During the 1970’s and 1980’s the computer industry and many retailers were infatuated with Electronic Data Interchange or EDI as it’s often commonly referred to. These days, EDI is a much maligned and often overlooked technology because it’s seen as costly, complicated and cumbersome. Contrary to this popular myth though, EDI can drive tremendous savings and efficiency improvements throughout a supply chain and/or trading community.
If you’re new to this three letter acronym, please find the following description from Wikipedia – Electronic Data Interchange (EDI) is the structured transmission of data between organizations by electronic means. It is used to transfer electronic documents from one computer system to another, i.e. from one trading partner to another trading partner. It is more than mere E-mail; for instance, organizations might replace bills of lading and even Cheques with appropriate EDI messages. It also refers specifically to a family of standards, including the X12 series. However, EDI also exhibits its pre-Internet roots, and the standards tend to focus on ASCII (American Standard Code for Information Interchange)-formatted single messages rather than the whole sequence of conditions and exchanges that make up an inter-organization business process.
Whilst the mere description of EDI may fill you with dread, there really isn’t anything to fear. Long gone are the days where you had to employ teams of technical people and invest in expensive technology. Electronic trading relationships with customers, suppliers or partners can now be setup within hours and the business benefits reaped within days.
Imagine if you will a company sending all of its invoices electronically, properly matched and guaranteed to reach its customers computer systems within seconds. This is what EDI can do and it has a major effect of reducing average days of debt, streamlining accounts departments, improving cash flow and decreasing operating expenditure.
Retailers have effectively used EDI for many years although there are still many industries that have yet to experience its benefit. Chemicals and pharmaceuticals for example is a vertical market awash with paper documents, data and information that needs to flow up and down its supply chain. In addition, because of regulatory and compliance issues, a lot of this data needs to be stored for retrieval on an as required basis.
By adopting EDI and using structured messages and exchanging these electronically in real-time with its partners, customers and suppliers, many of high-costs of doing business within Chemicals and Pharmaceuticals could be eradicated.
EDI is a well grounded methodology and proven way to drive significant supply chain improvements. Almost in secret, a small group of vendors have been addressing the pitfalls that blighted its uptake a decade ago and dare I say it “resurgence is just around the corner”.
Learn more about Supply Chain Management. Stop by our site where you can find out all about Perceptant and what we can do for you.
Thursday, 17 December 2009
Tuesday, 15 December 2009
Electronic Data Interchange (EDI): Resurgence past due?
A much maligned often overlooked technology is Electronic Data Interchange or EDI as it’s often commonly referred to. During the 1970’s and 1980’s it was seen as the solution to all business to business communication although high costs and many interpretations of so called standards lead to its stagnation. When all’s said and done though, EDI can drive tremendous savings and efficiency improvements throughout a supply chain and/or trading community…
For those of you still to discover what this acronym actually refers to, here’s an overview from Wikipedia – Electronic Data Interchange (EDI) is the structured transmission of data between organizations by electronic means. It is used to transfer electronic documents from one computer system to another, i.e. from one trading partner to another trading partner. It is more than mere E-mail; for instance, organizations might replace bills of lading and even Cheques with appropriate EDI messages. It also refers specifically to a family of standards, including the X12 series. However, EDI also exhibits its pre-Internet roots, and the standards tend to focus on ASCII (American Standard Code for Information Interchange)-formatted single messages rather than the whole sequence of conditions and exchanges that make up an inter-organization business process.
Now whilst this may sound technically complicated, it really isn’t. Long gone are the days where you had to employ teams of technical people and invest in expensive technology. Electronic trading relationships with customers, suppliers or partners can now be setup within hours and the business benefits reaped within days.
Imagine if you will a company sending all of its invoices electronically, properly matched and guaranteed to reach its customers computer systems within seconds. This is what EDI can do and it has a major effect of reducing average days of debt, streamlining accounts departments, improving cash flow and decreasing operating expenditure.
Wal*Mart, Tesco and many other retailers have effectively used EDI for many years although there are still many industries that have yet to experience its benefit. The Pharmaceutical industry for example is a market awash with paper documents, data and information that needs to flow up and down complex supply chains. Furthermore, due to regulatory and compliance issues, a lot of this data needs to be stored for retrieval on an as required basis.
Were this industry to embrace EDI and using structured messages and exchange these electronically in real-time with its partners, customers and suppliers, much of the cost and complexity of doing business would be eradicated.
EDI is certainly not the panacea of computing but is a well grounded methodology and proven way to drive significant supply chain improvements. Almost in secret, a small group of vendors have been addressing the pitfalls that blighted its uptake during the 1980’s and dare I say it “resurgence is just around the corner”.
Learn more about Supply Chain Management. Stop by our site where you can find out all about Perceptant and what we can do for you.
For those of you still to discover what this acronym actually refers to, here’s an overview from Wikipedia – Electronic Data Interchange (EDI) is the structured transmission of data between organizations by electronic means. It is used to transfer electronic documents from one computer system to another, i.e. from one trading partner to another trading partner. It is more than mere E-mail; for instance, organizations might replace bills of lading and even Cheques with appropriate EDI messages. It also refers specifically to a family of standards, including the X12 series. However, EDI also exhibits its pre-Internet roots, and the standards tend to focus on ASCII (American Standard Code for Information Interchange)-formatted single messages rather than the whole sequence of conditions and exchanges that make up an inter-organization business process.
Now whilst this may sound technically complicated, it really isn’t. Long gone are the days where you had to employ teams of technical people and invest in expensive technology. Electronic trading relationships with customers, suppliers or partners can now be setup within hours and the business benefits reaped within days.
Imagine if you will a company sending all of its invoices electronically, properly matched and guaranteed to reach its customers computer systems within seconds. This is what EDI can do and it has a major effect of reducing average days of debt, streamlining accounts departments, improving cash flow and decreasing operating expenditure.
Wal*Mart, Tesco and many other retailers have effectively used EDI for many years although there are still many industries that have yet to experience its benefit. The Pharmaceutical industry for example is a market awash with paper documents, data and information that needs to flow up and down complex supply chains. Furthermore, due to regulatory and compliance issues, a lot of this data needs to be stored for retrieval on an as required basis.
Were this industry to embrace EDI and using structured messages and exchange these electronically in real-time with its partners, customers and suppliers, much of the cost and complexity of doing business would be eradicated.
EDI is certainly not the panacea of computing but is a well grounded methodology and proven way to drive significant supply chain improvements. Almost in secret, a small group of vendors have been addressing the pitfalls that blighted its uptake during the 1980’s and dare I say it “resurgence is just around the corner”.
Learn more about Supply Chain Management. Stop by our site where you can find out all about Perceptant and what we can do for you.
Free Value Added Networks (VAN’s) hit the Supply Chain…
Perceptant, the on-demand Supply Chain Management (SCM) and Electronic Data Interchange (EDI) Company, today unveiled its free to use, global value added network service to customers.
Supply Chain Exchange 2.0, harnesses all the leading attributes of competitive Value-Added Networks, including security, robustness, scalability and traceability but offers users the ability to exchange data and messages on an inclusive, free to use basis.
Designed to be used not only with Perceptant’s range of Supply Chain, EDI and Busines-to-Business Integration solutions, the company also encourages connections from thrid party applications once certifcation and security tests are completed.
“Traditionally, companies have been financially peralised for using value-added networks” says Matthew Slinn, CEO and Founder of Perceptant. “The more they used the network the more thay had to pay, which in a lot of cases has severely limited the uptake of electronic trading and B2B data integration”. “Through this new Global initiative, companies can harness the power of a trading-grid of World-class SCM and EDI applications underpinned by a Value Added Network that doesn’t financially penalise them”.
“Over the next five years, AMR Research predict the market for SCM applications will grow at 7% per annum, despite the gloomy economic conditions of 2008 so companies are going to place an ever reliance on interconnected applications and services” says Tim Howden, Senior SCM Consultant. “EDI and SCM vendors have historically hampered the growth of these initiatives by charging customers based on data volumes and network usage or expecting companies to send sensitive information and data across unsecured Internet connections. Perceptant has finally broken this mould and we expect initiatives like this to further fuel customer demand”.
“This certainly strengthens Perceptant’s hand and pushes them to the forefront of the Software as a Service (SaaS) business application vendors in the Supply Chain Management, B2B Integration and Electronic Data Interchange (EDI) space “.
