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WHAT YOU NEED TO DO

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Consider strategically how to deploy a collaborative solution based on a vision for the future, including capability and long-term cost considerations

Make the case for B2Bcollaboration first, then

identify and champion the value of the solution

Complete the internalcollaboration initiatives

within your control

Include cloud-based SaaS, internal or some hybridcombination

Follow through on planned capability improvements

Consider other functional areas beyond supply chain (product development) andif the technology supportscollaboration Realize B2B collaboration is a

new process that extends beyond the four walls and a

different infrastructure must be developed

Remember collaboration is more than just integration, it is breaking down the walls between collaborative partners

Stay the course and followthrough on planned capability improvements

Understand collaboration could require incremental

effort in support since there will be varying levels of

maturity within the partner community

HOW EFFECTIVE IS YOUR ORGANIZATION?FOLLOWERS

(BOTTOM 70%)LEADERS

(TOP 30%)

COMMON STRATEGIESIN RESPONSETO PRESSURES

CHALLENGES TOIMPLEMENTING

THE STRATEGIES

Collaboration initiative with suppliers

69%

40%

63%

43%

25%

30%

25%

45%

39%

35%

33%

22%

33%

14%

33%

41%

Collaboration initiative with customers

Reduce inventories through better visibility

Integrate partner facing collaboration processes

Lack of infrastructure or resources

Executive leadership reluctant to invest

Trading partner resistance to B2B collaboration

Technology solutions required are too costly

LEADERS

FOLLOWERS

LEADERS

FOLLOWERS

LEADERS

FOLLOWERS

LEADERS

FOLLOWERS

LEADERS

FOLLOWERS

LEADERS

FOLLOWERS

LEADERS

FOLLOWERS

LEADERS

FOLLOWERS

. . . . . . . . . . Customer service (complete and on-time rate). . . . . . . . . . . . . . . . . . . . Average cash conversion cycle. . . . . . . . . .

. . . . . . . . . . Gross margin. . . . . . . . . . . . . . . . . . . . Increase in total landed costs. . . . . . . . . .

89.4%40.7 days

24.8%8.8%

96.7%19.4 days

27.9%1.9%

THE PRESSURES DRIVING B2B COLLABORATION

59%

35%12%

24%

64%

Lack of visibilityat various nodesin supply chain

Rising IT costsdue to outdated

systems

Rising raw material andlogistics costs

Escalating customerservice demands

Rising businesscomplexity

B2B Collaboration:No Longer Optional