How Cloud B2B Integration Enables Michelin’s International Operations Mark Morley, Industry Marketing Director, GXS Jean-Luc Faye, IS Functional Domain Manager, Michelin
How Cloud B2B Integration Enables
Michelin’s International Operations
Mark Morley, Industry Marketing Director,
GXS
Jean-Luc Faye, IS Functional Domain Manager,
Michelin
Slide 2 | © GXS, Inc.
Introduction to Today’s Presenters
Jean-Luc Faye IS Functional Domain Manager
Member of Michelin’s worldwide EDI service centre
and is responsible for the delivery of EDI services across Michelin’s Global operations.
Mark Morley Industry Marketing Director
Heads up GXS’ go to market strategy for the manufacturing
sectors. Extensive experience of working with global companies
looking to expand their B2B platform into different markets.
Slide 3 | © GXS, Inc.
Agenda
• Introductions
• Today’s Manufacturing Industry
• How Cloud B2B Integration Enables
Michelin’s International Operations
• How GXS Helps Manage International
Expansion
• Conclusions
Slide 5 | © GXS, Inc.
Manufacturing 2.0, Rebooting Today’s Global Supply Chains…
Global recession, wage strikes, natural disasters and changing
consumer demand are leading to manufacturers having to
restructure their global supply chains
Slide 5 | © GXS, Inc.
Slide 6 | © GXS, Inc.
What is Going on in Today’s Manufacturing
Supply Chain?
Sales
Manufacturing
Sales
Manufacturing
Back Office
Engineering
R&D
Western Expansion Near-Shoring China Expansion
Back Office
Engineering
R&D
Regional
Marketing &
Finance
Engineering
R&D Sales
Manufacturing
Sales Manufacturing
Global
HQ
Slide 7 | © GXS, Inc.
Expansion into China
• Wage rises and continued strikes causing some
companies to re-shore manufacturing back home
• Chinese manufacturers looking to reduce costs
by setting up operations in other countries
• Government introducing tax and relocation
incentives to encourage investment in western
China, ie spreading wealth across the country
Slide 8 | © GXS, Inc.
Expansion into Brazil
• Brazil is currently receiving significant inward
investment from global manufacturers
• Establishing manufacturing hubs as a stepping
stone in to the lucrative North American Market
• Brazilian government introducing various import
taxes to encourage more locally sourced content
• Chinese companies, particularly automotive,
regard Brazil as a key growth market
Slide 9 | © GXS, Inc.
Expansion into India
• Key global manufacturing hub, particularly for
labour intensive processes such as machining
• Greater consumer wealth leading to increased
domestic sales of manufactured goods
• Land locked to the North by Himalayas means all
goods have to be imported/exported by sea
• Extensive use of manual based business
processes and limited use if EDI
Slide 10 | © GXS, Inc.
General Emerging Market B2B Trends
• Hesitation to move towards a completely
outsourced environment, prefer hybrid approach
• Emerging markets ‘keen to learn’ about B2B
standards used in more developed markets
• Extensive use of home grown XML standards,
now interested in deploying EDIFACT/ANSI
• Trading partner on-boarding is a key driver for
using B2B Managed Services
Slide 11 | © GXS, Inc.
