B2B Challenges Across the Manufacturing Industry
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This presentation provides an overview of the B2B challenges facing companies operating across the manufacturing industry. Updated May 2014
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B2B Challenges Across the Manufacturing Industry
- 2. OpenText Information Exchange OpenText Confidential. ©2014 All Rights Reserved. 2
- 3. Today’s Manufacturing Value Chain Distributed Operations in Multiple Countries OpenText Confidential. ©2014 All Rights Reserved. 3 Distribution Near-Shoring 2010 Onwards Global HQ China Globalisation 2014 Onwards Regional Marketing & Sales Manufacturing Sales Manufacturing Research & Design Manufacturing Shared Services Sales Distribution Sales Shared Services Sales ‘BRIC’ Markets Expansion 2000 Onwards (BRIC = Brazil, Russia, India, China) ‘MINT’ Markets Expansion 2014 Onwards (MINT = Mexico, Indonesia, Nigeria, Turkey)
- 4. Today’s Manufacturing Industry OpenText Confidential. ©2014 All Rights Reserved. 4 Continued globalization of manufacturing hubs Increased pressure to reduce costs and streamline supply chains Co-location of suppliers next to major manufacturing hubs Increasing demand for outsourcing non-core business processes Continued requirement to improve inventory control & visibility
- 5. Today’s Manufacturing Industry OpenText Confidential. ©2014 All Rights Reserved. 5 Increased demand for spare parts as customers are keeping equipment in service for longer Convergence of manufacturing sub-sectors is changing supply chain dynamics Increasing use of light weight materials will impact business of the traditional raw material providers Requirement to develop green and sustainable supply chains
- 6. The Manufacturing Industry has some Interesting B2B Challenges OpenText Confidential. ©2014 All Rights Reserved. 6 Consolidation or Modernization of B2B Extensive M&A activity leading to a need for B2B network consolidation to reduce costs and improve efficiencies Provide Global Interoperability Increasing requirement to provide connectivity to global manufacturing hubs located in established and emerging markets Improve Integration to ERP Systems Consolidation of ERP instances and upgrade to new modules is driving new ERP/B2B integration projects
- 7. The Manufacturing Industry has some Interesting B2B Challenges Increase Supply Chain Resilience Recent natural disasters have led to companies needing to improve supply chain disaster response procedures OpenText Confidential. ©2014 All Rights Reserved. 7 Support Expansion into Emerging Markets Introduction of new global manufacturing hubs is leading to a need to improve on-boarding and ensure 100% supplier automation Adhere to Complex e-Invoicing Regulations More countries such as Brazil and Mexico are now mandating the use of e- Invoices as a condition of doing business within their country
- 8. OpenText™ Trading Grid™ Provides a Single Integration Point Into the Enterprise OpenText Confidential. ©2014 All Rights Reserved. 8
- 9. OpenText™ Managed Services OpenText Confidential. ©2014 All Rights Reserved. 9
- 10. 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. 10 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
- 11. Benefits of Cloud Based B2B Integration OpenText Confidential. ©2014 All Rights Reserved. 11 Offers Scalability & Flexibility Simplifies Connectivity Provides End-to- End Visibility Improves Collaboration Simplifies Integration Increases Security
- 12. Industrial Household Medical/Healthcare OpenText Confidential. ©2014 All Rights Reserved. 12 OpenText in Manufacturing • CNH Global • Caterpillar Inc • GE Industrial • Yanmar • OTIS Elevators • Hitachi Power tools • Indesit • Whirlpool • Aga/Rangemaster • Electrolux • Twyford Bathrooms • Hoover • Siemens Healthcare • GE Medical Systems • Philips Healthcare • Johnson & Johnson Medical • Tyco Healthcare
- 13. OpenText Success in Manufacturing Steel Manufacturer Arcelor Mital OpenText Confidential. ©2014 All Rights Reserved. 13 Kitchen Appliance Manufacturer Numerous acquisitions led to a need to consolidate multiple EDI platforms. Goal was to try and consolidate all EDI platforms on to a single platform that could be used across their EMEA ops. OpenText ™ Trading Grid™ Messaging Service was deployed to consolidate multiple country based, EDI platforms on to one common platform B2B platform now exchanges in excess of 100k documents a year and simplifies future TP on boarding After numerous acquisitions this company needed to consolidate a number of B2B platforms on to a single platform. Also needed to offer improved connectivity to TPs in markets such as China OpenText™ Managed Services deployed to replace in house, legacy mainframe EDI system. Over 400 trading partners with 100 of these connected via OFTP were connected to the new platform. Experienced significant improvements in satisfaction levels from global customers Industrial Equipment Manufacturer Extensive mergers and acquisition led to a need to consolidate EDI platforms and back office business systems. Needed to improve end to end visibility and tracking of business transactions. OpenText™ Managed Services was deployed to help consolidate multiple EDI platforms and provide full integration to new Oracle and SAP ERP systems Provided scalable resources to support their global B2B activities across multiple countries
