Bridging The Technology Gap Between The Large Enterprise And Its Middle Market Suppliers

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Bridging The Technology Gap Between The Large Enterprise And Its Middle Market Suppliers

Bridging The Technology Gap Between The Large Enterprise And Its Middle Market Suppliers

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  • 1. Patricia S. Meisner CEO [email_address] March 8, 2005 Managed Services for Electronic Trading for the Middle-Market Bridging the Technology Gap Between the Large Enterprise and Its Middle-Market Suppliers NY/NJ EDI Users’ Group
  • 2. Bridging the Technology Gap Between the Large Enterprise and Its Middle-Market Suppliers
    • Components of Supply Chain Integration (SCI)
    • Span of Basic Technology Platforms
    • Case Study: Unlikely Trading Partners
    • Large Enterprise/Middle-market Priorities for SCI
    • Building the Bridge: Virtual Capabilities for the Middle-Market
    • Conclusions
  • 3. Components of Supply Chain Integration
    • Connectivity
    • Data Transformation
    • Process Management
  • 4. Barriers to Supply Chain Integration for the Middle-Market Supplier Lack of integration to accounting system No counterparts for data elements and business rules Complex requirements for data transformation, cross-referencing and data cleansing Inability to support multiple electronic trading protocols
    • Connectivity
    • Data Transformation
    • Process Management
  • 5. MIDDLE-MARKET SUPPLIERS GreatPlains BEST MAS90/200 ACCPAC ProSeries Large Enterprise SAP, PeopleSoft, Oracle SMALL SUPPLIERS QuickBooks® PeachTree® # Suppliers (thousands) # Transactions/Month Lawson, Macola JD Edwards Span of Business System Platforms Basic Accounting Accounting Systems for Mfrs ERP
  • 6. The Technology Gap… Accounting System Web Tools EDI/xml Enterprise Application Integrator ERP SYSTEM Supply Chain Management Apps Gateway/VPN/WebTools Large Enterprise Middle-Market Supplier MRP WMS CRM Connectivity Data Transformation Process Mgt
  • 7. Unlikely Trading Partners… 15 Thousands Trading Partners Close Bronx WH Connect to CA 3PL with 940/945s Automated Receiving Technology Web-enabled supply chain tracking RFID Supply Chain Initiatives 10,000 sq.’ (NYC) Remote 3P Warehouse (CA) 1,225 US Stores 150 Million Sq.’ 19 regular DCs 3 Import WHs Facilities 50,000 Billions? Transactions (annual) ACCPAC ProSeries ERP Business System 12 300,000 Employees $10 M $48 B Revenues “ TT, inc.” Target Corp
  • 8.  
  • 9. Must Support Multiple Connectivity Protocols VAN FTP AS2 Bed,Bath Beyond Fred Meyer Kids R Us Zeller’s/ Hudson Bay Kohl’s Loblaw’s Mervyn’s Nordstrom Peyton Sak’s Shopko Toys R Us
    • Middle-market Constraints:
      • Minimal IT infrastructure, resources
      • Multiplication of procedures
    TT, Inc.
  • 10. No Counterparts for Business Rules and Data Elements TT, Inc.
  • 11. Business Process Integration Requires Complex Data Transformation by Middle-Market Supplier Nordstrom850 SDQ Individual Orders by “Ship To” and “Mark For” Locations Process Orders Nordstrom 810 “C” Nordstrom Order/Invoice Requirements No capability to parse consolidated orders No capability to create consolidated invoices TT,Inc ACCPAC Accounting System
  • 12. Optimization of Supply Chain for the Large Enterprise
    • Value-Chain Integration Drivers
    • Reduce Transaction Processing Costs
    • Improve Customer Satisfaction
    • Automate Transactions with SMB Partners
    • Comply with Customer’s Condition for Doing Business
    • Work effectively with suppliers
    • Improve Order Accuracy
    • Increase Business with Existing Customers
    • Improve Order Response Times
    • Reduce Inventory/Increase Turns
    • Improve Planning and Scheduling
    • Gain New Customers
    • e-Supply Chain Technology Drivers
    • Securely transmit transactions via internet
    • Manage Partner Profile Information
    • Support XML industry standards
    • Automate Transaction Workflow
    • Move from Batch to Real Time
    • Define, Invoke, Manage Human and System Events
    Source: The Yankee Group 2003
  • 13. Optimization of Supply Chain for Middle-Market Enterprise
    • Value-Chain Integration Drivers
    • 3. Reduce Transaction Processing Costs
    • Improve Customer Satisfaction
    • Automate Transactions with SMB Partners
    • 1. Comply with Customer’s Condition for Doing Business
    • Work effectively with suppliers
    • 5. Improve Order Accuracy
    • 4. Increase Business with Existing Customers
    • Improve Order Response Times
    • Reduce Inventory/Increase Turns
    • Improve Planning and Scheduling
    • 2. Gain New Customers
    • e-Supply Chain Technology Drivers
    • Securely transmit transactions via internet
    • Manage Partner Profile Information
    • Support XML industry standards
    • 1. Automate Transaction Workflow
    • 2. Support multiple protocols with a single system/process
    • Move from Batch to Real Time
    • Define, Invoke, Manage Human and System Events
  • 14. Service and Proprietary Systems Proprietary Software Red Tail Business Process Integrator™ Large Trading Partners Accounting System Red Tail Transaction Manager ™ REDTAIL Solutions Virtual Capabilities in an Outsourcing Model Mid-market Supplier WalMart Nordstom Kohl’s WalMart Internet
  • 15. Business Process Integration Requires Complex Data Transformation by Middle-Market Supplier Nordstrom850 SDQ Order ∑ 850 “C” Review/Revise Trans.1 Individual Orders by “Ship To” and “Mark For” Locations Process Orders Trans.3 Trans.2 TT,Inc ACCPAC Accounting System Nordstrom 810 “C” Manual Edit/Trans.4 Nordstrom Order/Invoice Requirements No capability to parse consolidated orders or create a consolidated invoice
  • 16. No Counterparts for Business Rules and Data Elements TT, Inc.