B2B Solutions Study Summary Charts June – September 2013
EDI - Business-To-Business Survey Summary Charts - 10 FEB 2014
May 20, 2015
The evolution of Electronic Data Interchange (EDI) standards and the evolution of Business-To-Business (B2B) connectivity processes are now four decades old. Most executives see the progress as slow and expensive. They are frustrated. They question the value.
Companies want to power value networks. They want to connect with trading partners. They want to make the process both faster and easier. As a result, many are asking, “Does EDI use really matter? Is there value in the automation of B2B/EDI connectivity to power value networks?” Increasingly, companies are looking for the truth. This report attempts to answer these questions.
Companies want to build value networks and connect with trading partners. In our work with manufacturing clients, we see that nine out of ten companies want to build a more effective end-to-end value network. There is a growing understanding that the enterprise-centric endeavors over the last decade have plateaued, and that there are significant costs and waste improvements to be had with the building of effective connectivity for the extended supply chain.
However, most companies see EDI, and the exchange of documents through established protocols, as old- school processes. They are looking for “a better mousetrap.” In the last decade, many techniques evolved and they were overhyped. Early in the decade there were claims that XML was going to make EDI outdated.
Similarly, the use of business portals and business networks, sometimes termed trading partner exchanges, were touted as better ways of improving trading partner connectivity. The promise was lower cost, faster onboarding, and greater partner penetration. However, today EDI is the predominate method for B2B connectivity.
No company studied uses just one method for B2B connectivity. Connectivity between trading partners is usually a mix of portal, business network, and manual processes. While companies have invested in portals, trading exchanges, and automated business networks, the adoption is low. Portals are one-way communication. The use of portals is too passive and companies struggle to synchronize the many changes that occur in sales and purchase order processing through this passive form of connectivity. Likewise, the adoption of business networks in the establishment of B2B connectivity has been too slow. The networks require a mass of partners connected as a community, and this development has been too slow.
Among the EDI/XML users surveyed for this report, EDI is used nearly six times more frequently in the connection of trading partners than portals, and eight times more frequently than the use of business networks (e.g., trading exchanges or specialized industry hubs). We also find that the process of sales order management is more mature, and better automated, than those of procurement. EDI/XML is the workhorse of the extended supply chain.
Maturity in EDI/XML matters.
Companies want to power value networks. They want to connect with trading partners. They want to make the process both faster and easier. As a result, many are asking, “Does EDI use really matter? Is there value in the automation of B2B/EDI connectivity to power value networks?” Increasingly, companies are looking for the truth. This report attempts to answer these questions.
Companies want to build value networks and connect with trading partners. In our work with manufacturing clients, we see that nine out of ten companies want to build a more effective end-to-end value network. There is a growing understanding that the enterprise-centric endeavors over the last decade have plateaued, and that there are significant costs and waste improvements to be had with the building of effective connectivity for the extended supply chain.
However, most companies see EDI, and the exchange of documents through established protocols, as old- school processes. They are looking for “a better mousetrap.” In the last decade, many techniques evolved and they were overhyped. Early in the decade there were claims that XML was going to make EDI outdated.
Similarly, the use of business portals and business networks, sometimes termed trading partner exchanges, were touted as better ways of improving trading partner connectivity. The promise was lower cost, faster onboarding, and greater partner penetration. However, today EDI is the predominate method for B2B connectivity.
No company studied uses just one method for B2B connectivity. Connectivity between trading partners is usually a mix of portal, business network, and manual processes. While companies have invested in portals, trading exchanges, and automated business networks, the adoption is low. Portals are one-way communication. The use of portals is too passive and companies struggle to synchronize the many changes that occur in sales and purchase order processing through this passive form of connectivity. Likewise, the adoption of business networks in the establishment of B2B connectivity has been too slow. The networks require a mass of partners connected as a community, and this development has been too slow.
Among the EDI/XML users surveyed for this report, EDI is used nearly six times more frequently in the connection of trading partners than portals, and eight times more frequently than the use of business networks (e.g., trading exchanges or specialized industry hubs). We also find that the process of sales order management is more mature, and better automated, than those of procurement. EDI/XML is the workhorse of the extended supply chain.
Maturity in EDI/XML matters.