- 14. OpenText Confidential. ©2014 All Rights Reserved. 14 Conclusions Manufacturing companies are continuing to look for ways to cut costs in order to become more competitive. Increased adoption of B2B helps to: Consolidate legacy B2B infrastructures on to one platform Improve internal communications between manufacturing plants and external communication to global trading partners Provide improved integration to manufacturing systems such as ERP platforms Support expansion into new markets Adhere to regional e-Invoicing regulations and reduce the amount of paper based documents flowing across the extended enterprise Minimise supply chain disruption through improved information management & collaboration
- 15. 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
- Today’s manufacturing industry has some interesting B2B related challenges Continued merger and acquisition activity across the industry is leading to manufacturing companies needing to consolidate multiple or legacy B2B networks across their business on to one common platform. As manufacturers build new plants around the world, there is a continued need to provide connectivity to global manufacturing hubs and trading partners around the world. - ERP systems are at the center of nearly every manufacturing operation and a company can realise significant benefits if they integrate their ERP and B2B systems together.
- As manufacturers look to expand into low cost emerging markets they need to onboard suppliers in these regions as quickly and smoothly as possible. Due to limited IT skills in these regions, suppliers must be on-boarded with simple to use and quick to deploy B2B tools Globalisation of manufacturing supply chains has meant that it has become more important than ever before to improve visibility into the shipment of their goods, in both the distribution of new goods and shipment of service parts across the aftermarket sector. Finally, recent natural disasters have led to a need to improve the way in which companies respond to supply chain disruptions in order to help increase supply chain resilience So let me now briefly discuss each of these in turn.
- 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
- CNH Global, an industrial equipment manufacturer – Extensive mergers and acquisition had seen the need to consolidate numerous EDI platforms and back office business systems Needed to improve end to end visibility and tracking of business transactions and support for multiple languages/document types GXS Managed Services was deployed to help consolidate multiple EDI platforms on to one, seamless B2B platform that could be used globally GXS provided full integration to a new Oracle based Transport Management System and SAP based ERP environments GXS managed the global on-boarding of existing and new suppliers Provided scalable, flexible resource to support this company’s global B2B activities across multiple countries, supporting many standards Support for ASNs and e-Invoicing helped to improve visibility of transactions and payment to its suppliers around the world Indesit a home appliance manufacturer– This company was already a GXS customer but numerous acquisitions had led to a need to consolidate multiple EDI platforms Their goal was to try and consolidate all EDI platforms on to a single platform that could be used across their European operations GXS Trading Grid Messaging Service was deployed to consolidate multiple, ‘nationally’ based, EDI platforms on to one common platform The platform is used to send orders, invoices and delivery notes to their retailers, online stores and catalogue companies. It is estimated that the new platform exchanges in excess of 100,000 documents a year Consolidation onto GXS Trading Grid has led to improved performance, efficiency and cost savings for all business transactions The new B2B environment offers a flexible platform that will allow this company to onboard new trading partners in regions such as Eastern Europe, in a much shorter time than before Yanmar a Japanese based manufacturer of diesel engines and generators– Needed to improve customer satisfaction levels amongst their network of 26 overseas dealers and end users They lacked the ability to track precise delivery of parts which prevented the company from executing customer supply schedules This company deployed GXS Active Logistics to gain real time insights into global logistics operations from Japan to their dealers GXS were chosen due to three specific criteria, global reach, extensive access to a network of logistics providers and EDI expertise. GXS was the only vendor to meet all of these criteria Solution was implemented very quickly due to number of existing pre-configured connections to logistics and shipping providers As a result, parts are shipped to dealers in a timely manner, leading to improved customer satisfaction in a relatively short period of time