To request further information: Amanda Dines, Head of Marketing at Perceptant – http://www.perceptant.com/
About Perceptant: Perceptant is a leading provider of software and services that drive the integration, synchronisation and collaboration of global supply chains. Our hosted, on-demand Supply Chain Management, B2B Integration and Electronic Data Interchange (EDI) solutions process millions of business-to-business transactions, integrate leading enterprise software applications and help seamlessly connect the demand chains of many of the World’s leading trading communities. Perceptant is headquartered in Sheffield, Yorkshire, UK.
Learn more about Electronic Data Interchange (EDI). Alternatively, stop by Perceptant’s site where you can find out all about SaaS EDI Solutions and what they can do for you.
Supply Chain Exchange 2.0, harnesses all the leading attributes of competitive Value-Added Networks, including security, robustness, scalability and traceability but offers users the ability to exchange data and messages on an inclusive, free to use basis.
Designed to be used not only with Perceptant’s range of Supply Chain, EDI and Busines-to-Business Integration solutions, the company also encourages connections from thrid party applications once certifcation and security tests are completed.
“Traditionally, companies have been financially peralised for using value-added networks” says Matthew Slinn, CEO and Founder of Perceptant. “The more they used the network the more thay had to pay, which in a lot of cases has severely limited the uptake of electronic trading and B2B data integration”. “Through this new Global initiative, companies can harness the power of a trading-grid of World-class SCM and EDI applications underpinned by a Value Added Network that doesn’t financially penalise them”.
“Over the next five years, AMR Research predict the market for SCM applications will grow at 7% per annum, despite the gloomy economic conditions of 2008 so companies are going to place an ever reliance on interconnected applications and services” says Tim Howden, Senior SCM Consultant. “EDI and SCM vendors have historically hampered the growth of these initiatives by charging customers based on data volumes and network usage or expecting companies to send sensitive information and data across unsecured Internet connections. Perceptant has finally broken this mould and we expect initiatives like this to further fuel customer demand”.
“This certainly strengthens Perceptant’s hand and pushes them to the forefront of the Software as a Service (SaaS) business application vendors in the Supply Chain Management, B2B Integration and Electronic Data Interchange (EDI) space “.
To request further information: Amanda Dines, Head of Marketing at Perceptant – http://www.perceptant.com/
About Perceptant: Perceptant is a leading provider of software and services that drive the integration, synchronisation and collaboration of global supply chains. Our hosted, on-demand Supply Chain Management, B2B Integration and Electronic Data Interchange (EDI) solutions process millions of business-to-business transactions, integrate leading enterprise software applications and help seamlessly connect the demand chains of many of the World’s leading trading communities. Perceptant is headquartered in Sheffield, Yorkshire, UK.
Learn more about Electronic Data Interchange (EDI). Alternatively, stop by Perceptant’s site where you can find out all about SaaS EDI Solutions and what they can do for you.
Wednesday, 9 December 2009
Perceptant Offer Supply Chain’s Free Access to Global Value-Added and Electronic Data Interchange (EDI) Network
Perceptant announce Supply Chain Exchange 2.0, an on-demand, fully-managed Value Added Network service that allows the exchange of Electronic Data Interchange (EDI) messages and Supply Chain Management data on an inclusive, free to use basis.
London, England, December 09, 2009 – Perceptant (http://www.perceptant.com/), the on-demand Supply Chain Management and Electronic Data Interchange (EDI) Company, today unveiled its free to use, global value added network service to customers.
Supply Chain Exchange 2.0 (www.perceptant.com/services_edi_van.shtml), harnesses all the leading attributes of competitive Value-Added Networks, including security, robustness, scalability and traceability but offers users the ability to exchange data and messages on an inclusive, free to use basis.
The service is not only designed to be used in conjunction with Perceptant’s SCMaaS (Supply Chain Management as a Service) suite of supply chain, B2B integration and electronic data interchange (EDI) solutions but also allows connections from complimentary third party applications.
“Now companies not only have access to a trading-grid of World-class supply chain and EDI applications but also a Value Added Network that doesn’t penalise them based on increased usage” says Matthew Slinn, CEO and founder of Perceptant. “For existing users of Electronic Data Interchange (EDI) and Value Added Networks this initiative could save them $m’s, for companies contemplating the use of a VAN or worried about security issues relating to AS2, FTP and P2P this is the answer”.
“With AMR Research (www.amrresearch.com) recently estimating that the supply chain management (SCM) applications market will grow 7% annually for the next five years, despite the gloomy economic conditions of 2008, it’s plain to see companies will place an increasing reliance on interconnected applications and services” says Tim Howden, Senior Supply Chain Consultant. “Supply Chain vendors have historically hampered the growth of these initiatives by charging customers based on data volumes and network usage or expecting companies to send sensitive information and data across unsecured Internet connections. It’s therefore refreshing to see Perceptant has finally broken this mould and we expect significant demand for their service”.
About Perceptant
Perceptant is a leading provider of software and services that drive the integration, synchronisation and collaboration of global supply chains. Our hosted, on-demand supply chain management, B2B Integration and EDI solutions process millions of business-to-business transactions, integrate leading enterprise software applications and help seamlessly connect the demand chains of many of the World’s leading trading communities. Perceptant is headquartered in Sheffield, Yorkshire, UK.
http://www.perceptant.com/
Contact:
Amanda Dines, Director of Marketing
Perceptant Limited
+44 (0)1246 291759
London, England, December 09, 2009 – Perceptant (http://www.perceptant.com/), the on-demand Supply Chain Management and Electronic Data Interchange (EDI) Company, today unveiled its free to use, global value added network service to customers.
Supply Chain Exchange 2.0 (www.perceptant.com/services_edi_van.shtml), harnesses all the leading attributes of competitive Value-Added Networks, including security, robustness, scalability and traceability but offers users the ability to exchange data and messages on an inclusive, free to use basis.
The service is not only designed to be used in conjunction with Perceptant’s SCMaaS (Supply Chain Management as a Service) suite of supply chain, B2B integration and electronic data interchange (EDI) solutions but also allows connections from complimentary third party applications.
“Now companies not only have access to a trading-grid of World-class supply chain and EDI applications but also a Value Added Network that doesn’t penalise them based on increased usage” says Matthew Slinn, CEO and founder of Perceptant. “For existing users of Electronic Data Interchange (EDI) and Value Added Networks this initiative could save them $m’s, for companies contemplating the use of a VAN or worried about security issues relating to AS2, FTP and P2P this is the answer”.
“With AMR Research (www.amrresearch.com) recently estimating that the supply chain management (SCM) applications market will grow 7% annually for the next five years, despite the gloomy economic conditions of 2008, it’s plain to see companies will place an increasing reliance on interconnected applications and services” says Tim Howden, Senior Supply Chain Consultant. “Supply Chain vendors have historically hampered the growth of these initiatives by charging customers based on data volumes and network usage or expecting companies to send sensitive information and data across unsecured Internet connections. It’s therefore refreshing to see Perceptant has finally broken this mould and we expect significant demand for their service”.
About Perceptant
Perceptant is a leading provider of software and services that drive the integration, synchronisation and collaboration of global supply chains. Our hosted, on-demand supply chain management, B2B Integration and EDI solutions process millions of business-to-business transactions, integrate leading enterprise software applications and help seamlessly connect the demand chains of many of the World’s leading trading communities. Perceptant is headquartered in Sheffield, Yorkshire, UK.
http://www.perceptant.com/
Contact:
Amanda Dines, Director of Marketing
Perceptant Limited
+44 (0)1246 291759
Wednesday, 18 November 2009
Perceptant’s Resellers tap the $6.7 billion Supply Chain Management Market
Perceptant announce SCMaaS (Supply Chain Management as a Service), a suite of on-demand, fully-serviced supply chain solutions designed for resellers to capitalise on the $6.7 billion supply chain market and generate seven figure reoccurring revenue streams.
London, England, November 13, 2009 – Perceptant (http://www.perceptant.com/), the on-demand Supply Chain Management Company, today unveiled its range of cloud-computing based, supply chain management solutions and services, available exclusively to resellers, partners and consultancies.
The market for supply chain management software applications and services, or SCM, topped $6.68 billion in 2008, a 4% increase over 2007, according to the most current estimates from AMR Research (617-542-6600, http://www.amrresearch.com/).
SCMaaS (Supply Chain Management as a Service) is a suite of supply chain, B2B integration and electronic data interchange (EDI) solutions that can be integrated on a fixed fee basis in to back-office applications, rebranded and implemented by Perceptant on behalf of its partners.
