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TRANSCRIPT
The Outside-In Supply Chain Ed Rusch Corporate Marketing
Presentation Agenda
I. Inside-Out vs. Outside-In Supply Chain • Enterprise Focused Approach • Customer Focused Approach
II. Enabling the Customer Focused Approach • Needs of the Outside-In Supply Chain • Combining Two Powerful Forces
III. Evolving Market Requirements • What Does the Future Hold?
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Inside-Out vs. Outside-In Supply Chain
Evolution In Market Accelerating For Manufacturers
Flow of Goods and Information Becoming more Widely
Distributed and Complex
Increased Risk and Volatility
Decreased Visibility and Predictability Increased M&A Activity
More Competitive Pressure
Wider Fluctuations in Availability and Costs of Materials
Reduced Demand and Supply Predictability
Dispersed Assets
RESULTS
Evolution In Market Accelerating For Manufacturers
Flow of Goods and Information Becoming more Widely
Distributed and Complex
Increased M&A Activity
More Competitive Pressure
Wider Fluctuations in Availability and Costs of Materials
Reduced Demand and Supply Predictability
Dispersed Assets
RAMIFICATIONS
Excess Material Inventories at Time of Falling Prices Incur Huge Losses
Short Material Inventories at Time of Increased Demand Incur Loss of Sales
Customers
Logistics Providers Suppliers
Evolution In Market Accelerating For Manufacturers
REQUIREMENTS
Collectively Sense and Properly Respond to Demand and Supply
Changes
What’s Needed? • Real Customer Driven
Processes • Real Trading Partner
Integration • Real Supply Chain
Visibility
Where Has The Investment Been?
Billions Invested Automating Internal Operations through ERP Systems like SAP and Oracle • Designed around Standardized Enterprise
Processes of ‘Procure to Pay’ and ‘Order to Cash’ • Inflexible, yet Highly Efficient • A ‘One Size Fits All’ Approach
The Inside-Out Supply Chain
Intra-Company Benefits: • Enforces Corporate
Requirements • Standardizes Internal
Processes • Correlates Multiple
Processes Across Departments
Reality of Inside-Out Supply Chain
The Inside-Out Supply Chain
Inter-Company Shortcomings: • Partners Have Own Ways • May Not Accept Your
Demands • Varying Capabilities and
Technology Resources
Standardization & Efficiency
Gartner's TOP 15: Integrated Supply Chains 2012
1) Apple 2) Amazon.com 3) McDonald’s 4) Dell 5) Procter & Gamble 6) The Coca-Cola Company 7) Intel 8) Cisco Systems 9) Wal-Mart Stores 10) Unilever 11) Colgate-Palmolive 12) PepsiCo 13) Samsung 14) Nike 15) Inditex
Where Will More Investment Go?
Significantly more Investments to make Supply Chains more Capable of Responding Directly to Customers • Designed Around the Needs of the Customer • Interdependent on the Operating Demands of Others
• Focuses on Sensing, Shaping, and Driving Intelligent,
Fast Responses
The Outside-In Supply Chain
Inter-Company Results: • Respond Directly to
Customers • Correlate Multiple Processes
Across All Trading Partners • Recognize Impact of
Resource Decisions on Entire Value Chain
Intra-Company Benefits: • Increases Speed and
Accuracy of Interpretation of Partner Performance
• Compresses the Planning Horizon to Reduce Risk
Reality of Outside-In Supply Chain
The Outside-In Supply Chain Flexibility & Speed
Resolving Tension of Competing Demands
Gap is Bridged Today Through: • Manual Intervention • Custom, Cumbersome and Costly
Integration Projects • Add-on Modules to ERP • Web Portals
Outside-In Inside-Out Both Valid, Yet Competing Demands
STANDARDIZATION EFFICIENCY
FLEXIBILITY SPEED
These cannot scale efficiently enough for evolving customer needs
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Enabling the Customer Focused Approach
Resolving the Gap
Resolving the Gap Between the Inside-Out and Outside-In Supply Chain
Customers
Logistics Providers Suppliers
Collectively Sense and Properly Respond to Demand and Supply
Changes
What’s Needed? • Real Customer Driven
Processes • Real Trading Partner
Integration • Real Supply Chain
Visibility
Resolving the Gap
The combined power of a Real Supply Chain Network and Powerful Business Applications to Extend your Enterprise
Elemica SmartLink Applications: Flexible Extension of your
Enterprise Approach to become a Customer Approach Elemica QuickLink Network: Robust Intelligent Supply Chain
Network
Achieving a Customer Focused Approach
What’s Needed?
Elemica QuickLink Network
Connect Once
Connect to All
• Fast & Easy Partner On-Boarding • Clean and Actionable Data • Visibility into Business Issues Before they Develop
SmartLink Applications
Connect Once
Connect to All
• Powerful Business Applications across the Entire Supply Chain • Designed to Meet Specific Supply Chain Functions
18
SmartLink Applications
QuickLink Network
Customer Data
Logistics Data
Finance Data
Supplier Data
QuickLink Network Customers
EDIFACT AS2 CIDX
HTTPS X12 VAN Odette
sFTP IDOC MQ
Excel Print Word
Email PIDX HTTPS
Your Connection
Portal Access
Architecture
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Evolving Market Requirements
QuickLink Network: 2013 Major Enhancements
Enhancements include:
• More Flexible and Powerful Network Backbone
• More Trading Partners being On-board, Faster
• And, a More Social Supply Chain
The Elemica QuickLink Network is the foundation of Customer Focused Supply
Chain
SmartLink Applications
QuickLink Network
Customer Data
Logistics Data
Finance Data
Supplier Data
QuickLink Network Customers
EDIFACT AS2 CIDX
HTTPS X12 VAN Odette
sFTP IDOC MQ
Excel Print Word
Email PIDX HTTPS
Your Connection
Portal Access
Architecture
Flexible and Powerful Network Backbone
Extract to Business Concepts
SOURCE
TARGET
Populate from Business Concepts
VALIDATE
ENRICH
RULES
In Conclusion
Resolving the Gap Between the Inside-Out and Outside-In Supply Chain with Elemica
Customers
Logistics Providers Suppliers
Collectively Sense and Properly Respond to Demand and Supply
Changes
What’s Needed? • Real Customer Driven
Processes • Real Trading Partner
Integration • Real Supply Chain
Visibility
The Outside-In Supply Chain
Elemica Sourcing and Supply Chain Conference - Frankfurt