Faster Supplier On Boarding Pidx Europe November 2008

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I delivered this presentation at the PIDX Europe quarterly meeting held in London during November 2008. It illustrates best practices in on-boarding customers and suppliers onto B2B e-Commerce programs.

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Faster Supplier On Boarding Pidx Europe November 2008

  1. 1. Faster Supplier On-Boarding Best Practices & Emerging Technologies Steve Keifer Vice President Industry & Product Marketing June 8, 2009
  2. 2. Typical Supplier Adoption Dynamics Large Suppliers Ramp Quickly, but SMBs are Challenging
  3. 3. Supplier On-Boarding Phases Process for On-Going Success Web Based Portal EDI-XML Messages Fax to EDI Conversion E-Mail Attachments Trading Partner Contact List Cleansing e-Commerce Readiness Survey Internal Stakeholder Campaigns Program Design & Planning Sales & Marketing Enablement Options Implementation & Testing Proactive Telemarketing Personalized Registration Web Site Regional Seminars Web Based or In Person Training Migration from Other B2B Network Providers Unit & Connectivity Testing System Testing Services with Sample Content 24x7 Support Help Desk New Supplier On-Boarding New Business Process Rollout Impact Analysis & Communications Support & Change Management Program & Performance Management
  4. 4. Faster Supplier On-Boarding Program Planning & Design
  5. 5. Program Design & Planning <ul><li>Internal Stakeholders </li></ul><ul><li>Buy-In is Critical for Success </li></ul><ul><li>Execute Internal Communications Campaigns </li></ul><ul><li>Supplier Contact Details </li></ul><ul><li>List Cleansing </li></ul><ul><li>Supplier/Vendor Master Data Management </li></ul>Phase #1 in Supplier On-Boarding <ul><li>Readiness Survey </li></ul><ul><li>Current B2B Programs </li></ul><ul><li>General Technology Readiness </li></ul><ul><li>Define Goals </li></ul><ul><li>Supplier Segmentation </li></ul><ul><li>Key Performance Indicators to Track </li></ul>
  6. 6. Obtaining Supplier Contact Details Vendor Master Data Management Tier 2 Suppliers <ul><li>Reservoir Engineering & Management Consultants </li></ul><ul><li>Oilfield/Wells Services Contractors </li></ul><ul><li>Drilling Contractors </li></ul><ul><li>Engineering Consultancies </li></ul><ul><li>Heavy Lift Contractors </li></ul><ul><li>Pipelay Contractors </li></ul><ul><li>Seismic Data Acquisition & Processing Contractors </li></ul>Tier 3 Suppliers <ul><li>Geosciences Consultancies </li></ul><ul><li>Data interpretation Consultancies </li></ul><ul><li>Cemetation Contractors </li></ul><ul><li>Laboratory Services </li></ul><ul><li>Machinery & Plant Manufacturers </li></ul><ul><li>Drilling & Well Equipment Manufacturers </li></ul><ul><li>Marine & Subsea Equipment </li></ul><ul><li>Specialist Steel & Tubulars </li></ul>Indirect Suppliers <ul><li>Catering </li></ul><ul><li>Facilities Management </li></ul><ul><li>Sea & Air Transport </li></ul><ul><li>Warehouse & Logistics Operators </li></ul><ul><li>Telecommunications </li></ul><ul><li>Information Technology </li></ul><ul><li>Recruitment </li></ul><ul><li>Employee Training </li></ul><ul><li>Health & Safety Services </li></ul><ul><li>Environmental Consultants </li></ul><ul><li>Medical Benefits & Services </li></ul><ul><li>Banking Providers </li></ul><ul><li>Outside Legal Counsel </li></ul><ul><li>Insurance Carriers </li></ul><ul><li>Accountancy </li></ul><ul><li>Public Relations Firms </li></ul><ul><li>Advertising Agencies </li></ul>Traditional Methods for Obtaining Supplier Lists
  7. 7. Faster Supplier On-Boarding Sales & Marketing
  8. 8. Sales & Marketing to Suppliers Phase #2 in Supplier On-Boarding <ul><li>Define Messaging </li></ul><ul><li>Why should suppliers participate? </li></ul><ul><li>Why is it important to the supply chain? </li></ul><ul><li>Incentives for Suppliers </li></ul><ul><li>“ Easy to Do Business With” enables long term account growth </li></ul><ul><li>Sharing of Information – Visibility to Downstream Customer Demand </li></ul><ul><li>Early Payments for Electronic Invoices </li></ul><ul><li>Marketing Programs </li></ul><ul><li>Direct Mail </li></ul><ul><li>Educational Webinars </li></ul><ul><li>E-Mail Campaigns </li></ul>
  9. 9. Print & Electronic Marketing Direct Mail – Brochures, CDs, Letters
  10. 10. Marketing Using a Micro-Site <ul><li>Online Portal Features </li></ul><ul><li>Register for additional information </li></ul><ul><li>Pre-recorded informative webinars </li></ul><ul><li>Demonstrations and training for end users </li></ul><ul><li>Frequently asked questions </li></ul><ul><li>Extensive, downloadable user guide </li></ul><ul><li>Supplier Self-Enrollment </li></ul><ul><li>Register On-Line in Minutes </li></ul><ul><li>No Software or Paper Contracts </li></ul><ul><li>Flexible Payment Options </li></ul><ul><li>Multiple User Roles and Privileges </li></ul><ul><li>Configurable User Interface </li></ul>
