B2B Challenges Across the Global Steel Industry

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This presentation provides an overview of the B2B challenges facing companies operating across the global steel industry. Updated May 2014

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  • Over the past few years GXS has undertaken a number of research studies to help validate the return on investment for deploying a Managed Services based B2B environment. One of our latest report from the Supply Chain Management Forum at Stanford University, released earlier this year, highlighted that 96% of respondents said that Managed Services added significant value to their overall B2B integration programs. - 68% agreed that Managed Services helped improve the efficiency of on-boarding new customers- 59% agreed that Managed Services helped enable a reduction in B2B integration costs- 74% agreed that replacing capital expenditure with a monthly fee was valuable to their business- 59% agreed that Managed Services helped to better meet/respond to change in customer requirements
  • B2B Challenges Across the Global Steel Industry

    1. 1. Improving B2B Processes Across the Steel Industry
    2. 2. OpenText Information Exchange OpenText Confidential. ©2014 All Rights Reserved. 2
    3. 3. OpenText Confidential. ©2014 All Rights Reserved. 3 Today’s Steel Industry  Continued M&A activity, especially in China where the industry is still very fragmented  Emergence of global rather than regional steel producers  Fluctuations in raw materials costs and the downturned economy is leading to a stronger need to reduce operational costs
    4. 4. OpenText Confidential. ©2014 All Rights Reserved. 4 Today’s Steel Industry  Increased awareness of environmental issues is leading to the development of more efficient steel plants  Adoption of B2B technologies has been slower than in other industries  The use of e-market places has had mixed success across European and North American steel companies
    5. 5. OpenText™ Trading Grid™ Provides a Single Integration Point Into the Enterprise OpenText Confidential. ©2014 All Rights Reserved. 5
    6. 6. OpenText™ Managed Services OpenText Confidential. ©2014 All Rights Reserved. 6
    7. 7. Research Findings Validate ROI 3rd Party Validation From Leading Institutions  68% Said that Managed Services helped improve the efficiency of on-boarding new customers OpenText Confidential. ©2014 All Rights Reserved. 7  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
    8. 8. Benefits of Cloud Based B2B Integration OpenText Confidential. ©2014 All Rights Reserved. 8 Offers Scalability & Flexibility Simplifies Connectivity Provides End-to- End Visibility Improves Collaboration Simplifies Integration Increases Security
    9. 9. How OpenText Helps the Steel Industry  Consolidation of B2B Infrastructures – M&A activity OpenText Confidential. ©2014 All Rights Reserved. 9 across the industry has led to a requirement for B2B network consolidation  Ageing Workforce Across the Steel Industry – B2B resourcing issues are starting to occur due to the fact that many steel industry workers are nearing retirement  Improve Support for ERP Projects – Consolidation of ERP instances and upgrade to new modules is driving new ERP/B2B integration projects
    10. 10. How OpenText Helps the Steel Industry OpenText Confidential. ©2014 All Rights Reserved. 10  SME Enablement – B2B adoption, especially across small to medium sized steel companies is relatively low within the steel industry  Improved Visibility of Steel Shipments – improve visibility into steel shipments and stock levels held at steel storage and service centres  Industry Trend to Adopt Green Business Processes – Automate the exchange of paper based invoices to help green supply chains and speed up payment to suppliers
    11. 11. European Steel Manufacturer Customer Case Study – OpenText™ Managed Services  Managed Services was deployed to allow this company to switch off their in-house, mainframe based EDI system  The solution involved the creation of 100 core maps, 600 clone maps and the on-boarding of 400 trading partners with 100 of these connected via OFTP OpenText Confidential. ©2014 All Rights Reserved. 11 Business Issues  After numerous acquisitions over the past few years, needed to consolidate a number of B2B platforms on to a single B2B platform  Wanted to provide better connectivity to trading partners all around the world, especially in emerging markets such as China Solution Deployed Business Benefits Obtained  This company realised significant benefits by switching off their legacy EDI platform and moving to a fully managed environment  They were able to offer higher customer satisfaction levels through improved global connectivity to their key customers Company Overview This company is the largest steel producer in the world. This company operates in more than 60 countries and has 245,000 employees. In 2012 they had global revenues of nearly $84.2billion. They produced nearly 10% of the world’s crude steel output and supply sheet steel to many of the world’s automotive OEMs
    12. 12. OpenText Confidential. ©2014 All Rights Reserved. 12 Conclusions The global steel industry is continuing to restructure and increased adoption of B2B technologies would allow steel companies to:  Consolidate legacy B2B infrastructures and automate manual, paper based processes  Provide true end to end visibility of steel shipments anywhere in the world  Ensure that all trading partners are able to interact with a B2B platform by way of easy to use and quick to deploy B2B solutions
    13. 13. Mark Morley | mmorley@opentext.com Copyright © OpenText Corporation. All rights reserved. twitter.com/opentext facebook.com/opentext linkedin.com/company/opentext W www.opentext.com

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