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EDI: Workhorse of
the Value Chain
Where are You?

Supply Chain Insights LLC Copyright © 2013, p. 2
Current State

Supply Chain Insights LLC Copyright © 2013, p. 3
Our Goal

In this webinar, we will help companies
benchmark their current state on B2B
connectivity.

Supply Chain Insights LLC Copyright © 2013, p. 4
Agenda

Supply Chain Insights LLC Copyright © 2013, p. 5
Study Overview

Supply Chain Insights LLC Copyright © 2013, p. 6
The Majority of Respondents Work at
Manufacturers and Average Revenue is $4 Billion

Supply Chain Insights LLC Copyright © 2013, p. 7
Over Half of Respondents Work
in a Discrete Industry

Supply Chain Insights LLC Copyright © 2013, p. 8
Half of Respondents Work in IT, Nearly Half are
Managers and Over ¾ Work in the US

Supply Chain Insights LLC Copyright © 2013, p. 9
Four in Five Report Having a
Formal Supply Chain Organization

Supply Chain Insights LLC Copyright © 2013, p. 10
Respondents Identify an Average of
6 Functions that Report through the Supply Chain

Supply Chain Insights LLC Copyright © 2013, p. 11
Agenda

Supply Chain Insights LLC Copyright © 2013, p. 12
Definitions

Supply Chain Insights LLC Copyright © 2013, p. 13
All Respondents Have EDI/XML and are
Somewhat Familiar with their B2B Solutions

Supply Chain Insights LLC Copyright © 2013, p. 14
Most Respondents are Familiar with the Use of
EDI/XML for Order-to-Cash and Procure-to-Pay

Supply Chain Insights LLC Copyright © 2013, p. 15
Agenda

Supply Chain Insights LLC Copyright © 2013, p. 16
For Both Sales and Purchase Orders,
Over Half of Orders are Exchanged via EDI/XML

Supply Chain Insights LLC Copyright © 2013, p. 17
On Average, EDI/XML Sales Orders
are Faster with No Manual Intervention

Supply Chain Insights LLC Copyright © 2013, p. 18
For Both Sales and Purchase Orders,
Over 1/3 Report Tracking Internal Costs of Orders

Supply Chain Insights LLC Copyright © 2013, p. 19
Awareness of Internal Order Costs
is Low for Both Order Types

Supply Chain Insights LLC Copyright © 2013, p. 20
The Top Challenge for Orders
Not Processed via EDI/XML Is Added Time

Supply Chain Insights LLC Copyright © 2013, p. 21
About Half Report the Orders Change at Least
Once; About 60% Process Changes via EDI/XML

Supply Chain Insights LLC Copyright © 2013, p. 22
The Top Challenge for Order Changes Not Using
EDI/XML Is Having More Imperfect Orders

Supply Chain Insights LLC Copyright © 2013, p. 23
EDI/XML Benefits Accuracy Most
for Both Sales and Purchase Orders

Supply Chain Insights LLC Copyright © 2013, p. 24
Business Partner Relationships is Top Supply
Chain Element to Improve with EDI/XML

Supply Chain Insights LLC Copyright © 2013, p. 25
ASNs and Purchase Order Acknowledgements
are Most Important Elements of EDI/XML
for Improving Supply Chain Performance

Supply Chain Insights LLC Copyright © 2013, p. 26
Non-Discrete Industries and Non-IT Roles
are More Likely to Consider
Purchase Order Acknowledgements to be Important

Supply Chain Insights LLC Copyright © 2013, p. 27
Customer Order Captures and ASNs are Top
Performing Elements of EDI/XML
for Improving Supply Chain Performance

Supply Chain Insights LLC Copyright © 2013, p. 28
Greatest Gaps in Performance:
ASNs and Purchase Order Acknowledgements

Supply Chain Insights LLC Copyright © 2013, p. 29
Only 6% Report Offering a Discount to
Customers for Use of EDI/XML

Supply Chain Insights LLC Copyright © 2013, p. 30
Agenda

Supply Chain Insights LLC Copyright © 2013, p. 31
82% of Respondents are at Least Slightly
Familiar with Company’s Distribution Center

Supply Chain Insights LLC Copyright © 2013, p. 32
2/3 Report Receiving Shipments without
Advanced Shipment Notices or Dispatch Advices

Supply Chain Insights LLC Copyright © 2013, p. 33
Top Challenges When Don’t Have ASNs
are Longer Receiving Times and
Inability to Plan Labor Schedules

