E-Business ShipServ Conference 18 th June 2004. ShipServ Conference – 18 th June 2004 Contents Why e-Business Solutions? –Customer –International Paint

e-Business

ShipServ Conference

18th June 2004

ShipServ Conference – 18th June 2004

Contents

• Why e-Business Solutions?– Customer

– International Paint

• Why a Portal

• Why ShipServ

• Lessons Learnt

• Solutions Adopted

Marine Coatings


Our “Beyond Paint” philosophy of added value services

throughout the supply chain

e-Business Solutions

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



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



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.

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

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


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 ?

e-Business Project – Why a Portal?

Electronic automation will play a major part in future

buy/sell processes


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

e-Business Project – Why select ShipServ as SP?


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'


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@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 PRESENCEMarketing, branding,

visibility, generic informationand service provision,

support product launches

E SELLING/PROCUREMENTSupporting our customers

Catalyst for further internal BPREXTRANET

window on service relationship

e-Business – Solutions adopted



P@CCESSHUB

M&PCE-Commerce

HUB

Other MarinePortal

ShipServPortal

CustA

CustC

CustD

CustE

CustF

MTML XML

MTML XML

EDI

CIDXXML

Mfg/Pro(Marine O/A)

Yacht, PC or Local Marine

Order

F/F Marine MOF

Mfg/ProMarine S/A

F/F Marine Order

CustB

XML(CIDX pref)

2 methods of electronically placing orders: - Direct B2B (XML, EDI) - Indirect B2B (via Portal)

YachtPortal Cust

GCIDX XML


End to end connectivity • Customer’s 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@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



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



• 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

e-Business – Reactions/Feedback so far


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

e-Business – potential ‘Obstacles’


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 H&S information

– Contact information

– Technical information, cargo resistance guides and track records


e-Business Project

THANK YOU

Documents

E-Business ShipServ Conference 18 th June 2004. ShipServ Conference – 18 th June 2004 Contents Why e-Business Solutions? –Customer –International Paint