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Certified Technology Program Overview
- 1. Certified Technology Programs Bringing Trading Partners Together 1 | December 20, 2011 ©2011. The Davies-Woerner Group. All Rights Reserved.
- 2. Certified Technology Programs The Current Landscape 2 | December 20, 2011 ©2011. The Davies-Woerner Group. All Rights Reserved.
- 3. The Problem Your interactions with customers and suppliers… Require some level of manual data entry Result in errors that could be avoided Are not as efficient as they could be Do not provide optimum supply chain visibility Have hidden costs that could be eliminated Cannot be standardized across your trading partner network 3 | December 20, 2011 ©2011. The Davies-Woerner Group. All Rights Reserved.
- 4. The Cause Your systems aren’t integrated with the majority of your customers and suppliers Your technology platforms have evolved over time, resulting in a patchwork of systems and processes You must use a “swivel chair” approach to accommodate system siloes You lack the time and/or resources to influence the technology decisions of trading partners 4 | December 20, 2011 ©2011. The Davies-Woerner Group. All Rights Reserved.
- 5. The Effects on You Fewer complete orders received on-time Longer supplier lead times Reduced speed-to-market and innovation Lower customer service levels Less competitive supply chain processes More expensive on-boarding of suppliers and customers Limited supply chain visibility 5 | December 20, 2011 ©2011. The Davies-Woerner Group. All Rights Reserved.
- 6. The Effects on Your Partners Inefficient, manual processes (swivel chair) High error rates Extended cash conversion cycles Longer lead times Inability to respond quickly to change Limitations to growth potential Slower inventory turns Limited supply chain visibility Poor data integrity Infrastructure that doesn’t scale 6 | December 20, 2011 ©2011. The Davies-Woerner Group. All Rights Reserved.
- 7. The Opportunity Lower Transaction Costs “Commonly quoted savings from moving to an electronic process include purchase order transaction costs reduced from $50-$100 per purchase order to under $5.” The Aberdeen Group Fewer Errors and Higher Service Levels “Best-in-Class organizations had established electronic communication with 79.8% of their suppliers and possessed a perfect order rate of 94.1% delivered to customers.” The Aberdeen Group Reduced Overstocks and Out of Stocks “By exchanging richer and timelier information with trading partners, enterprises can make more accurate inventory and demand forecasts and shorten their cash-to-cash cycles.” The Aberdeen Group 7 | December 20, 2011 ©2011. The Davies-Woerner Group. All Rights Reserved.
- 8. Traditional Attempts to Resolve Mandate use of pre-selected single vendor solution for entire supplier community Suppliers referred to a list of EDI providers with little to no analysis as to the quality of those vendors or solutions Web Portal created for suppliers to manually access order information and send responses back 8 | December 20, 2011 ©2011. The Davies-Woerner Group. All Rights Reserved.
- 9. The DWG Solution Certified Technology Program Company Name SUPPLIER CUSTOMER PLATFORM Tailored to your business and trading partners’ requirements Designed around your industry vertical Configured and fine-tuned for your IT infrastructure Implemented without any capital investment 9 | December 20, 2011 ©2011. The Davies-Woerner Group. All Rights Reserved.
- 10. Certified Technology Program for B2B LARGE ENTERPRISE BUY SIDE SELL SIDE ERP/MRP Options & Customer terminals preferred pricing removed from factory floor Standardized Upgrade paths to Fast track B2B latest Technology Communication Schemas Standardized Transportation solution selection and Business Best preferred pricing Practices shared Protocols Limited Partner Portals Integrated Data Flows Electronics Invoicing Affordable Electronic Automated Data flows Invoice Solutions Collaboration tools integrated with B2B SCP/SCM solutions data Exchange Certified B2B designed for trading integration Vendors, partner segments fast track onboarding 10 | December 20, 2011 ©2011. The Davies-Woerner Group. All Rights Reserved.
- 11. The Value of the CTP Speed – Streamlined way to achieve integration with a larger percentage of your trading partners Customization – Vendors selected based on their ability to meet your network’s specific needs Expertise – Applied to the evaluation of vendors and provided to trading partners as needed Cost – No capital investment Objectivity – Program endorsed but not managed by you 11 | December 20, 2011 ©2011. The Davies-Woerner Group. All Rights Reserved.