Infrastructure Related Issues
• Utilities, particularly power supply networks
suffer regular outages
• Telephone communications and networking
infrastructure are relatively poor and slow
• New 3G/4G mobile networks are being setup as
they quicker than building fixed lines networks
• Road and rail networks are generally poor quality
and offer unreliable service
Michelin & GXS Webinar – How Cloud B2B Integration Enables Michelin’s International Operations
MICHELIN
A better way
forward
Source: Annual and sustainable development report
13
Michelin & GXS Webinar – How Cloud B2B Integration Enables Michelin’s International Operations
EVERYWHERE AROUND THE WORLD
WE EQUIP EVERYTHING ON WHEELS, TO SERVE EVERY MOBILITY NEED
184m TIRES PRODUCED
69 PRODUCTION FACILITIES
IN 18 COUNTRIES
170 MARKETING OPERATIONS IN
MORE THAN 170 COUNTRIES
14.8% SHARE OF THE GLOBAL
TIRE MARKET BY VALUE Tire Business 2011 Global Tire Company Rankings
No.1 IN THE WORLD IN
HIGHPERFORMANCE
TIRES FOR CARS
No.1 IN THE WORLD IN RADIAL TIRES
FOR TRUCKS, EARTHMOVERS,
AIRCRAFTS
No.1 IN EUROPE IN TIRES FOR
FARM MACHINERY,
MOTORCYCLES
14
Source: Annual and sustainable development report
Michelin & GXS Webinar – How Cloud B2B Integration Enables Michelin’s International Operations
3.300 PRODUCT AND SERVICE
DEALERSHIPS
IN 27 COUNTRIES
10m MAPS AND GUIDES IN
15 LANGUAGES PUBLISHED
IN 2011
No.1 IN SERVICE CONTRACTS
FOR TRUCKS, EARTHMOVERS
AND AIRCRAFT FLEETS
No.1 IN RETREADING
950m ITINERARIES CALCULATED
BY VIAMICHELIN
ACTING LOCALLY
WE FACILITATE MOBILITY FOR EVERYONE, EVERYWHERE
AND IN EVERY WAY
15
Source: Annual and sustainable development report
Michelin & GXS Webinar – How Cloud B2B Integration Enables Michelin’s International Operations
AN ENGAGED
ENTERPRISE, WE INNOVATE TO FOSTER SAFE, CLEAN, CONNECTED MOBILITY
No.1 IN THE WORLD
IN FUEL-EFFICIENT TIRES
38m TONNES OF CO2
NOT EMITTED
SINCE 1992
2011/2020 OFFICIAL PARTNER OF THE
UNITED NATIONS’ DECADE OF
ACTION FOR ROAD SAFETY
AND THE ROAD SAFETY
CAMPAIGN ORGANIZED BY THE
FÉDÉRATION INTERNATIONALE
DE L’AUTOMOBILE (FIA) 15bn LITERS OF FUEL SAVED
SINCE 1992
11TH MICHELIN CHALLENGE
BIBENDUM
6,000 PARTICIPANTS,
10,000 VISITORS
16
Source: Annual and sustainable development report
Michelin & GXS Webinar – How Cloud B2B Integration Enables Michelin’s International Operations
• TC : Tourisme camionnette • PL : Poids lourd • SP : Pneus de spécialités
MICHELIN ESTABLISHED Close to its Global Customers
69 115 000 employees (108 300 Full-time
equivalent employees)
production facilities
in 18 countries
Source: Annual and sustainable development report
17
Western Europe
32 plants 10 for passenger car and light truck tires
12 for truck tires
7 for specialty tires
6 for components and
semi-finished products
Eastern Europe
8 plants 5 for passenger car and light truck
tires
3 for truck tires
3 for specialty tires
1 for components and semi-finished
products
Asia (without India)
7 plants 4 for passenger car
and light truck tires plus 1
under construction
3 for truck tires plus
1 under construction
2 for specialty tires
2 for components
and semi-finished products
Africa, India
and the Middle East
1 plant 1 for truck tires plus
1 under construction
South America
4 plants 2 for passenger car
and light truck tires plus 1
under construction
3 for truck tires
1 for specialty tires
North America
17 plants 10 for passenger car
and light truck tires
4 for truck tires
3 for specialty tires
2 for components and
semi-finished products
Michelin & GXS Webinar – How Cloud B2B Integration Enables Michelin’s International Operations
2011-2015 : A NEW PHASE OF DYNAMIC GROWTH
TO SUCCEED IN THIS NEW PHASE OF ASSERTIVE GROWTH AND MEET ITS OBJECTIVES,
MICHELIN CAN CAPITALISE ON SUCH SOLID COMPETITIVE ADVANTAGES
AS ITS TECHNOLOGICAL LEADERSHIP, SUPERIOR PRODUCTS AND SERVICES,
DEMONSTRATED BRAND APPEAL, OPERATIONAL EFFICIENCY AND ROBUST BALANCE SHEET.
