slide 1 ©2012 gxs, inc. 5 ©2012 gxs, inc. benefits of the asn greater order and product lifecycle...
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Slide 2 ©2012 GXS, Inc.
Agenda
The “why” behind the ship notice
Trading partner onboarding
The importance of data quality
Macy’s success story
Other industry case studies
Objective: Discover best practices for overseeing
large scale ship notice rollouts, as well as how
gaining visibility to supply chain exceptions through
early alerts and data quality management can
provide benefits to your organization.
Slide 3 ©2012 GXS, Inc.
The Information Supply Chain Enables the Physical & Financial Supply Chains
Ocean Freight
Customs Clearance
Factory Inspection Warehouse Receipt
Late Stage Configuration
Ground Transport
Letter of Credit Issued Foreign Exchange
Payment Issued Supplier Invoice
Dispute & Deduction Factor Receivable
Slide 4 ©2012 GXS, Inc.
your company your customer’s
distribution center
The Importance of the ASN
Shipment detail must be conveyed prior to product arriving
at the receiving facility to:
Reduce shipment off-loading time
Reduce check-in time from receipt to selling floor
Slide 5 ©2012 GXS, Inc.
Benefits of the ASN
Greater order and product lifecycle visibility (in-transit
inventory)
Increased supply chain visibility (no gaps)
Less product in pipeline, more on sales floor
Improved speed to point-of-sale
Higher profitability through more full-price sales
Increased quality control in shipping
Reduced/eliminated errors in retailer systems about product
Vendor scorecard – opportunity to excel
Reduced discrepancies/penalties
Fewer out of stocks
Fewer errors in inventory management systems
Slide 6 ©2012 GXS, Inc.
Complexities Associated with the ASN
Customer needs
Evolving shipping requirements
Multi-channel packing scenarios
Integration with the entire order-to-cash cycle
Business processes
Distribution flow
Ticketing, packing, pallet building by customer
Carrier relationship management
Technology support
Multiple structures and maps
Shipping document creation and delivery
Process alignment with information flow and ASN translation
Slide 7 ©2012 GXS, Inc.
Automate Warehouse Receiving Reduce Costs from Manual Labor, Freight Expenses and Inventory
Supplier Labels Packages &
Sends Advanced Ship Notice
Detailed electronic
manifest of shipment
contents
Transportation mode,
carrier and expected
delivery date
Buyer Plans for Storage
& Transportation
ASN contents
uploaded to
Warehouse
Management
System
Buyer Tracks Goods
through Supply Chain
Track and trace of
multi-modal
shipments
Dynamic ETA
calculation for delays
Buyer Receives Shipment
in Warehouse
Barcode scan match
against Warehouse
Management System
Electronic Proof of
Delivery
Reduce time tracking
inbound shipments
with fax, e-mail and
phone
Visibility to inventory
in the supply chain
enables reductions
of safety stock
Reduce time to
receive goods with
automated shipment
identification &
advanced labor
planning
Minimize premium
freight discounts with
accurate visibility
Trial RFID programs
with key suppliers
Slide 9 ©2012 GXS, Inc.
As You Approach 100% Participation
Reduced supply-chain costs
Improved invoicing process
Faster payments
Better cash flow
Improved employee productivity by avoiding non-value-add (manual) process
Better customer service by simplifying and streamlining communications
Slide 10 ©2012 GXS, Inc.
Keys to a Successful Trading Partner Implementation Program
Right solution for SMBs:
Easy-to-use
Minimal data entry
Data validation
No-cost/low-cost
Clearly articulated benefits
Internal buy-in
Well-planned rollout
Slide 11 ©2012 GXS, Inc.
Spectrum of Enablers Integration Solutions for Every Trading Partner
Fax Microsoft
Office
Web
Forms
Integration
Broker
Enterprise
Resource
Planning
Small Mid-Size Large
Desktop
Translator
SMB
Accounting
Package
SOHO Very Small Small National Global
Size of Supplier
Medium
Complexity of B2B Enabler
Mobile
Device*
* Future Release
Slide 12 ©2012 GXS, Inc.
Hosted ASN and Barcode Labeling Option Web-Based Package for Smaller Trading Partners
Increase participation –
hosted application minimizes
skill and cost for trading
partners
Deploy changes rapidly – new
ASN fields or barcode
standards
Reduce risk of non-
compliance due to outdated
maps or specifications
Integrate with Web forms and
visibility applications, or use
as a stand-alone application
Take advantage of multi-
lingual capabilities for use with
international sourcing
operations
Warehouse manager logs
into Trading Grid portal to
send ASN and print
barcode label
Up-to-date ASN and barcode
label specifications stored
centrally in Trading Grid
Barcode labels applied at
unit, case and pallet level
for tracking throughout the
supply chain
Slide 13 ©2012 GXS, Inc.
“The supplier network market grew by
24% per year from 2002 to 2008”
“Supplier Networks
facilitate B2B e-commerce
by acting as hubs that
connect buyers and
suppliers.”
Specialized Networks for
Business Processes –
Procurement, e-Invoicing &
Factoring, Payments,
Product Catalogs
Vertical Industries –
Chemicals, Aerospace, Oil &
Gas, High Tech
Source: Forrester Research – Enterprises Should Push Supplier Networks to Deliver Interoperability
Everyone Has Trading Partner Communities The “Extended Enterprise”
http://www.gxsblogs.com/keifers/2008/11/supplier-networks-the-new-van-providers.html
Slide 14 ©2012 GXS, Inc.