“Many of our partners are looking for new, cost efficient ways to drive revenue from existing customer bases and prospects” say Matthew Slinn, CEO and founder of Perceptant. “By partnering with us, resellers gain immediate access to a suite of solutions that allow them to tap in to three of the fastest growing markets right now, namely, Supply Chain Management, B2B Integration and EDI”.
Available via hosted data centres, SCMaaS (http://perceptant.com/services_supply_cas.shtml), is supplied on a fully-managed, on-demand basis and can be rebranded, implemented and maintained using the partners corporate identity and branding.
Partners opt to either resell and rebrand the applications themselves or take advantage of Perceptant’s complementary services, which include sales and marketing campaigns, branded collateral, competitive analysis and roll-out programs.
Europe’s largest business-to-business construction industry exchange, encompassing thousands of companies and millions of business transactions is delivered in this way, which has not only proven to be of great benefit to the entire construction industry but also of significant commercial interest to the exchanges’ owner.
“For the first time, consultancies and software vendors have on-demand access to a suite of white-label supply chain management, integration and messaging solutions via SaaS” says Matthew Slinn, CEO. “Typical partnerships are now generating seven figure ($m’s) revenue streams for our resellers, which is testament to having the right solutions, at the right time for the right partners”.
About Perceptant
Perceptant is a leading provider of software and services that drive the integration, synchronisation and collaboration of global supply chains. Our hosted, on-demand supply chain management, B2B Integration and EDI solutions process millions of business-to-business transactions, integrate leading enterprise software applications and help seamlessly connect the demand chains of many of the World’s leading trading communities. Perceptant is headquartered in Sheffield, Yorkshire, UK.
http://www.perceptant.com/
Contact:
Amanda Dines, Director of Marketing
Perceptant Limited
+44 (0)1246 291759
supply chain management, application integration, demand forecasting, EDI, http://www.perceptant.com, perceptant, resellers, supply chain integration, electronic data interchange
London, England, November 13, 2009 – Perceptant (http://www.perceptant.com/), the on-demand Supply Chain Management Company, today unveiled its range of cloud-computing based, supply chain management solutions and services, available exclusively to resellers, partners and consultancies.
The market for supply chain management software applications and services, or SCM, topped $6.68 billion in 2008, a 4% increase over 2007, according to the most current estimates from AMR Research (617-542-6600, http://www.amrresearch.com/).
SCMaaS (Supply Chain Management as a Service) is a suite of supply chain, B2B integration and electronic data interchange (EDI) solutions that can be integrated on a fixed fee basis in to back-office applications, rebranded and implemented by Perceptant on behalf of its partners.
“Many of our partners are looking for new, cost efficient ways to drive revenue from existing customer bases and prospects” say Matthew Slinn, CEO and founder of Perceptant. “By partnering with us, resellers gain immediate access to a suite of solutions that allow them to tap in to three of the fastest growing markets right now, namely, Supply Chain Management, B2B Integration and EDI”.
Available via hosted data centres, SCMaaS (http://perceptant.com/services_supply_cas.shtml), is supplied on a fully-managed, on-demand basis and can be rebranded, implemented and maintained using the partners corporate identity and branding.
Partners opt to either resell and rebrand the applications themselves or take advantage of Perceptant’s complementary services, which include sales and marketing campaigns, branded collateral, competitive analysis and roll-out programs.
Europe’s largest business-to-business construction industry exchange, encompassing thousands of companies and millions of business transactions is delivered in this way, which has not only proven to be of great benefit to the entire construction industry but also of significant commercial interest to the exchanges’ owner.
“For the first time, consultancies and software vendors have on-demand access to a suite of white-label supply chain management, integration and messaging solutions via SaaS” says Matthew Slinn, CEO. “Typical partnerships are now generating seven figure ($m’s) revenue streams for our resellers, which is testament to having the right solutions, at the right time for the right partners”.
About Perceptant
Perceptant is a leading provider of software and services that drive the integration, synchronisation and collaboration of global supply chains. Our hosted, on-demand supply chain management, B2B Integration and EDI solutions process millions of business-to-business transactions, integrate leading enterprise software applications and help seamlessly connect the demand chains of many of the World’s leading trading communities. Perceptant is headquartered in Sheffield, Yorkshire, UK.
http://www.perceptant.com/
Contact:
Amanda Dines, Director of Marketing
Perceptant Limited
+44 (0)1246 291759
supply chain management, application integration, demand forecasting, EDI, http://www.perceptant.com, perceptant, resellers, supply chain integration, electronic data interchange
Tuesday, 17 November 2009
Thursday, 12 November 2009
EDI (Electronic Data Interchange) Rev’s up the Automotive Supply Chain…
Perceptant.com – Supply Chain Management, B2B Intergation and EDI (Electronic Data Interchange) Solutions for 21st Century...
Electronic data interchange (EDI) is a fact of life for most retailers and consumer goods manufacturers; these companies have been trading electronic documents like purchase orders, bills of lading and advance ship notices (ASNs) for decades. But EDI has only recently gained traction in the automotive aftermarket.
EDI adoption may get a boost, though. In September, connectivity solution provider GCommerce donated the data specifications and business requirements for its EDI “Super Spec” to the Automotive Aftermarket Industry Association (AAIA). By making the GCommerce “Super Spec” available to the industry, the company and AAIA hope to help rationalize EDI use in the aftermarket and increase adoption.
“GCommerce will still manage and maintain the updates to the spec, but it will be available to the industry through AAIA,” says Scott Luckett, AAIA vice president, technology standards and solutions. “Companies will be able to use this ‘master map’ of connections whether they use GCommerce or not.
“Companies have an infinite capacity for creating different versions of EDI,” Luckett adds. “What the Super Spec does is allow them to link up and communicate with everybody else.”
AAIA has formed an oversight group to manage the Super Spec that will advise the association and GCommerce on how it should be used and to propose changes or enhancements. GCommerce has also worked with AAIA on its PARTnerShip Network, which allows small- and medium-sized suppliers to exchange data with retailers.
“By doing this, we’re making it easier and faster to use the technology, so we can accelerate adoption,” says Steve Smith GCommerce president and CEO. “The industry can take this the next step forward.”
EDI can substantially reduce the amount of purchasing-associated paper flying around offices, and make it easier and faster to send purchase orders, confirm that the order was received, and know in advance if there will be any differences between what’s been ordered and what is actually being shipped.
Initially, EDI in the aftermarket was relegated to large companies, particular retailers. But as the Internet has made the cost to deploy an EDI solution more manageable, distributors of all sizes have begun utilizing the technology to communicate with trading partners, and this momentum has begun to pull in more manufacturers.
“This is no longer relegated to larger companies because the Internet has allowed the creation of service-based technology,” Smith says. “You don’t have to install any software. The evolution for the technology and the compression of the cost structure has allowed all participants in the marketplace to get involved.”
One of the most successful EDI deployments in the industry has been the partnership between the Aftermarket Auto Parts Alliance and GCommerce, and in May AMR Research gave the system, called the Total EDI Solution, its John Fonantella Supply Chain Innovation Award. The system integrates with Activant and other platforms to connect trading partners electronically. GCommerce facilitates connecting the 53 Alliance members with 249 vendors, representing 89% of the Alliance Group purchase volume, saving an estimated $17 million annually.
Other distributors and program groups have also signed on with GCommerce, the most recent being Federated Auto Parts.
Vermont-based Bond Auto Parts was one of the first Alliance members to deploy EDI with GCommerce in 2007. “As we move forward we’re redeploying people into different jobs, so I won’t have anybody that can physically go out and grab a packing slip off of a pallet to manually adjust a purchase order,” says Craig Bond, senior vide president. “Ultimately, we won’t trade with anyone that doesn’t trade via EDI.”
Bond has moved the majority of its document transactions to EDI (helped in part by the leverage of the Alliance with vendors), but is having some issues with credits and returns. “Aside from that, getting clean data is probably the biggest hurdle we’ve had from day one,” Bond says.
For buyers, the key benefits of EDI are efficiency and cost reduction. “You can get rid of all of this cost and all of these errors, and eliminate waste in the system,” Smith says. That means the elimination of phone calls, faxes and re-keying information into purchasing systems.
For the manufacturers, the benefit is somewhat more indirect, but significant: by adopting EDI, these companies make it easier for customer to do business with them, and can then attract more business. More importantly, most retailers and many distributors are developing policies that will make EDI a mandatory component of any relationship they have with a manufacturer.
According to Bond, EDI will not only reduce paperwork, it will also reduce average turn times and improve ordering.
