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Live Chat 3/21: Creating an Extended Supply Chain

107 comments on “Live Chat 3/21: Creating an Extended Supply Chain

  1. Ashu001
    March 18, 2014

    Should be a most interesting Live Chat to view!

  2. Daniel
    March 21, 2014

    Goodmorning Everyone

  3. Daniel
    March 21, 2014

    cooperation and collaberation are essential for mutual benificts

  4. Ashu001
    March 21, 2014

    I am actually both those reports linked to here

    http://supplychaininsights.com/supply-chain-visibility-in-business-networks/

    Results are most fascinating!

    Do read!!!

  5. Ashu001
    March 21, 2014

    Please do read both those reports

  6. Hailey Lynne McKeefry
    March 21, 2014

    Welcome Jacob and Tech4People. Thanks for posting ahead of time… Hope you can stay until we start, and if not be sure to come back and read the transcript!

  7. Hailey Lynne McKeefry
    March 21, 2014

    We will be starting at 11 a.m. PST/2 p.m. EST sharp. First, though, there are two housekeeping notes:

    First, please make a copy of your post before hitting the “post” button – just in case.  If the system “eats” one of your carefully crafted thoughts, please hit “Ctrl-Z” to recover it

  8. Hailey Lynne McKeefry
    March 21, 2014

    Second, if you have problems posting, we suggest trying a different browser.  IE9 is a popular choice, but sometimes find Firefox, Chrome, or Safari work better.

  9. Hailey Lynne McKeefry
    March 21, 2014

    This will be a fun, fast, and friendly conversation, so please do not hold back with your comments or questions.  There are no dumb questions and we value everyone's point of view.

  10. Hailey Lynne McKeefry
    March 21, 2014

    And always, please announce your arrival so we can give you a warm EBN welcome and offer you some virtual  guacamole. 🙂

     

  11. Hailey Lynne McKeefry
    March 21, 2014

    Questions, theories, ideas, real world experiences and even friendly rants are welcome here.

  12. gregjohnsen
    March 21, 2014

    Hello Hailey, just joining now.

     

  13. Hailey Lynne McKeefry
    March 21, 2014

    Welcome Greg….thanks for joining. We'll get started in just a couple of minutes. In the meantime, do you want to set the stage? Tell us a little bit about GT Nexus and the work you do.

  14. Ashu001
    March 21, 2014

    are we ready to go live? this is gonna b a good event!

  15. gregjohnsen
    March 21, 2014

    Sure, thanks Hailey.  I'm the Chief Marketing Officer of GT Nexus, and we operate a cloud-based business network for global trade and supply chain management.  We help companies manage their global supply chains by enabling them to connect with their trading partners and service providers and orchestrate processes more efficiently.

  16. Hailey Lynne McKeefry
    March 21, 2014

    Hi, Tech4People. Glad to have you hear.

     

  17. mcsharkey
    March 21, 2014

    Hoping the topic of using DNA tagging methods across the supply chains for raw goods (textiles), and component manufacturers (electronics through hydraulics)

     

  18. Ashu001
    March 21, 2014

    I actually read both reports was good to see how supply chains r evolving now

  19. Ashu001
    March 21, 2014

    @greg-r u focused more on edi?

  20. Hailey Lynne McKeefry
    March 21, 2014

    @Mcshrkey…glad you could join us!

  21. gregjohnsen
    March 21, 2014

    A lot of what we saw in the Supply Chain Insights research was just how far companies have to go.  Most aspire for supply chain visibility across their value chains but a high percentage rate themselves as underperforming.

  22. Hailey Lynne McKeefry
    March 21, 2014

    @Greg, what's causing the underperformance. We've been talking about supply chain complexity for a long time now.

  23. dcamp
    March 21, 2014

    How would you differentiate supplier collaboration and supply chain visibility?

     

  24. Ashu001
    March 21, 2014

    @greg-do u feel they r really underperforming?

  25. Hailey Lynne McKeefry
    March 21, 2014

    @dcamp, welcome…That's an interesting quetion…

  26. gregjohnsen
    March 21, 2014

    Hi @tech4people — well, in connecting networks, EDI is still the most widely used transport mechanism, but innovations in how information is located and aggregated — and linked — after file transport is what is really transforming the information exchange

  27. srambo
    March 21, 2014

    Hi Hailey

  28. Ashu001
    March 21, 2014

    @dcamp-whats the difference?

