... for data transformation, cross-referencing and dat

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Bridging the Technology Gap Between the Large
Enterprise and Its Middle-Market Suppliers
March 8, 2005
NY/NJ EDI Users Group
Managed Services for Electronic Trading for the
Middle-Market
Patricia S. Meisner CEO pmeisner_at_redtailsolutions.
com
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Bridging the Technology Gap Between the Large
Enterprise and Its Middle-Market Suppliers

• Components of Supply Chain Integration (SCI)
• Span of Basic Technology Platforms
• Case Study Unlikely Trading Partners
• Large Enterprise/Middle-market Priorities for SCI
• Building the Bridge Virtual Capabilities for the
  Middle-Market
• Conclusions

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Components of Supply Chain Integration

• Connectivity

• Data Transformation

• Process Management

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Barriers to Supply Chain Integration for the
Middle-Market Supplier

• Connectivity

Inability to support multiple electronic trading
protocols

• Data Transformation

Complex requirements for data transformation,
cross-referencing and data cleansing
Lack of integration to accounting system

• Process Management

No counterparts for data elements and business
rules
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Span of Business System Platforms
Basic Accounting
SMALL SUPPLIERSQuickBooks PeachTree
Accounting Systems for Mfrs
MIDDLE-MARKET SUPPLIERS GreatPlains BEST
MAS90/200 ACCPAC ProSeries
Suppliers (thousands)
ERP
Lawson, Macola JD Edwards
Large EnterpriseSAP, PeopleSoft, Oracle

Transactions/Month
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The Technology Gap
Middle-Market Supplier
Large Enterprise
Web Tools
Gateway/VPN/WebTools
Connectivity
Supply Chain Management Apps
WMS
Enterprise Application Integrator
Process Mgt
MRP
CRM
EDI/xml
Data Transformation
ERP SYSTEM
Accounting System
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Unlikely Trading Partners
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(No Transcript)
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Must Support Multiple Connectivity Protocols
Bed,Bath Beyond Fred Meyer Kids R Us Zellers/
Hudson Bay Kohls Loblaws Mervyns Nordstrom Peyt
on Saks Shopko Toys R Us
FTP
VAN
AS2

• Middle-market Constraints
• Minimal IT infrastructure, resources
• Multiplication of procedures

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No Counterparts for Business Rules and Data
Elements
TT, Inc.
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Business Process Integration Requires Complex
Data Transformation by Middle-Market Supplier
Nordstrom Order/Invoice Requirements
Nordstrom850 SDQ
Nordstrom 810 C
No capability to parse consolidated orders
Individual Orders by Ship To and Mark For
Locations
Process Orders
No capability to create consolidated invoices
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Optimization of Supply Chain for the Large
Enterprise

• Value-Chain Integration Drivers
• Reduce Transaction Processing Costs
• Improve Customer Satisfaction
• Automate Transactions with SMB Partners
• Comply with Customers Condition for Doing
  Business
• Work effectively with suppliers
• Improve Order Accuracy
• Increase Business with Existing Customers
• Improve Order Response Times
• Reduce Inventory/Increase Turns
• Improve Planning and Scheduling
• Gain New Customers

• e-Supply Chain Technology Drivers
• Securely transmit transactions via internet
• Manage Partner Profile Information
• Support XML industry standards
• Automate Transaction Workflow
• Move from Batch to Real Time
• Define, Invoke, Manage Human and System Events

Source The Yankee Group 2003
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Optimization of Supply Chain for Middle-Market
Enterprise

• Value-Chain Integration Drivers
• 3. Reduce Transaction Processing Costs
• Improve Customer Satisfaction
• Automate Transactions with SMB Partners
• 1. Comply with Customers Condition for Doing
  Business
• Work effectively with suppliers
• 5. Improve Order Accuracy
• 4. Increase Business with Existing Customers
• Improve Order Response Times
• Reduce Inventory/Increase Turns
• Improve Planning and Scheduling
• 2. Gain New Customers

• e-Supply Chain Technology Drivers
• Securely transmit transactions via internet
• Manage Partner Profile Information
• Support XML industry standards
• 1. Automate Transaction Workflow
• 2. Support multiple protocols with a single
  system/process
• Move from Batch to Real Time
• Define, Invoke, Manage Human and System Events

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Virtual Capabilities in an Outsourcing Model
Large Trading Partners
REDTAIL Solutions
Mid-market Supplier
Red Tail Business Process Integrator
Accounting System
WalMart
Red Tail Transaction Manager
Nordstom
Kohls
WalMart
Proprietary Software
Service and Proprietary Systems
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Business Process Integration Requires Complex
Data Transformation by Middle-Market Supplier
Nordstrom Order/Invoice Requirements
Nordstrom 810 C
Review/Revise
Manual Edit/Trans.4
Trans.1
Trans.2
Nordstrom850 SDQ
Order ?
850 C
Trans.3
Individual Orders by Ship To and Mark For
Locations
Process Orders
No capability to parse consolidated orders or
create a consolidated invoice
TT,Inc ACCPAC Accounting System
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No Counterparts for Business Rules and Data
Elements
TT, Inc.