“If we place an order on Wednesday, once that’s ready to ship the vendor will send us an electronic ASN,” Bond says. “That way, if I order 10,000 pieces and they aren’t sending me 100 of those, the purchase order is adjusted automatically and when I go to place my order next Wednesday, I can add those in.”
Before the advent of EDI, Bond says he might not know the order had been shorted until it arrived several days later, by which point it might be too late to adjust his next order. “Ninety percent of the time, I would place an order and not realize that those hundred pieces weren’t coming,” Bond says. “Now I have that information within three days of placing the order, and I can adjust the purchase order immediately.”
More importantly, the automated systems can manage the bulk of the orders, freeing up employees for other tasks. “The man hours we’ve saved with EDI are just mind blowing,” Bond says. “We’re redeploying those people to help make our inventory chain as strong as it can be.”
In order for EDI to truly become ubiquitous, a few things need to happen. First, system providers have to provide a well-defined, seamless integration of all documents to make these transactions work effectively. And more companies already using the technology have to share their success stories with the rest of the industry.
Bond thinks the donation of the Super Spec to AAIA will also help move things forward. “When the Alliance got involved in EDI, we had a bigger hammer, so to speak, to use with the vendors,” Bond says. “With AAIA involved, this becomes an industry standard. We need that standard because not all vendors are providing information in the same way. With the standard, everyone will be looking for the same type of information.”
http://www.perceptant.com/
Tags: automotive, EDI, http://www.perceptant.com, logistics, perceptant, supply chain integration, Supply Chain Management
This entry was posted on Thursday, November 12th, 2009 at 12:10 pm and is filed under B2B e-commerce, EDI, Supply Chain Consulting, Supply Chain Software, e-commerce, supply chain integration.
Electronic data interchange (EDI) is a fact of life for most retailers and consumer goods manufacturers; these companies have been trading electronic documents like purchase orders, bills of lading and advance ship notices (ASNs) for decades. But EDI has only recently gained traction in the automotive aftermarket.
EDI adoption may get a boost, though. In September, connectivity solution provider GCommerce donated the data specifications and business requirements for its EDI “Super Spec” to the Automotive Aftermarket Industry Association (AAIA). By making the GCommerce “Super Spec” available to the industry, the company and AAIA hope to help rationalize EDI use in the aftermarket and increase adoption.
“GCommerce will still manage and maintain the updates to the spec, but it will be available to the industry through AAIA,” says Scott Luckett, AAIA vice president, technology standards and solutions. “Companies will be able to use this ‘master map’ of connections whether they use GCommerce or not.
“Companies have an infinite capacity for creating different versions of EDI,” Luckett adds. “What the Super Spec does is allow them to link up and communicate with everybody else.”
AAIA has formed an oversight group to manage the Super Spec that will advise the association and GCommerce on how it should be used and to propose changes or enhancements. GCommerce has also worked with AAIA on its PARTnerShip Network, which allows small- and medium-sized suppliers to exchange data with retailers.
“By doing this, we’re making it easier and faster to use the technology, so we can accelerate adoption,” says Steve Smith GCommerce president and CEO. “The industry can take this the next step forward.”
EDI can substantially reduce the amount of purchasing-associated paper flying around offices, and make it easier and faster to send purchase orders, confirm that the order was received, and know in advance if there will be any differences between what’s been ordered and what is actually being shipped.
Initially, EDI in the aftermarket was relegated to large companies, particular retailers. But as the Internet has made the cost to deploy an EDI solution more manageable, distributors of all sizes have begun utilizing the technology to communicate with trading partners, and this momentum has begun to pull in more manufacturers.
“This is no longer relegated to larger companies because the Internet has allowed the creation of service-based technology,” Smith says. “You don’t have to install any software. The evolution for the technology and the compression of the cost structure has allowed all participants in the marketplace to get involved.”
One of the most successful EDI deployments in the industry has been the partnership between the Aftermarket Auto Parts Alliance and GCommerce, and in May AMR Research gave the system, called the Total EDI Solution, its John Fonantella Supply Chain Innovation Award. The system integrates with Activant and other platforms to connect trading partners electronically. GCommerce facilitates connecting the 53 Alliance members with 249 vendors, representing 89% of the Alliance Group purchase volume, saving an estimated $17 million annually.
Other distributors and program groups have also signed on with GCommerce, the most recent being Federated Auto Parts.
Vermont-based Bond Auto Parts was one of the first Alliance members to deploy EDI with GCommerce in 2007. “As we move forward we’re redeploying people into different jobs, so I won’t have anybody that can physically go out and grab a packing slip off of a pallet to manually adjust a purchase order,” says Craig Bond, senior vide president. “Ultimately, we won’t trade with anyone that doesn’t trade via EDI.”
Bond has moved the majority of its document transactions to EDI (helped in part by the leverage of the Alliance with vendors), but is having some issues with credits and returns. “Aside from that, getting clean data is probably the biggest hurdle we’ve had from day one,” Bond says.
For buyers, the key benefits of EDI are efficiency and cost reduction. “You can get rid of all of this cost and all of these errors, and eliminate waste in the system,” Smith says. That means the elimination of phone calls, faxes and re-keying information into purchasing systems.
For the manufacturers, the benefit is somewhat more indirect, but significant: by adopting EDI, these companies make it easier for customer to do business with them, and can then attract more business. More importantly, most retailers and many distributors are developing policies that will make EDI a mandatory component of any relationship they have with a manufacturer.
According to Bond, EDI will not only reduce paperwork, it will also reduce average turn times and improve ordering.
“If we place an order on Wednesday, once that’s ready to ship the vendor will send us an electronic ASN,” Bond says. “That way, if I order 10,000 pieces and they aren’t sending me 100 of those, the purchase order is adjusted automatically and when I go to place my order next Wednesday, I can add those in.”
Before the advent of EDI, Bond says he might not know the order had been shorted until it arrived several days later, by which point it might be too late to adjust his next order. “Ninety percent of the time, I would place an order and not realize that those hundred pieces weren’t coming,” Bond says. “Now I have that information within three days of placing the order, and I can adjust the purchase order immediately.”
More importantly, the automated systems can manage the bulk of the orders, freeing up employees for other tasks. “The man hours we’ve saved with EDI are just mind blowing,” Bond says. “We’re redeploying those people to help make our inventory chain as strong as it can be.”
In order for EDI to truly become ubiquitous, a few things need to happen. First, system providers have to provide a well-defined, seamless integration of all documents to make these transactions work effectively. And more companies already using the technology have to share their success stories with the rest of the industry.
Bond thinks the donation of the Super Spec to AAIA will also help move things forward. “When the Alliance got involved in EDI, we had a bigger hammer, so to speak, to use with the vendors,” Bond says. “With AAIA involved, this becomes an industry standard. We need that standard because not all vendors are providing information in the same way. With the standard, everyone will be looking for the same type of information.”
http://www.perceptant.com/
Tags: automotive, EDI, http://www.perceptant.com, logistics, perceptant, supply chain integration, Supply Chain Management
This entry was posted on Thursday, November 12th, 2009 at 12:10 pm and is filed under B2B e-commerce, EDI, Supply Chain Consulting, Supply Chain Software, e-commerce, supply chain integration.
Wednesday, 4 November 2009
Viable Alternative to BT EDINet (EDI*Net, EDI Net) EDI VAN...
Perceptant (http://www.perceptant.com/) a leading Supply Chain Management, B2B Integration and EDI solutions provider offers customers of the soon to be defunct BT EDINet EDI VAN service a cost effective and fully-managed migration path that predicts 10-60% cost savings and no loss in service levels.
EDINet (EDI*Net, EDI NET) a leading EDI VAN run by BT in the UK is closing its doors and ceasing operation in early 2010. This potentially leaves thousands of customers with the painful and costly task of switching EDI VAN providers, which could cause a significant disruption in trading and major bottlenecks thought out the supply chain.
To counter the negative effects of being forced to switch EDI VAN suppliers, Perceptant, offers a fully-managed, no-cost migration program coupled with EDI traffic costs that undercut current offerings by 10-60%.
More details can be found at http://www.perceptant.com/ or by contacting us via email, info@perceptant.com
EDINet (EDI*Net, EDI NET) a leading EDI VAN run by BT in the UK is closing its doors and ceasing operation in early 2010. This potentially leaves thousands of customers with the painful and costly task of switching EDI VAN providers, which could cause a significant disruption in trading and major bottlenecks thought out the supply chain.
To counter the negative effects of being forced to switch EDI VAN suppliers, Perceptant, offers a fully-managed, no-cost migration program coupled with EDI traffic costs that undercut current offerings by 10-60%.