- 12. The Value of DWG Independent, expert resource Formalized process for evaluating your network’s needs, analyzing technology solutions, and identifying qualified vendors Preferred pricing from technology vendors Ability to influence and accelerate adoption amongst partners 12 | December 20, 2011 ©2011. The Davies-Woerner Group. All Rights Reserved.
- 13. Certified Technology Programs Our Approach 13 | December 20, 2011 ©2011. The Davies-Woerner Group. All Rights Reserved.
- 14. CTP Delivery Methodology OUR PROCESS DWG works closely with all trading partner groups to develop a Certified Technology Program that addresses the unique needs of each trading community. 14 | December 20, 2011 ©2011. The Davies-Woerner Group. All Rights Reserved.
- 15. CTP Delivery Methodology • Understand your organization, systems, and processes Assess • Profile your trading partner community • Identify areas with greatest potential for improvement Evaluate, Select, • Identify appropriate technology vendors • Review and finalize recommendations Certify • Deliver portfolio of certified technology solutions Create Win-Win • Finalize go-to-market pricing and plans • Create marketing and training materials Opportunities • Develop roll-out plan Educate, Advise, • Educate internal members about CTP • Launch CTP to trading partners Implement • Execute launch plan Monitor and • Continue roll-out • Monitor implementation and modify as needed Maintain • Maintain collateral, website, and other deliverables 15 | December 20, 2011 ©2011. The Davies-Woerner Group. All Rights Reserved.
- 16. Certified Technology Programs Solution Packages 16 | December 20, 2011 ©2011. The Davies-Woerner Group. All Rights Reserved.
- 17. CTP Packages Allow for timely and efficient analysis of your business, identification of certified solutions, and development of the materials you need to go-to-market quickly with your own CTP Packages intended to support both small & midsize organizations (SME) as well as large enterprises (LE) Include both implementation and ongoing rollout support options Packages can be tailored to meet the specific requirements of your organization and trading partner community 17 | December 20, 2011 ©2011. The Davies-Woerner Group. All Rights Reserved.
- 18. CTP for B2B – Implementation Packages Small & Medium Large Enterprise Feature / Package (< 150 trading partners) (>150 trading partners) Web EDI Certified Solution X X SaaS EDI Certified Solution X X Enterprise Application Integration Certified Solution -- X Integrated Managed Services Certified Solution -- X AS2 Certified Solution -- X Online CTP Marketplace X X Internal Training Materials X X Solution Datasheets X X Certified Solution Case Studies --- X CTP Launch Email Blast X X CTP Launch Webinar X X CTP Blog --- X CTP Community Forums --- X Estimated Duration to Launch 10-14 weeks 22-30 weeks 18 | December 20, 2011 ©2011. The Davies-Woerner Group. All Rights Reserved.
- 19. Options Available Additional B2B technology solutions Inclusion of multiple technologies (ERP, SCM, etc.) as well as existing in-house technologies Multi-language materials Training resources to educate your customer and supplier facing personnel 19 | December 20, 2011 ©2011. The Davies-Woerner Group. All Rights Reserved.
- 20. CTP for B2B – Rollout Support Packages Feature / Package Basic Extended Premium Ongoing Maintenance of your CTP Marketplace X X X CTP Email Blasts 1/month 2/month 2/month CTP Informational Webinars 1/quarter 1/month 1/month Certified Solution Email Blasts 1/quarter 1/month 1/month Certified Solution Webinars 1/quarter 1/month 1/month CTP Case Studies 1 1/quarter 1/quarter Internal Training Material Updates Annually Quarterly Quarterly Implementation Monitoring --- X X Monthly Status Reporting X X X Quarterly Program Reviews --- --- X Dedicated Account Manager --- --- X Minimum Duration 6-months 6-months 6-months 20 | December 20, 2011 ©2011. The Davies-Woerner Group. All Rights Reserved.