Supply Chain Insights LLC Copyright © 2013, p. 34
Without ASN, Biggest Impact to Supply Chain is
Need to Expedite Shipments More Frequently

Supply Chain Insights LLC Copyright © 2013, p. 35
On Average, Shipments without ASNs
Cost $78 per Order Extra

Supply Chain Insights LLC Copyright © 2013, p. 36
Nearly Half of Inbound Shipments are not
Labeled with Barcodes or RFID Tags

Supply Chain Insights LLC Copyright © 2013, p. 37
On Average, Shipments without Barcodes or
RFID Tags Cost $57 per Order Extra

Supply Chain Insights LLC Copyright © 2013, p. 38
Agenda

Supply Chain Insights LLC Copyright © 2013, p. 39
Summary
• EDI and B2B connectivity matters. Progress
is slow.
• EDI is the workhorse of the extended supply
chain. Business networks are in their infancy.
• Most companies are looking at pennies and
missing the dollars.

Supply Chain Insights LLC Copyright © 2013, p. 40
Questions?

Supply Chain Insights LLC Copyright © 2013, p. 41
Who is Lora Cecere?
• Founder of Supply Chain Insights
• Partner at Altimeter Group (leader in open
research)
• 7 years of Management Experience Leading
Analyst Teams at Gartner and AMR Research
• 8 years Experience in Marketing and Selling
Supply Chain Software at Descartes Systems
Group and Manugistics (now JDA)
• 15 Years Leading Teams in Manufacturing and
Distribution Operations for Clorox,
Kraft/General Foods, Nestle/Dreyers Grand
Ice Cream and Procter & Gamble.

Supply Chain Insights LLC Copyright © 2013, p. 42
Where Do You Find Lora?

Contact Information:
lora.cecere@supplychaininsights.com
Blog: www.supplychainshaman.com
(4000 pageviews/month)
Twitter: lcecere 4640 followers.
LinkedIn: linkedin.com/pub/loracecere/0/196/573 (5650 in the network)

Supply Chain Insights LLC Copyright © 2013, p. 43

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EDI: Workhorse of the Extended Supply Chain

