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ATPERPATPWEB ATPERPOrder/ProductConfigurationDSS MESWEBPCSCustomerManufacturerSuppliersIndustry Specific Value ChainIssues/ Challenges/ SolutionsBetter, Faster Decisions Drive Velocity...Receive Material Release DataProcess OrdersPlan Production Make Intelligent DecisionsSend Material Release DataAIAG Worst Case*AIAG Benchmark*Plant w/o i2BR1: Plant w/ i2 Line Scheduling Decision SupportBR2: Plant w/ i2 Material Capacity Planning Decision SupportTotal2 days 4 days days 30 min days*Source: AIAG Manufacturing Assembly Pilot Project Final Report10 min 1 hour 5 hours 30 min hours1 hour 1 hour 7 days 30 min days1 hour 1 hour 1 day 30 min days1 hour 1 hour 4 hours 30 min hoursTime delays result in additional mix and volume buffering Legacy Automotive CommunicationsMultiple ProtocolsComplex, Costly, Ad Hoc, InflexibleDesign Mfg $$$Customer 1 Customer 3Customer 2Supplier 3Supplier 2Supplier 1Inconsistentservice, securityEDIVANs*EDIVANs** VAN = ValueAdded NetworkMultiple LinksANX? Value: Network Consolidation Single link, protocol Consistent, high service quality security Multiple panies traffic types sectors, continents Simpler, Lower Cost, Managed, AdaptableCustomer 1 Customer 3Customer 2Supplier 3Supplier 2Supplier 1ANX?“The Business Inter”* Revised April 4 20231 ANX?Certified Exchange Point(1 more underway in Europe)AmeritechANX?Certified IPSec security gatewaysavailable from 10 vendors7 ANX?Certified Service Providers (CSPs)EquantATTBell NexxiaWorldComAmeritechIdeal TechnologySolutionsipulsys700+ production Trading Partners (TPs)(160 more underway)TradingPartnersTradingPartnersTradingPartnersTradingPartnersTradingPartnersTradingPartnersTradingPartnersANX? StakeholdersANX?Usable in any sector:– Business, government, academic, nonprofitBased on Inter technologies:– Standardsbased, offtheshelf products– No proprietary solutionsVariety of connectivity, speed:– Dial, DSL, ISDN, and 56 KB ? T3Available globally:– North America: Canada, Mexico, .– Africa, Asia, Australia, Europe, South AmericaANX? CharacteristicsANX? ? Covisint RelationshipSimilarities:– Funded, endorsed, guided by Big 3 OEMs– Spunoff as separate forprofit panies– But different meanings of “exchange”Complementary Roles:– ANX? ?work service infrastructure– Covisint ?ebusiness processes, applicationsSynergy:– ANX? enables faster Covisint rollout to 700+ TPs– Covisint is an ANX? customer, with 2 connections Common Terms? E Business Buying, selling transacting or exchanging information via Inter with customers, suppliers, employees– Reaches beyond advertising and marketing, includes core business processes of order entry, purchasing, supply chain, CRM? E Commerce Transactionoriented Web based functions such as placing orders, order entry, payments? E Procurement Requesting, Approving, Ordering, Receiving, and Payment of goods and services via the Inter? Trading Exchanges, Virtual Marketplaces, Portals Vertical industry focused Web sites for buyers and sellers to make offers to buy and sell, conduct transactions. Dot Com’sMarketplace TrendsElectronic CommerceSuppliersBombarded with infoWhy panies are considering eprocurementBuyersl Software vendors push their productsl Magazine and news coverage aboundsCosts too highl Volume not leveragedl Significant accounts payable effortl Users buying at retailProcesses are inefficientl Approvals take days or weeksl Users are wasting timel 85% of purchasing time spent managing ordersl Too much rekeying and errorsNot leveraging new technologiesl Their petition is doing itl Their intra is underutilizedl They have multiple homegrown systemsl ERP implementations are winding downInformation unavailablel Don’t know what they spendl Users don’t know about dealsl No audit trailThe Business ChallengeThe Procurement Process of Today…? Confusing and Slow:– Multiple munication channels and processes, internal and external? Time and Labor Intensive:– Many suppliers, many different types of transactions to manage.? Inaccurate:– Information spread across many systems…must leverage product spending, reduce costs, and drive profit to the bottom line.Fragmented Spend Pattern38 61513 63010212315265938643381324610M+ 1M–10M11M–5M500K– 1M 250K–500K100K–250K50K–100K25K–50K15K–25K10K–15K4,0003,5003,0002,5002,0001,5001,0005000$ B$1 B$800 M$600 M$400 M$200 M$0Number of Suppliers Total $/Supplier GroupPurchasesNumber of suppliersTotal $ per supplier group$ billion with 17,700+ suppliersLack of Enterprise Leverage16,773 suppliers used only in 1 business unit.Only 1 supplier used by all.16,773704 148 54 31 9 5 3 11 2 3 4 5 6 7 8 9181614121086420Number of Suppliers(Thousands)Business Units CrossedAcross business unitsE Procurement PracticesTraditional EDI, Electronic Catalog Ordering Systems, Inter Reverse Auctions, E RFQ/RFP.Buyers Implementation and integration of endtoend Webbased selfservice procurement systemObjective: Cost ReductionSuppliers Development and management of electronic catalog and system for ordertakingObjective: Revenue EnhancementMarketMakers Creation and hosting of infrastructure that connects buyers and sellers in a vertical or horizontal marketplaceObjectives: Cost Reduction + Revenue EnhancementInter ProcurementInter offers a breakthrough munications channel, New software applications bring simple user interfaces, electronic catalogs, secure channel for collaboration to do vendor managed inventory and document exchange.Catalogs Mu