More details can be found at http://www.perceptant.com/ or by contacting us via email, info@perceptant.com
Wednesday, 21 October 2009
DHL Supply Chain Management Services Grow By 100%
The supply chain management industry has been getting a boost, as more logistics companies look for more efficient technology and cheaper means of freighting.
According to market watchers, the global economic downturn has cut the bottomlines of many logistics firms by about 30 per cent in the last year as export traffic slowed.
Some of these firms have been turning to supply chain management services as a solution.
Richard Owens, CEO, Global Customer Solutions, DHL, said: “We have been very involved and we have seen the demand for services rise more than 100 per cent in the projects that we have done.
“They (logistics companies) see this is as a way to refine their processes, take cost out, and refine their mode of transportation. We are now seeing companies that haven’t used anything but air freight … now looking at sea freight.”
While other industries may be taking a breather, logistics firms are seeing potential business growth from the IT and biomedical industry - with more patents coming online and companies looking for more innovative product offerings to lure in consumers. Such growth is also seen to be raising demand for supply chain management services.
For logistics firms, experts said that they need to think longer term because of the evolving landscape and changing customer demands.
“Well, the landscape needs to change, logistics companies need to be more innovative, and of course it needs to change from the demand of customers of logistics companies,” said Rod Strata, industry principal, Transportation & Logistics, SAP.
“Because in many cases logistics companies are the architects of global trade, what we will see is different offerings. We will see some logistics companies transform with much greater service offerings which will transform their profit margins to double-digit growth going forward,” he added.
According to experts, some upcoming trends which logistics firms need to be mindful of going forward, are climate change, as customers demand lower carbon routes. Global developments, such as China’s increasing position as a technological leader, could also alter trade flows.
Next generation supply chain management, B2B integration and EDI - http://www.perceptant.com/
According to market watchers, the global economic downturn has cut the bottomlines of many logistics firms by about 30 per cent in the last year as export traffic slowed.
Some of these firms have been turning to supply chain management services as a solution.
Richard Owens, CEO, Global Customer Solutions, DHL, said: “We have been very involved and we have seen the demand for services rise more than 100 per cent in the projects that we have done.
“They (logistics companies) see this is as a way to refine their processes, take cost out, and refine their mode of transportation. We are now seeing companies that haven’t used anything but air freight … now looking at sea freight.”
While other industries may be taking a breather, logistics firms are seeing potential business growth from the IT and biomedical industry - with more patents coming online and companies looking for more innovative product offerings to lure in consumers. Such growth is also seen to be raising demand for supply chain management services.
For logistics firms, experts said that they need to think longer term because of the evolving landscape and changing customer demands.
“Well, the landscape needs to change, logistics companies need to be more innovative, and of course it needs to change from the demand of customers of logistics companies,” said Rod Strata, industry principal, Transportation & Logistics, SAP.
“Because in many cases logistics companies are the architects of global trade, what we will see is different offerings. We will see some logistics companies transform with much greater service offerings which will transform their profit margins to double-digit growth going forward,” he added.
According to experts, some upcoming trends which logistics firms need to be mindful of going forward, are climate change, as customers demand lower carbon routes. Global developments, such as China’s increasing position as a technological leader, could also alter trade flows.
Next generation supply chain management, B2B integration and EDI - http://www.perceptant.com/
Supply Chains Don't Have To Be Taxing...
One of the areas that doesn’t get enough attention in supply chain is taxation. Whether its because we think that taxes are unavoidable or we don’t know how to get rebates or avoid them in the first place, they are too often seen as a cost of business. While its true that taxes are more certain than death (as you don’t know when you’ll die but you know you’ll get taxed until you do, and then when you do), it’s also true that they can be minimized.
Last year, Supply & Demand Chain ran a great pair of articles on the tax efficient supply chain, that I covered in this post on the tax efficient supply chain. Since then, I haven’t seen much, until this article on how to benefit when the supply chain meets tax which presented ten characteristics of a tax efficient supply chain structure and ten leading practices of companies with tax efficient supply chains.
The practices, in particular, are worth pointing out:
1.Implement limited risk structures following a business change.
Having to make big transfers to cover losses can incur “transfer” taxes related to incoming revenue. Furthermore, if the unit or division the money is coming from is separate or in another country and profitable, you might still have to pay taxes on the “profits” in that business, division, or country and get taxed twice.
2.Align the tax and transfer pricing structure with the locus of strategic decision making.
If your operations aren’t in synch, the corrections you have to make after the fact could have tax implications.
3.Focus resources on primary risks and view Advance Pricing Agreements (APAs) as key tools for minimizing the impact of tax audits.
Good documentation is the key to a successful audit (as long as you have been truthful on your taxes).
4.Document the business case for restructuring when the decision is being made.
Be sure to detail compensation or indemnification payments to restructured entities, or risk being taxed and fined after the fact.
5.Consider applying for an APA in one or more countries.
This will protect you from double taxation in two or more tax jurisdictions.
6.Be sure your documentation includes the responsibility profiles of limited risk entities.
You don’t want your efforts to look like a tax evasion scheme. While it’s perfectly legal to take steps to minimize your tax burden, attempting to alleviate your fiscal responsibilities completely is a different story.
7.Perform an annual review.
Insure that you are documenting revenue and paying taxes consistent with all agreements and laws that are in place. Document the findings. If you ever need to show “reasonable care”, this is how you’ll do it.
8.Establish procedures for tax authority audits.
Be prepared and responsible. It will help.
9.Keep informed of tax developments in each operating country.
Being proactive will save you a lot more than if you are reactive.
10.Talk to Peers and Experts.
Talk with companies that have implemented Tax Efficient Supply Chains and expert consultancies (and global tax firms) that have helped.
Next generation Supply Chain Management, B2B Integration and EDI - http://www.perceptant.com/
Last year, Supply & Demand Chain ran a great pair of articles on the tax efficient supply chain, that I covered in this post on the tax efficient supply chain. Since then, I haven’t seen much, until this article on how to benefit when the supply chain meets tax which presented ten characteristics of a tax efficient supply chain structure and ten leading practices of companies with tax efficient supply chains.
The practices, in particular, are worth pointing out:
1.Implement limited risk structures following a business change.
Having to make big transfers to cover losses can incur “transfer” taxes related to incoming revenue. Furthermore, if the unit or division the money is coming from is separate or in another country and profitable, you might still have to pay taxes on the “profits” in that business, division, or country and get taxed twice.
2.Align the tax and transfer pricing structure with the locus of strategic decision making.
If your operations aren’t in synch, the corrections you have to make after the fact could have tax implications.
3.Focus resources on primary risks and view Advance Pricing Agreements (APAs) as key tools for minimizing the impact of tax audits.
Good documentation is the key to a successful audit (as long as you have been truthful on your taxes).
4.Document the business case for restructuring when the decision is being made.
Be sure to detail compensation or indemnification payments to restructured entities, or risk being taxed and fined after the fact.
5.Consider applying for an APA in one or more countries.
This will protect you from double taxation in two or more tax jurisdictions.
6.Be sure your documentation includes the responsibility profiles of limited risk entities.
You don’t want your efforts to look like a tax evasion scheme. While it’s perfectly legal to take steps to minimize your tax burden, attempting to alleviate your fiscal responsibilities completely is a different story.
7.Perform an annual review.
Insure that you are documenting revenue and paying taxes consistent with all agreements and laws that are in place. Document the findings. If you ever need to show “reasonable care”, this is how you’ll do it.
8.Establish procedures for tax authority audits.
Be prepared and responsible. It will help.
9.Keep informed of tax developments in each operating country.
Being proactive will save you a lot more than if you are reactive.
10.Talk to Peers and Experts.
Talk with companies that have implemented Tax Efficient Supply Chains and expert consultancies (and global tax firms) that have helped.
Next generation Supply Chain Management, B2B Integration and EDI - http://www.perceptant.com/
Friday, 9 October 2009
Johnson & Johnson provide sustainability practices for the pharmaceutical industry
Incorporating sustainability into operations and the supply chain is an important focus for pharmaceutical companies. While the complete definition of sustainability includes social, environmental and economic impact, the emphasis in this analysis will be on the incorporation of environmentally favored approaches.
http://www.perceptant.com/blog/?p=148
http://www.perceptant.com/blog/?p=148
Marks and Spencer benefits from supply chain management improvements
Marks and Spencer has attributed “continuing improvement in performance” to better stock control, sourcing and supply chain management.