  29. mcsharkey
    March 21, 2014

    Thank You, looking forward to this.  I'm a bottom feeder within the military industriatl defense system:).  Surprising the number of substandard components in electronic modules.  Cost of change out is high.

     

  30. gregjohnsen
    March 21, 2014

    @tech4people — yes, my experience in working with leading companies and supply chain executives that getting to good and trusted supply chain visibility across the value chain is still Holy Grail … there is progress and real innovation now, but most still are underachieving

  31. Hailey Lynne McKeefry
    March 21, 2014

    Welcome, srambo…thanks for stopping by!

  32. Ashu001
    March 21, 2014

    @greg-so what is the low hanging fruit here?
    something can provide max roi?

  33. Hailey Lynne McKeefry
    March 21, 2014

    Bringing McSharkey's question to the top, Greg:

    Hoping the topic of using DNA tagging methods across the supply chains for raw goods (textiles), and component manufacturers (electronics through hydraulics)

     

    any thoughts on this?

  34. gregjohnsen
    March 21, 2014

    In the SCI research, 96% agreed agility was important or very important and yet just 37% believed they were agile …

  35. Hailey Lynne McKeefry
    March 21, 2014

    That's a huge gap

  36. apek
    March 21, 2014

    Why don't corporation give a thought about Decentralizign supply chain

  37. Hailey Lynne McKeefry
    March 21, 2014

    That's a huge gap.

  38. gregjohnsen
    March 21, 2014

    We're seeing a lot of interest in trace-ability at the SKU or component level, and that's across industries … pharma, retail, automotive, etc. … But even the basics of tracking inventory in quantities, seeing it in transit, catching exceptions early, etc., has proven difficult. 

  39. Ashu001
    March 21, 2014

    @mcsharkey-does politics have a key role to play here in the military electronics process?

  40. Hailey Lynne McKeefry
    March 21, 2014

    Hi Apek, glad you could join us. Pull up a chair, and help yourself to teh virtual guacamole.

  41. gregjohnsen
    March 21, 2014

    We're a cloud technology company and a lot of what we do with customers is to get them started in some part of their supply chain where they can get real value quickly.  ROI is there for reduced inventory in the in transit sections especially … but that requires monitoring of flow, tracking cycle times, looking for where the excessive dwell point are, and correcting — both operationally and structurally.

  42. mcsharkey
    March 21, 2014

    Commercial Off The Shelf program begun in mid-90s decentralized a lot of the military industrial supply chain,  About the best system controls seem to be Apples and that's completely shutout from general purchases.

     

    Look at the cost of an Apple item

     

  43. Hailey Lynne McKeefry
    March 21, 2014

    @Greg, pulling dcamp's question up as well: How would you differentiate supplier collaboration and supply chain visibility?

    What do you think?

  44. Hailey Lynne McKeefry
    March 21, 2014

    @Greg, do you serve military customers as well? Or is there resistance to the cloud over security or regulatory concerns?

  45. gregjohnsen
    March 21, 2014

    @apek — I think to go “decentralized” you really need an information platform that can connect you with your partners and allow everyone to see and act together … this is a lot of what cloud platforms are doing now … they behave more like social networks … and get everyone on the same page … very different that the ERP systems we grew up with

  46. mcsharkey
    March 21, 2014

    Yeah Tech4 People, politics is a huge role.   Defense Logistic Agency passed a mandate as popular as the Affordable Care Act (Obamacare:).  MDA supposed to be making announcements NOW at end of March. 6 days left

     

  47. gregjohnsen
    March 21, 2014

    Our customers run across industries and they include many of the 3PLs that serve lots of other customers, which may include military customers also, but I'm not personally familiar with a specific military customer …

  48. Ashu001
    March 21, 2014

    @greg-decentralizing supply chains without first getting all parts in place wud b akin to disaster?

  49. Ashu001
    March 21, 2014

    @mcsharkey-lol!

  50. gregjohnsen
    March 21, 2014

    @Hailey, back to yr question on supplier collaboration vs SCV.  They are related (for good supplier collaboration, you'll need visibility) but SCV is more of an information sharing layer across lots of processes.  Supplier collaboration is a mega process at the front end (forecasting, order distribution, WIP monitoring, pack&scan, invoice gen).

