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B2B Collaboration - No Longer Optional

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There are a number of pressures driving B2B collaboration, such as the fact that 35% lack visibility at various parts of the supply chain.

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B2B Collaboration - No Longer Optional

  1. 1. Rethink your Customers in Context | Rethink B2B Integration Visit www.rethinkyourcustomer.com/b2b for webinars, videos and more. WHATYOUNEEDTODO 1010 Consider strategically how to deploy a collaborative solution based on a vision for the future, including capability and long-term cost considerations Make the case for B2B collaboration first, then identify and champion the value of the solution Complete the internal collaboration initiatives within your control Include cloud-based SaaS, internal or some hybrid combination Follow through on planned capability improvements Consider other functional areas beyond supply chain (product development) and if the technology supports collaboration Realize B2B collaboration is a new process that extends beyond the four walls and a different infrastructure must be developed Remember collaboration is more than just integration, it is breaking down the walls between collaborative partners Stay the course and follow through on planned capability improvements Understand collaboration could require incremental effort in support since there will be varying levels of maturity within the partner community HOWEFFECTIVEISYOURORGANIZATION? FOLLOWERS (BOTTOM 70%) LEADERS (TOP 30%) COMMONSTRATEGIES INRESPONSE TOPRESSURES CHALLENGESTO IMPLEMENTING THESTRATEGIES Collaboration initiative with suppliers 69% 40% 63% 43% 25% 30% 25% 45% 39% 35% 33% 22% 33% 14% 33% 41% Collaboration initiative with customers Reduce inventories through better visibility Integrate partner facing collaboration processes Lack of infrastructure or resources Executive leadership reluctant to invest Trading partner resistance to B2B collaboration Technology solutions required are too costly LEADERS FOLLOWERS LEADERS FOLLOWERS LEADERS FOLLOWERS LEADERS FOLLOWERS LEADERS FOLLOWERS LEADERS FOLLOWERS LEADERS FOLLOWERS LEADERS FOLLOWERS . . . . . . . . . . Customer service (complete and on-time rate). . . . . . . . . . . . . . . . . . . . Average cash conversion cycle. . . . . . . . . . . . . . . . . . . . Gross margin. . . . . . . . . . . . . . . . . . . . Increase in total landed costs. . . . . . . . . . 89.4% 40.7 days 24.8% 8.8% 96.7% 19.4 days 27.9% 1.9% THEPRESSURESDRIVINGB2BCOLLABORATION 59% 35% 12% 24% 64% Lack of visibility at various nodes in supply chain Rising IT costs due to outdated systems Rising raw material and logistics costs Escalating customer service demands Rising business complexity B2B Collaboration: No Longer Optional

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