Helping Provide Competitive Advantage
The Retail Industry—Among the top challenges in the retail supply chain is reducing out-of-stocks. Think about it. When you don’t find the product you are looking for at your local store, you may visit a different retailer, purchase a different brand or not buy anything at all. None of these outcomes is desirable for retailers or the consumer products companies that supply them.
In recent years, retailers and their suppliers have begun new efforts to reduce out-of-stocks by sharing more data about inventory positions, demand forecasts and sales transactions. For example, by sharing point-of-sale transactions, suppliers can gain insights into exactly which SKUs are purchased in which stores on which days. Based upon the sales volume (and their recent shipment quantities) suppliers can identify which products need to be replenished before they go out of stock. Retailers who can experience fewer product availability issues than their competitors will not only engender more loyalty with customers, but will also increase revenues. In addition to reducing out-of-stocks, B2B integration technologies are used to accelerate new product launches, synchronise price changes and reduce supply chain costs.
The Manufacturing Industry—In the past two decades leading manufacturers in the aerospace, automotive, high tech and industrial sectors have outsourced an increasing number of their business operations to third parties. Contract manufacturers, freight forwarders, customs brokers and third-party logistics providers perform many of the supply chain functions that used to be managed in-house. In addition to outsourcing, these manufacturing companies have redesigned their supply chains using new techniques.
To reduce costs many manufacturing companies have entered into Vendor Managed Inventory (VMI) and consignment relationships with their suppliers. To accelerate the flow of materials and parts through the supply chain, manufacturers have adopted cross-docking and drop-ship models. To optimise working capital, self-billing and early payment models are becoming more popular. These new business models are viewed as offering competitive advantage. But the ability to perform any of these processes with scale depends upon B2B integration between business partners.
Without near real-time sharing of consumption data VMI models are not possible. Without electronic shipment tracking and receiving processes, self-billing cross-docking and drop-ship would not be possible. And without electronic invoicing early payment schemes would be relatively ineffective.
The Financial Services Industry—In fact, financial institutions that support a more flexible array of electronic payment approaches enjoy a competitive advantage in the sales process. And banks which can more quickly connect and onboard clients to their electronic payment processing systems will benefit from more revenue. The faster connections are achieved the sooner transactions begin to flow and deposits shift over.Pages: 1 2 3