

• 7 of Top 10 Mobile Phone Manufacturer

• 7 of Top 10 Semi-Conductor Manufacturers

• 7 of Top 10 Electronics Distributors

• 8 of Top 10 Electronics Manufacturing Service (EMS)

Providers

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


Printer Manufacturer Customer Case Study – GXS Trading Grid® for Excel

Company Overview

This company is one of the world’s leading providers of printing solutions. They operate across all the major markets around the world. They also work very closely with their global logistics partner who provides contract manufacturing support as well as distribution of their printers.

Solution Deployed

Business Issues


• GXS Trading Grid for Excel was deployed to simplify and automate the exchange of EDI related documents with their trading partners

• GXS creates and hosts all their templates online thus ensuring that

all trading partners have access to the latest business templates

• Provided 100% enablement, especially with their trading partners located in ASPAC who have very limited ICT and B2B skills

• Information now flows much more quickly across their enterprise and there was a significant reduction in data entry related errors

• ASNs are delivered as EDI ASNs which in turn provided improved visibility of global shipments

• They have numerous trading partners around the world and they were looking for a way to automate 100% of their supplier processes

• They needed to provide a simple way to exchange business documents electronically with suppliers, logistics partners and retailers


Conclusions


Conclusions

• Manufacturing companies are continuing to look for ways to cut costs in order to become more competitive. Increased adoption of B2B helps to:

– Provide improved integration to manufacturing systems

such as ERP platforms

– Improve internal communications between manufacturing

plants and external communication to global trading

partners

– Provide improved visibility into highly profitable

aftermarket service parts supply chains

– Automation of manual based processes helps to introduce

greener supply chains

– Simplify the on-boarding of trading partners in new

markets


Why GXS Top 10 Differentiators

1

Most customers, brand-name references, services pioneer, migration best practices

2

500 customers, 25% of revenues, services investments, commitment to success

3

Operate in 20 countries, 24x7 support in 15 languages, global DCs, >50% non-US revenue

4

150K pre-connected TPs, cross-industry, 5.9M TP relationships, Community Link, RollStream

5

SAP-certified, Microsoft-recommended, Oracle experience, 30+ hosted adapters, any-to-any

6

20 ways to connect, use any 3rd party gateway, in-sourcing options, financial deal structure

7

20 countries, 500 mappers, 30K maps in production, 100’s client services reps

8

Dedicated PM, BAM/data quality, ITIL, SAS70, $250m HA/DR investment, 97% retention rate

9

Analyst-validated, top segment share, $30M annual R&D, thought-leader initiatives

10

Active Docs, SCM KPIs, project mgt., multi-industry presence

EXPERIENCE

OUTSOURCING FOCUS

GLOBAL REACH

COMMUNITY COLLABORATION

ERP INTEGRATION COMPETENCE

FLEXIBILITY & SPEED

PROVEN SCALE

QUALITY & RELIABILITY

LEADERSHIP & INNOVATION

INDUSTRY PROCESS VISIBILITY


Questions?

Mark Morley Industry Marketing Director

• Email: [email protected]

• Phone: +44 (0)1932 776040


Thank You for Your Participation

For More Information

Phones

US: 1-800-334-5669, option 3

EMEA: +44 (0) 1932 776047

ASPAC: +852 2884 6088

Japan: +81-3-5574-7545

GXS web sites

US: www.gxs.com

EMEA: www.gxs.eu

ASPAC: www.gxs.asia.com

Japan: www.gxs.co.jp

Presenter:

Mark Morley, [email protected]

http://www.gxs.com/

http://www.gxs.eu/

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

http://www.gxs.co.jp/

mailto:[email protected]