Bridging The Technology Gap Between The Large Enterprise And Its Middle Market Suppliers

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

Bridging the Technology Gap Between the Large Enterprise and Its Middle-Market Suppliers ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Components of Supply Chain Integration ,[object Object],[object Object],[object Object]

Barriers to Supply Chain Integration for the Middle-Market Supplier Lack of integration to accounting system No counterparts for data elements and business rules Complex requirements for data transformation, cross-referencing and data cleansing Inability to support multiple electronic trading protocols ,[object Object],[object Object],[object Object]

MIDDLE-MARKET SUPPLIERS GreatPlains BEST MAS90/200 ACCPAC ProSeries Large Enterprise SAP, PeopleSoft, Oracle SMALL SUPPLIERS QuickBooks® PeachTree® # Suppliers (thousands) # Transactions/Month Lawson, Macola JD Edwards Span of Business System Platforms Basic Accounting Accounting Systems for Mfrs ERP

The Technology Gap… Accounting System Web Tools EDI/xml Enterprise Application Integrator ERP SYSTEM Supply Chain Management Apps Gateway/VPN/WebTools Large Enterprise Middle-Market Supplier MRP WMS CRM Connectivity Data Transformation Process Mgt

Unlikely Trading Partners… 15 Thousands Trading Partners Close Bronx WH Connect to CA 3PL with 940/945s Automated Receiving Technology Web-enabled supply chain tracking RFID Supply Chain Initiatives 10,000 sq.’ (NYC) Remote 3P Warehouse (CA) 1,225 US Stores 150 Million Sq.’ 19 regular DCs 3 Import WHs Facilities 50,000 Billions? Transactions (annual) ACCPAC ProSeries ERP Business System 12 300,000 Employees $10 M $48 B Revenues “ TT, inc.” Target Corp

Must Support Multiple Connectivity Protocols VAN FTP AS2 Bed,Bath Beyond Fred Meyer Kids R Us Zeller’s/ Hudson Bay Kohl’s Loblaw’s Mervyn’s Nordstrom Peyton Sak’s Shopko Toys R Us ,[object Object],[object Object],[object Object],TT, Inc.

No Counterparts for Business Rules and Data Elements TT, Inc.

Business Process Integration Requires Complex Data Transformation by Middle-Market Supplier Nordstrom850 SDQ Individual Orders by “Ship To” and “Mark For” Locations Process Orders Nordstrom 810 “C” Nordstrom Order/Invoice Requirements No capability to parse consolidated orders No capability to create consolidated invoices TT,Inc ACCPAC Accounting System

Optimization of Supply Chain for the Large Enterprise ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Source: The Yankee Group 2003

Optimization of Supply Chain for Middle-Market Enterprise ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Service and Proprietary Systems Proprietary Software Red Tail Business Process Integrator™ Large Trading Partners Accounting System Red Tail Transaction Manager ™ REDTAIL Solutions Virtual Capabilities in an Outsourcing Model Mid-market Supplier WalMart Nordstom Kohl’s WalMart Internet

Business Process Integration Requires Complex Data Transformation by Middle-Market Supplier Nordstrom850 SDQ Order ∑ 850 “C” Review/Revise Trans.1 Individual Orders by “Ship To” and “Mark For” Locations Process Orders Trans.3 Trans.2 TT,Inc ACCPAC Accounting System Nordstrom 810 “C” Manual Edit/Trans.4 Nordstrom Order/Invoice Requirements No capability to parse consolidated orders or create a consolidated invoice

Bridging The Technology Gap Between The Large Enterprise And Its Middle Market Suppliers

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Bridging The Technology Gap Between The Large Enterprise And Its Middle Market Suppliers