making dollars and sense of global trade...

© 2015 Amber Road, Inc. All rights reserved. Proprietary and Confidential.

Making Dollars and Sense of Global Trade AutomationMike HarringtonSales Director, Supply Chain Solutions

2© 2015 Amber Road, Inc. All rights reserved. Proprietary and Confidential.

Why do I need to automate?


Global Trade is ComplexDynamic, country-specific rules and regulations

Dozens of supply chain participants per transaction

Multiple languages, currencies, and time zones

Higher costs

Longer lead times

Global security initiatives



§ Low cost country sourcing

§ Emerging global markets

§ Proliferation of trade agreements

Key Drivers:

$0

$5

$10

$15

$20

$25

$30

$35

$40

1973 1983 1993 2003 2012

World Merchandise Trade($ Trillions)

Source: World Trade Organization Statistics, 2013

Global Commerce is Exploding


XLS

3PL

3PL

Traditional Approaches to SC Management§ Tactical vs. Strategic§ Low Cost vs. Innovative§ Internal vs. External

3PL

XLS

TMS

SupplierManagement

Export Management

RPS

Import Management

SCVDistro Center

3PL

EDI

Email Only

RM Supplier

§ Manual§ Point Solutions§ Outsourced

§ Disjointed§ Black Holes§ Non-Collaborative


Significant Challenges

Large companies’ international supply chains are only 50% as automated as their domestic supply chains.

#1 Automation

82% of companies are concerned about supply chain resiliency to disruptions, but just 11% are actively managing this risk.

87% of large enterprises and 64% of all respondents say their company’s staffing for managing global supply chain and trade compliance processes is inadequate.

Source: Aberdeen

#3 Risk Management

#2 Staffing


Supply Chain Visibility

§ Supply Chain Visibility is the awareness, and control over, specific information related to suppliers, materials, products, orders and shipments.


Supply Chain Visibility is Imperative for Effectively Managing Global Trade

OrderReady

Order Picked Up

Received at Origin LSP

BookingConfirmed

Departed In-transitStatus

DocumentsComplete

Documentsto Broker

Arrived

ClearedCustoms

Ready forDelivery

Dispatch toCustomer

Delivered

Product Development

Supply Chain Visibility

Global Logistic Management

Global Sourcing

Risk & Quality Management

Global Trade Management

Product Concepts

and Designs

Material Sampling

Material Testing

Supplier Selection and Order

MgmtMaterial Sampling

Production Tracking


Production WIP Tracking• Track production through Vendor updates• Early visibility to potential problems


Gartner Identifies Additional Visibility Benefits

§ Better on time performance

§ Improved partner relationships

§ Reduced lead times

§ Faster time to market

§ Better forecasts/demand signal reaction

§ Additional market opportunities

§ Reduced administration

§ Sustainability footprint

Business Partner Benefits

§ Better on time performance

§ Improved customer satisfaction

§ Reduced inventory levels

§ Better supplier/provider relationships

§ Reduced variability lead times

§ Faster tracking shipments

§ Better forecast accuracy

§ Optimized freight charges

§ Free up working capital

Company Benefits

Source: Gartner Research, “Use Cases for Supply Chain Visibility”, October 2013


CPSC and CBP Proposal

§ Regulated consumer products must be certified as compliant with CPSC regulations by the manufacturer (including an importer) and the private labeler of the product, if applicable.

§ A certificate of conformity must accompany the applicable product or shipment of products.

§ In May 2013, the CPSC proposed that to satisfy this requirement, certificates for regulated finished products that are imported for consumption must be filed electronically with CBP at the time of filing the entry (or entry and entry summary if filed together).

§ In July 2015, the CPSC announced a Pilot program to move forward with this requirement. This requirement is a major change to current supply chain operations and could have an adverse affect on the industry.


Agencies Requiring Entry Documentation

§ In addition to the 10+2 packet…– Food and Drug Administration– Centers for the Disease Control– Animal and Plant Health Inspection Service– Disease Contract Management Agency– Food Safety and Inspection Service– Environmental Protection Agency– National Oceanic and Atmospheric Agency

– And now Consumer Product Safety Commission– Under the proposal, all entry documents for all

agencies could be submitted via ACE, a Single Agency and "Single Window"


Benefits Proposed by CBP & CPSC

§ Streamline the import and export process electronically with an Automated Single Document Window.

§ To allow traders and importers to apply one time, to a single agency.

§ Faster review and release of cargo§ Elimination of paper§ Cost savings from electronic processing§ Consumer safety and brand image


Product Testing Benefits

§ Direct integration to testing companies for detailed testing results and PDF report

§ Auto-generate GCC/COC upon Test Approval

§ View all Purchase Orders affected by Failed or Late Testing


Five-Star Footwear Brand ManufacturerBusiness Challenge

• Need to streamline the PO collaboration process with vendors outside of the ERP system

• Replace email or fax system in place with a consolidated platform for internal and external teams

• Improve visibility into vendor pre- and post-production milestone events to ensure on-time delivery to customers

• Make strategic decisions on vendor allocation

Solution

• FG PO Management • PO Event and Alert Mgmt• Vendor PO Acknowledge• Raw Material PO • PO from SAP/PO

Acknowledge back to SAP• Vendor PO Collaboration • Packing list/Carton

Labels/ASN & Pre-ASN/ Commercial Invoice

• Conflict Minerals PO Declaration

• PO Change/ASN/Pre-ASN/Invoice to SAP

• Event/WIP Tracking • Milestone data back

to SAP

Benefits

§ Marked increase in fill rates by 10% - 15%

§ Error elimination, information consistency and accuracy.

§ Better view into QA trends focused inspections.

§ Inspector efficiency with instant note taking, image capture capabilities

§ 255% ROIC and Payback Period of 1.7 years