  • 1. EDI: Workhorse of the Value Chain
  • 2. Where are You? Supply Chain Insights LLC Copyright © 2013, p. 2
  • 3. Current State Supply Chain Insights LLC Copyright © 2013, p. 3
  • 4. Our Goal In this webinar, we will help companies benchmark their current state on B2B connectivity. Supply Chain Insights LLC Copyright © 2013, p. 4
  • 5. Agenda Supply Chain Insights LLC Copyright © 2013, p. 5
  • 6. Study Overview Supply Chain Insights LLC Copyright © 2013, p. 6
  • 7. The Majority of Respondents Work at Manufacturers and Average Revenue is $4 Billion Supply Chain Insights LLC Copyright © 2013, p. 7
  • 8. Over Half of Respondents Work in a Discrete Industry Supply Chain Insights LLC Copyright © 2013, p. 8
  • 9. Half of Respondents Work in IT, Nearly Half are Managers and Over ¾ Work in the US Supply Chain Insights LLC Copyright © 2013, p. 9
  • 10. Four in Five Report Having a Formal Supply Chain Organization Supply Chain Insights LLC Copyright © 2013, p. 10
  • 11. Respondents Identify an Average of 6 Functions that Report through the Supply Chain Supply Chain Insights LLC Copyright © 2013, p. 11
  • 12. Agenda Supply Chain Insights LLC Copyright © 2013, p. 12
  • 13. Definitions Supply Chain Insights LLC Copyright © 2013, p. 13
  • 14. All Respondents Have EDI/XML and are Somewhat Familiar with their B2B Solutions Supply Chain Insights LLC Copyright © 2013, p. 14
  • 15. Most Respondents are Familiar with the Use of EDI/XML for Order-to-Cash and Procure-to-Pay Supply Chain Insights LLC Copyright © 2013, p. 15
  • 16. Agenda Supply Chain Insights LLC Copyright © 2013, p. 16
  • 17. For Both Sales and Purchase Orders, Over Half of Orders are Exchanged via EDI/XML Supply Chain Insights LLC Copyright © 2013, p. 17
  • 18. On Average, EDI/XML Sales Orders are Faster with No Manual Intervention Supply Chain Insights LLC Copyright © 2013, p. 18
  • 19. For Both Sales and Purchase Orders, Over 1/3 Report Tracking Internal Costs of Orders Supply Chain Insights LLC Copyright © 2013, p. 19
  • 20. Awareness of Internal Order Costs is Low for Both Order Types Supply Chain Insights LLC Copyright © 2013, p. 20
  • 21. The Top Challenge for Orders Not Processed via EDI/XML Is Added Time Supply Chain Insights LLC Copyright © 2013, p. 21
  • 22. About Half Report the Orders Change at Least Once; About 60% Process Changes via EDI/XML Supply Chain Insights LLC Copyright © 2013, p. 22
  • 23. The Top Challenge for Order Changes Not Using EDI/XML Is Having More Imperfect Orders Supply Chain Insights LLC Copyright © 2013, p. 23
  • 24. EDI/XML Benefits Accuracy Most for Both Sales and Purchase Orders Supply Chain Insights LLC Copyright © 2013, p. 24
  • 25. Business Partner Relationships is Top Supply Chain Element to Improve with EDI/XML Supply Chain Insights LLC Copyright © 2013, p. 25
  • 26. ASNs and Purchase Order Acknowledgements are Most Important Elements of EDI/XML for Improving Supply Chain Performance Supply Chain Insights LLC Copyright © 2013, p. 26
  • 27. Non-Discrete Industries and Non-IT Roles are More Likely to Consider Purchase Order Acknowledgements to be Important Supply Chain Insights LLC Copyright © 2013, p. 27
  • 28. Customer Order Captures and ASNs are Top Performing Elements of EDI/XML for Improving Supply Chain Performance Supply Chain Insights LLC Copyright © 2013, p. 28
  • 29. Greatest Gaps in Performance: ASNs and Purchase Order Acknowledgements Supply Chain Insights LLC Copyright © 2013, p. 29
  • 30. Only 6% Report Offering a Discount to Customers for Use of EDI/XML Supply Chain Insights LLC Copyright © 2013, p. 30
  • 31. Agenda Supply Chain Insights LLC Copyright © 2013, p. 31
  • 32. 82% of Respondents are at Least Slightly Familiar with Company’s Distribution Center Supply Chain Insights LLC Copyright © 2013, p. 32
  • 33. 2/3 Report Receiving Shipments without Advanced Shipment Notices or Dispatch Advices Supply Chain Insights LLC Copyright © 2013, p. 33
  • 34. Top Challenges When Don’t Have ASNs are Longer Receiving Times and Inability to Plan Labor Schedules Supply Chain Insights LLC Copyright © 2013, p. 34
  • 35. Without ASN, Biggest Impact to Supply Chain is Need to Expedite Shipments More Frequently Supply Chain Insights LLC Copyright © 2013, p. 35
  • 36. On Average, Shipments without ASNs Cost $78 per Order Extra Supply Chain Insights LLC Copyright © 2013, p. 36
  • 37. Nearly Half of Inbound Shipments are not Labeled with Barcodes or RFID Tags Supply Chain Insights LLC Copyright © 2013, p. 37
  • 38. On Average, Shipments without Barcodes or RFID Tags Cost $57 per Order Extra Supply Chain Insights LLC Copyright © 2013, p. 38
  • 39. Agenda Supply Chain Insights LLC Copyright © 2013, p. 39
  • 40. Summary • EDI and B2B connectivity matters. Progress is slow. • EDI is the workhorse of the extended supply chain. Business networks are in their infancy. • Most companies are looking at pennies and missing the dollars. Supply Chain Insights LLC Copyright © 2013, p. 40
  • 41. Questions? Supply Chain Insights LLC Copyright © 2013, p. 41
  • 42. Who is Lora Cecere? • Founder of Supply Chain Insights • Partner at Altimeter Group (leader in open research) • 7 years of Management Experience Leading Analyst Teams at Gartner and AMR Research • 8 years Experience in Marketing and Selling Supply Chain Software at Descartes Systems Group and Manugistics (now JDA) • 15 Years Leading Teams in Manufacturing and Distribution Operations for Clorox, Kraft/General Foods, Nestle/Dreyers Grand Ice Cream and Procter & Gamble. Supply Chain Insights LLC Copyright © 2013, p. 42
  • 43. Where Do You Find Lora? Contact Information: lora.cecere@supplychaininsights.com Blog: www.supplychainshaman.com (4000 pageviews/month) Twitter: lcecere 4640 followers. LinkedIn: linkedin.com/pub/loracecere/0/196/573 (5650 in the network) Supply Chain Insights LLC Copyright © 2013, p. 43