The retail giant’s second quarter trading statement reported that it is continuing to manage costs tightly, although “better than planned volumes” are expected to lead to an increase in full year operating costs of 0 per cent to one per cent, excluding bonus. Capital expenditure for this year is still expected to be around £400m.
http://www.perceptant.com/blog/?p=153
The retail giant’s second quarter trading statement reported that it is continuing to manage costs tightly, although “better than planned volumes” are expected to lead to an increase in full year operating costs of 0 per cent to one per cent, excluding bonus. Capital expenditure for this year is still expected to be around £400m.
http://www.perceptant.com/blog/?p=153
Wal-Mart: One size does not fit all across a Global supply chain…
Fascinating article that highlights “what’s good the goose in not necessarily good for the gander” when it comes to global supply chain management strategy. Perceptant (http://www.perceptant.com) has for a long time advocated that geography, in-county tax, export and logistics rules as well as local employment practices impact supply chain’s in very different ways on a country level. What are your views and thoughts?
http://www.dcvelocity.com/articles/20091008cscmp2009_walmart_supply_chain/
http://www.dcvelocity.com/articles/20091008cscmp2009_walmart_supply_chain/
Thursday, 17 September 2009
Companies Turn to Supply Chains for Revenue Gains and Cost Savings
Economic Pressures Turning Companies to Supply Chains for Revenue Gains and Cost Savings
Supply Chain Management Advancing as Counter-Cyclical Tool
FALLS CHURCH, Va., Sept. 17 /PRNewswire/ — Economic pressures are forcing companies to employ their supply chains, primarily the sourcing and procurement functions, to contain costs and boost revenue, according to the 2009 Global Survey of Supply Chain Progress from CSC (NYSE: CSC), Supply Chain Management Review, the Council of Supply Chain Management Professionals (CSCMP) and Michigan State University (MSU).
The survey, completed by supply chain executives representing more than 20 industries and every major geographical segment of the world, shows the extent to which the economy has impacted the supply management function. Survey respondents cited an immediate need to cut costs as the top economic pressure on their supply chains. An overwhelming 88 percent of respondents have set objectives for purchasing to generate cost savings in the next 12 months. This enhanced focus on supply chain management (SCM) demonstrates its use as a counter-cyclical tool for improved business performance.
“The global economic downturn has impacted every aspect of business operations, and supply chain is no exception,” said Chuck Poirier, author of several books on SCM and a partner in CSC’s Global Business Solutions and Services group, who has helped analyze survey results for the last seven years. “In the face of a renewed focus on cost reduction, supply chain management continues to show a positive impact on business performance. During the past year companies have turned to their supply chains to cut costs and grow revenues. To a large degree, the supply chain has delivered, helping companies get through some tough times.”
The survey shows 33 percent of respondents indicate they leveraged supply chain initiatives to reduce costs between one to five percent in the last three years. Twenty-seven percent report realizing even higher cost reductions, ranging from six to 10 percent. “These results were comparable to last year’s,” said Poirier. “However, the most significant improvement over 2008 was in the number of respondents who reported no impact - or did not know the impact - of supply chain initiatives on costs. That number dropped significantly, from 22 percent in 2008 to 13 percent in this year’s survey.”
In spite of the difficult economy, 32 percent of respondents saw their revenues increase between one to five percent in the past three years as a result of supply chain initiatives, while another 24 percent identified revenue increases in the six to 10 percent range.
“That’s a total of 56 percent, a significant number given the current downturn,” noted Poirier. “We see this trend as evidence of the fact that supply chain is finally becoming entrenched as a company-wide improvement effort. Leaders are implementing strategic supply chain efforts to transform business processes to achieve near-optimum operating conditions. At the same time, most firms identified as followers and laggards have not reached the limit of what can be done to enhance financial performance with their supply chains.”
While a majority of respondents indicate they are already using their supply chain to trim logistics costs, source more strategically and generate additional savings by leveraging the purchasing function, companies that are considered supply chain leaders are going a step further: accelerating revenue generation by integrating the supply chain organization with key internal groups such as finance, IT and product development. “The leaders, in short, understand the central role supply chain management can play in the company’s business success and are playing that role to the fullest,” said Poirier.
For the first time, this year’s survey included questions about supply chain sustainability and green initiatives. Eighty-seven percent of respondents report they are either evaluating or implementing options related to supply chain sustainability; just under half of those have already implemented such initiatives. Sixty-two percent report paying more attention to green/sustainability issues today than they were 18 months ago.
“This is encouraging because it suggests that sustainability and green issues will be dominant elements in future supply chain efforts,” said Poirier. “At the same time, there’s little in the survey results to show that revenues for such initiatives have actually been increased; in fact, we saw evidence that economic conditions have pushed green to a lower priority. Hopefully, that will be a short-term move.”
The 2009 survey was completed by 176 respondents from both large and mid-sized companies. Fifty-three percent of the firms indicated their size as $1 billion or more in annual sales, while revenues of the remaining companies ranged from $250 million to $1 billion.
The survey report, which includes the complete set of questions and responses, and an executive summary, can be found at www.csc.com/2009SCSurvey.
Supply Chain Management Advancing as Counter-Cyclical Tool
FALLS CHURCH, Va., Sept. 17 /PRNewswire/ — Economic pressures are forcing companies to employ their supply chains, primarily the sourcing and procurement functions, to contain costs and boost revenue, according to the 2009 Global Survey of Supply Chain Progress from CSC (NYSE: CSC), Supply Chain Management Review, the Council of Supply Chain Management Professionals (CSCMP) and Michigan State University (MSU).
The survey, completed by supply chain executives representing more than 20 industries and every major geographical segment of the world, shows the extent to which the economy has impacted the supply management function. Survey respondents cited an immediate need to cut costs as the top economic pressure on their supply chains. An overwhelming 88 percent of respondents have set objectives for purchasing to generate cost savings in the next 12 months. This enhanced focus on supply chain management (SCM) demonstrates its use as a counter-cyclical tool for improved business performance.
“The global economic downturn has impacted every aspect of business operations, and supply chain is no exception,” said Chuck Poirier, author of several books on SCM and a partner in CSC’s Global Business Solutions and Services group, who has helped analyze survey results for the last seven years. “In the face of a renewed focus on cost reduction, supply chain management continues to show a positive impact on business performance. During the past year companies have turned to their supply chains to cut costs and grow revenues. To a large degree, the supply chain has delivered, helping companies get through some tough times.”
The survey shows 33 percent of respondents indicate they leveraged supply chain initiatives to reduce costs between one to five percent in the last three years. Twenty-seven percent report realizing even higher cost reductions, ranging from six to 10 percent. “These results were comparable to last year’s,” said Poirier. “However, the most significant improvement over 2008 was in the number of respondents who reported no impact - or did not know the impact - of supply chain initiatives on costs. That number dropped significantly, from 22 percent in 2008 to 13 percent in this year’s survey.”
In spite of the difficult economy, 32 percent of respondents saw their revenues increase between one to five percent in the past three years as a result of supply chain initiatives, while another 24 percent identified revenue increases in the six to 10 percent range.
“That’s a total of 56 percent, a significant number given the current downturn,” noted Poirier. “We see this trend as evidence of the fact that supply chain is finally becoming entrenched as a company-wide improvement effort. Leaders are implementing strategic supply chain efforts to transform business processes to achieve near-optimum operating conditions. At the same time, most firms identified as followers and laggards have not reached the limit of what can be done to enhance financial performance with their supply chains.”
While a majority of respondents indicate they are already using their supply chain to trim logistics costs, source more strategically and generate additional savings by leveraging the purchasing function, companies that are considered supply chain leaders are going a step further: accelerating revenue generation by integrating the supply chain organization with key internal groups such as finance, IT and product development. “The leaders, in short, understand the central role supply chain management can play in the company’s business success and are playing that role to the fullest,” said Poirier.
For the first time, this year’s survey included questions about supply chain sustainability and green initiatives. Eighty-seven percent of respondents report they are either evaluating or implementing options related to supply chain sustainability; just under half of those have already implemented such initiatives. Sixty-two percent report paying more attention to green/sustainability issues today than they were 18 months ago.
“This is encouraging because it suggests that sustainability and green issues will be dominant elements in future supply chain efforts,” said Poirier. “At the same time, there’s little in the survey results to show that revenues for such initiatives have actually been increased; in fact, we saw evidence that economic conditions have pushed green to a lower priority. Hopefully, that will be a short-term move.”