  51. Mary E. Shacklett
    March 21, 2014

    I believe you can onboard suppliers much more quickly with a “networked” cloud solution than with tradtional EDI.

    This is an IT and business benefit.

     

    @Greg

    Do you have some data/input on this?

  52. apek
    March 21, 2014

    @Greg…Alongwith Decentralization of Supply Chian there need to be other economic reforms which would enabe ” an information platform that can connect you with your partners and allow everyone to see and act together “. This is possible only by enabling a change in corporate management. When you give local palyers control over the supply chain and reform Corporate Business Managerial System such that everyone has a stake in success of business then you will get what you need to have everyone to act together

  53. Hailey Lynne McKeefry
    March 21, 2014

    So would it be fair that visibiliity supports collaboration?

  54. Ashu001
    March 21, 2014

    @greg-thanks for sharing that key difference.

  55. mcsharkey
    March 21, 2014

    @gregjohnsen, look at the Defense Logistics Agency (DLA) Internet Bid Board (DIBBs @http://www.dla.mil/SMALLBUSINESS/Pages/DoingBusinesswithDLA.aspx).  DoD contracts being begged for. 

     

  56. Hailey Lynne McKeefry
    March 21, 2014

    Hi Mary, glad you could stop by! Guacamole (the virtual kind) is on the table to your left.

  57. Mary E. Shacklett
    March 21, 2014

    Hope it has cilantro!

  58. gregjohnsen
    March 21, 2014

    @tech4people, well, you could argue that many decentralize today by outsourcing key logistics functions (origin ops, consolication, deconsol, etc.) to strategic 3PLs.  This is done for cost advantages but also expertise.  My point is that if you go there, if you are moving to a more distributed and outsourced model for key processes, you are going to need a very different kind of information system.  You'll need a network collaboration platrform so that you can see and control the myriad processes that are distributed and, execution-wise, beyond your control.  ERP has been woefully lacking in this respect, and layering EDI on top of it doesn't solve it either. As the research shows.

  59. Hailey Lynne McKeefry
    March 21, 2014

    Thanks for the link, McSharkey

  60. Hailey Lynne McKeefry
    March 21, 2014

    @Mary, loads of cilantro…I'm in CA after all.

  61. gregjohnsen
    March 21, 2014

    @apek, yes agree with your points on the added layer of control when you allow or aim for “local” execution

  62. Hailey Lynne McKeefry
    March 21, 2014

    @Greg, can you say more about how cloud based collaboration can replace traditional ERP? WHat can organizations expect in terms of ROI, and business results?

  63. apek
    March 21, 2014

    Thanks Greg. I have authored several articles on this topic and also have an upcoming book discussing about how to make this feasible. I am sure you will find it interesting. I would add you to my Linkedin. Thanks for you insighful shares on this forum

  64. gregjohnsen
    March 21, 2014

    @Hailey, yes I would say visibility is a critical element of enabling supplier collaboration.  By that, I mean a mechanism by which you give buyers and logistics managers withing the buying entity visibility to the PO updates, the work in progress milestones during production etc., and the system is ALSO there for the suppliers themselves.  The community is on the same page, looking at the same information.  When a supplier makes an update to the PO status, or the production work, it's there for the buyer and even, potentially, for orgin-based 3PLs to see and act on.  As an example.  SCV gives them the “sight” to the business objects and updates. Then you can automate processes.

  65. dcamp
    March 21, 2014

    @Greg: Does the GTNexus product enable the daunting process of setting up a supply chain collaboration effort (qualifying suppliers, getting contracts in place, etc., etc), or is its value more in the back end of providing visibility once the SRM, CLM, and other processes are set up?

  66. gregjohnsen
    March 21, 2014

    @Haily, I'm a few questions behind here.  On the question of ERP vs Cloud network platforms, I have to point out that these don't necessarily REPLACE the ERP systems.  Companies are going to need good internal systems, systems of record, to manage their internal operations and records.  But when it comes to connecting those systems to the systems and processes of external partners, this is where newer cloud collaboration platforms can yield huge advantages.  They work together, or they should.

  67. Ashu001
    March 21, 2014

    @greg-basically they shud talk to each other.which doesn't happen now.

