Bridging Gap
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The document discusses bridging the technology gap between large enterprises and middle-market suppliers in electronic trading. It outlines the components of supply chain integration and barriers faced by middle-market suppliers, such as lack of integration between business systems and EDI/XML capabilities. A case study examines how a proprietary system called Red Tail Business Process Integrator can provide virtual integration capabilities to help middle-market suppliers comply with the complex requirements of large customers.
![Patricia S. Meisner CEO [email_address] March 8, 2005 Managed Services for Electronic Trading for the Middle-Market Bridging the Technology Gap Between the Large Enterprise and Its Middle-Market Suppliers NY/NJ EDI Users’ Group](https://image.slidesharecdn.com/bridginggap-1226891160710076-8/85/Bridging-Gap-1-320.jpg)
Bridging Gap
- 1. Patricia S. Meisner CEO [email_address] March 8, 2005 Managed Services for Electronic Trading for the Middle-Market Bridging the Technology Gap Between the Large Enterprise and Its Middle-Market Suppliers NY/NJ EDI Users’ Group
- 2. Bridging the Technology Gap Between the Large Enterprise and Its Middle-Market Suppliers Components of Supply Chain Integration (SCI) Span of Basic Technology Platforms Case Study: Unlikely Trading Partners Large Enterprise/Middle-market Priorities for SCI Building the Bridge: Virtual Capabilities for the Middle-Market Conclusions
- 3. Components of Supply Chain Integration Connectivity Data Transformation Process Management
- 4. Barriers to Supply Chain Integration for the Middle-Market Supplier Lack of integration to accounting system No counterparts for data elements and business rules Complex requirements for data transformation, cross-referencing and data cleansing Inability to support multiple electronic trading protocols Connectivity Data Transformation Process Management
- 5. MIDDLE-MARKET SUPPLIERS GreatPlains BEST MAS90/200 ACCPAC ProSeries Large Enterprise SAP, PeopleSoft, Oracle SMALL SUPPLIERS QuickBooks® PeachTree® # Suppliers (thousands) # Transactions/Month Lawson, Macola JD Edwards Span of Business System Platforms Basic Accounting Accounting Systems for Mfrs ERP
- 6. The Technology Gap… Accounting System Web Tools EDI/xml Enterprise Application Integrator ERP SYSTEM Supply Chain Management Apps Gateway/VPN/WebTools Large Enterprise Middle-Market Supplier MRP WMS CRM Connectivity Data Transformation Process Mgt
- 7. Unlikely Trading Partners… 15 Thousands Trading Partners Close Bronx WH Connect to CA 3PL with 940/945s Automated Receiving Technology Web-enabled supply chain tracking RFID Supply Chain Initiatives 10,000 sq.’ (NYC) Remote 3P Warehouse (CA) 1,225 US Stores 150 Million Sq.’ 19 regular DCs 3 Import WHs Facilities 50,000 Billions? Transactions (annual) ACCPAC ProSeries ERP Business System 12 300,000 Employees $10 M $48 B Revenues “ TT, inc.” Target Corp
- 9. Must Support Multiple Connectivity Protocols VAN FTP AS2 Bed,Bath Beyond Fred Meyer Kids R Us Zeller’s/ Hudson Bay Kohl’s Loblaw’s Mervyn’s Nordstrom Peyton Sak’s Shopko Toys R Us Middle-market Constraints: Minimal IT infrastructure, resources Multiplication of procedures TT, Inc.
- 10. No Counterparts for Business Rules and Data Elements TT, Inc.
- 11. Business Process Integration Requires Complex Data Transformation by Middle-Market Supplier Nordstrom850 SDQ Individual Orders by “Ship To” and “Mark For” Locations Process Orders Nordstrom 810 “C” Nordstrom Order/Invoice Requirements No capability to parse consolidated orders No capability to create consolidated invoices TT,Inc ACCPAC Accounting System
- 12. Optimization of Supply Chain for the Large Enterprise Value-Chain Integration Drivers Reduce Transaction Processing Costs Improve Customer Satisfaction Automate Transactions with SMB Partners Comply with Customer’s Condition for Doing Business Work effectively with suppliers Improve Order Accuracy Increase Business with Existing Customers Improve Order Response Times Reduce Inventory/Increase Turns Improve Planning and Scheduling Gain New Customers e-Supply Chain Technology Drivers Securely transmit transactions via internet Manage Partner Profile Information Support XML industry standards Automate Transaction Workflow Move from Batch to Real Time Define, Invoke, Manage Human and System Events Source: The Yankee Group 2003
- 13. Optimization of Supply Chain for Middle-Market Enterprise Value-Chain Integration Drivers 3. Reduce Transaction Processing Costs Improve Customer Satisfaction Automate Transactions with SMB Partners 1. Comply with Customer’s Condition for Doing Business Work effectively with suppliers 5. Improve Order Accuracy 4. Increase Business with Existing Customers Improve Order Response Times Reduce Inventory/Increase Turns Improve Planning and Scheduling 2. Gain New Customers e-Supply Chain Technology Drivers Securely transmit transactions via internet Manage Partner Profile Information Support XML industry standards 1. Automate Transaction Workflow 2. Support multiple protocols with a single system/process Move from Batch to Real Time Define, Invoke, Manage Human and System Events
- 14. Service and Proprietary Systems Proprietary Software Red Tail Business Process Integrator™ Large Trading Partners Accounting System Red Tail Transaction Manager ™ REDTAIL Solutions Virtual Capabilities in an Outsourcing Model Mid-market Supplier WalMart Nordstom Kohl’s WalMart Internet
- 15. Business Process Integration Requires Complex Data Transformation by Middle-Market Supplier Nordstrom850 SDQ Order ∑ 850 “C” Review/Revise Trans.1 Individual Orders by “Ship To” and “Mark For” Locations Process Orders Trans.3 Trans.2 TT,Inc ACCPAC Accounting System Nordstrom 810 “C” Manual Edit/Trans.4 Nordstrom Order/Invoice Requirements No capability to parse consolidated orders or create a consolidated invoice
- 16. No Counterparts for Business Rules and Data Elements TT, Inc.