The 2009 survey was completed by 176 respondents from both large and mid-sized companies. Fifty-three percent of the firms indicated their size as $1 billion or more in annual sales, while revenues of the remaining companies ranged from $250 million to $1 billion.
The survey report, which includes the complete set of questions and responses, and an executive summary, can be found at www.csc.com/2009SCSurvey.
Kraft foods poised to axe 50% of its suppliers...
Kraft mulls axing its supplier base
Kraft Foods is evaluating plans to cut its supplier base in half in a dramatic move that would impact over 30,000 companies, according to media reports.
Reuters noted that the US food giant is seeking to save around $300m annually and has identified consolidation of its purchasing of everything from ingredients to packaging materials as a way of helping to achieve this objective.
The review of purchasing comes as the company tries to simplify a procurement framework that evolved as Kraft acquired numerous companies over the years, the news agency reported.
“This is probably the first truly holistic view we’ve taken,” Julia Brown, senior vice president of procurement at Kraft, said in an interview with Reuters.
“We’re essentially taking a white sheet of paper and saying ‘what is the right number of suppliers to support this particular category, who are they, what is the capability we need for now and in the future, and does the current supplier base have that.”
Kraft Foods is evaluating plans to cut its supplier base in half in a dramatic move that would impact over 30,000 companies, according to media reports.
Reuters noted that the US food giant is seeking to save around $300m annually and has identified consolidation of its purchasing of everything from ingredients to packaging materials as a way of helping to achieve this objective.
The review of purchasing comes as the company tries to simplify a procurement framework that evolved as Kraft acquired numerous companies over the years, the news agency reported.
“This is probably the first truly holistic view we’ve taken,” Julia Brown, senior vice president of procurement at Kraft, said in an interview with Reuters.
“We’re essentially taking a white sheet of paper and saying ‘what is the right number of suppliers to support this particular category, who are they, what is the capability we need for now and in the future, and does the current supplier base have that.”
Wednesday, 16 September 2009
Agility and responsiveness are a must for the customer-driven supply chain
Aberdeen research report discusses ways to manage multi-enterprise, demand-supply networks in order to increase responsiveness and agility…
MARLTON, N.J.–(Business Wire)–
Acsis, Inc., a leader in track and trace solutions for supply chain safety, security and efficiency, today announced its sponsorship of the research report, “Multi-Enterprise Manufacturing: The Role of Visibility and Collaboration in Driving Responsiveness.” The research study, conducted by Aberdeen Group, a Harte-Hanks Company (NYSE: HHS), reveals that due to an increase in the outsourcing of supply chain processes and solutions, organizations are losing visibility at a time when agility and responsiveness are a must for the customer-driven supply chain.
“Manufacturing and demand-supply networks are continuing to grow in complexity. Because of this complexity, it has become difficult for companies to stay informed and in control of every stage of the supply chain lifecycle,” said Viktoriya Sadlovska, analyst and co-author of the report. “At the same time, these organizations are working to move towards a more customer-driven supply chain. Therefore it is critical for companies to better align their outsourcing and customer-service efforts to attain agility and enable better responsiveness to minimize supply chain risk.”
Key findings from survey respondents indicate that:
· The top strategic focus for 2009 was on customer-related processes
· When combating the multi-enterprise visibility challenge, respondents are more likely to focus on collaborative approaches
· Effective information management is absolutely key for success in today`s complex demand-supply networks
· Having granular visibility that extends both upstream and downstream the supply chain allows companies to achieve operational excellence
According to report authors, visibility plays a big role in day-to-day routine supply chain management tasks, historic supply chain performance analysis and long-term planning. Additionally, a centralized supply chain organization, with globally defined strategy has both global and regional centers of excellence, and is an important organizational element for managing today`s networks with a high degree of process outsourcing. Best-in-class companies have repeatedly shown to have adopted this capability.
“The Aberdeen report is an affirmation of the importance of visibility and agility within the supply chain,” said Andre Pino, chief marketing officer, Acsis, Inc. “As companies outsource more and more of their supply demand-networks, they lose the visibility and control that they once had when the operations were within their four walls. “However, new automated data collection and collaboration technologies can provide visibility and restore the management control over their demand-supply networks and minimize disruptions and operational errors, he said.”
To obtain a complimentary copy of this report, visit:
http://www.aberdeen.com/link/sponsor.asp?cid=5788
Perceptant (http://www.perceptant.com/) - Next Gen Supply Chain Management, B2B Integration & EDI
MARLTON, N.J.–(Business Wire)–
Acsis, Inc., a leader in track and trace solutions for supply chain safety, security and efficiency, today announced its sponsorship of the research report, “Multi-Enterprise Manufacturing: The Role of Visibility and Collaboration in Driving Responsiveness.” The research study, conducted by Aberdeen Group, a Harte-Hanks Company (NYSE: HHS), reveals that due to an increase in the outsourcing of supply chain processes and solutions, organizations are losing visibility at a time when agility and responsiveness are a must for the customer-driven supply chain.
“Manufacturing and demand-supply networks are continuing to grow in complexity. Because of this complexity, it has become difficult for companies to stay informed and in control of every stage of the supply chain lifecycle,” said Viktoriya Sadlovska, analyst and co-author of the report. “At the same time, these organizations are working to move towards a more customer-driven supply chain. Therefore it is critical for companies to better align their outsourcing and customer-service efforts to attain agility and enable better responsiveness to minimize supply chain risk.”
Key findings from survey respondents indicate that:
· The top strategic focus for 2009 was on customer-related processes
· When combating the multi-enterprise visibility challenge, respondents are more likely to focus on collaborative approaches
· Effective information management is absolutely key for success in today`s complex demand-supply networks
· Having granular visibility that extends both upstream and downstream the supply chain allows companies to achieve operational excellence
According to report authors, visibility plays a big role in day-to-day routine supply chain management tasks, historic supply chain performance analysis and long-term planning. Additionally, a centralized supply chain organization, with globally defined strategy has both global and regional centers of excellence, and is an important organizational element for managing today`s networks with a high degree of process outsourcing. Best-in-class companies have repeatedly shown to have adopted this capability.
“The Aberdeen report is an affirmation of the importance of visibility and agility within the supply chain,” said Andre Pino, chief marketing officer, Acsis, Inc. “As companies outsource more and more of their supply demand-networks, they lose the visibility and control that they once had when the operations were within their four walls. “However, new automated data collection and collaboration technologies can provide visibility and restore the management control over their demand-supply networks and minimize disruptions and operational errors, he said.”
To obtain a complimentary copy of this report, visit:
http://www.aberdeen.com/link/sponsor.asp?cid=5788
Perceptant (http://www.perceptant.com/) - Next Gen Supply Chain Management, B2B Integration & EDI
Packaging dimensions help streamline global Supply Chains…
Harkness Wilder and Gladson Announce Strategic Alliance to Deliver Improved Logistics Strategies
EVANSTON, Ill. & LISLE, Ill.–(BUSINESS WIRE)–Harkness Wilder, a consulting firm focusing on designing and implementing business process improvements in supply chain management, and Gladson, the leading provider of product images, product information and category management services, have announced a strategic alliance to deliver improved logistics strategies to the consumer packaged goods industry.
Harkness Wilder’s services specifically target improvement opportunities across the supply chain, such as reduced costs, improved service, increased productivity, and more efficient processes and controls. The company’s practice areas include sourcing, demand planning, inventory management, distribution network design, warehouse operations and transportation management.
Gladson’s Certified Master Data Program provides data on outer dimensions, weights, marking, labeling and bar code information for cases, inner-packs and retail units. This product information helps manufacturers streamline internal operations and support data exchange with trading partners to simultaneously build trust and eliminate the need for costly manual verification. This data can ensure that Harkness Wilder’s clients are working with the most accurate and complete information in the development of their logistics strategies.
“Our clients see logistics as a competitive weapon,” said Mark Shapiro, president and CEO of Gladson. “Harkness Wilder’s expertise in transportation planning and warehouse development in conjunction with Gladson’s highly-accurate product master data will create solutions that deliver real value across the supply chain.”
“Harkness Wilder’s consulting services depend on the accuracy of case-level data to ensure the quickest and most efficient evaluations of logistics activities for their clients, and the most accurate results,” Julie Forgash, CEO of Harkness Wilder said. “Gladson is already the leader in data management for space planning and on-line shopping. Their services at the case-level will be a tremendous advantage to our clients as we help them with logistics planning.”
http://www.perceptant.com/ - Next Generation Supply Chain Management, B2B Integration and EDI
EVANSTON, Ill. & LISLE, Ill.–(BUSINESS WIRE)–Harkness Wilder, a consulting firm focusing on designing and implementing business process improvements in supply chain management, and Gladson, the leading provider of product images, product information and category management services, have announced a strategic alliance to deliver improved logistics strategies to the consumer packaged goods industry.
