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3 Ws Of Visibility And Demand Management Final


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Webinar presentation on the 3 W's of Supply Chain Visibility and Demand Management presented to the New England Electronic Commerce User Group on April 29, 2009

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3 Ws Of Visibility And Demand Management Final

  1. 1. problems – markets - responsible The 3 W’s of Visibility and Demand Management DevelopmentCorporate
  2. 2. problemsThese YearsSome Definitions How to Win? After All – markets - responsible Forgotten Has Your Team vis·i·bil·i·ty (vĭz'ə-bĭl'ĭ-tē) n. pl. vis·i·bil·i·ties •The fact, state, or degree of being visible. •The greatest distance under given weather conditions to which it is possible to see without instrumental assistance. •The capability of being easily observed: an executive with high visibility. •The capability of providing a clear, unobstructed view: The American Heritage® Dictionary of the English Language, Fourth Edition Copyright © 2006 by Houghton Mifflin Company. de⋅mand man·age·ment (mān'ĭj-mənt) •The term is used to describe the activities of demand forecasting, planning and order fulfillment. Wikipedia
  3. 3. problemsThese Years - responsible Forgotten How to Win? After All – markets Has Your Team Aberdeen Says . . . Supply Chain Visibility On-Demand Viktoriya Sadlovska, January 16, 2009 Cargo portal - 14% On-demand (hosted) commercial visibility system - 15% Commercial transportation management system (TMS) - 20% On-premises (license) commercial visibility system - 21% Other - 22% Supplier collaboration portal or hub - 23% Visibility system from a 3PL - 26% Visibility system from a freight forwarder - 29% Visibility system from an electronic messaging vendor (EDI VAN) -… Transportation carrier tracking system - 36% Module in our ERP system - 44% In-house developed software - 50% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
  4. 4. Solution Building Blocks problems – markets Has Your Team After All These Years - responsible Forgotten How to Win? Solution Taxonomy B2B SaaS Applications (Descartes Delivery Management Suite, E2Open, Inovis Chargeback Avoidance, Sterling Order Management, etc.) Complexity / Capabilities Integrated Order Life Cycle Management Solutions (GXS Order Life Cycle Visibility, Inovis Actionable Intelligence, Sterling Supply Chain Visibility On Demand, etc.) EDI VAN Basic Visibility Services (Descartes, EasyLink, HP-EDS, GXS, Inovis, Kleinschmidt, Loren Data, SoftShare, Sterling, etc.) Behind the Firewall Software Solutions (ERP Module, EDI Translator, B2B Integration Engine, BPM, Business Intelligence, etc.) Cost / Benefit
  5. 5. problemsThese Years - the Firewall Solutionsto Win? After All – BehindHas Your Team Forgotten How Behind the Firewall Solutions markets responsible Supply Chain Visibility On-Demand Software solutions, running inside your data centers, Viktoriya Sadlovska, January 16, 2009 either internally developed or purchased from a vendor, that provide visibility and other business process services Pros Cons • Leverages existing investments • Visibility limited to the ‘edge’ of • ERP, BI, B2Bi, BPM, etc. your enterprise • Typically a strong fit with your • Often have to re-invent the EDI requirements transactional data cube ‘wheel’ • Most commonly used solution • Applications may impose in today’s marketplace architectural limitations on your vision
  6. 6. problemsEDI VAN - responsible Forgotten How to Win? After All These Years Basic Visibility Solutions – markets Has Your Team Solutions Behind the Firewall Web based tracking, analytics, and visibility solutions that are provided as a core / optional service of a modern EDI VAN service provider Pros Cons • Tightly integrated with EDI VAN • Visibility limited to the ‘edge’ of processing / operations your enterprise & VAN provider • Don’t have to ‘re-invent’ the • Restricted to what your VAN wheel offers • You don’t have to develop, • Many organizations have maintain, or evolve multiple VAN relationships – can’t guarantee one common approach
  7. 7. problemsThese Years - responsible Forgotten How to Win? After All – markets Has Your Team Integrated Order Firewall Solutions Behind the Lifecycle Management SaaS application built on top of EDI VAN that automates the processing, analysis, and reporting of order lifecycle events Pros Cons • Tightly integrated with EDI VAN • Limited ability to truly customize processing / operations to meet your requirements • Typically provides capabilities for • Getting full participation from all ‘web only’ partners of your trading partners • Traditional SaaS benefits • Multiple EDI VANs could mean • Subscription pricing, no software only partial coverage of trading to install, no hardware to manage, no community upgrades to manage, etc.
  8. 8. B2B SaaS Applications problems – markets - responsible SaaS/ Cloud Computing applications built to replace traditional licensed software applications (Order Management, Transportation Management, Inventory Management, Warehouse Management, Production Scheduling, Supplier On-boarding, etc.) Pros Cons • State of the art functionality • Limited ability to truly customize • Vendors investing in SaaS/ to meet your unique Cloud Computing requirements • Traditional SaaS benefits • Mission critical applications’ performance is in somebody • Lower barriers for full trading else’s hands community participation • Not a true source of competitive differentiation
  9. 9. problemsThese Years - responsible Forgotten How to Win? After All – markets Has Your Team Challenge: Not all TPs Are On The Same Network • Reality of today’s B2B communities • 5‘hops’ from you to your trading partner • Your ERP to Your Translator • Your Translator to Your VAN mailbox • Your VAN’s Interconnect to TP’s VAN • TP VAN mailbox to TP’s Translator • TP’s Translator to TP’s ERP
  10. 10. Challenge: Mandates Don’t Work Like They Used To “It would be really nice if you could either directly integrate with my application via XML and our web services, use our cool new web portal, or get a mailbox on our VAN”
  11. 11. What Are The Benefits of Visibility? • On Demand Reporting / Drilldown • “I can find the answer faster” • “Everyone can see the status of everything all the time” • Alerts • “Tell me when something goes wrong” • Remediation • “I can fix it before it causes trouble or costs me money” • “Some simple things can get fixed by the system automatically” • Problem Avoidance Does“I canchart look uncomfortably familiar? fix” • this see consistent patterns of problems I can
  12. 12. What Are The Benefits of Demand Management? • Modern functionality • “Best practices of 2009 versus 1993” • “Web services integration is so much better than RPC calls” • SaaS Economic & Operational Benefits • “I like paying by the drink instead of buying a pallet’s worth of stuff I’ll never finish drinking” • “I’ll never do another point level release upgrade that costs me $750,000 and 6 months to complete” • “I like not waking up in the middle of the night to fix a production problem affecting the UK operations” • Higher chart look uncomfortably familiar? Does thistrading community participation • “The web portal helps automate the 20% of my community that still uses fax, email, and snail mail”
  13. 13. EDI VAN ERP / SCM / Order Management Visibility BPM & B2B SaaS Visibility / Demand Management Market Landscape
  14. 14. Some Thought Leaders to Check Out • Benoit L’Heureux • Bruce Richardson • Frank Kenney • Dennis Gaughan • Dwight Klappich • Janet Sherlock • Ray Wang • Steve Banker • Ken Vollmer • Adrian Gonzalez
  15. 15. DevelopmentCorporate DevelopmentCorporate is a strategic corporate development advisory firm for enterprise and mid-market technology companies. We assist management teams, board of directors, and investors in updating their merger, acquisition, and divestiture strategies and then we provide tactical support for the implementation of those strategies. We also provide support for strategic initiatives such market assessments, competitive intelligence updates, product/service portfolio analysis, etc. Email: Blog: Musings of a Reformed Private Equity Operator Twitter: @Devcorporate