Slide 1 ©2012 GXS, Inc.

Slide 2 ©2012 GXS, Inc.

Agenda

The “why” behind the ship notice

Trading partner onboarding

The importance of data quality

Macy’s success story

Other industry case studies

Objective: Discover best practices for overseeing

large scale ship notice rollouts, as well as how

gaining visibility to supply chain exceptions through

early alerts and data quality management can

provide benefits to your organization.

Slide 3 ©2012 GXS, Inc.

The Information Supply Chain Enables the Physical & Financial Supply Chains

Ocean Freight

Customs Clearance

Factory Inspection Warehouse Receipt

Late Stage Configuration

Ground Transport

Letter of Credit Issued Foreign Exchange

Payment Issued Supplier Invoice

Dispute & Deduction Factor Receivable

Slide 4 ©2012 GXS, Inc.

your company your customer’s

distribution center

The Importance of the ASN

Shipment detail must be conveyed prior to product arriving

at the receiving facility to:

Reduce shipment off-loading time

Reduce check-in time from receipt to selling floor

Slide 5 ©2012 GXS, Inc.

Benefits of the ASN

Greater order and product lifecycle visibility (in-transit

inventory)

Increased supply chain visibility (no gaps)

Less product in pipeline, more on sales floor

Improved speed to point-of-sale

Higher profitability through more full-price sales

Increased quality control in shipping

Reduced/eliminated errors in retailer systems about product

Vendor scorecard – opportunity to excel

Reduced discrepancies/penalties

Fewer out of stocks

Fewer errors in inventory management systems

Slide 6 ©2012 GXS, Inc.

Complexities Associated with the ASN

Customer needs

Evolving shipping requirements

Multi-channel packing scenarios

Integration with the entire order-to-cash cycle

Business processes

Distribution flow

Ticketing, packing, pallet building by customer

Carrier relationship management

Technology support

Multiple structures and maps

Shipping document creation and delivery

Process alignment with information flow and ASN translation

Slide 7 ©2012 GXS, Inc.

Automate Warehouse Receiving Reduce Costs from Manual Labor, Freight Expenses and Inventory

Supplier Labels Packages &

Sends Advanced Ship Notice

Detailed electronic

manifest of shipment

contents

Transportation mode,

carrier and expected

delivery date

Buyer Plans for Storage

& Transportation

ASN contents

uploaded to

Warehouse

Management

System

Buyer Tracks Goods

through Supply Chain

Track and trace of

multi-modal

shipments

Dynamic ETA

calculation for delays

Buyer Receives Shipment

in Warehouse

Barcode scan match

against Warehouse

Management System

Electronic Proof of

Delivery

Reduce time tracking

inbound shipments

with fax, e-mail and

phone

Visibility to inventory

in the supply chain

enables reductions

of safety stock

Reduce time to

receive goods with

automated shipment

identification &

advanced labor

planning

Minimize premium

freight discounts with

accurate visibility

Trial RFID programs

with key suppliers

Slide 8 ©2012 GXS, Inc.

Typical B2B Adoption Dynamics

Slide 9 ©2012 GXS, Inc.

As You Approach 100% Participation

Reduced supply-chain costs

Improved invoicing process

Faster payments

Better cash flow

Improved employee productivity by avoiding non-value-add (manual) process

Better customer service by simplifying and streamlining communications

Slide 10 ©2012 GXS, Inc.

Keys to a Successful Trading Partner Implementation Program

Right solution for SMBs:

Easy-to-use

Minimal data entry

Data validation

No-cost/low-cost

Clearly articulated benefits

Internal buy-in

Well-planned rollout

Slide 11 ©2012 GXS, Inc.

Spectrum of Enablers Integration Solutions for Every Trading Partner

Fax Microsoft

Office

Web

Forms

Integration

Broker

Enterprise

Resource

Planning

Small Mid-Size Large

Desktop

Translator

SMB

Accounting

Package

SOHO Very Small Small National Global

Size of Supplier

Medium

Complexity of B2B Enabler

Mobile

Device*

* Future Release

Slide 12 ©2012 GXS, Inc.

Hosted ASN and Barcode Labeling Option Web-Based Package for Smaller Trading Partners

Increase participation –

hosted application minimizes

skill and cost for trading

partners

Deploy changes rapidly – new

ASN fields or barcode

standards

Reduce risk of non-

compliance due to outdated

maps or specifications

Integrate with Web forms and

visibility applications, or use

as a stand-alone application

Take advantage of multi-

lingual capabilities for use with

international sourcing

operations

Warehouse manager logs

into Trading Grid portal to

send ASN and print

barcode label

Up-to-date ASN and barcode

label specifications stored

centrally in Trading Grid

Barcode labels applied at

unit, case and pallet level

for tracking throughout the

supply chain

Slide 13 ©2012 GXS, Inc.

“The supplier network market grew by

24% per year from 2002 to 2008”

“Supplier Networks

facilitate B2B e-commerce

by acting as hubs that

connect buyers and

suppliers.”

Specialized Networks for

Business Processes –

Procurement, e-Invoicing &

Factoring, Payments,

Product Catalogs

Vertical Industries –

Chemicals, Aerospace, Oil &

Gas, High Tech

Source: Forrester Research – Enterprises Should Push Supplier Networks to Deliver Interoperability

Everyone Has Trading Partner Communities The “Extended Enterprise”

http://www.gxsblogs.com/keifers/2008/11/supplier-networks-the-new-van-providers.html

Slide 14 ©2012 GXS, Inc.

