3rdwave gcm optimizing direct materials p2 p from a global perspective1
3rdwave Command And Control Schema
1. 3rdwave GCM
Command and Control of
Global Commerce P2P Processes
2. Global Commerce Management
Command and Control of
Global Commerce P2P Processes
Command and Control is the seamless integration of
available resources that provides the infrastructure
and capability to view, orient, decide and act at a
high operational tempo.
4. Origin Land/Rail Carrier Manufacturer
Seller/Supplier CY / CFS Origin POD US Customs CY / CFS Deconsolidator
Inland POL Air/ Ocean Carrier DC
Carrier Customs
Customer
Global Supply Chain
Traditional GCM Communication Infrastructure
5. SaaS = Cloud Computing
Aggregator – Portal Layer
Data sits on each Service Provider’s data infrastructure
Visualization, Alerting and Reporting controlled by service provider
Origin Land/Rail Carrier Manufacturer
Seller/Supplier CY / CFS Origin POD US Customs CY / CFS Deconsolidator
Inland POL Air/ Ocean Carrier DC
Carrier Customs
Customer
Global Supply Chain
SaaS GCM Communication Infrastructure
6. – P2P Control and Command
3rdwave GCM P2P Presentation Layer (Collaboration, Reporting)
PO Shipment Shipment Import FTZ, Cost
Budgeting, Planning, Consolidation, Execution, Deconsolidation Validation,
Monitoring Costing, Execution, Monitoring % , Inland drayage Reconciliation
& Status Monitoring & Monitoring, & Status Status ,
Status Authorization
3rdwave GCM Application Layer
3rdwave GCM P2P Data Repository
Supplier Product Carrier Rates HTS Compliance Service
Records Records and Routes Records Rulings Providers Rates
3rdwave GCM P2P Integration Layer (EDI, XML, FTP, etc.)
Aggregator – Portal layer
SaaS = Cloud Computing
Data sits on each Service Provider’s data infrastructure
Visualization, Alerting and Reporting controlled by service provider
Manufacturer
Origin DC
Seller/Supplier CY / CFS Origin US Customs CY / CFS Deconsolidator Land/Rail Carrier
Inland POL Air/ Ocean Carrier POD Customer
Carrier Customs
Global Supply Chain
7. Command and Control
the Procure to Pay Process
(P2P Global)
Global Supply Chain
Manufacturer
Origin DC
Seller/Supplier CY / CFS Origin US Customs CY / CFS Deconsolidator Land/Rail Carrier
Inland POL Air/ Ocean Carrier POD Customer
Carrier Customs
To Broker, Electronic Electronic
Customs, Feed Feed
Electronic from from
Electronic Feed Carriers
Electronic Feed Feed Carrier, Carrier,
to Supplier
From Supplier from Customs, Warehouse,
Advising Shipment
Carrier, Broker Customer
Plan
Submit
Documents
Shipment Receive,
Purchase POR Review, validate Monitor Validate Monitor INVOICE
Information quantity to POR Releases POD
Contract Instruction Shipments Documents Validation
ASN
execution platform
8. Command and Control
the Procure to Pay Process
(P2P Global)
Electronic Feed
to Supplier
To Broker, Electronic Electronic
Advising PO
Customs, Feed Feed
Electronic Feed Electronic from from
Electronic Feed Carriers
From Supplier, Feed Carrier, Carrier,
to Supplier
Freight from Customs, Warehouse,
Advising Shipment
Forwarder, 3PL Carrier, Broker Customer
Plan
Submit
Documents
Shipment Receive, INVOICE
Purchase POR Review, validate Monitor Monitor
Information Validate POD Validation
Contract quantity to POR Shipments Releases
Instruction ASN Documents and Payment
Initiate/Upload Purchase Order Information – EDI/XML (850, 855, 860)
• Validate:
•Supplier compliance – business terms and conditions, regulatory (trade: denied party, anti-boycott - finance: OFAC, USPA)
•Product compliance – quality quantity, price, HTS, COO, Trade Agreements, License/Quotas, restricted products
•Country compliance – License/Quotas (restricted/dual use), Embargoed, anti-boycott
•Documentation compliance
•* compliance content integrated and synchronized through 3rd party GTM solutions (OCR, Oceanwide, etc)
• Create automated landed cost estimate
• Establish event order fulfillment plan
• Monitor contract amendments and acceptance
• Supplier Collaboration
9. Command and Control
the Procure to Pay Process
(P2P Global)
Electronic Feed
to Supplier
To Broker, Electronic Electronic
Advising PO
Customs, Feed Feed
Electronic Feed Electronic from from
Electronic Feed Carriers
From Supplier, Feed Carrier, Carrier,
to Supplier
Freight from Customs, Warehouse,
Advising Shipment
Forwarder, 3PL Carrier Broker Customer
Plan
Submit
Documents
Shipment Receive, INVOICE
Purchase POR Review, validate Monitor Validate Monitor
Information POD Validation
Contract quantity to POR Shipments Documents Releases
Instruction ASN and Payment
Download EDI/XML ASN (856) information and validate
• Validate:
•Supplier compliance – instruction terms and conditions
•Product compliance – quality quantity, price
•Documentation compliance
•Track shipment
10. Command and Control
the Procure to Pay Process
(P2P Global)
Electronic Feed
to Supplier
To Broker, Electronic Electronic
Advising PO
Customs, Feed Feed
Electronic Feed Electronic from from
Electronic Feed Carriers
From Supplier, Feed Carrier, Carrier,
to Supplier
Freight from Customs, Warehouse,
Advising Shipment
Forwarder, 3PL Carrier Broker Customer
Plan
Submit
Documents
