edi: workhorse of the extended supply chain
DESCRIPTION
Presentation given today with GXS on the state of B2B Connectivity.TRANSCRIPT
EDI: Workhorse of the Value Chain
Supply Chain Insights LLC Copyright © 2013, p. 2
Where are You?
Supply Chain Insights LLC Copyright © 2013, p. 3
Current State
Supply Chain Insights LLC Copyright © 2013, p. 4
In this webinar, we will help companies benchmark their current state on B2B
connectivity.
Our Goal
Supply Chain Insights LLC Copyright © 2013, p. 5
Agenda
Study Overview
B2B Solutions
EDI / XML
Distribution Center / Warehouse
Summary
Supply Chain Insights LLC Copyright © 2013, p. 6
Study Overview
Supply Chain Insights LLC Copyright © 2013, p. 7
The Majority of Respondents Work at Manufacturers and Average Revenue is $4 Billion
Supply Chain Insights LLC Copyright © 2013, p. 8
Over Half of Respondents Work in a Discrete Industry
Supply Chain Insights LLC Copyright © 2013, p. 9
Half of Respondents Work in IT, Nearly Half are
Managers and Over ¾ Work in the US
Supply Chain Insights LLC Copyright © 2013, p. 10
Four in Five Report Having a Formal Supply Chain Organization
Supply Chain Insights LLC Copyright © 2013, p. 11
Respondents Identify an Average of 6 Functions that Report through the Supply Chain
Supply Chain Insights LLC Copyright © 2013, p. 12
Agenda
Study Overview
B2B Solutions
EDI / XML
Distribution Center / Warehouse
Summary
Supply Chain Insights LLC Copyright © 2013, p. 13
Definitions
Supply Chain Insights LLC Copyright © 2013, p. 14
All Respondents Have EDI/XML and are Somewhat Familiar with their B2B Solutions
Supply Chain Insights LLC Copyright © 2013, p. 15
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. 16
Agenda
Study Overview
B2B Solutions
EDI / XML
Distribution Center / Warehouse
Summary
Supply Chain Insights LLC Copyright © 2013, p. 17
For Both Sales and Purchase Orders, Over Half of Orders are Exchanged via EDI/XML
Supply Chain Insights LLC Copyright © 2013, p. 18
On Average, EDI/XML Sales Orders are Faster with No Manual Intervention
Supply Chain Insights LLC Copyright © 2013, p. 19
For Both Sales and Purchase Orders, Over 1/3 Report Tracking Internal Costs of Orders
Supply Chain Insights LLC Copyright © 2013, p. 20
Awareness of Internal Order Costs is Low for Both Order Types
Supply Chain Insights LLC Copyright © 2013, p. 21
The Top Challenge for Orders Not Processed via EDI/XML Is Added Time
Supply Chain Insights LLC Copyright © 2013, p. 22
About Half Report the Orders Change at Least Once; About 60% Process Changes via EDI/XML
Supply Chain Insights LLC Copyright © 2013, p. 23
The Top Challenge for Order Changes Not Using EDI/XML Is Having More Imperfect Orders
Supply Chain Insights LLC Copyright © 2013, p. 24
EDI/XML Benefits Accuracy Most for Both Sales and Purchase Orders
Supply Chain Insights LLC Copyright © 2013, p. 25
Business Partner Relationships is Top Supply Chain Element to Improve with EDI/XML
Supply Chain Insights LLC Copyright © 2013, p. 26
ASNs and Purchase Order Acknowledgements are Most Important Elements of EDI/XML for Improving Supply Chain Performance
Supply Chain Insights LLC Copyright © 2013, p. 27
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. 28
Customer Order Captures and ASNs are Top Performing Elements of EDI/XML
for Improving Supply Chain Performance
Supply Chain Insights LLC Copyright © 2013, p. 29
Greatest Gaps in Performance:ASNs and Purchase Order Acknowledgements
Supply Chain Insights LLC Copyright © 2013, p. 30
Only 6% Report Offering a Discount to Customers for Use of EDI/XML
Supply Chain Insights LLC Copyright © 2013, p. 31
Agenda
Study Overview
B2B Solutions
EDI / XML
Distribution Center / Warehouse
Summary
Supply Chain Insights LLC Copyright © 2013, p. 32
82% of Respondents are at Least Slightly Familiar with Company’s Distribution Center
Supply Chain Insights LLC Copyright © 2013, p. 33
2/3 Report Receiving Shipments without Advanced Shipment Notices or Dispatch Advices
Supply Chain Insights LLC Copyright © 2013, p. 34
Top Challenges When Don’t Have ASNs are Longer Receiving Times and Inability to Plan Labor Schedules
Supply Chain Insights LLC Copyright © 2013, p. 35
Without ASN, Biggest Impact to Supply Chain is Need to Expedite Shipments More Frequently
Supply Chain Insights LLC Copyright © 2013, p. 36
On Average, Shipments without ASNs Cost $78 per Order Extra
Supply Chain Insights LLC Copyright © 2013, p. 37
Nearly Half of Inbound Shipments are not Labeled with Barcodes or RFID Tags
Supply Chain Insights LLC Copyright © 2013, p. 38
On Average, Shipments without Barcodes or RFID Tags Cost $57 per Order Extra
Supply Chain Insights LLC Copyright © 2013, p. 39
Agenda
Study Overview
B2B Solutions
EDI / XML
Distribution Center / Warehouse
Summary
Supply Chain Insights LLC Copyright © 2013, p. 40
• 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. 41
Questions?
Supply Chain Insights LLC Copyright © 2013, p. 42
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.
Supply Chain Insights LLC Copyright © 2013, p. 43
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)