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Supply Chain Management
Inbound Shipment Tracking & Supplier Performance Management Solutions
February 2010
Agenda
Overview
Market Analysis
Supplier Performance Management Solution
Competition
Solution Profiles
Appendix
Common Questions
BPA Value Proposition
3
A Bit of History: 1930-1950
Bank Robber “Slick Willie” Sutton
When asked why he robbed banks, Willie simply replied
"Because that's where the money is."
3
Overview
Overview
Supply Chain is ‘Where the Money is’
• The Supply Chain generally accounts for between 60% and 90% of all company costs!• A 2% improvement in process efficiency for Supply Chain processes has 3000% - 5000% the impact of a 2% improvement in efficiency for IT, HR, Finance or Sales• Most Process Methodologies or techniques had their origin primarily in Supply Chain Management!
SCOR Benchmarking research
Market Research – Aberdeen Group Only 33% of respondents have Supply Chain visibility software! 79% of large companies say the
lack of process visibility is their top concern!
Focus of Best-in-Class firms – On-the-fly decision making– Near real-time visibility– Optimization of execution
Recommendations – Acquire Supply Chain visibility to the item/inventory/landed cost level– Employ near real-time dynamic optimization to enhance cost and service– Enhance collaboration with internal groups and external customers and
partners– Scale business-to-business collaboration
Market Analysis
Industry Trends – Visibility and BI (Business Intelligence) in the Supply Chain Identify and measure KPI’s and service levels Improve relationship and performance of both
partners and internal operations Partner integration Data reporting
Market Analysis
Business Process Management Next Generation - Actionable Business
Intelligence The integration that binds
measurements to the process Implement Measure and Manage
Repeatable best practices Move from ‘tribal’ to ‘institutional’
knowledge
Solution - Supplier Performance
Supplier Performance Management Solution
ChallengesOverview CapabilitiesBenefitsArchitectureCompetition
Challenges
In “Meeting the Challenge: The 2009 CIO Agenda,” improving business processes was once again ranked as the No. 1 business priority. . .”
Gartner Executive Programs Report, July
2009
Inefficient Operations
Slow R
esponse
s
Disconnected T
eams
Rigid Systems
Leadership
Operations
Suppliers
IT
Framework
Executive Challenges: Corporate Goal Alignment Structure aligned to organization Expense management and recovery Supplier performance management and reporting
Challenges
Leadership
Operations
Suppliers
IT
Strategy Alignment & Expense Recovery
Executive
Inventory ManagementChallenges:
Access to Information Work Pipeline Visibility Supplier performance measurement based on quality standards Sharing standards and scorecards with partners
Leadership
Operations
Suppliers
IT
Supplier and Process Management
Inventory
Challenges
Operational Challenges: Process management and configuration Information management and configuration Exception HandlingTracking, managing and maintaining operation flow
Leadership
Operations
Suppliers
IT
Operational Visibility and Control
Operations & Transportation
Challenges
IT Challenges:
Do More with Less Business Responsiveness Business-IT Collaboration Internal Customer Satisfaction Security and controls
Leadership
Operations
Suppliers
IT
Rapid Response to the Business
CIO
Challenges
Solution Overview
We bring together the expertise and knowledge to institute highly flexible, best-in-class, Supplier Performance Management Solutions tailored to our clients’ individual Supply Chain requirements. Ricoh solutions help our clients recognize their suppliers strengths and weaknesses in:
Inbound Delivery TrackingQuality of the product
Vendor historical performanceProduct re-work expense recovery
Solution Overview
A framework designed to:
Clearly define supplier performance metricsProvide tools to measure & actionable metrics Implement strategies for improved supplier
performanceSupport recovery of unexpected and product re-work
charges
Solution Capabilities
Best in Class Capabilities SCM Process Framework Requirements
•Executive Dashboards•Inbound Delivery Dashboard
•Track shipments from the supplier’s door to the buyer’s door
•Supplier Performance Dashboard •Actionable supplier delivery metrics
•On-time•Complete•Damage Free •Accurate Invoice
•Individual Supplier Performance Scorecard
•Charge-back capabilities to recover rework costs•Drill-down capabilities •Actionable event and workflow management capabilities
Solution Capabilities
Best in class BPA tools provide:• Web portal to simplify access• BPM flexibility to support critical Supply Chain
workflows• Configurability to meet the changing needs of the client• Dashboard and drill-down analysis• Actionable event and workflow based management and
tracking
Solution Benefits
Increase Productivity and Increase Volumes–Exception based management
Reduce returns and defects, recover rework expense, Improve customer experience–Performance and Quality Standards
Improve employee confidence, performance and reduce training and on-boarding impacts–SCM Standards based BPM workflows
Improved partner integration and relationships–Real time vendor scorecards
Fully integrated solution – One throat to choke!
Solution Competition
Supplier Performance Management Competition
CategoriesComparison
Solution Competition - Categories
CategoriesProcurement and Supplier Contract ManagementVAN and Strategic Partner PortalsPerformance Management (Subscription service)Custom LegacyERP (SAP, Oracle, Lawson)
Solution Competition - Comparison
Category Capabilities Drawback Examples
Procurement & Contract Management
Procurement management & contract audit
Lacks performance tracking & chargeback capabilities
- Ariba- Emptoris- Biznet Solutions
VAN and Strategic Partner Portals
Communications via EDI & transaction compliance
Lacks quality, performance mgmt & expense recovery
-Inovis-Commerce Hub
Performance Mgmt & Tracking
Subscription service for performance measurement via market surveys
Like eBay vendor rating based on surveys & lacks expense recovery
-Decideware- CVM Solutions
Custom Legacy Custom developed to meet the individual’s needs
Rigid framework requires costly maintenance & partner integration
ERP Highly integrated software with upgrade path
Buy into vendor strategy and modify business to meet software
-SAP- Oracle- Lawson
Solution Competition
No competitor meets all functionality!
