More Related Content Similar to B2B Challenges Across the Global Steel Industry (20) More from Mark Morley, MBA (20) B2B Challenges Across the Global Steel Industry 3. OpenText Confidential. ©2014 All Rights Reserved. 3
Today’s Steel Industry
Continued M&A activity, especially in
China where the industry is still very
fragmented
Emergence of global rather than
regional steel producers
Fluctuations in raw materials costs
and the downturned economy is
leading to a stronger need to reduce
operational costs
4. OpenText Confidential. ©2014 All Rights Reserved. 4
Today’s Steel Industry
Increased awareness of environmental
issues is leading to the development of
more efficient steel plants
Adoption of B2B technologies has been
slower than in other industries
The use of e-market places has had
mixed success across European and
North American steel companies
5. OpenText™ Trading Grid™ Provides a Single
Integration Point Into the Enterprise
OpenText Confidential. ©2014 All Rights Reserved. 5
7. Research Findings Validate ROI
3rd Party Validation From Leading Institutions
68% Said that Managed Services helped improve
the efficiency of on-boarding new customers
OpenText Confidential. ©2014 All Rights Reserved. 7
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
8. Benefits of Cloud Based B2B Integration
OpenText Confidential. ©2014 All Rights Reserved. 8
Offers Scalability &
Flexibility
Simplifies
Connectivity
Provides End-to-
End Visibility
Improves
Collaboration
Simplifies
Integration
Increases
Security
9. How OpenText Helps the Steel Industry
Consolidation of B2B Infrastructures – M&A activity
OpenText Confidential. ©2014 All Rights Reserved. 9
across the industry has led to a requirement for B2B
network consolidation
Ageing Workforce Across the Steel Industry – B2B
resourcing issues are starting to occur due to the fact
that many steel industry workers are nearing retirement
Improve Support for ERP Projects – Consolidation of
ERP instances and upgrade to new modules is driving
new ERP/B2B integration projects
10. How OpenText Helps the Steel Industry
OpenText Confidential. ©2014 All Rights Reserved. 10
SME Enablement – B2B adoption, especially across
small to medium sized steel companies is relatively low
within the steel industry
Improved Visibility of Steel Shipments – improve
visibility into steel shipments and stock levels held at
steel storage and service centres
Industry Trend to Adopt Green Business Processes
– Automate the exchange of paper based invoices to
help green supply chains and speed up payment to
suppliers
11. European Steel Manufacturer
Customer Case Study – OpenText™ Managed Services
Managed Services was deployed to allow this company to switch off
their in-house, mainframe based EDI system
The solution involved the creation of 100 core maps, 600 clone maps
and the on-boarding of 400 trading partners with 100 of these
connected via OFTP
OpenText Confidential. ©2014 All Rights Reserved. 11
Business Issues
After numerous acquisitions over the past few years, needed to
consolidate a number of B2B platforms on to a single B2B platform
Wanted to provide better connectivity to trading partners all around
the world, especially in emerging markets such as China
Solution Deployed
Business Benefits Obtained
This company realised significant benefits by switching off their
legacy EDI platform and moving to a fully managed environment
They were able to offer higher customer satisfaction levels through
improved global connectivity to their key customers
Company Overview
This company is the largest
steel producer in the world.
This company operates in more
than 60 countries and has
245,000 employees. In 2012 they
had global revenues of nearly
$84.2billion. They produced
nearly 10% of the world’s crude
steel output and supply sheet
steel to many of the world’s
automotive OEMs
12. OpenText Confidential. ©2014 All Rights Reserved. 12
Conclusions
The global steel industry is continuing to
restructure and increased adoption of B2B
technologies would allow steel companies to:
Consolidate legacy B2B infrastructures and automate
manual, paper based processes
Provide true end to end visibility of steel shipments
anywhere in the world
Ensure that all trading partners are able to interact
with a B2B platform by way of easy to use and quick
to deploy B2B solutions
13. Mark Morley | mmorley@opentext.com
Copyright © OpenText Corporation. All rights reserved.
twitter.com/opentext
facebook.com/opentext
linkedin.com/company/opentext
W www.opentext.com
Editor's Notes Over the past few years GXS has undertaken a number of research studies to help validate the return on investment for deploying a Managed Services based B2B environment. One of our latest report from the Supply Chain Management Forum at Stanford University, released earlier this year, highlighted that 96% of respondents said that Managed Services added significant value to their overall B2B integration programs. - 68% agreed that Managed Services helped improve the efficiency of on-boarding new customers- 59% agreed that Managed Services helped enable a reduction in B2B integration costs- 74% agreed that replacing capital expenditure with a monthly fee was valuable to their business- 59% agreed that Managed Services helped to better meet/respond to change in customer requirements