Webinar presentation on the 3 W's of Supply Chain Visibility and Demand Management presented to the New England Electronic Commerce User Group on April 29, 2009
3. problemsThese Years - responsible Forgotten How to Win?
After All – markets Has Your Team
Aberdeen Says . . .
Supply Chain Visibility On-Demand
Viktoriya Sadlovska, January 16, 2009
Cargo portal - 14%
On-demand (hosted) commercial visibility system - 15%
Commercial transportation management system (TMS) - 20%
On-premises (license) commercial visibility system - 21%
Other - 22%
Supplier collaboration portal or hub - 23%
Visibility system from a 3PL - 26%
Visibility system from a freight forwarder - 29%
Visibility system from an electronic messaging vendor (EDI VAN) -…
Transportation carrier tracking system - 36%
Module in our ERP system - 44%
In-house developed software - 50%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
4. Solution Building Blocks
problems – markets Has Your Team
After All These Years - responsible Forgotten How to Win?
Solution Taxonomy
B2B SaaS Applications
(Descartes Delivery Management Suite, E2Open, Inovis
Chargeback Avoidance, Sterling Order Management, etc.)
Complexity / Capabilities
Integrated Order Life Cycle Management Solutions
(GXS Order Life Cycle Visibility, Inovis Actionable Intelligence,
Sterling Supply Chain Visibility On Demand, etc.)
EDI VAN Basic Visibility Services
(Descartes, EasyLink, HP-EDS, GXS, Inovis, Kleinschmidt,
Loren Data, SoftShare, Sterling, etc.)
Behind the Firewall Software Solutions
(ERP Module, EDI Translator, B2B Integration Engine,
BPM, Business Intelligence, etc.)
Cost / Benefit
5. problemsThese Years - the Firewall Solutionsto Win?
After All – BehindHas Your Team Forgotten How
Behind the Firewall Solutions
markets responsible
Supply Chain Visibility On-Demand
Software solutions, running inside your data centers,
Viktoriya Sadlovska, January 16, 2009
either internally developed or purchased from a vendor,
that provide visibility and other business process services
Pros Cons
• Leverages existing investments • Visibility limited to the ‘edge’ of
• ERP, BI, B2Bi, BPM, etc. your enterprise
• Typically a strong fit with your • Often have to re-invent the EDI
requirements transactional data cube ‘wheel’
• Most commonly used solution • Applications may impose
in today’s marketplace architectural limitations on
your vision
6. problemsEDI VAN - responsible Forgotten How to Win?
After All These Years Basic Visibility Solutions
– markets Has Your Team Solutions
Behind the Firewall
Web based tracking, analytics, and visibility solutions
that are provided as a core / optional service of a modern
EDI VAN service provider
Pros Cons
• Tightly integrated with EDI VAN • Visibility limited to the ‘edge’ of
processing / operations your enterprise & VAN provider
• Don’t have to ‘re-invent’ the • Restricted to what your VAN
wheel offers
• You don’t have to develop, • Many organizations have
maintain, or evolve multiple VAN relationships – can’t
guarantee one common approach
7. problemsThese Years - responsible Forgotten How to Win?
After All – markets Has Your Team
Integrated Order Firewall Solutions
Behind the Lifecycle Management
SaaS application built on top of EDI VAN that automates
the processing, analysis, and reporting of order lifecycle
events
Pros Cons
• Tightly integrated with EDI VAN • Limited ability to truly customize
processing / operations to meet your requirements
• Typically provides capabilities for • Getting full participation from all
‘web only’ partners of your trading partners
• Traditional SaaS benefits • Multiple EDI VANs could mean
• Subscription pricing, no software only partial coverage of trading
to install, no hardware to manage, no community
upgrades to manage, etc.
8. B2B SaaS Applications
problems – markets - responsible
SaaS/ Cloud Computing applications built to replace
traditional licensed software applications
(Order Management, Transportation Management, Inventory Management, Warehouse
Management, Production Scheduling, Supplier On-boarding, etc.)
Pros Cons
• State of the art functionality • Limited ability to truly customize
• Vendors investing in SaaS/ to meet your unique
Cloud Computing requirements
• Traditional SaaS benefits • Mission critical applications’
performance is in somebody
• Lower barriers for full trading else’s hands
community participation
• Not a true source of competitive
differentiation
9. problemsThese Years - responsible Forgotten How to Win?
After All – markets Has Your Team
Challenge:
Not all TPs Are On The Same Network
• Reality of today’s B2B
communities
• 5‘hops’ from you to your trading partner
• Your ERP to Your Translator
• Your Translator to Your VAN mailbox
• Your VAN’s Interconnect to TP’s VAN
• TP VAN mailbox to TP’s Translator
• TP’s Translator to TP’s ERP
10. Challenge:
Mandates Don’t Work Like They Used To
“It would be really
nice if you could
either directly
integrate with my
application via XML
and our web
services, use our
cool new web
portal, or get a
mailbox on our
VAN”
11. What Are The Benefits of Visibility?
• On Demand Reporting / Drilldown
• “I can find the answer faster”
• “Everyone can see the status of everything all the time”
• Alerts
• “Tell me when something goes wrong”
• Remediation
• “I can fix it before it causes trouble or costs me money”
• “Some simple things can get fixed by the system
automatically”
• Problem Avoidance
Does“I canchart look uncomfortably familiar? fix”
• this see consistent patterns of problems I can
12. What Are The Benefits of Demand
Management?
• Modern functionality
• “Best practices of 2009 versus 1993”
• “Web services integration is so much better than RPC calls”
• SaaS Economic & Operational Benefits
• “I like paying by the drink instead of buying a pallet’s
worth of stuff I’ll never finish drinking”
• “I’ll never do another point level release upgrade that
costs me $750,000 and 6 months to complete”
• “I like not waking up in the middle of the night to fix a
production problem affecting the UK operations”
• Higher chart look uncomfortably familiar?
Does thistrading community participation
• “The web portal helps automate the 20% of my
community that still uses fax, email, and snail mail”
13. EDI VAN
ERP / SCM / Order Management
Visibility
BPM & B2B SaaS
Visibility / Demand Management Market Landscape
14. Some Thought Leaders to Check Out
• Benoit L’Heureux • Bruce Richardson
• Frank Kenney • Dennis Gaughan
• Dwight Klappich • Janet Sherlock
• Ray Wang • Steve Banker
• Ken Vollmer • Adrian Gonzalez
15. DevelopmentCorporate
DevelopmentCorporate is a strategic corporate
development advisory firm for enterprise and
mid-market technology companies. We assist
management teams, board of directors, and
investors in updating their merger, acquisition,
and divestiture strategies and then we provide
tactical support for the implementation of
those strategies. We also provide support for
strategic initiatives such market assessments,
competitive intelligence updates,
product/service portfolio analysis, etc.
Email: john.mecke@developmentcorporate.com
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