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As I am reading through the pile of detailed applications to
choose this year's winners of who best implemented GXS technology and services,
I am impressed by the international pedigree of the contenders. I am also impressed that these contenders
were able to drive adoption across, not only a large organization, but a
cornucopia of trading partners. The
result: a fatter bottom line, a
competitive advantage, a scalable platform for growth, improved customer
service, and the Pièce de résistance, the
2010 GXS Active Business Award.
So without further ado, the winners are:
China Mobile and Rutronik
tie for the Proactive Trading Partner Engagement Award. RUTRONIK Electronic Components GmbH
is one of Europe's leading distributors of
electronic components. The company has around 250 core customers with
whom it exchanges about 30 million EDI messages each year. A base of 150
suppliers generates an additional 14 million messages. Messages include orders,
invoices, dispatch notices, price catalogues, stock information and forecast
requirements. What was most impressive to
me was the ability to integrate a supply chain over a diverse global territory
with fairly complex information.
Rutronik was able to link customers and suppliers with these advanced
transactions in China, South America, South Africa, Italy, and Eastern Europe,
which are locations not known for their advancement in ecommerce.
China Mobile is the world's largest mobile phone operator by
number of subscribers, it operates the world's largest mobile network, it is
the largest Chinese company listed overseas (NYSE: CHL) and it is the largest
telecom carrier in Asia. China Mobile implemented GXS Enterprise
Gateway as the backbone of their new Oracle centric B2B integration
platform. The solution integrated
hundreds of trading partners, from tiny mom and pop shops to
multinationals.
Yanmar for the Supply
Chain Visibility Award. Based in Osaka, Japan,
Yanmar Co Ltd, is a leading global manufacturer of diesel engines and diesel
powered equipment for the construction, industrial, agricultural and marine
markets. In order to respond to this
increased demand for spare parts Yanmar had to find a way of improving the
visibility of spare parts shipments between their factory in Japan and their
global network of dealers and service centers.
Yanmar deployed GXS Active Logistics Solution in order to gain real-time
visibility into its global logistics operations from Japan
to their global network of distributors and dealers across North America,
Europe and Asia. In a matter of months, Yanmar was able to
increase spare parts revenue while streamlining bottlenecks in the supply
chain. As a result, increased customer
loyalty has been central to Yanmar's competitive advantage over other diesel
engine manufacturers.
Kraft Foods and Novartis
Animal Health tie for the Environmental Sustainability Award. As a division of one of the world's
largest pharmaceutical companies, Novartis Animal Health US, Inc. (NAH) employs
approximately 2,600 people around the world.
NAH offers products and services to save, prolong and improve the lives
of animals, focusing on companion animal, farm animal, and farmed fish. NAH chose GXS as our Managed Services
Provider because GXS had a finely tuned skill set in the area of B2B and the
support infrastructure to manage the traffic and Trading Partners. Beyond operational efficiencies gained by an
integrated supply chain, NAH reduced their use of paper by 17 tons. When you consider the size of NAH, and the resources
used for manufacturing, transportation and printing, on both sides of the
supply chain, this is a significant success.
Kraft Foods (NYSE:
KFT) is the world's second largest
food company, with annual revenues of $42B.
Kraft implemented GXS's Active Invoices with Compliance solution as a
way to address paper reduction and generate legally-compliant electronic invoices
for European countries. GXS automated
the process which ensures the documents are compliant with VAT regulations for
each applicable country. Kraft
eliminated over 26 tons of paper usage per year. Thank you Kraft and Novartis Animal health,
you both serve as leading industry examples.
Scott's Miracle-Gro for
the Supply Chain Data Accuracy Award. The Scotts Miracle-Gro Company (NYSE: SMG) is the world's
largest marketer of branded consumer lawn and garden products. The 142 year old company operates in North
America, Europe and Asia, with 8,000 employees
and has $3B in revenue. Scott's needed a
way to comply with their largest clients' data synchronization initiatives at
Home Depot, Lowes and Wal-Mart. Scotts chose GXS Product Information Management (PIM)
Supplier Version, a GXS Product Master Data Management (Product MDM) solution. At the end of
September 2009, Scotts had 656 items registered in with the GS1 Global Data
Synchronization Network (GDSN) and 940 publications to 10 retailers. They continue
to on-boarding new partners as more subscribe to use Global Data
Synchronization (GDS) for their product information. Scotts will be able to leverage GXS PIM when
key international accounts request Scotts' International Business Group to
transform the new item setup process.
Dr. Pepper Snapple
Group for the Demand Responsiveness and Agility Award. Dr Pepper Snapple Group (NYSE: DPS) is
one of the largest beverage companies in the Americas. DPS manufactures, markets
and distributes more than 50 brands of carbonated soft drinks, juices, ready to
drink teas, mixers and other premium beverages.
DPS, under the demands of leading retailers, had the challenge of
upgrading a data synchronization system that was slow and cumbersome. The existing system also could not support
machine-to-machine pricing data; and, most importantly, full truck pricing
could not be accomplished. DPS
implemented GXS Price & Promotion Synchronization (PPS) for the base of
what DPS now refers to as VORTEX (Vendor Optimized Retail Transaction
Exchange). VORTEX has made it quicker and easier for DPS's bottlers to submit
pricing, and has vastly improved overall accuracy and collection
rates. Pricing errors at Wal-mart generally take three to five days
to correct, resulting in thousands of lost beverage cases on major
promotions. One glowing beneficial example of VORTEX success is DSP's
annual sales at Wal-mart are up over 20% from last year. VORTEX
played an important role in the overall success of their related promotions and
new item introductions. Through October 2009, DPS has processed over 9
million pricing records to Wal-mart, which was impossible using the previous
price collection system.
Congratulations, your accomplishments are truly
impressive. Many readers of the Global
Trade Best Practices (GTBP.org) have been in the position of hearing a sales
pitch from technology providers, who offer wild ROI promises. But when the time comes to deliver and the
stress passes to the person who recommended the provider, the ROI promise gets
lost in the paperwork. That is why
people buy from people they trust. These
award winners are at the top of their game.
I look forward to getting more case studies from GXS.
Cheers to a green 2010!
Rob Guerriere
Global Trade Best Practices Org || GTBP.org
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