Human Centric B2B

Surveys & Communications Supplier Contact Data

Community On-Boarding Dispute Resolution

Query Supplier Community

Sustainability policies

Supplier diversity

Emergency preparedness

e-Commerce readiness

Satisfaction surveys

Track completion of

Readiness survey

On-line training

Connectivity option selected

Testing with sample data

Live transactions

Master Data for Suppliers

Corporate level data –

products supplied, contact

details

Individual person data –

contact, photo, skills, roles

& responsibilities

Buyer-Supplier Collaboration on:

Buyer can provide evidence of

non-compliance (photo,

document)

Supplier can dispute non-

compliance with evidence

Person-to-person

communications

Buyer

Supplier

Slide 15 ©2012 GXS, Inc.

ERP Data Sources

Slide 16 ©2012 GXS, Inc.

Data Quality Challenges Supply Chain Execution

Inspection

& Ship

Import &

Customs

Ocean

In-Transit

Export

Processing

Ground

Transit

Warehouse

Receiving

Logistics Data Quality Challenges

Static Data Quality Challenges

– Unit of measure not provided

– Currency not provided

– Date and time without time zone

– Internal codes unique to each organization

Multi-Document Data Quality

– Over-ship or under-ship

– Back-dating for better performance ratings

– Multiple shipping addresses in ASN

– Line items from multiple POs in single ASN

Slide 17 ©2012 GXS, Inc.

Impact of Bad Data Decreased Revenue and Increased Operating Costs

Slide 18 ©2012 GXS, Inc.

Data Quality and Compliance Real-Time Control of Your Data

ERP Firewall for data evaluation prior to

document delivery to end destination

IN-FLIGHT

IDENTIFICATION

REAL-TIME

VALIDATION

ALERTING/WORKFLOW

Proactive Issue Remediation

TRACK & TREND

Root Cause Remediation

1 2

3 4

Validation Engine

Drill-Down

Workflow/Alerts

Dashboards/Scorecards

Compliance Guides

Slide 19 ©2012 GXS, Inc.

Traditional methods can yield data quality improvement of 50%

Adding rules & tools software can improve data quality to 80%

Adding GXS Data Management Services can improve data quality to 90+%

90+% Data Quality Improvement

Slide 20 ©2012 GXS, Inc.

About Macy’s, Inc.

One of the U.S.’s premier retailers

Fiscal 2011 sales $26.4 billion

840 stores in 45 states, the District of

Columbia, Guam and Puerto Rico

Distribution centers in 16 states

Over 4,300 trading partners

My Macy’s – localization program

Slide 21 ©2012 GXS, Inc.

Macy’s B2B Program (2011)

99.9 % EDI Invoice penetration

99.8 % EDI Advance Ship Notice penetration

59.3 million cartons processed

5.8 million ASNs received

27,700 ASN fatal error transmissions

Slide 22 ©2012 GXS, Inc.

Destination: Stores 1 + 3

Destination: Store 2

Destination: Store 4

Distribution Center

Distribution Center: Cross Docking

Slide 23 ©2012 GXS, Inc.

Cross Dock/Automation Justification

Business Challenges Organic expansion and growth by

acquisition

Extremely high carton volume prohibits

manual processing

Average carton time in DC = 3 days

Benefits of Automation Automatic carton flow through

Implementation of DC bypass program

Average carton time in DC = 6-8 hours

Slide 24 ©2012 GXS, Inc.

Big Lots Largest Broadline Closeout Retailer in the U.S.

Company Overview

One of the U.S.’s leading

discounters with over 1,300

stores, this retailer provides

a wide array of close-out

items ranging from

recliners to party supplies

and seasonal items.

Solution Deployed

Business Issues

Business Benefits Obtained

Incurring extensive costs as a result of not receiving an

ASN prior to the delivery of a shipment

Unable to align warehouse resources with the arrival of

the shipment, resulting in various inefficiencies associated

with having to reject a shipment or handle it ad hoc

GXS enabled real-time, proactive monitoring and alerting

via Data Quality & Compliance

Retailer-specific business process rules alert the supplier

of a missing ASN and if no ASN is sent by time of

shipment, internal parties are notified to generate an ASN

Suppliers send ASNs when alerted of missing ASN

Warehouse able to accept and process shipments

Supplier offenses tracked and remediation follows

Full utilization of warehouse resources

Slide 25 ©2012 GXS, Inc.

U.S. Specialty Retailer Cross-Docking Process Facilitation

This US specialty retailer

has more than 100 stores

and hundreds of domestic

and international vendors.

High costs of express-shipping products directly to stores

Vendors short-shipping, delivering late

Approximately half of vendor community using fax, email, or

phone for document exchange

Need to re-engineer logistics process to implement cross-

docking; eliminate direct store delivery; reduce

transportation costs through shipment consolidation

Stores had no visibility into goods on order or ETAs

Inbound ASN validation with complex business rule set

Enablement of 250+ vendors for full procure-to-pay

document lifecycle

Estimated savings of $1+ million

Improved vendor performance – completeness & on-time

delivery

Improved DC efficiency

Improved customer service at the store level

Ability to scale to accommodate future growth

Business Issues

Results Achieved

Company Overview

Slide 26 ©2012 GXS, Inc.

Questions?

Slide 27 ©2012 GXS, Inc.

Thank You for Your Participation

For More Information

Phones

US: 1-800-334-5669, option 3

EMEA: +44 (0) 1932 776047

ASPAC: +852 2884 6088

Japan: +81-3-5574-7545

GXS Web Sites

US: www.gxs.com

EMEA: www.gxs.eu

ASPAC: www.gxs.asia.com

Japan: www.gxs.co.jp

Presenters:

Melanie Nuce

Melanie.Nuce@gxs.com

+1 303.655.8640

Carol Wall

carol.wall@macys.com

+1 513.782.1805