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EDI: Workhorse of the Extended Supply Chain
 

EDI: Workhorse of the Extended Supply Chain

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Presentation given today with GXS on the state of B2B Connectivity.

Presentation given today with GXS on the state of B2B Connectivity.

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EDI: Workhorse of the Extended Supply Chain EDI: Workhorse of the Extended Supply Chain Presentation Transcript

  • EDI: Workhorse of the Value Chain
  • Where are You? Supply Chain Insights LLC Copyright © 2013, p. 2
  • Current State Supply Chain Insights LLC Copyright © 2013, p. 3
  • Our Goal In this webinar, we will help companies benchmark their current state on B2B connectivity. Supply Chain Insights LLC Copyright © 2013, p. 4
  • Agenda Supply Chain Insights LLC Copyright © 2013, p. 5
  • Study Overview Supply Chain Insights LLC Copyright © 2013, p. 6
  • The Majority of Respondents Work at Manufacturers and Average Revenue is $4 Billion Supply Chain Insights LLC Copyright © 2013, p. 7
  • Over Half of Respondents Work in a Discrete Industry Supply Chain Insights LLC Copyright © 2013, p. 8
  • Half of Respondents Work in IT, Nearly Half are Managers and Over ¾ Work in the US Supply Chain Insights LLC Copyright © 2013, p. 9
  • Four in Five Report Having a Formal Supply Chain Organization Supply Chain Insights LLC Copyright © 2013, p. 10
  • Respondents Identify an Average of 6 Functions that Report through the Supply Chain Supply Chain Insights LLC Copyright © 2013, p. 11
  • Agenda Supply Chain Insights LLC Copyright © 2013, p. 12
  • Definitions Supply Chain Insights LLC Copyright © 2013, p. 13
  • All Respondents Have EDI/XML and are Somewhat Familiar with their B2B Solutions Supply Chain Insights LLC Copyright © 2013, p. 14
  • 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. 15
  • Agenda Supply Chain Insights LLC Copyright © 2013, p. 16
  • For Both Sales and Purchase Orders, Over Half of Orders are Exchanged via EDI/XML Supply Chain Insights LLC Copyright © 2013, p. 17
  • On Average, EDI/XML Sales Orders are Faster with No Manual Intervention Supply Chain Insights LLC Copyright © 2013, p. 18
  • For Both Sales and Purchase Orders, Over 1/3 Report Tracking Internal Costs of Orders Supply Chain Insights LLC Copyright © 2013, p. 19
  • Awareness of Internal Order Costs is Low for Both Order Types Supply Chain Insights LLC Copyright © 2013, p. 20
  • The Top Challenge for Orders Not Processed via EDI/XML Is Added Time Supply Chain Insights LLC Copyright © 2013, p. 21
  • About Half Report the Orders Change at Least Once; About 60% Process Changes via EDI/XML Supply Chain Insights LLC Copyright © 2013, p. 22
  • The Top Challenge for Order Changes Not Using EDI/XML Is Having More Imperfect Orders Supply Chain Insights LLC Copyright © 2013, p. 23
  • EDI/XML Benefits Accuracy Most for Both Sales and Purchase Orders Supply Chain Insights LLC Copyright © 2013, p. 24
  • Business Partner Relationships is Top Supply Chain Element to Improve with EDI/XML Supply Chain Insights LLC Copyright © 2013, p. 25
  • ASNs and Purchase Order Acknowledgements are Most Important Elements of EDI/XML for Improving Supply Chain Performance Supply Chain Insights LLC Copyright © 2013, p. 26
  • 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. 27
  • Customer Order Captures and ASNs are Top Performing Elements of EDI/XML for Improving Supply Chain Performance Supply Chain Insights LLC Copyright © 2013, p. 28
  • Greatest Gaps in Performance: ASNs and Purchase Order Acknowledgements Supply Chain Insights LLC Copyright © 2013, p. 29
  • Only 6% Report Offering a Discount to Customers for Use of EDI/XML Supply Chain Insights LLC Copyright © 2013, p. 30
  • Agenda Supply Chain Insights LLC Copyright © 2013, p. 31
  • 82% of Respondents are at Least Slightly Familiar with Company’s Distribution Center Supply Chain Insights LLC Copyright © 2013, p. 32
  • 2/3 Report Receiving Shipments without Advanced Shipment Notices or Dispatch Advices Supply Chain Insights LLC Copyright © 2013, p. 33
  • Top Challenges When Don’t Have ASNs are Longer Receiving Times and Inability to Plan Labor Schedules Supply Chain Insights LLC Copyright © 2013, p. 34
  • Without ASN, Biggest Impact to Supply Chain is Need to Expedite Shipments More Frequently Supply Chain Insights LLC Copyright © 2013, p. 35
  • On Average, Shipments without ASNs Cost $78 per Order Extra Supply Chain Insights LLC Copyright © 2013, p. 36
  • Nearly Half of Inbound Shipments are not Labeled with Barcodes or RFID Tags Supply Chain Insights LLC Copyright © 2013, p. 37
  • On Average, Shipments without Barcodes or RFID Tags Cost $57 per Order Extra Supply Chain Insights LLC Copyright © 2013, p. 38
  • Agenda Supply Chain Insights LLC Copyright © 2013, p. 39
  • Summary • 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. Supply Chain Insights LLC Copyright © 2013, p. 40
  • Questions? Supply Chain Insights LLC Copyright © 2013, p. 41
  • 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. 42
  • Where Do You Find Lora? Contact Information: lora.cecere@supplychaininsights.com Blog: www.supplychainshaman.com (4000 pageviews/month) Twitter: lcecere 4640 followers. LinkedIn: linkedin.com/pub/loracecere/0/196/573 (5650 in the network) Supply Chain Insights LLC Copyright © 2013, p. 43