Executive Overview – B2B Trends in the Emerging Markets


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This presentation is a shorter executive level version of a webinar that will be launched in the near future. The presentation highlights some of the key trends in the emerging markets and goes on to discuss common B2B and infrastructure related concerns/issues as well.

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  • I am not sure if this is an effect of El Nino but it does seem strange that various corners of the earth have experienced significant natural disasters over the past couple of years. Just as companies think they are recovering from one disaster, another one strikes in quick succession, so I firmly believe that supply chain disruption is a recurring theme and it is certainly here to stay.As a result of this disruption companies are now being forced into building more scalable and flexible supply chains that are more resilient to disruptions, either from natural disasters or otherwise.
  • One of the biggest challenges facing companies today is trying to integrate a broad cross section of different users, especially those users that may be located in different countries around the world.In recent years many companies have globalised their operations, opening new manufacturing plants in the Far East and establishing new sales offices and distribution centers in new markets. Many companies have implemented multiple instances of ERP systems around the world and a typical ERP related project being undertaken today is to try and consolidate multiple ERP instances into a single instance that can be shared by everyone across the extended enterprise. Many B2B platforms have users or trading partners around the world and in many ways it makes sense to try and obtain operational synergies by integrating ERP and B2B platforms together. Consolidating multiple ERP instances for example provides the ideal opportunity for B2B integration. So we have already talked about consolidation of ERP instances, but what other types of ERP related projects would make good B2B integration opportunities?
  • CAPSA = Chang’an PSA Peugeot Citroen
  • This brings us to the end of this session, thank you for taking the time to watch this presentation. If you should have any questions regarding GXS or our e-Invoicing solution then please contact us via the details shown on this slide.Good bye.
  • Executive Overview – B2B Trends in the Emerging Markets

    1. 1. B2B Trends in the Emerging Markets
    2. 2. Slide 2 | © 2013 GXS, Inc. Manufacturing 2.0, Rebooting Today’s Global Supply Chains… Global recession, wage strikes, natural disasters and changing consumer demand are leading to manufacturers having to restructure their global supply chains Slide 2 | © 2013 GXS, Inc.
    3. 3. Slide 3 | © 2013 GXS, Inc. What is Going on in Today’s Manufacturing Supply Chain? Sales Manufacturing Sales Manufacturing Back Office Engineering R&D Western Expansion Near-Shoring China Expansion Back Office Engineering R&D Regional Marketing & Finance Engineering R&D Sales Manufacturing Sales Manufacturing Global HQ
    4. 4. Slide 4 | © 2013 GXS, Inc. Today’s Manufacturing Industry • Continued globalisation of manufacturing hubs and general supply chain restructuring • Co-location of suppliers next to major manufacturing hubs to simplify logistics flows • Continued requirement to improve inventory control & visibility across supply chains • Convergence of manufacturing sub-sectors is changing supply chain dynamics • Increasingly driven by the ‘connected consumer’ and the so called omni-channel effect
    5. 5. Slide 5 | © 2013 GXS, Inc. Key Trends - China • Wage rises and continued strikes causing some companies to re-shore manufacturing back home • Some domestic Chinese manufacturers looking to reduce costs by setting up operations in other low cost countries, eg Thailand, Vietnam • Government introducing tax and relocation incentives to encourage investment in western China, ie spreading wealth across the country • Keen to embrace IT best practices brought in by Western Joint Venture operations
    6. 6. Slide 6 | © 2013 GXS, Inc. Key Trends - Brazil • Brazil is currently receiving significant inward investment from global manufacturers looking to set up new plants in the country • Establishing manufacturing hubs as a stepping stone in to the lucrative North American Market • Brazilian government introducing various import taxes to encourage inward investment and use of more locally sourced content • Chinese companies, particularly automotive, regard Brazil as a key growth market for their products
    7. 7. Slide 7 | © 2013 GXS, Inc. Key Trends - India • Key global manufacturing hub, particularly for labour intensive processes such as machining • Increasing consumer wealth leading to increased domestic sales of manufactured goods • Land locked to the North by Himalayas means all goods have to be imported/exported by sea, hence 3PLs have complicated logistics flows • ERP systems are widely used to support larger Indian enterprises however in general many companies are still using manual processes and EDI usage is very low
    8. 8. Slide 8 | © 2013 GXS, Inc. General Emerging Market B2B Trends • Hesitation to move towards a completely outsourced or cloud based service, prefer hybrid approach, ie software and services • Emerging markets ‘keen to learn’ about B2B standards used in more developed markets • Extensive use of home grown XML standards but now interested in deploying more mature global standards such as EDIFACT/ANSI • Trading partner on-boarding, local support and end to end supply chain monitoring are key drivers for using B2B Managed Services
    9. 9. Slide 9 | © 2013 GXS, Inc. Infrastructure Related Issues • Utilities, particularly power supply networks suffer regular outages • Telephone communications and networking infrastructure are relatively poor and offer slow internet connectivity • Some countries implementing new 3G/4G mobile networks as this is quicker than trying to repair/upgrade existing fixed networks • Road and rail networks are generally poor quality and hence challenging for 3PL providers to provide reliable delivery service
    10. 10. Slide 10 | © 2013 GXS, Inc. • JV needed to import car parts/kits from their French partner via global logistics provider and then assemble in new plant in Shenzen, China • JV had no B2B experience or knowledge of global B2B standards but they needed to exchange forecast and order information with their French partner • Implemented GXS Managed Services to exchange B2B transactions between the JV, their French partner and their logistics partner Chinese Joint Venture Operation Connect European and Chinese Partners • Moving production to China led to a requirement to automate 100% of their supplier related transactions and business processes. Also needed to simplify TP on-boarding process. • GXS Trading Grid for Excel was deployed to simplify and automate the exchange of EDI related documents . GXS creates and hosts all their business document templates online. • Provided 100% enablement of their TP community allowing business transactions to be conducted electronically despite limited ICT and B2B skills US Printer Manufacturer Connect with TPs Located in China Emerging Markets Case Studies Japanese Car Manufacturer Onboard TPs to New Factory in Brazil • Building new car manufacturing plant in Brazil and needed to on board local suppliers and logistics providers to support delivery of parts to new facility • GXS Managed Services was deployed to establish new B2B platform and onboard local TPs. Active Orders deployed to provide full visibility of order based transactions. Active Logistics deployed to offer end to end visibility of parts related shipments between Japan and Brazil via 3PLs/border agencies. • New B2B platform supports EDIFACT message flows between Japan and Brazil June 28, 2013 Slide 10
    11. 11. Slide 11 | © 2013 GXS, Inc. Thank You For Your Participation Phones US: 1-800-334-2255, option 3 EMEA: +44 (0) 1932 776047 Brazil: +55 11 2123-2300 GXS web sites US: www.gxs.com EMEA: www.gxs.eu Brazil: www.gxs.com.br