Order Automation Pays Customer Management Breakout Session – inSIGHT 2013 Presented by Gary Neights
Gary Neights – Customer Management “Order Automation Pays”
Aug 18, 2015
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Transcript
Order Automation Pays
Customer Management Breakout Session –
inSIGHT 2013 Presented by Gary Neights
Presenter
Presentation Notes
My name is Gary Neights and I am in Elemica’s product management organization and responsible for our Customer Management applications. These applications help
Elemica’s Customer Management Suite
Touch-less order processing Increase the “perfect order” percentage Improved supply chain reliability Reduces errors Improved customer service Faster invoice payments
Agenda
Elemica Insights on Customer Management – Direct research
• Surveys and user group • CCSMG (business chapter of ICSA)
– Secondary research (Gartner, Aberdeen) Solution Updates
– QuickLink Email and FORM – Delivery Forecast – Vendor Managed Inventory
Presenter
Presentation Notes
Elemica Research Research Workshops Conferences 2 Sessions at Recent Conference Improving Customer Services Processes with Automation Portals
People Value Automation
Holiday, sick days, and training coverage is easier with standard, automated processes.
Protects our business. Servicing more customers, more efficiently keeps us strong and profitable.
Frees up time for the important tasks like … • Product availability and allocation • Order growth and contract consumption analysis • Exchanges, swaps, tolls, and transportation • Maintaining customer data
Fewer orders miss cutoff times when they flow into automated work processes.
How do I automate all my customers?
Automation impacts different people in different ways…
Automation solves issues with incorrect product identifiers, getting orders inside cutoff times, and high fulfillment costs in our specialty business.
Elemica has solved the problem of smaller customers ordering with the wrong unit of measure.
My business sells commodity products. Automation fixes issues related to shipping the right product to the correct location on the right date.
This results in 30% order cycle time improvements, 8-9% improvement in on-time delivery and fill rates, and 75% fewer order entry errors.
Best practices to get there
Process Design • Automate the routine:
– Transactions (order, invoices) • Standard instructions to CMIR
– 24x7 portals • Status, trace, and reports
• Free up brain power
– Customer inquiries / training – Expedite special instructions – Exceptions / complex orders – Customer insight / relations
Process Enablement • People
– Management buy-in & budget – Staff motivation and skill set
• Process – Automate transactions – People manage master data – When to involve people
• ATP Accuracy
• Technology – Right tools for the job – Data integrity
Presenter
Presentation Notes
5 Different Teams CSR Managers and CSRs Common themes across teams Automate and error proof transactions: Inbound orders and changes Outbound responses, ship notices, and invoices Focus people on: Process development, improvement, and innovation Emergencies, analysis of growth, customer relations Arrangement of barges Interpret special instructions Master data maintenance Inventory Allocation 2 Sessions – 2 ways of looking at the solution “Chartering / Implementation / Change Management” and “Steady State Process Execution” “People”, “Process”, and “Technology” Common themes Need buy-in of business and management. Budgets Mature philosophy on error detection and correction Fix correctly in SAP (correct reversals, etc) RCA and corrective actions Automate transactions and people manage master data Education and communication KPIs
ELEMICA PRODUCT UPDATE
The Elemica Supply Chain Operating Network
Analytics
Universal Business Concepts BI
Applications
Universal Business Concepts Rules Apps
Social UI
Discovery
Onboarding
Collaboration
Apply the Right Process
Derive Insight
Document Stream
Document Stream
Enterprise Systems of
Record
Enterprise Systems of
Record
Universal Business Concepts Network Master
Data Management Connectivity
Network Speak
the Same Language
Automation Value
$
Process Enablement
$$
Market Insight
$$$
Elemica Research on Order Automation Value
Lower error correction costs – Data keying – Paper handling – Convert/ correct data
Improve agility in operations – Less overtime & rush
shipments – Faster Payment
Better data quality – Bad data costs you money – Better analytics
By automating customer and purchase orders, you can…
80% Total Cost Reduction
9
Presenter
Presentation Notes
Lower error correction costs – automated cross-references, fewer keying errors, fewer document reversals (wrong sales org) Improve agility in operations - 100 line order, you miss one line. Requires extra shipmetn Better data quality Money: * 40,000 LBR order. If price is $0.02/LBR high, customertells you. $0.02 low, you lose $800. * 40,000 LBR order. Wrong PO#. Invoice not paid. At 45 days you investigate and reissue. Payment in 75 days. Interest cost is $200 plus the cost to research and re-issue. Easily $300. Analytics; Order assigned to wrong sales person. Sales commissions and reports off.