Harkness Wilder’s services specifically target improvement opportunities across the supply chain, such as reduced costs, improved service, increased productivity, and more efficient processes and controls. The company’s practice areas include sourcing, demand planning, inventory management, distribution network design, warehouse operations and transportation management.
Gladson’s Certified Master Data Program provides data on outer dimensions, weights, marking, labeling and bar code information for cases, inner-packs and retail units. This product information helps manufacturers streamline internal operations and support data exchange with trading partners to simultaneously build trust and eliminate the need for costly manual verification. This data can ensure that Harkness Wilder’s clients are working with the most accurate and complete information in the development of their logistics strategies.
“Our clients see logistics as a competitive weapon,” said Mark Shapiro, president and CEO of Gladson. “Harkness Wilder’s expertise in transportation planning and warehouse development in conjunction with Gladson’s highly-accurate product master data will create solutions that deliver real value across the supply chain.”
“Harkness Wilder’s consulting services depend on the accuracy of case-level data to ensure the quickest and most efficient evaluations of logistics activities for their clients, and the most accurate results,” Julie Forgash, CEO of Harkness Wilder said. “Gladson is already the leader in data management for space planning and on-line shopping. Their services at the case-level will be a tremendous advantage to our clients as we help them with logistics planning.”
http://www.perceptant.com/ - Next Generation Supply Chain Management, B2B Integration and EDI
Tuesday, 15 September 2009
Deutsche Bank enhances financial supply chain management platform
Deutsche Bank today announced that it has made the necessary investment to launch a new financial supply chain management (FSCM) platform that brings together the power of its trade and cash management capabilities.
The platform will offer flexible financing solutions and be fully-integrated with payments, reporting and SWIFT’s trade services utility (TSU). This standardized platform will be global and will offer both multi-currency and multi-lingual capabilities.
In response to increased client demand for FSCM, Deutsche Bank is enhancing its platform through the introduction of document and message exchange including matching via TSU. Additionally, the Bank is in the process of augmenting its risk management methodologies to provide more flexible, event-driven finance. Concurrently, the Bank is strengthening its dedicated sales and implementation teams.
The enhanced FSCM platform will provide great flexibility and facilitates integration with third parties. The Bank continues to develop partnerships and alliances with third parties, including financial institutions and others such as logistic providers, in order to expand supply chain reach, augment credit capacity and enhance the flow of supply chain information.
Marilyn Spearing, Global Head of Trade Finance and Cash Management Corporates, Global Transaction Banking, Deutsche Bank, said, “Demand for FSCM has increased as a result of globalization, further movement from letters of credit to open account, and the recent financial crisis. Managing working capital remains a strategic priority for our clients and we are developing a more robust FSCM platform to accommodate the needs of today’s market.”
Jon Richman, Global Product Head, Trade and Financial Supply Chain, Global Transaction Banking, Deutsche Bank, said, “Deutsche Bank continues to make the investment in our FSCM platform and product range necessary to help our clients succeed in this core area. Financial institutions and corporate clients look to partner with Deutsche Bank because of our extensive and expanding FSCM capabilities along with our stability and geographic coverage.
The platform will offer flexible financing solutions and be fully-integrated with payments, reporting and SWIFT’s trade services utility (TSU). This standardized platform will be global and will offer both multi-currency and multi-lingual capabilities.
In response to increased client demand for FSCM, Deutsche Bank is enhancing its platform through the introduction of document and message exchange including matching via TSU. Additionally, the Bank is in the process of augmenting its risk management methodologies to provide more flexible, event-driven finance. Concurrently, the Bank is strengthening its dedicated sales and implementation teams.
The enhanced FSCM platform will provide great flexibility and facilitates integration with third parties. The Bank continues to develop partnerships and alliances with third parties, including financial institutions and others such as logistic providers, in order to expand supply chain reach, augment credit capacity and enhance the flow of supply chain information.
Marilyn Spearing, Global Head of Trade Finance and Cash Management Corporates, Global Transaction Banking, Deutsche Bank, said, “Demand for FSCM has increased as a result of globalization, further movement from letters of credit to open account, and the recent financial crisis. Managing working capital remains a strategic priority for our clients and we are developing a more robust FSCM platform to accommodate the needs of today’s market.”
Jon Richman, Global Product Head, Trade and Financial Supply Chain, Global Transaction Banking, Deutsche Bank, said, “Deutsche Bank continues to make the investment in our FSCM platform and product range necessary to help our clients succeed in this core area. Financial institutions and corporate clients look to partner with Deutsche Bank because of our extensive and expanding FSCM capabilities along with our stability and geographic coverage.
Friday, 4 September 2009
Do Pharmaceutical companies really focus on their Supply Chains?
I read the following and wondered just how much focus Supply Chain Optimization receives in Pharmaceuticals:
"Successful supply chain management, including managing demand, planning API and formulation production, packaging and distributing, is a goal shared by all pharmaceutical manufacturers. According to PharmaTech.com, effective supply-chain management is particularly important as the pharmaceutical industry seeks ways to reduce costs, maintain regulatory compliance, and adhere to quality and safety standards..."
Comments/thoughts?
"Successful supply chain management, including managing demand, planning API and formulation production, packaging and distributing, is a goal shared by all pharmaceutical manufacturers. According to PharmaTech.com, effective supply-chain management is particularly important as the pharmaceutical industry seeks ways to reduce costs, maintain regulatory compliance, and adhere to quality and safety standards..."
Comments/thoughts?
Tuesday, 1 September 2009
The Business Case for EDI...
The first return (of many) for companies wanting to receive business documents from their supply chain partners electronically, is because if they are properly integrated then it saves the recipient having to provide the resource to enter the document on the their own ERP system...
http://knol.google.com/k/ian-ford/electronic-data-interchange-edi/yhsjocxy2hhk/2#
http://knol.google.com/k/ian-ford/electronic-data-interchange-edi/yhsjocxy2hhk/2#
CISCO and Black & Decker Improve Forecast Accuracy
Whether it is a truck, a tsunami or an economic downturn, the same general rule applies: You are better off if you can see it coming from a safe distance.
http://computerworld.co.nz/news.nsf/mgmt/07FF5D9E832B4AD3CC25762000191781
http://computerworld.co.nz/news.nsf/mgmt/07FF5D9E832B4AD3CC25762000191781
Friday, 28 August 2009
The effects of packaging optimization...
All of sudden, product packaging has become one of the hottest areas of supply chain management.
It started with soaring fuel and transportation costs a few years ago, as companies realized that “over packaging” and packaging redesigns offered significant opportunities to reduce the dimensions of products for shipping – allowing companies to ship more products in the same carton, pallet or trailer. That directly lowered transportation costs.
Perhaps the most notable example of this were the redesigned milk cartons put into use at several warehouse clubs and other retailers – the more rectangular design allowed palletization of the milk and twice as many cartons to be shipped in a full truck load. (See New Milk Jug Design Shows Promise of Improved Packaging to Reduce Transportation Spend.)
http://www.scdigest.com/ASSETS/ON_TARGET/09-08-26-2.PHP?CID=2676
It started with soaring fuel and transportation costs a few years ago, as companies realized that “over packaging” and packaging redesigns offered significant opportunities to reduce the dimensions of products for shipping – allowing companies to ship more products in the same carton, pallet or trailer. That directly lowered transportation costs.
Perhaps the most notable example of this were the redesigned milk cartons put into use at several warehouse clubs and other retailers – the more rectangular design allowed palletization of the milk and twice as many cartons to be shipped in a full truck load. (See New Milk Jug Design Shows Promise of Improved Packaging to Reduce Transportation Spend.)
http://www.scdigest.com/ASSETS/ON_TARGET/09-08-26-2.PHP?CID=2676
Tuesday, 25 August 2009
Thursday, 13 August 2009
Supply Chain Management for Construction...
Effective supply chain management across the European construction industry has just made a giant leap forward - http://perceptant.com/solutions_vertical_me.shtml
Monday, 10 August 2009
Perceptant implements Europe's largest Construction B2B Supply Chain Portal
News on the grapevine is that the team at Perceptant have just implemented Europe's largest B2B Construction Supply Chain Portal - http://perceptant.com/solutions_vertical_me.shtml
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