EBFM Presentation
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The document outlines the benefits of Electronic Business Flow Management (EBFM) for streamlining electronic transaction processes, including cost reduction and improved cash flow. It emphasizes the importance of adopting open standards and electronic data interchange (EDI) to enhance supply chain efficiency while facilitating global transaction integration. Recommendations for successful implementation focus on identifying manual processes for replacement and establishing strong trading partner relationships to maximize profit potential.
EBFM Presentation
- 1. Profit from Electronic Business Flow Management Skip Stein Management Systems Consulting, Inc. http://www.msc-inc.net Copyright © 20103 Management Systems Consulting, Inc.
- 2. Vision Statement EBFM – Electronic Business Flow Management EBFM for electronic transaction processing can implement cost reduction and enhanced cash flow opportunities with it’s integration into business processes. Apply enhanced electronic transactions to your business processes, to reduce expenses, decrease time to cash receipt, eliminate error prone data entry applications, and reduce the order to cash depository process. Deploying Electronic Business Communications for Profiit 2
- 3. EBFM Structure Electronic Business Transactions Infrastructure is well founded upon open standards like EDI, LC (letter of credit), Open Purchase Order and VMI (vendor managed inventory) Established standards (ebXML/EDI) and electronic infrastructure (Internet, VPN’s, secure networks) capitalize on existing processes and expand beyond paper and manual order processing techniques. Deploying Electronic Business Communications for Profiit 3
- 4. Business Process Model Global Transaction Integration Alternate Sources of Supply - dynamically balanced through inventory, order entry, distribution & control systems. AOT (always on time) replaces JIT (just in time). Constant information flow from multiple sources of supply – 24 x 7. Global in scale – uninterrupted by regional boundaries supported by worldwide networks and the Internet. Deploying Electronic Business Communications for Profiit 4
- 5. Purpose -> Profit It is NOT a dirty word! Profit - The mechanism by which two or more business enterprises form enhanced trading partner relationships for the purpose of increasing revenue and reducing costs while in the business of producing a saleable product at a profit! Deploying Electronic Business Communications for Profiit 5
- 6. Yesterday’s Situation Supply Chain Processes JIT – just in time is insufficient Developed as an inventory control/reduction method Focused on ‘key suppliers’ Produced critical inventory shortages Affected by strikes, weather, wars Deploying Electronic Business Communications for Profiit 6
- 7. New Model - EBFM More Efficient and Timely AOT – always on time – supplies always available when and where needed Supply forecast linked to variable sources – balanced by availability and lead times Electronic orders based on projected manufacturing & distribution forecast Flexible/adaptable in a constrained material supply situation Deploying Electronic Business Communications for Profiit 7
- 8. How Do We Get There? Business Process Change Consolidate and focused business enterprise operations Function focused business units Autonomous operations linked Globally through dynamic networks Workforce balanced by need and operational focus – not regional or centralized bureaucracy Adaptive organizations with flexibility to implement change - rapidly Deploying Electronic Business Communications for Profiit 8
- 9. Electronic Transactions Open Up the Electronic Gateway Electronic Data Interchange – EDI Internationally recognized and adopted as a secure and functional business process Supported by open standards Updated and maintained on current basis by international standards groups Evolving technology support – ebXML Standards, Internet Security enhancements and more Deploying Electronic Business Communications for Profiit 9
- 10. The Basics Electronic Transaction Flow Integration Electronic transactions replace laborious, time consuming, and error prone movement and handling of paper ‘Untouched by Human Hands’ – standard formats transmitted in seconds instead of days – routed and handled automatically Order to Cash - process product orders and cash receipts in minutes, not days, weeks or months Deploying Electronic Business Communications for Profiit 10
- 11. Electronic Enterprise Deploying Electronic Business Communications for Profiit 11
- 12. Architecture Deploying Electronic Business Communications for Profiit 12
- 13. Components Overview Deploying Electronic Business Communications for Profiit 13
- 14. Technology – Underutilized Eliminate the Paper and Manual Processes Fully implemented existing capabilities of electronic transactions - EDI & ebXML Implementations must leverage the dynamic capabilities of machine to machine data transfer Reduce/eliminate increasing costs of manpower to support old infrastructure Filing cabinets, paper take up unnecessary and valuable space – electronicise records and documents Deploying Electronic Business Communications for Profiit 14
