Pradheep Sampath spoke on the topic of Scorecards, Measurements and KPIs for B2B e-Commerce at the American Hardware Manufacturer Association annual Hardlines Technology Forum in April 2009.

1. Scorecards, Measurements, KPIs
From Transactions to Supply Chain Transformation
Pradheep Sampath
Director, Global Product Management
GXS
WELCOME to the FORUM

2. Agenda 2009
Supply Chain Complexity
– The Cause
– The Effect
The power of B2B Transactions
– Assemble Transactions
– Unlock Value
Operational Supply Chain Intelligence
– Define Metrics
– Monitor, Collaborate, Improve. Repeat.
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3. Supply Chains Transcend
National Borders & Time Zones 2009
Manufacturers who master complexity Supply chains have evolved into
of global value chains are 73% more complex ecosystems of outsourced
profitable than those who do not. and in-house services
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Source: Deloitte: Managing Complexity

4. Global Sourcing
Supply Chain Complexity 2009
Globalization of Supply, Localization
of demand
Mature manufacturing operations in
China, South/Southeast Asia, Japan
Emerging manufacturing hubs in
Eastern Europe & Russia
Global expansion impacts both buy-
side and sell-side operations
Demand Variability - Supply chains
becoming less responsive
Long lead-time multimodal
shipments. Carriers, brokers, agents,
consolidators…….
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5. Formats, Protocols 2009
Enterprise Formats
iDoc, cXML, XSLT, FLOW,
Modern Communications xCBL, DTD, W3C, UBL… SOA Transports and Bridges
JMS, ALE, MQ, BAPI, WSDL
FTP, HTTP, HTTP/S, S/FTP, SOAP,
RNIF, AS1, AS2, AS3 , SMTP…
SMB Integration
Legacy Communications
Quickbooks, Dynamics, CRM,
Async, Bisync, x.400, CICS, MIME…
Line 50, Axapta, Sage…
Industry Specific Standards Web Forms
Multi-Lingual, PDF, TIFF, JPG,
SPEC2000, RosettaNet, OAG,
Digital Signatures, attachments…
IDEA, PIDX, CIDX,VICS, HL7…
InterIndustry Standards
ANSI X12, EDIFACT, GS1 EANCOM
SWIFT, HIPAA, ACH, EPC
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6. Global Logistics is
Particularly Complex 2009
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7. Results in Operational
Supply Chain Challenges 2009
Forecasting Order Shipping & Invoice &
& Planning Management Receiving Payment
Lack of Common Buying Poor Visibility to Manual Comparison
View of Data organization has Shipments before of Ordered,
between buyers and to fax, e-mail, & they are received Received, Invoiced
suppliers phone orders by Warehouse Quantity
Bad data from trading 70% of supplier community Delayed receiving Payment inquiries from
partners falls out from ERP cannot conduct e- processes due to manual suppliers consume
system commerce inspection of contents Accounts Payable staff
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8. Complex Supply Chains become
Less Responsive 2009
Response times to demand by region for
North American brand owners The pervasiveness of contract
manufacturing and rush to low-cost
countries are straining the ability to
manage supply networks
- 70 % of brand owners manage critical
components either fully or jointly with
contract manufacturers
- Contract manufacturing activity will
continue to increase
- Global Supply networks remain
unresponsive to daily demand signals
- Need for greater visibility
into supply chain processes
Source: AMR Research
Contract Manufacturing at a Crossroads: Brand Owner Need for Visibility
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9. Strategic Actions to Regain Control
2009
Source: Aberdeen Group.
Managing multi-enterprise supply chains.
March 2009
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10. Core B2B Transactions 2009
Purchase Order Purchase Order Advance Ship
Purchase Order
Change Acknowledgement Notice
Shipment Status
Proof of Delivery Invoice DSD Invoice
Update
Credit Note Debit Note Remittance Advise
Between 2006 and 2011, Global 2000 companies
will double their multi-enterprise traffic 10
(transactions, documents and process execution
WELCOME to the FORUM events)…. Source Gartner Group. Predicts 2007