18
Source: Annual and sustainable development report
Michelin & GXS Webinar – How Cloud B2B Integration Enables Michelin’s International Operations
PRIORITY GOALS
INNOVATE TO MEET CUSTOMER NEEDS
MORE EFFECTIVELY
ENHANCE COMPETITIVENESS
DRIVE STRONG, DIVERSIFIED GROWTH
ENSURE RESPONSIBLE GROWTH
AN ASSERTIVE STRATEGY BASED ON…
19
Source: Annual and sustainable development report
Michelin & GXS Webinar – How Cloud B2B Integration Enables Michelin’s International Operations
AN ASSERTIVE STRATEGY BASED ON…
GROWTH DRIVERS
A GLOBAL R&D
THE MICHELIN BRAND AND
THE BRAND PORTFOLIO
THE RIGHT TIRE FOR ANYTHING
ON WHEELS
EMPLOYEE PROFESSIONALISM
AND COMMITMENT
20
Source: Annual and sustainable development report
Michelin & GXS Webinar – How Cloud B2B Integration Enables Michelin’s International Operations
+25%
Unit sales growth,
2011-2015
MORE THAN
10
days of training per year
for everyone (on average)
€2bn
Annual capital
expenditure
33%
of women among
new hires (excluding
production operators)
€2.5bn
Operating income
in 2015 Before non recurring items
-45%
Reduction in the environmental footprint
as measured by the Michelin sites
Environmental Footprint (by 2016 compared with 2005)
30%
Dividend payout rate
of around 30% of
consolidated net income Before exceptional items
MAIN OBJECTIVES FOR 2015
21
Source: Annual and sustainable development report
Michelin & GXS Webinar – How Cloud B2B Integration Enables Michelin’s International Operations
-33%
Lost-time incidents
115,000 Employees
€20.7bn Net sales
14,036 New hires
Up 6.7% Up 15.8%
In volume In value
7.2 million Hours of employee training
€1.945bn Operating income
0 In Group
plants 22%
Net debt-to-equity
ratio
€1.7bn Capital expenditure
Before non recurring items
26
Michelin sites Environmental
Footprint reduced by
KEY FIGURES
Source: Annual and sustainable development report
22
Michelin & GXS Webinar – How Cloud B2B Integration Enables Michelin’s International Operations
B2B Integration Platform in 2011
(Europe)
23
Michelin & GXS Webinar – How Cloud B2B Integration Enables Michelin’s International Operations
Target Architecture for the Group
Bank Connectivity
Connectivity to
everyone else, eg
customers, suppliers,
raw material providers
24
Michelin & GXS Webinar – How Cloud B2B Integration Enables Michelin’s International Operations
Alignment with Michelin’s IS Strategy
• Use of standard solutions versus
customised packages
• Increased use of SaaS solutions and
integrate in a secure and efficient way
with our backend information systems
• Deploy faster everywhere with minimal
disruption to the business
25
Michelin & GXS Webinar – How Cloud B2B Integration Enables Michelin’s International Operations
Benefits from working with GXS
• Future proof and modern B2B Platform
• Scalable and flexible platform providing
a broad range of options in terms of
global connectivity and formats
• Global e-Invoicing solution to meet
local tax and compliance regulation
changes
• Multi-lingual Support and Trading
Partner on-boarding
26
Michelin & GXS Webinar – How Cloud B2B Integration Enables Michelin’s International Operations
Future Plans
• Complete European migration project
• Initiate migration of North America, Asia and
South America regions to our Managed Services
environment
• Offer high end B2B integration services to our
customers and suppliers in conjunction with the
global Up & Down stream supply chain initiative
roll-out
• Build a stronger partnership to embrace the B2B
capabilities that Michelin needs to succeed in a
challenging global economy
27
Slide 29 | © GXS, Inc.
Supporting Global Manufacturers
GXS mediates between any document and communication standards
100% of
Automotive
Companies in the
Fortune 500
84% of
Top 100 Global
Automotive
Suppliers
78% of
High Tech
Companies in
Fortune 500
80% of
Top 10 Mobile
Device
Manufacturers
Slide 30 | © GXS, Inc.