Ricoh meets the challenge!
Our team provides the process integration
Solution Profiles
Environment ModelRicoh Delivery ModelSolution ModelIntegration ModelSupport Model
Custom developed legacy applications in ‘stovepipes’ with cumbersome integration
Utilizing spreadsheets to track and manage performance
Limited or very simple partner integration
Environment Model
Financial RDBMS Legacy ProcurementERP, CRM
Ricoh Delivery Model
Ricoh will offer services for:
Assessment Capture and Document target Processes Interview Stakeholders Capture physical and electronic artifacts Detail Complete Document Lifecycle Workflow
Design Simple BPMN Process Modeling Rules Design Forms and Interface Design
Execute Enterprise Scalability Web Services Orchestration Integration Deployment
Manage Task and Queue Management Real-time Reporting and Status In-Flight Modification
Optimize Business Activity Monitoring Round-trip Analytics and Process Optimization Key Performance Indicators and SLA Reporting Collaboration
How Ricoh Delivers Accelerated BPM
BPM Suite
Rapidly and easily unites your people, systems and data:
Simple BPMN process modeling to easily capture documentation and requirements
Rapid Application Development to turn process ideas into applications
Rich user portal for process participants to collaborate and complete work
Real-time visibility and reporting for managers and executives to gain new insight into process performance
Fast
Easy
Solution Model
Leadership
Operations
Suppliers
IT
Integration Model
People
Processes
Equipment
DataSupplier
Performance Management
Supplier Performance Management
Ricoh Orchestrates Your Supply Chain
PEOPLE
PROCESS
INTEGRATION SERVICES
Internal Participants, Often Cross-FunctionalExternal Participants
Integration Model
Support Model
Support Options– Standard 9 – 5 Monday - Friday
– Premium 7 x 24
Support Levels• Level 1 User questions - Ricoh• Level 2 Configuration issues - Ricoh• Level 3 Core Bugs - Appian
Appendix
SCM – Common Questions
Question Typical Current Method
Ricoh Capabilities
What statistics are provided and how is historical information tracked?
Statistics and historical metrics collected in spreadsheets, or, Access DB and not backed up
Statistics identified by client and updated in recoverable DB and accessed through flexible & robust BPM tools
How is the reporting structure matched to the organization?
Standard set of reports require IT modification , or, spreadsheets/Access DB
Utilize BPM and hierarchy workflow DB for standard and custom, user developed reporting.
Can you modify flow to support revisions to process?
Flow very strict, requires IT modification to update process and flows & documentation
Flow is managed by client and modified based on client business requirements
Methods for scoring the suppliers based on performance
Standard updates for metrics and scores based on structured DB and coding
Scoring is defined and via discovery and design process
How is the re-work expense recovered?
Structure and expense highly stringent. Expense recovered through AP and requires significant effort to modify
Re-work expense and penalties defined by client and managed through BPM tool and integration with AP
What is the cost to support this? Included in license and services
SCM – Common Questions
Question Typical Current Method
Ricoh Capabilities
How do you track supplier performance?
- Spreadsheets or Access DB reported in monthly reports. - We don’t
Tracked via supplier scorecards that utilize metrics captured in the business process. Flexible & robust reporting that can be modified by users
How are the orders tracked through the order to fill process?
-Via disparate stovepipe applications-- via ERP like SAP
Integration to stovepipe apps and ERP. Process modified simply and quickly through configuration capabilities.
How do you measure the perfect order?
-We don’t-- Manually through spreadsheets/Access DB
On-time delivery, Quality of product, Order accuracy metrics captured in the process
How are scores cards managed with suppliers to review performance?
-Scorecards created via legacy programs and then sent to respective suppliers-- Spreadsheet/Access DB sent to suppliers
Supplier scorecard published via web portalAccess managed via role based security methods
How do you manage the quality inspection tracking and historical performance scoring ?
Manually via spreadsheets, or simple requirements captured upon first receipt.
Auto and manual status updates stored by both supplier and product.
What is the cost to support this? Included in license and services
SCM – Common Questions
Question Typical Current Method
Ricoh Capabilities
How are the key processes identified and managed for exceptions?
Manually via spreadsheets, or simple requirements captured upon first receipt.
Exception and handling requirements defined in discovery process and then maintained by end users in configuration.
How is information shared and managed across the operation and the partners
- Via legacy reports, spreadsheets & Access DB
Information shared and managed by role and shared via web portal for ease and performance.
How do you track on-time delivery? - Via legacy reports, spreadsheets & Access DB
All statistics tracked via auto and manual updates during the process.
Can the use be limited by role? - Yes by security access in legacy apps and by selective distribution of spreadsheets
Yes, via role based access management
What is the cost to support this? Included in license and services
SCM – Common Questions
Question Typical Current Method
Ricoh Capabilities
How do you store & manage supplier performance statistics?
- Legacy DB and spreadsheets that require coding and manual updates to support.
Updated in hierarchical DB via auto and manual integration.
What are the integration requirements? - Legacy stovepipe apps require coding changes
Flexible and manageable via end user updates and auto integration to manual forms entry
What are the requirements for publishing to the partners through the web?
- Develop web site and integrate publishing from legacy apps. Manually maintained
Web portal and role based access via BPM tool
How do you manage the business process and workflow configurations?
- Legacy apps require IT support and program changes. Documentation manually updated.
Updated, created and deleted through tool .
How do you manage security and access? - Manually via security access changes and limiting spreadsheet availability
Security managed based on role and access requirements
What is the cost to support this? Included in license and services