  11. 11. Variability in B2B E-Commerce Flexibility to Support Customer Requirements can Differentiate Suppliers Connectivity Method VAN, Exchange, Internet, Portal Network Protocol OFTP, AS2, S/FTP, MQ, FTP/S, HTTPS Security Policy Network Encryption, Data Encryption File Format/ Standard PIDX, EDIFACT, VDA, Tradacoms, OAG XML Time Commitment 24 Hour Response; 15 Minutes Advance Document Usage PO Change, ASN, Goods Receipt Business Logic Multiple Address/ASN; Invoice without PO Data Interpretation Optional Fields, Codes/Abbreviations Customers can vary Eight different Technology Parameters for their E-Commerce programs
  12. 12. Access to Third Party Financing Offering Incentives to Suppliers Manufacturing & Assembly Payment Released Ocean In-Transit Import & Customs Ground Transit Warehouse Receiving Invoice Approval Inspection & Export Invoice Delivered Purchase Order 0 15 155 95 100 90 85 80 50 45 Early payment to a supplier once the invoice has been approved by the buyer’s accounts payable department. Accelerates cash flow to the supplier. Invoice-Based Financing Inventory owners (which may be buyer or supplier) want to finance the inventory while it is in transit or staged in a distribution center Inventory Financing Suppliers need a working capital loan to finance purchases of raw materials and to fund operating expenses for manufacturing and labor. PO-Based Financing
  13. 13. Faster Supplier On-Boarding Enablement Options
  14. 14. Enablement Options Phase #3 in Supplier On-Boarding <ul><li>Range of Choices </li></ul><ul><li>Minimize Disruption to Supplier Business Process </li></ul><ul><li>Balance Cost/Complexity with Flexibility/Choice </li></ul><ul><li>Different Price Tiers for Suppliers </li></ul><ul><li>Technology Capabilities </li></ul><ul><li>PC & Internet Connection </li></ul><ul><li>Accounting Applications </li></ul><ul><li>ERP Application </li></ul><ul><li>Emerging Markets </li></ul><ul><li>Emerging Markets - Brazil, Russia, India, China </li></ul><ul><li>Resource Rich Exploration & Production Centers </li></ul>
  15. 15. Trading Partner Enabling Options Fax Network Translation Web Forms Integration Broker Enterprise Resource Planning Small Mid-Size Large Desktop Translator SMB Accounting Package SOHO Very Small Small National Global Size of Trading Partner Medium Complexity of B2B Enabler
  16. 16. Emerging Technologies Supplier Enablement Integration Appliances Print Stream Output Mobile Phones & PDA Combined hardware & software device provides plug-and-play B2B integration with low operating expenses Enable mobile workers to view order changes, field service requests, processing exceptions to take immediate action Non-disruptive to the business processes of SMBs by emulating the print function for supply chain documents
  17. 17. Microsoft Excel Integration Simplified B2B E-Commerce based upon Office 2007 Platform <ul><li>About MS Excel </li></ul><ul><li>Over 500M copies of Office worldwide </li></ul><ul><li>User Developed Applications </li></ul><ul><li>No Training required </li></ul><ul><li>No Software Licenses to buy </li></ul><ul><li>Integration </li></ul><ul><li>Programmable Office 2007 ribbon bars </li></ul><ul><li>Simple Download </li></ul><ul><li>Exports documents in XML schema </li></ul><ul><li>Routes to Trading Partner </li></ul>
  18. 18. Faster Supplier On-Boarding On-Going Support
  19. 19. Support & Change Management Phase #5 in Supplier On-Boarding <ul><li>Communicate Changes </li></ul><ul><li>New Transaction Types </li></ul><ul><li>New Technology Options or Industry Standards </li></ul><ul><li>Data Configuration Changes </li></ul><ul><li>New Testing Procedures </li></ul><ul><li>New Suppliers </li></ul><ul><li>Occasional suppliers </li></ul><ul><li>Seasonal suppliers </li></ul><ul><li>New project suppliers </li></ul><ul><li>Relationship Management </li></ul><ul><li>Maintain an on-going dialogue </li></ul><ul><li>Consider social networking approaches </li></ul><ul><li>Help Desk Support </li></ul><ul><li>Business Hours Only or 24x7 </li></ul><ul><li>Multi-Lingual support </li></ul><ul><li>Technical expertise levels </li></ul>
  20. 20. Professional Social Networks
  21. 21. VCF Clearinghouse Model <ul><li>VCF’s Clearinghouse Today </li></ul><ul><li>150 Retailers Tracked </li></ul><ul><li>15,000 Changes Submitted </li></ul><ul><li>500 in Past 30 Days </li></ul><ul><li>Features </li></ul><ul><li>Link to Retail Customers with up-to-date contact information </li></ul><ul><li>Single portal for tracking all customer changes </li></ul><ul><li>Push technology sends notifications to multiple parties daily </li></ul><ul><li>Archive of historical changes for audit and disputes </li></ul><ul><li>Benefits </li></ul><ul><li>Increased compliance by suppliers </li></ul><ul><li>Improved supply chain efficiency </li></ul><ul><li>Competitiveness enhanced through faster responsiveness </li></ul>
  22. 22. Thank You Steve Keifer Vice President Industry & Product Marketing Phone +1.301.340.4454 E-Mail [email_address] Blog http://blogs.gxs.com/keifers

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