nick boland solutions consulting, emea june 2016info.amberroad.com/rs/665-bwt-776/images/04_nick...
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Nick Boland – Solutions Consulting, EMEA
June 2016
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Somewhere in the world today ..
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Common themes – RFQ‘s and RFI‘s ...
“Our aim is to find a vendor able to cover all
functionalities described.” (RFP – Nov 2015)
1. “Greater “transparency” across the end to end supply
chain”
2. “Consolidation of current operations into a Supply Chain
and a Global Trading Platform”
3. “Harmonisation of systems and processes to streamline the
way we operate”
4. “Enabling growth opportunities for eCommerce”
5. “Increasing and improving on the level of collaboration
between all parties across the supply chain”
6. “Automation and the provision of straight through
processing as an alternative to our current highly manual
regime”
7. “Better management & mitigation of risks particularly
associated with compliance and customs”
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Integration of Global Sourcing and Global Trade Management
“There are significant opportunities for many companies to integrate at a much deeper level supply chain and related functions that have operated somewhat autonomously in many companies in the past. The most natural partnering is between the global sourcing and global logistic functions. Leading companies understand the significant impact that sourcing decisions ultimately have on logistics costs.”
2016 Global Sourcing & Trade Management Report
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Spotlight: Retail Industry Challenges
“Many companies have failed to recognize the importance of a scalable, integrated platform of cross-functional processes and systems for global sourcing and import logistics.
For these, it has become impossible to synchronize product development, merchandising, global sourcing, PO management, import logistics and finance operations ….. results in increased pain.”
“…without new planning, execution and visibility tools and ‘enabling’ systems that help manage and integrate processes into one continuous stream of activity, the challenge could still prove too great.”
Source: Integrated Capabilities for Global Sourcing and Import Logistics in the Retail Industry – A Smarter StrategyBy Colin Taylor and Stephen Leng, IBM Global Services
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Integration of Global Sourcing and Global Trade Management
“Many companies are now re-looking at end-to-end processes. The synergies between traditional GTM and these newer areas are clear, as leaders work to fully integrate these new platforms, many of which rely heavily on Cloud-based deployments.
In many ways, global sourcing and trade management processes and especially technology support are behind those developed for domestic sourcing and logistics activities, though this is an area of increased focus, as companies more fully understand the impact to the bottom line from improving their games in these areas.”
2016 Global Sourcing & Trade Management Report
We seem to be entering what we
could call the globalization 3.0 era
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The loop – Sourcing to fulfilment
R&D Production Logistics CustomerRegion/Sales comp.
Develop Product
Sourcing Purchasing
Enter product in ERP system
Source product
Enter product in ERP system
Purchase product
Ask for Quotation
In stock?
Pick/pack & dispatch fr WH
Replenishment Order
In stock?Produce product
Export Declaration and
TransportReceive product
Customer Order
Pick/pack & dispatch fr WH
Export Declaration and
Transport
Quotation
Order Product
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In the real world today
Product Development
Collaborative Product Design
SampleManagement and Initial Costing
Material Library Management
Specification Management
Global Sourcing
Sourcing Optimization
Vendor Management
Costing Management
Tier-N Order Collaboration
Production Tracking
Shipment Preparation
Risk & Quality Management
Facility Compliance
Product Testing
QA/QC Inspection
TransportationManagement
Contract & Rate Management
Rate Management
Carrier Booking
Invoice Management
Supply Chain Visibility
Data Quality Management
Integrated Service Provider Network
Performance Management Reporting
Order and Shipment Visibility
Export Management
Deemed Exports
End-use Management
ITAR Compliance
Restricted Party Screening
License Management
AES filing
Import Management
Entry Management
Broker Packet
Importer Security Filing
Landed Cost Calculation
Product Classification
Duty Management
FTZ
FTA
Processing Trade (China)
• Challenges
• Accurate Master Data
• Available Global Trade Content
• Disparate systems, disparate processes
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Compliance Solution Footprint
ERP
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Master Data – a strategic need
“MDM has the objective of providing processes for collecting, aggregating, matching, consolidating, quality-assuring, persisting and distributing such data throughout an organization to ensure consistency and control in the on-going maintenance and application use of this information.”Gartner, 2009
Without consistency and control and Master Data Management processes throughout the Company, Omni Channel support for example will be based on distributed, duplicated, out of date, non-co-ordinated / synchronised data. Developing MDM is a key facet of success.
How much attention is given to Importing and its significance across all channels when designing a Master Data program ?
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Global Trade Content
Extensive Data
HS records
Rules of Origin
Preferential duty programs
Trade documents
Restricted Parties listsGlobal Trade Content
30,505 import controls
1.95 million tariff records
500+ preferential programs
340+ restricted party lists
1.21 million dutiable records
2700+ trade documents
146 countries
26,671 export controls (including HS based)
Knowledgeable Team
100+ In-house trade professionals
30+ In-country trade consultants
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What can automation actually do ?
Classification
Sourcing analysis
Distribution
Audit
Licence determination
Landed cost
Controls
Currencies ..
….
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Human decision: • utilizing digitized
searchable reference data
Machine:• Capture notes,
supporting documentation, audit trail captured by machine
Classification 1/3
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Decision
Support
Assignment and
Notification
Detected Holds(system decision)
User Decisions
Hold Resolution
Hold Confirmation
Sou
rce
Sys
tem
(s)
Products
Classifications
Classification 2/3
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Use Case: HTS known for one country (base country), automate mapping to other countries
Input: 261 unique Europe 10 digit HTS and 81 non-EU countries to map
Run automated mapping and capture results in a matrix (Total mappings performed: 261*81= 21,141)
Results: 1:1 mapping percentage = 73% 1:n mapping = 27%
Classification – 3/3
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Easy Classification : Amber Road User Interface
“Google” for classification.
– Only one place to put in information (unlike TW HS search)
– “Type ahead” : as the user enters text, we utilize our phrase matching algorithms to identify best matches in terms of product categories and products within our Easy Classification Content and additional heuristics to sequence their display to the user. User may select or keep typing
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License ManagementItem and Destination Assignment, Quota (Value/Quantity) Definition
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Compliance & Customs – Legal Implications
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Closing that loop … Solution considerations
1. Start at the beginning – understand where processes take place and where they store information – you would be amazed
2. Review Master Data – even if an ongoing project, has “how you trade” globally been truly considered ? What is ‘your’ Master Data ?
3. Look at how core data is re-used in the process today – ex: Classification, where does it take place ? How many times …
4. Be modular in process options – start defining core steps.
5. Use modelling tools BUT link them to results and cycle back – initial planning and costing is wasted in not maintained and used to its potential.
6. Be agile – look to re-use and automate as much as is possible –remember SPOF (Single Point Of Failure)
7. Integrate, Integrate, Integrate – Look to connect to other processes / systems
8. Recognise how businesses may differ in access and control – brokers, LSP’s outsourced organisations all contribute to the Import process and Sourcing.
9. Be flexible – cater for acquisition, disposal etc
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Summary
Automation itself is a challenge –it is only possible with a combination of intelligent trade content, software and human management.
Without automation, businesses will face:– Inability to scale– Increased trading risk:
• Greater cost in existing system and process maintenance
• Greater chance of reputational impact
• Potential loss of business
The landscape facing todays companies is only going to get more complex through acquisition, divestment and increased Government regulation
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Who are Amber Road ?
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