A Case Study in PIDX Implementation

1
Extending the Electronic Supply Chain Suppliers
are Buyers, Too!
A Case Study in PIDX Implementation
Paul O'Shaughnessy ChevronTexaco
Dan Tostado Stone Bond Technologies
2005 Spring PIDX Membership Meeting April 19, 2005
2
Areas to Cover

• Vetco Gray Project
• Why? What? How?
• Stone Bond Solution
• Technology, configuration, workflow process
• ChevronTexaco
• Inbound workflow process, eProcurement initiative
• Benefits Conclusions

3
Landscape

• Vetco Gray
• EDI manual invoicing no XML
• Stone Bond
• eCommerce solution removes PIDX adoption barriers
• ChevronTexaco
• adopts PIDX standards
• eProcurement initiative

4
Vetco GrayProject Justification

• Pressure from ChevronTexaco to submit PIDX
  compliant invoices
• Seeking reduced DSO benefit from faster invoice
  payment
• Reduce resource time per invoice
• Early detection of invoices with errors
• Leverage benefits over EDI
• Attachments included
• Independence from ABB infrastructure

5
Vetco GrayKey Solution Criteria

• PIDX capabilities
• Highly secure
• Rapid implementation
• Low TCO
• Company knowledge resources

6
Vetco GrayOptions Considered

• Direct Model
• Manual input via web form
• Build solution from scratch
• Buy packaged yet configurable solution
• Indirect Model
• Value Added Network (VAN)

7
And the Winner is

• Enterprise Enabler packaged specifically for
  eCommerce and PIDX EE-B2B
• Why?
• Flexibility, reusability, expandability
• Fast and easy to implement
• Out of the box support for PIDX
• Send side
• Receive side

• Buy packaged yet configurable solution

8
Vetco GrayOutbound eInvoicing
DW
Financial System
Stone Bond AppComm
Secure Internet
EE-B2B
RNIF 2.0
ChevronTexaco Stone Bond Vetco Gray
ChevronTexaco Internal Systems
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Inside the Black Box

• Schedule or event based data extraction
• Uses definitions in the source template
• Powerful transformation engine
• Defined by the data map
• Unit conversions, derived values, logic, etc.
• Destination template defines data structure to be
  sent
• Point and click RosettaNet packaging
• Business process design

10
Black Box Diagram
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ChevronTexacoInbound Process
DW
Financial System
Stone Bond AppComm
Secure Internet
EE-B2B
RNIF 2.0
ChevronTexaco Stone Bond Vetco Gray
Tibco Business Connect
Ariba
Tibco Integration Manager
Rendezvous
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ChevronTexacoeProcurement Initiative
Suppliers
CVX Business Unit
BU Target List
Supplier Engagement
PIDX Candidates
Manual
Supplier Integration
PIDX Suppliers
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ChevronTexacoBuyer Side Benefits

• Standardized invoice format
• Attachments accompany invoice
• Quicker review for approval
• More likely to realize early pay discounts
• Price validation
• Reduced admin time
• Single vendor ID vs. multiple user credentials
• Happy supplier Happy ChevronTexaco

14
Vetco GraySupplier Side Benefits

• Faster invoice payment
• Early detection of invoices with errors
• Efficient direct connect
• Automated matching of attachments to invoice
• Low maintenance black box
• No extra fees

15
Vetco GrayImplementation Challenges

• Optional fields in PIDX definition
• Implementations speak different PIDX dialects
• Data requested ? Data stored
• Tax by line item vs. total
• EDI or manual mentality
• Attachments now scanned and included with invoice

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Vetco GrayCurrent Status

• Vetco Gray PIDX system operating smoothly
• Successfully sending invoices to ChevronTexaco
  since August 2004
• No problems encountered related to EE-B2B
• Expansion Plan
• Vetco Gray extended EE-B2B license to support
  buyer side PIDX transactions

17
Conclusions

• PIDX adoption real and increasing
• Challenges can be overcome
• Proven PIDX solution available
• Affordable easy to implement
• High reliability and security
• Direct connection between the sender and receiver
  
• Scalable to any size company
• Supplier are buyers, too!

18
Questions?
Stone Bond helped us to avoid the high costs and
slow implementation of other solutions while it
tightly adapted EE-B2B to Vetco Grays specific
requirements, and to those of our business
partner. The system was so easy to setup that we
will begin using it to automate the invoicing
from our own suppliers. Paul Krueger, CIO for
Vetco Gray