Human Centric B2B
Surveys & Communications Supplier Contact Data
Community On-Boarding Dispute Resolution
Query Supplier Community
Sustainability policies
Supplier diversity
Emergency preparedness
e-Commerce readiness
Satisfaction surveys
Track completion of
Readiness survey
On-line training
Connectivity option selected
Testing with sample data
Live transactions
Master Data for Suppliers
Corporate level data –
products supplied, contact
details
Individual person data –
contact, photo, skills, roles
& responsibilities
Buyer-Supplier Collaboration on:
Buyer can provide evidence of
non-compliance (photo,
document)
Supplier can dispute non-
compliance with evidence
Person-to-person
communications
Buyer
Supplier
Slide 16 ©2012 GXS, Inc.
Data Quality Challenges Supply Chain Execution
Inspection
& Ship
Import &
Customs
Ocean
In-Transit
Export
Processing
Ground
Transit
Warehouse
Receiving
Logistics Data Quality Challenges
Static Data Quality Challenges
– Unit of measure not provided
– Currency not provided
– Date and time without time zone
– Internal codes unique to each organization
Multi-Document Data Quality
– Over-ship or under-ship
– Back-dating for better performance ratings
– Multiple shipping addresses in ASN
– Line items from multiple POs in single ASN
Slide 18 ©2012 GXS, Inc.
Data Quality and Compliance Real-Time Control of Your Data
ERP Firewall for data evaluation prior to
document delivery to end destination
IN-FLIGHT
IDENTIFICATION
REAL-TIME
VALIDATION
ALERTING/WORKFLOW
Proactive Issue Remediation
TRACK & TREND
Root Cause Remediation
1 2
3 4
Validation Engine
Drill-Down
Workflow/Alerts
Dashboards/Scorecards
Compliance Guides
Slide 19 ©2012 GXS, Inc.
Traditional methods can yield data quality improvement of 50%
Adding rules & tools software can improve data quality to 80%
Adding GXS Data Management Services can improve data quality to 90+%
90+% Data Quality Improvement
Slide 20 ©2012 GXS, Inc.
About Macy’s, Inc.
One of the U.S.’s premier retailers
Fiscal 2011 sales $26.4 billion
840 stores in 45 states, the District of
Columbia, Guam and Puerto Rico
Distribution centers in 16 states
Over 4,300 trading partners
My Macy’s – localization program
Slide 21 ©2012 GXS, Inc.
Macy’s B2B Program (2011)
99.9 % EDI Invoice penetration
99.8 % EDI Advance Ship Notice penetration
59.3 million cartons processed
5.8 million ASNs received
27,700 ASN fatal error transmissions
Slide 22 ©2012 GXS, Inc.
Destination: Stores 1 + 3
Destination: Store 2
Destination: Store 4
Distribution Center
Distribution Center: Cross Docking
Slide 23 ©2012 GXS, Inc.
Cross Dock/Automation Justification
Business Challenges Organic expansion and growth by
acquisition
Extremely high carton volume prohibits
manual processing
Average carton time in DC = 3 days
Benefits of Automation Automatic carton flow through
Implementation of DC bypass program
Average carton time in DC = 6-8 hours
Slide 24 ©2012 GXS, Inc.
Big Lots Largest Broadline Closeout Retailer in the U.S.
Company Overview
One of the U.S.’s leading
discounters with over 1,300
stores, this retailer provides
a wide array of close-out
items ranging from
recliners to party supplies
and seasonal items.
Solution Deployed
Business Issues
Business Benefits Obtained
Incurring extensive costs as a result of not receiving an
ASN prior to the delivery of a shipment
Unable to align warehouse resources with the arrival of
the shipment, resulting in various inefficiencies associated
with having to reject a shipment or handle it ad hoc
GXS enabled real-time, proactive monitoring and alerting
via Data Quality & Compliance
Retailer-specific business process rules alert the supplier
of a missing ASN and if no ASN is sent by time of
shipment, internal parties are notified to generate an ASN
Suppliers send ASNs when alerted of missing ASN
Warehouse able to accept and process shipments
Supplier offenses tracked and remediation follows
Full utilization of warehouse resources
Slide 25 ©2012 GXS, Inc.
U.S. Specialty Retailer Cross-Docking Process Facilitation
This US specialty retailer
has more than 100 stores
and hundreds of domestic
and international vendors.
High costs of express-shipping products directly to stores
Vendors short-shipping, delivering late
Approximately half of vendor community using fax, email, or
phone for document exchange
Need to re-engineer logistics process to implement cross-
docking; eliminate direct store delivery; reduce
transportation costs through shipment consolidation
Stores had no visibility into goods on order or ETAs
Inbound ASN validation with complex business rule set
Enablement of 250+ vendors for full procure-to-pay
document lifecycle
Estimated savings of $1+ million
Improved vendor performance – completeness & on-time
delivery
Improved DC efficiency
Improved customer service at the store level
Ability to scale to accommodate future growth
Business Issues
Results Achieved
Company Overview
Slide 27 ©2012 GXS, Inc.
Thank You for Your Participation
For More Information
Phones
US: 1-800-334-5669, option 3
EMEA: +44 (0) 1932 776047
ASPAC: +852 2884 6088
Japan: +81-3-5574-7545
GXS Web Sites
US: www.gxs.com
EMEA: www.gxs.eu
ASPAC: www.gxs.asia.com
Japan: www.gxs.co.jp
Presenters:
Melanie Nuce
Melanie.Nuce@gxs.com
+1 303.655.8640
Carol Wall
carol.wall@macys.com
+1 513.782.1805
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