EBFM Presentation

Profit from Electronic Business Flow Management

Skip SteinManagement Systems Consulting, Inc.

http://www.msc-inc.net

Copyright © 20103 Management Systems Consulting, Inc.

http://www.msc-inc.net/




Deploying Electronic Business Communications for Profiit 2

Vision Statement

EBFM – Electronic Business Flow Management

EBFM for electronic transaction processing can implement cost reduction and enhanced cash flow opportunities with it’s integration into business processes.

Apply enhanced electronic transactions to your business processes, to reduce expenses, decrease time to cash receipt, eliminate error prone data entry applications, and reduce the order to cash depository process.


EBFM StructureElectronic Business Transactions

Infrastructure is well founded upon open standards like EDI, LC (letter of credit), Open Purchase Order and VMI (vendor managed inventory)

Established standards (ebXML/EDI) and electronic

infrastructure (Internet, VPN’s, secure networks)

capitalize on existing processes and expand beyond

paper and manual order processing techniques.


Business Process ModelGlobal Transaction Integration

Alternate Sources of Supply - dynamically balanced through inventory, order entry, distribution & control systems.

AOT (always on time) replaces JIT (just in time).

Constant information flow from multiple sources of supply – 24 x 7.

Global in scale – uninterrupted by regional boundaries supported by worldwide networks and the Internet.


Purpose -> Profit

It is NOT a dirty word!

Profit - The mechanism by which two or more

business enterprises form enhanced trading

partner relationships for the purpose of

increasing revenue and reducing costs while

in the business of producing a saleable

product at a profit!


Yesterday’s SituationSupply Chain Processes

JIT – just in time is insufficient

Developed as an inventory control/reduction method

Focused on ‘key suppliers’

Produced critical inventory shortages

Affected by strikes, weather, wars


New Model - EBFM

More Efficient and Timely

AOT – always on time – supplies always available when and where needed

Supply forecast linked to variable sources – balanced by availability and lead times

Electronic orders based on projected manufacturing

& distribution forecast

Flexible/adaptable in a constrained material supply situation


How Do We Get There?Business Process Change

Consolidate and focused business enterprise operations

Function focused business units

Autonomous operations linked Globally through dynamic networks

Workforce balanced by need and operational focus –not regional or centralized bureaucracy

Adaptive organizations with flexibility to implement change - rapidly


Electronic Transactions

Open Up the Electronic Gateway

Electronic Data Interchange – EDI

Internationally recognized and adopted as a secure and functional business process

Supported by open standards

Updated and maintained on current basis by international standards groups

Evolving technology support – ebXML Standards, Internet Security enhancements and more


The BasicsElectronic Transaction Flow Integration

Electronic transactions replace laborious, time

consuming, and error prone movement and handling

of paper

‘Untouched by Human Hands’ – standard formats

transmitted in seconds instead of days – routed and

handled automatically

Order to Cash - process product orders and cash

receipts in minutes, not days, weeks or months


Electronic Enterprise


Architecture


Components Overview


Technology – Underutilized

Eliminate the Paper and Manual Processes

Fully implemented existing capabilities of electronic transactions - EDI & ebXML

Implementations must leverage the dynamic capabilities of machine to machine data transfer

Reduce/eliminate increasing costs of manpower to support old infrastructure

Filing cabinets, paper take up unnecessary and valuable space – electronicise records and documents


Available SolutionsUtilize Available Technology

ebXML, EDI and electronic commerce is just the communication & document transport layer of a more complete infrastructure change

Electronic image processing, scanning, CDRW, EPR systems are available to support infrastructure demands

Available technology provides the ability to work anywhere with ‘COMPLETE’ information retrieval resources at hand


RecommendationIdentify Replaceable Manual Processes

- Walk the floor -

Order Processing – how much data entry

Invoicing and Receipts Processing – paper & postage

Procurement and Receiving – automatic inventory

Shipping & Distribution – BOM, lists and packaging

Stand by the printer – why do you need paper

See what’ being copied – why do need copies


Resources

Electronic Transaction Standards

Complete business process supportPre-existing transaction sets defined for virtually any business processOpen standards make communication across international boundaries (language, time zones and climate) possibleTested and Proven methodologyWith lower entry costs, available to even the smallest business enterprise today


MandatoryElectronic Document Exchange

Electronic Data Interchange –EDI – is becoming a mandatory mode of business operations

Available to even the ‘QuickBooks’ enterprise

Secure transaction exchange supported by a variety of methodologies, processes and service organizations

Government Contracts and HIPAA (healthcare) legislation requires it


Implementation

Plenty of Implementation Options Available

Available as SAAS

Browser or enterprise/legacy system interface options

TCP/IP communication using FTP or SMTP

Internet or VPN access

Pass transactions to/from/through traditional VANs


Room to Grow

Current Systems Support EDI

Many existing implementations only encompass the basics: Purchase Order & Invoice

Revision documents, Shipping Information, and Payment processing have yet to be implemented

True ROI begins HERE~!


Cost Reduction - Potential

Electronic Transaction Expansion

Full implementation of EDI capabilities provide the basic framework for substantial cost reduction

Leverage existing workforce in more profitable activities

Reduce/Eliminate paperwork, forms, filing and filing cabinets

Machine to machine transaction processing at light speed


Profit Enhancement - PotentialMake a Profit with Quicker Response Times

Process Orders & Cash Receipts faster

Automate order processing to manufacturing and distribution systems

Reduce on-hand inventory with AOT (Always on Time) assurances provided by multiple source of supply & distribution

Enhanced payment processing with EFT Order to Pay processing


More Profit Potential

Shrink Supply Times

Automate requests for quote

Model/Forecast and manage bids/proposals

Interface with in-house procurement systems

Attach and publish specifications documents

Manage procurement activity

Integrate seamlessly with procurement communities and catalogs using EDI & ebXML-based architectures


Success Based ProvisionsYou Can’t Do it Alone

Establish Trading Partner Relationships –beyond customer/supplier contracts

Open up organizations and business relationships to fuller, more complete information exchange

Deploy secure communications infrastructures to support ongoing linkages


Implementation RequirementsDo it NOW Rather than Later

Select a set of tools – standards, translator, communicator, application interfaceObtain expertise during deployment – don’t re-invent the wheel!!!Deploy structured and reliable application system interfacesOffer enhanced career opportunities to available personnel with existing business knowledgeMake the process repeatable


Key Factors

Standardize the Process

This is NOT brain surgery, although a rocket scientist would be an asset

The biggest expense is on initial deployment –don’t stop short

Train to maintain – support staff should maintain electronic based applications

TEST TEST TEST


Trading Partners

Develop Business Partnerships

Share common goals – Profit

Define the relationship – contracts & agreements

Work together to improve business communications

Co-develop inter company standards for electronic information exchange

Share Ideas

Work together!


Summary

Utilize EBFM to Enhance your Electronic

Transaction Processing Relationships

Focus on Global Business Partner Relationships

Feedback is vital to success – Train to maintain

Charter involves the whole community –

partnerships

Fulfill the Future, Build from Today


Thank You

For more information on the EBFM electronic business process model, please visit our web

site:

http://www.msc-inc.net

Thanks!

Management Systems Consulting, Inc.800-856-3193




EBFM Presentation

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