Customer Management
Design Concept • Customers manage their business process in their system • Customer service manage their business process in their system • Elemica ‘standardizes and harmonizes’ the disparate processes • Internal IT focused on uptime, data accuracy, and process optimization
10
EDI/XML Orders
Complexity
ERP Process-able Orders
Your Customers
Your Systems
Single Channel to Manage
QuickLink
Simplify and Standardize
Elemica Products
Customer Sends Seller Receives
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Sales Order Management ✔ ✔ ✔ ✔ ✔ ✔ Repeat Order Entry ✔ ✔ ✔
Vendor Managed Inventory ✔ OP OP OP ✔ ✔
Rail Car Fulfillment ✔ ✔ ✔
Delivery Forecast ✔ ✔ ✔ ✔
11 Variation and Complexity Simplicity
OP = optional
SALES ORDER MANAGEMENT
Today: QuickLink ERP and Email
Customer population
Order Volume
QuickLink™ Email • Customer emails customer format. • Non-structured data. • Little customer data sync.
QuickLink™ ERP. • Customer B2B. • Standard formats (x12, etc). • Code values (product ID, etc). • Data synch.
Typical Order Curve
QuickLink Email
QuickBooks, SAGE, Excel, Word, SAP, etc.
Email Orders
Email Confirmations
1
3
Buyer’s Systems
Seller’s System
Automatic Integration
2
Automates customer’s email orders with 100% accuracy. Customer needs no IT infrastructure other than email.
Non-structured data to structured Error detection and alerting Cross-reference and logic
QuickLink Email Statistics
Period: June 2011 to May 2013. Customers >1000
Addressing the Long Tail
Customer population
Order Volume
QuickLink™ Email • Customer emails customer format. • Non-structured data. • Little customer data sync.
QuickLink™ ERP. • Customer B2B. • Standard formats (x12, etc). • Code values (product ID, etc). • Data synch.
ERP Characteristics. - Volume = highest - Data quality = highest - Value to automate one customer: highest
Mail Characteristics. - Volume = high to low - Data quality = medium - Value to automate one customer= medium
Long Tail Characteristics. - Volume = low - Data quality = lowest - Value to automate one = low
Automating all customers in a segment has value.
QuickLink Automates Each Customer Segment
Customer population
Order Volume
QuickLink™ ERP. Real-time system integration using EDI and XML. Code values (product ID, etc). Connect:$$$ Run:$$$ (Customer B2B)
QuickLink™ FORM. Customer emails Elemica FORM. Form stops errors. Connect:$ Run:$ (No customer B2B)
QuickLink™ Mail. Customer emails customer format. Few code values. We fix their errors. Connect:$$ Run:$$ (No customer B2B)
DELIVERY FORECAST
Delivery Forecast
Supports plant scheduling processes used by automotive and CPG customers
Delivery Forecast 2.0 Major Upgrade
2013
Q2/Q3: 2013 Develop and test
Q4: 2013 Available in Test and Prod
Customer business scenario improvements: • Orders / changes inside or close to cutoff dates • Exclude requirements from processing based on shipment • Plant or product specific processing variations Self-service and audit • Setup screens and process • Self-service inquiry screens:
• Requirement history • Setting traceability
Code re-engineering
VMI
Vendor Managed Inventory
Supports automated fulfillment of bulk tanks and discrete warehouses
QUESTIONS/ COMMENTS
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