11. Exponential Growth in
B2B Transactions 2009
Huge manual
transactions
persist
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12. The SMB Automation challenge 2009
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13. Automation
A prerequisite to Visibility 2009
Size of Trading Partner
Small Mid-Size Large
SOHO Very Small Small Medium National Global
SMB Enterprise
Web Network Accounting Desktop Integration Resource
Fax Package Planning
Forms Translation Translator Broker
Complexity of B2B Enabler
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14. Take another look at your core..
B2B Transactions 2009
Purchase Order Purchase Order Advance Ship
Purchase Order
Change Acknowledgement Notice
Shipment Status
Proof of Delivery Invoice DSD Invoice
Update
Credit Note Debit Note Remittance Advise
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15. Beyond Buyers & Suppliers
Eliminating Supply Chain Blind Spots 2009
Export Ocean Import & Ground Warehouse Accounts
Processing In-Transit Customs Transit Receiving Payable
Automated In-gate at Arrival at Arrival at De- Received at Invoice- Order
manifest filing Port of Destination Consolidator Warehouse Reconciled
Departure Port
Arrival at Loaded onto Arrival Payment
consolidator Loaded onto Customs Ground Inspection Approved
Marine Vessel Clearance Transport Completed
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16. Did I say.. Global? 2009
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17. Assemble Transactions into..
A Procure-to-Pay Lifecycle 2009
Order
Orders
Orders
Acceptance
Ship Event Signal Proof of
Notice Delivery
Repository
Remittance
Invoice
Advice
Visibility, Collaboration,
Automation into the
Suppliers procure-to-pay process
Buyers
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18. Collaborative
Exception Management 2009
Order Quantity Order Quantity
Change? Change?
Unacknowledged Unacknowledged
Orders? Event Signal Orders?
Pending Shipment Repository Pending Shipment
Late Shipment? Late Shipment?
Jointly Obtain Real-Time
Answers to Critical
Suppliers Supply Chain Questions Buyers18
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19. Transactions Visibility
Insights 2009
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20. Beyond Visibility
Battle of Supply Chains 2009
“Instead of company to company
competition, we are now in an era of
supply chain to supply chain
competition.” .. Dr. Hau Lee, Stanford
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21. Supply Chain
Performance Management 2009
The supplier performance strategy and program is
important for improving end-to-end supply chain
performance in the context of company goals. The
supply management organization must be aligned
with the business strategy. June 2008
With improved operational efficiency in mind, companies
need to focus on how to use supply chain visibility data to
drive responsiveness in their supply chains.
September 2008
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22. Supply Chain Execution
Strategic Convergence 2009
“…the role and perceived importance of SCE is strategically changing as
leading organizations recognize the need to better orchestrate, synchronize
and control their end-to-end SCM processes.”
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23. What dashboard do you need? 2009
Source © Forrester Research 2007
Dashboards – Turning Information Into Decisions
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24. Operational Intelligence
Supply Chain Central 2009
Number of active Trading Partners
Number of ship-to-locations
Business document distribution
Discrete line Item count
SKU (part number) count across orders
Order-value & order-count by status
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25. Partner Performance Management 2009
Fill Rates
Line Fill Rate Order Fill Rate Value Fill Rate Unit Fill Rate
Key Performance Indicators (KPIs)
Delivery ASN Order Invoice
Punctuality Timeliness Acceptance Accuracy
Supply Chain Exceptions
Overdue Invoice without Fill Rate KPI
Shipments Shipments Exceptions Exceptions
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26. Collaborative Fill Rate Analysis 2009
Line
Fill Rate
Order
Fill Rate
Value
Fill Rate
Unit
Fill Rate
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27. Key Performance Indicators 2009
Delivery
Punctuality
ASN
Timeliness
Order
Acceptance
Invoice
Accuracy
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28. Operational & Financial Metrics 2009
Perfect Orders Delivered to Customers –
Complete, On-Time
Perfect Orders Received from Suppliers –
Complete, On-Time
Cash Conversion Cycle – Absolute and
relative improvement
Accuracy of Total Landed Cost Forecasting
Source: Aberdeen Group.
Managing multi-enterprise supply chains.
March 2009 28
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29. AMR Research
Hierarchy of Supply Chain Metrics 2009
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30. The Perfect Order Index
Concept 2009
Accurate Defect
Complete On Time
Documents Free
95% X 95% X 95% X 95%
POI = 81.4%
If the each component measured above is 90% instead of 95%, the perfect order index
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will be 65.6%.
Benchmarking the Perfect Order: 2005 Retailers Report
WELCOME to the FORUM Retail Compliance Council

31. Goal Alignment
Strategic & Tactical 2009
Shorten Lead Times Improve Internal
Monitor 100% of Partners; Productivity
acknowledge orders; on- Remove manual supply
time shipments chain interactions and
overhead
Reduce Stock Outs Decrease Data Errors
Early warning for delays; Speed reconciliation;
make alternate sourcing process specific data quality
arrangements rules
Lower Transportation
Improve Supplier
Cost
Connectivity
Advance Shipment
Across heterogeneous
Notice; reduce reliance on
systems and capabilities
expedites
Reduce Safety Stock Achieve IT Cost Controls
Reduced risk of trading Eliminate multi-million dollar
partner non-compliance / connectivity & visibility
maverick action projects
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32. In Summary 2009
Recognize your supply chain’s complexity
– Recognize its effects
Cross-functional business / strategic goals
– Alignment with supply chain execution tactics
– Aligned with your trading partner’s
B2B Transactions, Visibility, Insights
– Pick appropriate KPIs and Scorecards
– Monitor, Manage: Collaboratively and Continuously
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33. Scorecards, Measurements, KPIs
From Transactions to Supply Chain Transformation
www.gxs.com
Pradheep Sampath
Director, Product Management
100 Edison Park Drive
Gaithersburg MD 20878
WELCOME to the FORUM