Shipment Receive, INVOICE
Purchase POR Review, validate Monitor Validate Monitor
Information quantity to POR Releases POD Validation
Contract Instruction Shipments Documents
ASN and Payment
Download/Upload EDI/XML carrier information
Truck(214, 216)
Ocean (315, 312)
Air (114, 104)
Rail (417)
•Provides visibility
•Carrier event management and compliance
•Report event exceptions
•Automate and validate carrier shipment information
11. Command and Control
the Procure to Pay Process
(P2P Global)
Electronic Feed
to Supplier
To Broker, Electronic Electronic
Advising PO
Customs, Feed Feed
Electronic Feed Electronic from from
Electronic Feed Carriers
From Supplier, Feed Carrier, Carrier,
to Supplier
Freight from Customs, Warehouse,
Advising Shipment
Forwarder, 3PL Carrier Broker Customer
Plan
Submit
Documents
Shipment Receive, INVOICE
Purchase POR Review, validate Monitor Validate Monitor
Information Releases POD Validation
Contract Instruction quantity to POR Shipments Documents
ASN and Payment
EDI/XML ABI with Customs
•Increases accuracy and timeliness
•Provides visibility
•Increases regulatory compliance
•Automate and validate CBP information
12. Command and Control
the Procure to Pay Process
(P2P Global)
Electronic Feed
to Supplier
To Broker, Electronic Electronic
Advising PO
Customs, Feed Feed
Electronic Feed Electronic from from
Electronic Feed Carriers
From Supplier, Feed Carrier, Carrier,
to Supplier
Freight from Customs, Warehouse,
Advising Shipment
Forwarder, 3PL Carrier Broker Customer
Plan
Submit
Documents
Shipment Receive, INVOICE
Purchase POR Review, validate Monitor Validate Monitor
Information POD Validation
Contract quantity to POR Shipments Documents Releases and Payment
Instruction ASN
EDI/XML ABI with Customs
EDI/XML with carrier (214, 315, 114, 417)
•Increases accuracy and timeliness
•Provides visibility
13. Command and Control
the Procure to Pay Process
(P2P Global)
Electronic Feed
to Supplier
To Broker, Electronic Electronic
Advising PO
Customs, Feed Feed
Electronic Feed Electronic from from
Electronic Feed Carriers
From Supplier, Feed Carrier, Carrier,
to Supplier
Freight from Customs, Warehouse,
Advising Shipment
Forwarder, 3PL Carrier Broker Customer
Plan
Submit
Documents
Shipment Receive, INVOICE
Purchase POR Review, validate Monitor Validate Monitor
Information POD Validation
Contract quantity to POR Shipments Documents Releases
Instruction ASN and Payment
EDI/XML with Warehouse (945)
EDI/XML with carrier (214, 315, 114, 417)
•Increases accuracy and timeliness
•Provides visibility
14. Command and Control
the Procure to Pay Process
(P2P Global)
Electronic Feed
to Supplier
To Broker, Electronic Electronic
Advising PO
Customs, Feed Feed
Electronic Feed Electronic from from
Electronic Feed Carriers
From Supplier, Feed Carrier, Carrier,
to Supplier
Freight from Customs, Warehouse,
Advising Shipment
Forwarder, 3PL Carrier Broker Customer
Plan
Submit
Documents
Shipment Receive, INVOICE
Purchase POR Review, validate Monitor Validate Monitor
Information POD Validation
Contract quantity to POR Shipments Documents Releases
Instruction ASN and Payment
EDI/XML with Customs ABI)
EDI/XML with partners (210, 310, 110, 410, 810)
•Automated invoice auditing
•Increases accuracy and timeliness
15. GCM supports Global P2P Best Practices
GCM Best Practices* 3rdwave GCM Best Practices Deliverables
Standardized and automated All P2P processes are standardized integrated and synchronized.
global P2P business Automated with EDI, XML, web interfaces to 3 rd party providers
processes
Supported Global Inventory Inventory visibility across the supply chain supports
optimization supply:demand balancing at item level
Centralized Global Supply All P2P supplier and service provider spend is aggregated in
Chain spend management centralized spen d repository
Automated and Streamlined P2P customs and compliance information is maintained in
Customs and Compliance centralized repository against item insuring regulatory and
management business compliance, customs filing accuracy, documentation
control. Automated with EDI, XML, web interfaces to Customs
Brokers, Compliance applications.
Full Global Supply Chain 360-degree P2P item visibility at supplier and service provider
visibility level. Autoamted with EDI, XML, web interfaces to 3 rd party
visibility content providers.
Comprehensive Total Landed Detailed budget, forecast and actual cost management and
Cost Management reporting. Integrated auditing and payment process management.
* Aberdeen Research Paper 2006
16. Command and Control P2P Benefits
Global sourcing/distribution organizations that have implemented
integrated and synchronized global commerce solutions from
3rdwave to create a lean global commerce environment have
seen:
• operating efficiency increase from 30-300%
• inventory reduction across the global supply chain of 30-50%
• improvement in asset utilization of 50-200%
• reduction in total landed cost compared to domestic sourced
products of 15-30%
• reduction in total landed cost of globally sourced products of 2-3%
17. 3rdwave GCM
Command and Control of
Global Commerce P2P Processes