EDI: Workhorse of the Extended Supply Chain

EDI: Workhorse of the Value Chain

Supply Chain Insights LLC Copyright © 2013, p. 2

Where are You?


Current State


In this webinar, we will help companies benchmark their current state on B2B

connectivity.

Our Goal


Agenda

Study Overview

B2B Solutions

EDI / XML

Distribution Center / Warehouse

Summary


Study Overview


The Majority of Respondents Work at Manufacturers and Average Revenue is $4 Billion


Over Half of Respondents Work in a Discrete Industry


Half of Respondents Work in IT, Nearly Half are

Managers and Over ¾ Work in the US


Four in Five Report Having a Formal Supply Chain Organization


Respondents Identify an Average of 6 Functions that Report through the Supply Chain


Agenda

Study Overview

B2B Solutions

EDI / XML


Summary


Definitions


All Respondents Have EDI/XML and are Somewhat Familiar with their B2B Solutions


Most Respondents are Familiar with the Use of EDI/XML for Order-to-Cash and Procure-to-Pay


Agenda

Study Overview

B2B Solutions

EDI / XML


Summary


For Both Sales and Purchase Orders, Over Half of Orders are Exchanged via EDI/XML


On Average, EDI/XML Sales Orders are Faster with No Manual Intervention


For Both Sales and Purchase Orders, Over 1/3 Report Tracking Internal Costs of Orders


Awareness of Internal Order Costs is Low for Both Order Types


The Top Challenge for Orders Not Processed via EDI/XML Is Added Time


About Half Report the Orders Change at Least Once; About 60% Process Changes via EDI/XML


The Top Challenge for Order Changes Not Using EDI/XML Is Having More Imperfect Orders


EDI/XML Benefits Accuracy Most for Both Sales and Purchase Orders


Business Partner Relationships is Top Supply Chain Element to Improve with EDI/XML


ASNs and Purchase Order Acknowledgements are Most Important Elements of EDI/XML for Improving Supply Chain Performance


Non-Discrete Industries and Non-IT Roles are More Likely to Consider

Purchase Order Acknowledgements to be Important


Customer Order Captures and ASNs are Top Performing Elements of EDI/XML

for Improving Supply Chain Performance


Greatest Gaps in Performance:ASNs and Purchase Order Acknowledgements


Only 6% Report Offering a Discount to Customers for Use of EDI/XML


Agenda

Study Overview

B2B Solutions

EDI / XML


Summary


82% of Respondents are at Least Slightly Familiar with Company’s Distribution Center


2/3 Report Receiving Shipments without Advanced Shipment Notices or Dispatch Advices


Top Challenges When Don’t Have ASNs are Longer Receiving Times and Inability to Plan Labor Schedules


Without ASN, Biggest Impact to Supply Chain is Need to Expedite Shipments More Frequently


On Average, Shipments without ASNs Cost $78 per Order Extra


Nearly Half of Inbound Shipments are not Labeled with Barcodes or RFID Tags


On Average, Shipments without Barcodes or RFID Tags Cost $57 per Order Extra


Agenda

Study Overview

B2B Solutions

EDI / XML


Summary


• EDI and B2B connectivity matters. Progress is slow.

• EDI is the workhorse of the extended supply chain. Business networks are in their infancy.

• Most companies are looking at pennies and missing the dollars.

Summary


Questions?


Who is Lora Cecere?

• Founder of Supply Chain Insights

• Partner at Altimeter Group (leader in open research)

• 7 years of Management Experience Leading Analyst Teams at Gartner and AMR Research

• 8 years Experience in Marketing and Selling Supply Chain Software at Descartes Systems Group and Manugistics (now JDA)

• 15 Years Leading Teams in Manufacturing and Distribution Operations for Clorox, Kraft/General Foods, Nestle/Dreyers Grand Ice Cream and Procter & Gamble.


Where Do You Find Lora?

Contact Information: [email protected]

Blog: www.supplychainshaman.com (4000 pageviews/month)

Twitter: lcecere 4640 followers.

LinkedIn: linkedin.com/pub/lora-cecere/0/196/573 (5650 in the network)

EDI: Workhorse of the Extended Supply Chain

Business

value chain

supply chain element

edixml sales orders

half of orders

order changes

half of respondents

use of edixml

performing elements