Nick Boland Solutions Consulting, EMEA June 2016info.amberroad.com/rs/665-BWT-776/images/04_Nick...

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

Nick Boland – Solutions Consulting, EMEA

June 2016

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

Somewhere in the world today ..


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”


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


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


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


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


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


Compliance Solution Footprint

ERP


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 ?


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


What can automation actually do ?

Classification

Sourcing analysis

Distribution

Audit

Licence determination

Landed cost

Controls

Currencies ..

….


Human decision: • utilizing digitized

searchable reference data

Machine:• Capture notes,

supporting documentation, audit trail captured by machine

Classification 1/3


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


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


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


Country specific


Core data …


Master data


Landed cost ..


License ManagementItem and Destination Assignment, Quota (Value/Quantity) Definition


Compliance & Customs – Legal Implications


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


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


Who are Amber Road ?



SAP Accelerator

Nick Boland Solutions Consulting, EMEA June 2016info.amberroad.com/rs/665-BWT-776/images/04_Nick...

Documents

Transcript of Nick Boland Solutions Consulting, EMEA June 2016info.amberroad.com/rs/665-BWT-776/images/04_Nick...