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and Integration support ? . Kearney Leveraged Sourcing Networks corporate buyers and strategic suppliers C u s t o m e r sC u s t o m e r sDistributorsDistributorsS u p p l i e r sS u p p l i e r sInitial Members: ?BASF AG ? Bayer AG ? DegussaHuls AG ? Henkel KgaA ? KSB AG ? Linde AG ?Sartorius AG ?Siemens AG ?Heinz Wollschlager GmbH Case Study – TruckBay Business Challenge: ? Create B2B Marketplace for the trucking and trucking maintenance industry. ? Corporate startup: No business processes, no infrastructure architecture, and no existing systems are in place for this EDS Solution: ? Deployed the initial marketplace within 90 days ? Adopted 30 suppliers ? Normalized 60,000 catalog items ? Implemented Marketplace in five months ? Will add further customizations and reverse auctions Client Value: ? Lower buying/selling transaction costs ? Provide alternate parts catalogs ? Reduce buyers’ inventory carrying costs ? Increase productivity of procurement processes ? Cut layers from existing distribution channels ? Consolidation of procurement activities Trading Exchanges: The Executive Dilemmas ? Do We Join an Existing Exchange? – If So, How Do We Prevent Our Products From Being Commodities? ? Do We Form An Exchange With One or More of Our Competitors? – How? We’ve Hated Them for Decades? ? Do We Start Our Own? – Will Anyone Join? The Engines that will Power Covisint ? Integration Engine ? Communication Engine ? Collaboration Engine ? Procurement Engine Covisint is still a novelty, but it will bee a critical ponent in every suppliers ebusiness strategy Problem Summary ? Lack of connectivity to all suppliers / all customers ? Push vs. Pull ? Batch vs. Real time ? Cost of munication / EDI Maps ? Requires Personnel Intervention ? Builds Inventory Problem Summary Realtime Visibility of Inventory, Consumption, Shipments, and Forecasts Tier2 manages material flow to Tier1, and to Tier139。s inventory Benefits: ? Eliminate excess inventory ? Reduced expediting ? Better planning/execution ? Economically municate demand forecast/delivery notifications to suppliers Inter / ANX Today’s Solutions : ? Provide real time data flow ? Web Browser Visible ? System to System – XML ? Compatible with EDI ? Multiple fulfillment processes ? Able to connect with emerging exchanges ? Delivering big results quickly ? WIN WIN for both sides of the supply chain Today’s Solutions : Collaborative Manufacturing Workshop How close are we to a 5day car? 63 days away! Source: AMR Research Module and Component Warehouse Module and Component Supplier (3 day Production) Assembly Plant (6 days to assemble) Distribution Center and Outbound Logistics OEM Regional Office Dealer Consumer Order = 1 day Deliver