Collaborate with Suppliers to Ensure Reliable, Agile Delivery to Consumers

1. © GT Nexus, Inc.
Collaborate with Suppliers to Ensure Reliable, Agile Delivery
to Consumers
Secure Assurance of Supply
A STRATEGIC IMPERATIVE FOR RETAILERS

2. Volatility in supply chains makes it hard for companies to prof-
itably meet demand. Sourcing is complex, involving hundreds
of partners. Suppliers often don’t have access to adequate
capital, causing instability in the supply base.The majority
of inventory, cost, and risk is outside of a single enterprise’s
control--and as companies change sourcing strategies, data
will continue to reside in many systems around the globe.
Impact of Uncertainty in Supply Channels
Lack of visibility and control over supply leads to excess costs
and wasteful processes in the retail supply chain. Companies
hold inventory to guard against risk, but it’s expensive — and
the extra costs eventually get passed on to consumers.
Without a strong assurance of supply program, retailers find
themselves with:
Too much buffered inventory
Inability to predict accurate lead times
Poor WIP visibility at the supplier level
Limited control over in-transit inventory
Longer lead times throughout the supply chain
The Root of the Problem
The systems retailers have used for years no longer solve
global supply chain problems. Some companies are juggling
multiple ERP systems — ones that are prohibitively expensive,
don’t share partner data well, and cannot connect many enti-
ties to a single, real-time source of information.
Too many siloed systems and not enough shared data make
it impossible to reliably meet consumer demands. Companies,
with only a few pieces of the puzzle, must scramble to track
inventory and provide accurate ETAs.
1. Fundamentally different supply chains with little
enterprise control
When supply chains were shorter and constrained to nearby
regions, managing risk and cost was much easier.Today, up
to 80% of data lies outside the enterprise, leading to:
More blind spots and lower levels of control over data
and activity in the supply chain
Global selling markets and sourcing origins with long,
variable lead times
ERP ineffective for managing global production and raw
material networks
2. Financial uncertainty and stress on the supply chain
Extended payment terms and late remittance put unneces-
sary stress on suppliers. Outdated processes like manual
three-way match slow down the payment process, and
relationships with suppliers are put at risk.The results are:
Suppliers lack access to capital at competitive rates
Quality is negatively affected as suppliers fight to protect
margins
Supply base is unstable, with poor relationships and
little trust
3. A shift in focus on planning vs. execution
To regain control of their extended supply chains, retailers
turn to planning and forecasting. But with new markets,
escalating SKU counts, and shorter product lifecycles, incre-
mental gains in planning accuracy will not meet the drastic
demand swings that are common today. Focusing solely on
forecasting leads to:
Planning systems that cannot accurately predict om-
nichannel demand
Blind spots where accurate, real-time data is unavailable
Out of trend products
Partner knowledge excluded during decision-making
© GT Nexus, Inc.
2
Retailers struggle to ensure a reliable flow of goods through the production cycle.
The Challenge
The biggest challenge: having exactly the right amount of supply to meet
volatile global demand.
Enterprise
Global Supply
Volatile Demand
Multi-tier
Constraints
Consumers
N-Tier
Suppliers
Inbound Outbound
Volatile DemandVolatile Demand

3. Plant
Plant
Network
Connectivity
Agility
Customers
Customer
DC / Warehouse
Plan
Actual At-Risk Delay
Dynamic ETA
B
A
Sense more accurately
Operate more efficiently
Respond faster
Make better decisions
3
The Solution
To execute on a strong assurance of supply program, retailers
must have the control and visibility to make smart decisions.
As inventory moves through the supply chain, managers can
use a networked platform to adapt to demand or disruption.
They ensure the order will be filled on time by understanding
financial viability of suppliers, collaborating with n-tiers on
parts, collaborating with n-tiers on raw materials or compo-
nents, and using WIP data. Later, they use transportation data
to ensure on-time delivery. Bookings, rates, and compliance
are handled from a central
location. Finally, goods are
managed by exception to
allow dynamic ETAs and
accurate availability
projections.
Connect every trading partner on single, cloud-based
supply chain network:
Shift to execution and tighter integration to provide “rapid
re-planning”
Procure-to-pay that manages the end-to-end financial
supply chain
Fusion of the physical and financial supply chains, monitor-
ing flows from factory to customer
Visibility into inventory and WIP
How to use this technology to build a strong assur-
ance of supply program:
1. Collaborate on raw materials, supply plans, and orders
2. Manage order, receipt, and WIP status by exception,
automatically
3. Track inventory with visibility into goods from point of pro-
duction to consumer delivery
4. Automate supplier payments and finance programs for
real-time status
Value Propositions
A healthy supply assurance program adds value to all of a com-
pany’s trading partners.The retailer sees a drop in inventory-
related costs, while partners benefit from financial stability and
easier communication on production, cycle times, and shipment
of parts and final products. Execution is synchronized across all
partners, complex workflows managed without extra man-
power, and the physical and financial supply chains are viewed
from a single source.
1. Find and allocate the right supply when it’s needed
Move inventory easily from one place to another with
higher agility
Increase customer satisfaction with reliable deliveries
2. Decrease transportation and inventory costs through
better visibility
Dynamically allocate based on real-time demand signals
Gain visibility into in-transit inventory and WIP
Lower costs associated with excess buffer stock
3. Improved supplier performance and relationships
Better supplier financial health leads to reliable production
Reduced DSO for suppliers through supply chain finance
programs
Assurance of Supply and the Networked
Company
To uphold a strong assurance of supply program, companies
must transform themselves from silo-based, inward-facing
corporate operators to interconnected, highly agile business
network orchestrators.
What’s the point of all the
planning? The real power lies
in being able to make changes
along the way.