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Transcript
B2B Solutions StudySummary Charts
June – September 2013
Supply Chain Insights LLC Copyright © 2013, p. 2
Agenda
Study Overview
B2B Solutions
EDI / XML
Distribution Center / Warehouse
Supply Chain Organization
Supply Chain Insights LLC Copyright © 2013, p. 3
Study Overview
Supply Chain Insights LLC Copyright © 2013, p. 4
The Majority of Respondents Work at Manufacturers and Average Revenue is $4 Billion
Supply Chain Insights LLC Copyright © 2013, p. 5
Over Half of Respondents Work in a Discrete Industry
Supply Chain Insights LLC Copyright © 2013, p. 6
Half of Respondents Work in IT, Nearly Half Are Managers and Over ¾ Work in the US
Supply Chain Insights LLC Copyright © 2013, p. 7
Agenda
Study Overview
B2B Solutions
EDI / XML
Distribution Center / Warehouse
Supply Chain Organization
Supply Chain Insights LLC Copyright © 2013, p. 8
Definitions
Supply Chain Insights LLC Copyright © 2013, p. 9
All Respondents Have EDI/XML and Are Somewhat Familiar with Their B2B Solutions
Supply Chain Insights LLC Copyright © 2013, p. 10
Most Respondents Are Familiar with the Use of EDI/XML for Order-to-Cash and Procure-to-Pay
Supply Chain Insights LLC Copyright © 2013, p. 11
Agenda
Study Overview
B2B Solutions
EDI / XML
Distribution Center / Warehouse
Supply Chain Organization
Supply Chain Insights LLC Copyright © 2013, p. 12
For Both Sales and Purchase Orders, Over Half of Orders Are Exchanged via EDI/XML
Supply Chain Insights LLC Copyright © 2013, p. 13
On Average, EDI/XML Sales Orders Are Shipped Somewhat Faster with No Manual Intervention
Supply Chain Insights LLC Copyright © 2013, p. 14
For Both Sales and Purchase Orders, Over One-Third Report Tracking Internal Costs of Orders
Supply Chain Insights LLC Copyright © 2013, p. 15
Awareness of Internal Order Costs Is Low for Both Order Types
Supply Chain Insights LLC Copyright © 2013, p. 16
The Top Challenge for Orders Not Processed via EDI/XML Is Added Time
Supply Chain Insights LLC Copyright © 2013, p. 17
About Half Report the Orders Change at least Once; About 60% Process Changes via EDI/XML
Supply Chain Insights LLC Copyright © 2013, p. 18
The Top Challenge for Order Changes Not Using EDI/XML Is Having More Imperfect Orders
Supply Chain Insights LLC Copyright © 2013, p. 19
EDI/XML Benefits Accuracy Most for Both Sales and Purchase Orders
Supply Chain Insights LLC Copyright © 2013, p. 20
Business Partner Relationships Is Top Supply Chain Element to Improve with EDI/XML
Supply Chain Insights LLC Copyright © 2013, p. 21
ASNs and Purchase Order Acknowledgements Are Most Important Elements of EDI/XML for
Improving Supply Chain Performance
Supply Chain Insights LLC Copyright © 2013, p. 22
Non-Discrete Industries and Non-IT Roles Are More Likely to Consider Purchase Order
Acknowledgements to be Important
Supply Chain Insights LLC Copyright © 2013, p. 23
Customer Order Captures and ASNs Are Top Performing Elements of EDI/XML for Improving
Supply Chain Performance
Supply Chain Insights LLC Copyright © 2013, p. 24
Greatest Gaps in Performance:ASNs and Purchase Order Acknowledgements
Supply Chain Insights LLC Copyright © 2013, p. 25
Only 6% Report Offering a Discount to Customers for Use of EDI/XML
Supply Chain Insights LLC Copyright © 2013, p. 26
Open-Ended Comments about B2B Solution Performance
Supply Chain Insights LLC Copyright © 2013, p. 27
Open-Ended Comments about B2B Solution Performance
Supply Chain Insights LLC Copyright © 2013, p. 28
Agenda
Study Overview
B2B Solutions
EDI / XML
Distribution Center / Warehouse
Supply Chain Organization
Supply Chain Insights LLC Copyright © 2013, p. 29
82% of Respondents Are at least Slight Familiar with Company’s Distribution Center
Supply Chain Insights LLC Copyright © 2013, p. 30
Two-thirds Report Receiving Shipments without Advanced Shipment Notices or Dispatch Advices
Supply Chain Insights LLC Copyright © 2013, p. 31
Top Challenges When Don’t Have ASNs Are Longer Receiving Times and Inability to Plan
Labor Schedules
Supply Chain Insights LLC Copyright © 2013, p. 32
Without ASN, Biggest Impact to Supply Chain Is Need to Expedite Shipments More Frequently
Supply Chain Insights LLC Copyright © 2013, p. 33
On Average, Shipments without ASNs Cost $78 per Order Extra
Supply Chain Insights LLC Copyright © 2013, p. 34
Nearly Half Report That Any of Their Inbound Shipments Are Not Labeled with Barcodes
or RFID Tags
Supply Chain Insights LLC Copyright © 2013, p. 35
On Average, Shipments without Barcodes or RFID Tags Cost $57 per Order Extra
Supply Chain Insights LLC Copyright © 2013, p. 36
Agenda
Study Overview
B2B Solutions
EDI / XML
Distribution Center / Warehouse
Supply Chain Organization
Supply Chain Insights LLC Copyright © 2013, p. 37
Ability to Use Data Is Top Supply Chain Pain
Supply Chain Insights LLC Copyright © 2013, p. 38
Variations in Supply Chain Pain by Subgroups
Supply Chain Insights LLC Copyright © 2013, p. 39
Four in Five Report Having a Formal Supply Chain Organization
Supply Chain Insights LLC Copyright © 2013, p. 40
Respondents Identify an Average of 6 Functions That Report through the Supply Chain
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