- 21. Certified Technology Programs Bringing Trading Partners Together 21 | December 20, 2011 ©2011. The Davies-Woerner Group. All Rights Reserved.
Editor's Notes
- Aberdeen Group – Trading community management – the pivotal role of segmentation and recruitment of trading partners. April 2010.What is the problem we are identifying? The lack of adoption of EDI technology by a trading partner community and the problem of having a lack of directive by a large enterprise to encourage its partners to adopt EDI.Lack of integration standard often inhibits the adoption of EDI by the community. It also contributes to the length of time it takes to on-board a partner.
- Aberdeen Group – Trading community management – the pivotal role of segmentation and recruitment of trading partners. April 2010.What is the problem we are identifying? The lack of adoption of EDI technology by a trading partner community and the problem of having a lack of directive by a large enterprise to encourage its partners to adopt EDI.Lack of integration standard often inhibits the adoption of EDI by the community. It also contributes to the length of time it takes to on-board a partner.
- The effects of a non integrated supply chain.Higher operating costs = through the management of manual processes that require a greater overhead in ITHigher error rates – cause by manual retyping of orders into accounting and ERP systems by supplierFewer orders received… - suppliers that exchange information electronically deliver 25% more of their orders ontime and complete than those that do not.Longer supplier lead times – without automation you are reliant on suppliers manually picking up orders from email or web portals, entering this into their systems and having to wait days for a purchase order response or ASNReduce speed to market and innovation – with a slow supply chain process, new designed and collaboration is less efficient and can result in product delays or the requirement to seek out more efficient suppliers to meet greater demand of the end consumer.Lower customer service – those companies with more suppliers connected electronically have customer service levels 17% percent points higher those who do not.Less competitive – if your competitors have visibility of the flow of product downstream and can react quickly to customer demands they will have a competitive advantage over you in both cost and efficienciesMore expensive on-boarding – without defined on-boading processes, follwing standard communication schemas and protocals, IT departments spend monts not weeks on-boarding trading partners and each project is a one of design and development effort.Limited visibility – not knowing whether your suppliers have received or can meet orders prevents you from providing customers with available to promise delivery dates
- The effects of a non integrated supply chain.Higher operating costs = through the management of manual processes that require a greater overhead in ITHigher error rates – cause by manual retyping of orders into accounting and ERP systems by supplierFewer orders received… - suppliers that exchange information electronically deliver 25% more of their orders ontime and complete than those that do not.Longer supplier lead times – without automation you are reliant on suppliers manually picking up orders from email or web portals, entering this into their systems and having to wait days for a purchase order response or ASNReduce speed to market and innovation – with a slow supply chain process, new designed and collaboration is less efficient and can result in product delays or the requirement to seek out more efficient suppliers to meet greater demand of the end consumer.Lower customer service – those companies with more suppliers connected electronically have customer service levels 17% percent points higher those who do not.Less competitive – if your competitors have visibility of the flow of product downstream and can react quickly to customer demands they will have a competitive advantage over you in both cost and efficienciesMore expensive on-boarding – without defined on-boading processes, follwing standard communication schemas and protocals, IT departments spend monts not weeks on-boarding trading partners and each project is a one of design and development effort.Limited visibility – not knowing whether your suppliers have received or can meet orders prevents you from providing customers with available to promise delivery dates
- Aberdeen Group – Trading community management – the pivotal role of segmentation and recruitment of trading partners. April 2010.What is the problem we are identifying? The lack of adoption of EDI technology by a trading partner community and the problem of having a lack of directive by a large enterprise to encourage its partners to adopt EDI.Lack of integration standard often inhibits the adoption of EDI by the community. It also contributes to the length of time it takes to on-board a partner.
- Hard forceful approach such as SPS Commerce – assumes one size fits all. Costs a supplier $500 to retest interface even if they are already doing EDI and may not be the best solution for that company if they are not doing EDISoft recommendation is done without any background check on the viability of those organization. Often this is done with good intentions by an IT representative. Supplier is still left to make the contact and without being educated on the value of EDI to their core business strategyWeb portal just pass the manual effort and associated problem out to the supplier and should only be considered as a stop gap solution.