- 15. Available Solutions Utilize Available Technology ebXML, EDI and electronic commerce is just the communication & document transport layer of a more complete infrastructure change Electronic image processing, scanning, CDRW, EPR systems are available to support infrastructure demands Available technology provides the ability to work anywhere with ‘COMPLETE’ information retrieval resources at hand Deploying Electronic Business Communications for Profiit 15
- 16. Recommendation Identify Replaceable Manual Processes - Walk the floor - Order Processing – how much data entry Invoicing and Receipts Processing – paper & postage Procurement and Receiving – automatic inventory Shipping & Distribution – BOM, lists and packaging Stand by the printer – why do you need paper See what’ being copied – why do need copies Deploying Electronic Business Communications for Profiit 16
- 17. Resources Electronic Transaction Standards Complete business process support Pre-existing transaction sets defined for virtually any business process Open standards make communication across international boundaries (language, time zones and climate) possible Tested and Proven methodology With lower entry costs, available to even the smallest business enterprise today Deploying Electronic Business Communications for Profiit 17
- 18. Mandatory Electronic Document Exchange Electronic Data Interchange –EDI – is becoming a mandatory mode of business operations Available to even the ‘QuickBooks’ enterprise Secure transaction exchange supported by a variety of methodologies, processes and service organizations Government Contracts and HIPAA (healthcare) legislation requires it Deploying Electronic Business Communications for Profiit 18
- 19. Implementation Plenty of Implementation Options Available Available as SAAS Browser or enterprise/legacy system interface options TCP/IP communication using FTP or SMTP Internet or VPN access Pass transactions to/from/through traditional VANs Deploying Electronic Business Communications for Profiit 19
- 20. Room to Grow Current Systems Support EDI Many existing implementations only encompass the basics: Purchase Order & Invoice Revision documents, Shipping Information, and Payment processing have yet to be implemented True ROI begins HERE~! Deploying Electronic Business Communications for Profiit 20
- 21. Cost Reduction - Potential Electronic Transaction Expansion Full implementation of EDI capabilities provide the basic framework for substantial cost reduction Leverage existing workforce in more profitable activities Reduce/Eliminate paperwork, forms, filing and filing cabinets Machine to machine transaction processing at light speed Deploying Electronic Business Communications for Profiit 21
- 22. Profit Enhancement - Potential Make a Profit with Quicker Response Times Process Orders & Cash Receipts faster Automate order processing to manufacturing and distribution systems Reduce on-hand inventory with AOT (Always on Time) assurances provided by multiple source of supply & distribution Enhanced payment processing with EFT Order to Pay processing Deploying Electronic Business Communications for Profiit 22
- 23. More Profit Potential Shrink Supply Times Automate requests for quote Model/Forecast and manage bids/proposals Interface with in-house procurement systems Attach and publish specifications documents Manage procurement activity Integrate seamlessly with procurement communities and catalogs using EDI & ebXML-based architectures Deploying Electronic Business Communications for Profiit 23
- 24. Success Based Provisions You Can’t Do it Alone Establish Trading Partner Relationships – beyond customer/supplier contracts Open up organizations and business relationships to fuller, more complete information exchange Deploy secure communications infrastructures to support ongoing linkages Deploying Electronic Business Communications for Profiit 24
- 25. Implementation Requirements Do it NOW Rather than Later Select a set of tools – standards, translator, communicator, application interface Obtain expertise during deployment – don’t re-invent the wheel!!! Deploy structured and reliable application system interfaces Offer enhanced career opportunities to available personnel with existing business knowledge Make the process repeatable Deploying Electronic Business Communications for Profiit 25
- 26. Key Factors Standardize the Process This is NOT brain surgery, although a rocket scientist would be an asset The biggest expense is on initial deployment – don’t stop short Train to maintain – support staff should maintain electronic based applications TEST TEST TEST Deploying Electronic Business Communications for Profiit 26
- 27. Trading Partners Develop Business Partnerships Share common goals – Profit Define the relationship – contracts & agreements Work together to improve business communications Co-develop inter company standards for electronic information exchange Share Ideas Work together! Deploying Electronic Business Communications for Profiit 27
- 28. Summary Utilize EBFM to Enhance your Electronic Transaction Processing Relationships Focus on Global Business Partner Relationships Feedback is vital to success – Train to maintain Charter involves the whole community – partnerships Fulfill the Future, Build from Today Deploying Electronic Business Communications for Profiit 28
- 29. Thank You For more information on the EBFM electronic business process model, please visit our web site: http://www.msc-inc.net Thanks! Management Systems Consulting, Inc. 800-856-3193 Deploying Electronic Business Communications for Profiit 29