Improve Visibility of
Global Shipments
Provide Global
Interoperability
How GXS Addresses the B2B Challenges Faced by Manufacturers
Increase Supply
Chain Resilience
Consolidation and
Modernisation of B2B
Integration to Enterprise
Systems - ERP
Support Expansion
into New Markets
Slide 31 | © GXS, Inc.
B2B Knowledge/Skills
Dedicated B2B Resources
Automating Manual Processes
Web Forms, Microsoft Excel
Problem Resolution
24/7 Multilingual Support
Local Standards Support
Any to Any B2B Mediation
Slide 31 | © GXS, Inc.
Typical B2B Challenges How GXS Addresses This
How GXS Helps International Expansion Projects
Slide 32 | © GXS, Inc.
GXS Managed Services A Better Approach for Managing International Expansion
GXS Managed Services Environment
Slide 33 | © GXS, Inc.
Research Findings Validate ROI 3rd Party Validation From Leading Institutions
• 68% Said that Managed Services helped improve
the efficiency of on-boarding new customers
• 59% Said that Managed Services helped enable a
reduction in B2B integration costs
• 74% Said that replacing capital expenditure with
a monthly fee was valuable to their business
• 59% Said that Managed Services helped to
better meet/respond to change in customer
requirements
Managed Services
Trends Study by
Stanford University
96% Reported that
Managed Services Added
Significant Value to their
Overall B2B Integration
Programs
B2B Managed Services Value
& Trends Study conducted by
Stanford University – Global
Supply Chain Management
Forum
Slide 34 | © GXS, Inc.
GXS B2B Community Management Automating Both Your Data Network and People Network
Slide 35 | © GXS, Inc.
Increasing Pressure to Improve the People Aspect of Community Management
• No single source of supplier information
• Minimal automation of supplier setup &
registration
• Continuing need to onboard suppliers faster
Is an enterprise
community
management tool
that delivers people
and process
solutions across
GXS Trading Grid®
• Reduce supplier onboard and management
costs
• Monitor supply chain risk & performance
• Legal & Regulatory compliance
Problems:
Solution:
Slide 36 | © GXS, Inc.
Full Spectrum of B2B Enabling Tools Integration Solution Matching Requirements of Each Supplier
Small Mid-Size Large
Very Small Small National Global
Size of Supplier
Medium
Complexity of B2B Enabler
* Future Release
Microsoft
Office
Web
Forms
Integration
Broker
Enterprise
Resource
Planning
Desktop
Translator
SMB
Accounting
Package
Mobile
Device*
Slide 37 | © GXS, Inc.
Conclusions
• Cloud based B2B integration offers
many benefits to Michelin’s global
operations:
– Ability to scale their B2B infrastructure
according to the needs of the business
– Improves remote on-boarding and on-going
collaboration with global trading partners
– Removes complexity from their supply chain
– Allows their business to respond more
quickly to changing customer requirements
or market demands
Slide 38 | © GXS, Inc.
Thank You
Jean-Luc Faye IS Functional Domain Manager
www.twitter.com/LatyrF
fr.linkedin.com/in/LatyrF
+33 473 302795
gxsblogs.com/morleym
www.twitter.com/markmorley
uk.linkedin.com/in/markmorley
+44 1932 776040
Mark Morley Industry Marketing Director
Slide 39 | © GXS, Inc.
Additional Resources
B2B Managed Services Website –
www.b2boutsourcing.co.uk
New Stanford University Reports on B2B Managed Services –
www.gxs.co.uk/stanford
New International Expansion Report –
www.gxs.co.uk/fieldworks
Slide 40 | © GXS, Inc.
Thank You For Your Participation
Phones
US: 1 800 334 2255, option 3
EMEA: +44 (0) 1932 776047
ASPAC: +852 2884 6088
Brazil: +55 11 2123 2300
GXS web sites
US: www.gxs.com
EMEA: www.gxs.eu
ASPAC: www.gxs.asia.com
Brazil: www.gxs.com.br