e-Business

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• e-Business
• ShipServ Conference
• 18th June 2004

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Marine Coatings

• Contents
• Why e-Business Solutions?
• Customer
• International Paint
• Why a Portal
• Why ShipServ
• Lessons Learnt
• Solutions Adopted

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e-Business Project Why Invest in e-Business
Solution?

• Our Beyond Paint philosophy of added value
  services
• throughout the supply chain
• 
  e-Business Solutions

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e-Business Project Why Invest in e-Business
Solution?

• Our Beyond Paint philosophy of added value
  services
• throughout the supply chain
• 
  e-Business Solutions
• EDI
• Portals
• Web

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e-Business Project Why Invest in e-Business
Solution?

• Benefits to the Customer
• Increase in contract compliance
• Typically this is the largest element of the
  e-Procurement value proposition
• Increased leverage of purchasing power
• consolidated details of actual spend with each
  supplier
• consolidated detail of actual spend in each
  product category
• Reduction in process costs
• reduced error rates
• reduced processing time
• reduced fax / phone usage
• reduced on-site inventory
• ..enabling dedicated Procurement staff to focus
  on value-adding activities

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e-Business Project Why Invest in e-Business
Solutions?

• Benefits to International
• 50-75 of customers with frame agreements
  continue to send requests for quotation (read
  price confirmation) for local order
• 80-90 of these become orders
• 10 Account Exec time taken with order enquiries
• Multiple re-typing of same data on overseas
  orders
• Much chasing and manual checking of data in
  quotation/order process.

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e-Business Project Why Invest in e-Business
Solutions?

• Benefits to International
• Joint exercise with ShipServ identified savings
  in 4 processes
• Improve Quoting Process (Local and Overseas
  Orders)
• Improve and automate order/order confirmation
  process (local orders)
• Improve and automate order/order confirmation
  process (overseas orders)
• Place Ship-specific product list in ships
  purchasing environment

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e-Business Project Why a Portal?

• Why a Portal?
• Market consolidated to private hubs handful of
  majors
• Some companies (ShipServ) showed consistent
  growth in transactions
• At least 10 key customers integrated to the main
  portals
• Some major suppliers integrated into one of the
  main portals
• Industry takes time to learn.is it better to
  learn now or later ?

Electronic automation will play a major part in
future buy/sell processes
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e-Business Project Why select ShipServ as SP?

• Why ShipServ?
• Track Record a survivor
• Professionalism
• in the feasibility exercise
• Management
• Knowledge of Marine Business
• Technical capabilities, flexibility and
  adaptability in set-up
• Established Customer Base and potential new
  business

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e-Business - What have we learnt?

• e-Business is not just a nice website.
• A well designed simple system can leverage
  underlying competences
• Why is it so difficult to extract value from e
  business projects?
• Usually small scale, thus small increments
  minimal effect
• IT driven not business driven !
• IT / Business gap
• Not enough focus due to speed of learning and
  unproven concepts etc
• Underestimate levels of resourcing
• E Procurement
• Neither buyers nor Suppliers currently see real
  benefit for significant immediate expenditure.
  But must keep 'foot in the water'

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e-Business - What have we learnt?

• Implementation and Business issues greater than
  systems issues.it takes time and money to learn
• Our systems infrastructure is well advanced and
  provides a basis to support global service
  (information) solutions with relative ease
• Internet for information retrieval in business is
  ubiquitous (or matter of time)
• E procurement (in whatever form it takes) is a
  matter of time (P_at_CCESS!)
• MarineR and MFGPRO implementations can be taken
  further (automation/BPR)
• Increasing information demand from customers
• Differentiation by service/customer retention
  vital to success

INTERNET PRESENCE Marketing, branding,
visibility, generic information and service
provision, support product launches
E SELLING/PROCUREMENT Supporting our
customers Catalyst for further internal BPR
EXTRANET window on service relationship
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• e-Business Solutions adopted

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e-Business Solutions adopted
XML (CIDX pref)
Cust C
Cust B
MTML XML
Other MarinePortal
Cust D
EDI
P_at_CCESS HUB
ShipServPortal
Cust E
MTML XML
Cust F
CIDX XML
YachtPortal
Cust G
CIDX XML
MPC E-Commerce HUB
2 methods of electronically placing orders -
Direct B2B (XML, EDI) - Indirect B2B (via
Portal)
F/F Marine Order
Yacht, PC or Local Marine Order
F/F Marine MOF
Mfg/Pro (Marine O/A)
Mfg/Pro Marine S/A
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e-Business Solutions adopted

• End to end connectivity
• Customers own IT system outputs PO data for
  direct B2B
• Portal presents IP Product Catalogue to allow
  customer selection of IP Code
• translates message into one common format
  for transmission to IP
• Transport data format (e.g. XML file) and
  method of transport (Internet transmission
  http post)
• Akzo Nobel Hub (P_at_ccess) firewall security and
  translation of incoming message into common
  format (CIDX XML)
• BU Hub message translation into coatings
  terminology, application of business logic to
  route message to correct destination
• Mfg/Pro system PO uploaded directly onto
  correct system with clean data. Order Process
  personnel alerted to the order arrival

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e-Business Solutions adopted

• Roll-out of the Project
• Phase 1 will allow a PO to be uploaded directly
  into our main business system (Mfg/Pro) -
  imminent
• Future phases (Q3,4 2004) envisage adding the
  following automated transactions between IP and
  customers via ShipServ
• PO acknowledgement
• Request for quotation (and quote response)
• ASN (notification of goods shipment)
• Invoice

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e-Business Reactions/Feedback so far

• Early Days - Live programme not yet active
  trading need live data to prove the system and
  confirm next phases practicability
• We continue along a cautious path to provide a
  comprehensive infrastructure to enable any form
  of Business-to-Business transactions our Trading
  Partners wish to employ
• Prediction that electronic trading/messaging will
  increase is borne out in recent experience in
  Marine and other Markets

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e-Business potential Obstacles

• Data Integrity
• Need accurate product data use of IP Product
  Catalogue in purchase order / RFQ entry would be
  appreciated
• To minimise keying errors
• To facilitate translation
• Flexible enough to provide all potentially
  required products
• Rigid enough to avoid order of incorrect products
• Small enough to be easily downloadable to vessels
  offshore
• Ensuring key data items are supplied
• Vessel IMO number
• Delivery Port location
• Delivery date
• Delivery address details
• Agents details
• Any critical instructions

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e-Business Project Beyond Paint

• Connected to our Beyond Paint philosophy of
  added value services throughout the supply chain
• Purchasing
• Technical inspection and reporting
• Coating report and on board maintenance
  programmes
• Customer sales stats and management reports
• Product data sheets and HS information
• Contact information
• Technical information, cargo resistance guides
  and track records

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e-Business Project
THANK YOU