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Supply Chain in the Cloud

Supply Chain in the Cloud . Kurt Cavano CEO, TradeCard. Defining “Cloud Computing” - Wikipedia.

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Supply Chain in the Cloud

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  1. Supply Chain in the Cloud Kurt Cavano CEO, TradeCard

  2. Defining “Cloud Computing” - Wikipedia • A style of computing in which dynamically scalable and often virtualized resources are provided as a service over the Internet. Users need not have knowledge of, expertise in, or control over the technology infrastructure "in the cloud" that supports them. • The concept incorporates infrastructure as a service (IaaS), platform as a service (PaaS) and software as a service (SaaS) as well as Web 2.0 and other recent (ca. 2007–2009) technology trends that have the common theme of reliance on the Internet for satisfying the computing needs of the users. • Examples include Salesforce.com, Google Apps or Windows Azure which provide common business applications online that are accessed from a web browser, while the software and data are stored on the servers.

  3. Growing Trend of Interest

  4. The Bottom Line • Changes the economics of Computing from being a Capital investment to a Utility • You buy electricity you don’t buy generators • Changes the way software is developed • Hardware provisioning, deployment, and scaling now part of the development lifecycle • Not a Purchase Order / Requisition process • Automates a huge layer of infrastructure tasks • Backup • Disaster Recovery • Systems Management / Monitoring / Internet Security • The Rule: • If your application needs more capacity and you cannot get it instantly, then it is not cloud computing. • If there is no programmatic way to provision hardware, no pooled capacity and even worse a purchase order to get new hardware/software, then it is not cloud computing.

  5. Why Cloud Computing in the Supply Chain?

  6. Extensive Challenges to Execute Exist

  7. Complexity Challenges Source: AMR

  8. Business Challenges • Complex global supply networks • Massive amounts of transaction documents & information across multiple parties • Ever-increasing supply chain risk • Delays • Liquidity bottlenecks • Trading partner viability • Vendor compliance • Regulatory compliance • SOX • 10+2 • CPSIA

  9. Obstacles to Supply Chain Goals

  10. Consider the Risk Involved in All Processes

  11. A Better Model is Needed That Can: • Connect multiple networks of trading partners • Deliver agility to shift suppliers, regions, logistics, financing • Provide a single version of the truth • Allow true collaboration across multiple layers in the supply chain • Activate parties anywhere in the world …WITHOUT REQUIRING EXTENSIVE RESOURCES OVERSEAS

  12. A Cloud Network Approach • With traditional software, adding trading partners and service providers requires • On-site installation and service visits from vendor service teams • Dedicated server hardware • Support staff to manage it • Therefore, larger trading partners and service providers that can afford to pay get this level of attention. • But for every large enterprise that purchases a line-of-business solution, there are dozens of smaller and medium-sized businesses that could benefit from such a solution, but that cannot afford the expense. • A Cloud platform with a built-in trading partner and service provider network can be a competitive edge • Uniquely positioned to service the long tail of the extended supply chain

  13. New Information Model for the Supply Chain

  14. Ties Together Networks of Networks HT Code Hong Kong HT Code Commercial Invoice Customs Packing List Purchase Order Location Code Carton ID Containers Port of Entry Long Beach, CA

  15. Supply Chain in the Cloud is the Future • Connect all parties without overseas presence, IT headaches and costs • Agility to upgrade modules and technology painlessly to meet new challenges • 10+2 • CPSE • 24 hr manifest • RFID • EDI

  16. TradeCard: A Global Business Network A strategic global business network for supply chain collaboration. • Visibility into ALL parties • Rapid communication of changes • Financial services to eliminate credit- & liquidity- related risk • Ability to rapidly respond to shifts in demand • Speed to market support • Vendor & regulatory compliance • Faster time to shipment strategies Manufacturer Raw Materials

  17. Collaboration Platform for Brands & Retailers The global leader in on-demand supply network collaboration 6,000 Members. 60 countries. $10 Billion settled in 2010. Secure & accurate transactions. Supply chain visibility. Automated workflow.

  18. Enabling the Productivity Loop TradeCard’s MultiEnterprise Collaboration Value Grow Sales + = Operate For Less Buy For Less Sell More • Automated multi-party collaboration • Process efficiencies via an integrated platform • Exception management • Payables Automation • Impact Free Cash Flow • Manage Raw Material Commitments/Purchases • Leverage financial strengths to reduce costs • Quickly react to new sourcing trends • Invoice Discount Programs

  19. Established Network of 6,000+ Members BRANDS & RETAILERS SUPPLIERS SERVICE PROVIDERS NIKE

  20. DC Bypass at Columbia • Fully automated process • Enables floor-ready merchandize to skip DC • Increases packing accuracy • Generates compliant carton labels • Ensures accurate and timely ASN creation • Reduces handling charges and lead times

  21. Staying Close to the Source at Bauer • Facilitates custom engraving in Asia • Uses one seamless process to ship direct to customer • Automates order processing from online customer order thru factory & carrier • Eliminates storage and handling in North America

  22. PO Agility at Belk • Adjusting supply to latest demand picture • Provides portal to help suppliers meet change requests • Increases packing accuracy • Ensures compliant carton labels • Enables accurate and timely ASN creation • Fully integrated with LSP • Reduces document errors • Provides visibility to factory activity

  23. Guess Eliminates Capital Costs & Risks • Obtains transaction transparency with suppliers and financial institutions • Deploys self-funded early payment program to provide suppliers immediate access to cash • Guess obtains discount & strong return on cash • Supplier cuts financing costs & knows when cash will be available

  24. Benefits of a Collaborative Cloud Platform • Streamlined/automated PO and amendment delivery • Multi party collaboration-visibility • Standardization of all documents & processes • Improved chargeback processing • Significant early payment discounts due to automated payment approval process • Best data from the source is delivered immediately to all parties

  25. TradeCard by the Numbers By the Numbers +31,000 Total individual users +6000 Clients 30,000 Transactions per month $1 Billion Transactions processed per month Platform uptime 99.989% +30% Growth for 2010 & Forecast for 2011 60 countries & 32 languages Supported by TradeCard +1,200 Supplier activations in past 12 months

  26. More Information • Cloud Computing for CFOs article in Financial Executive Magazine, October 2010 • Contact: • Kurt Cavano (kcavano@tradecard.com) • Steve Ford (sford@tradecard.com)

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