The Outside-In Supply Chain - · PDF file• Needs of the Outside-In Supply Chain ......

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


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


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


Enabling the Customer Focused Approach

Resolving the Gap

Resolving the Gap Between the Inside-Out and Outside-In Supply Chain

Customers



Changes




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


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


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


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



Changes




Visibility

The Outside-In Supply Chain

Elemica Sourcing and Supply Chain Conference - Frankfurt

The Outside-In Supply Chain - · PDF file• Needs of the Outside-In Supply Chain ......

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