  68. gregjohnsen
    March 21, 2014

    @Hailey — further on this point, I'm hearing a lot now about the distinction between systems of record (ERP), and systems of engagement (collaboration, cloud).  In supply chain this distinction is really critical.  Supply chains are not chains, they're networks.  It takes a system of engagement to “connect” the players and enable orchestration.  This isn't the domain of ERPs, per se, but if you look at any company today, it's defined by it's outsourcing and distributed network.  Companies are networks.  But they've lacked the IT systems to behave as such.

  69. Mary E. Shacklett
    March 21, 2014

    On Greg's last commnet, I have talked  with quite a few companies that use their ERP for what it was designed for–internal company processes–and then the cloud to handle the external bueinss processes (like supplier relations) that ERP and other trad IT systems don't do well.

  70. gregjohnsen
    March 21, 2014

    @tech4people — you're right, these systems need to talk to each other.  A company's ERP system needs to connect to a platform which plays the role of connecting the other players' ERP systems too.  The cloud platform sits in the middle of the trading network and is both an information hub and a PLACE where work process gets done at the network (or community) level.

  71. Hailey Lynne McKeefry
    March 21, 2014

    @Greg, thanks for the clarification… it seems that most organizations have an internal system that works but it breaks down in the xtended network.

  72. gregjohnsen
    March 21, 2014

    @Mary — yes, we see same.  That's where it's trending.

  73. Hailey Lynne McKeefry
    March 21, 2014

    @Greg, what would be the best wya for an organizatoin to tackle creating a collaborative environment across the supply chain? Who should be involved? Any pitfalls that should be considered?

  74. gregjohnsen
    March 21, 2014

    That's right.  The disconnect is trying to use internal “systems of record” as your external “systems of engagement” ….  I remember what one of our customers, Jim Cafone, the VP of Supply at Pfizer said once.  He said, “We use ERP to talk to ourselves.  But when we want to talk to the world outside we use the Cloud.”  They are a big GT Nexus customer.

  75. Ashu001
    March 21, 2014

    @greg-i don't think its fair to blame it for all supply chain shortfalls

  76. gregjohnsen
    March 21, 2014

    @Hailey — in our experience, most companies don't do a very good job of “seeing”.  We recommend they start there.  Cloud platforms (like ours) are proven now, and there are lots of areas where you can begin to “turn on the lights” in your supply chain to see what's actually happen.  Not just where product is right now, but how product flows have behaved historically, over time.  This is why we put such an emphasis on supply chain visibility (SCV).  It IS the capability that companies need to begin to orchestrate.  Without, you're running blind, don't have the fact base, and no amount of automation will succeed.  See, then automate.  In that order.

  77. gregjohnsen
    March 21, 2014

    @tech4people — sorry, blame what.  What is the “it”?

  78. gregjohnsen
    March 21, 2014

    Another key finding the SCI report is that while 6 in 10 companies rated themselves well for visibility WITHIN the enterprise, that number dropped by 54% when it came to OUTSIDE the company.  I think that speaks volumes. 

  79. Hailey Lynne McKeefry
    March 21, 2014

    What do the supply chain professionals bring to this conversation? We are seeing a morph in what skills SC pros need to have (Read my piece from today: Infographic: Understand the Supply Chain Talent Gap she says in a blatant pitch. 🙂 )

  80. Hailey Lynne McKeefry
    March 21, 2014

    @Greg, is that gap related to the sheer breadth and number of players outside the supply chain? What do organizations need to do to get everyone in the same (virtual) room to collaborate?

  81. gregjohnsen
    March 21, 2014

    And on the topic of ERP, the report showed that while 6 in 10 companies had confidence in ERP to deliver visibility beyond the bounds of the enterprise, that number dropped by 43% when it came to confidence in ERP to deliver visibility across the broader value chain.  Basically, the market isn't confident any longer that ERP can deliver at that “network” level.

  82. Hailey Lynne McKeefry
    March 21, 2014

    @all, what are your organizations doing now in terms of supply chain collaboration? What are the pain points you've found?

  83. Hailey Lynne McKeefry
    March 21, 2014

    @Greg, i'm betting that lack of confidence is based on real experience with the limitations of tyring to use an internal system externally.

  84. dcamp
    March 21, 2014

    @Hailey on what the organizatins are doing now: Interested in the Control Tower concept and managed services

  85. Hailey Lynne McKeefry
    March 21, 2014

    @Greg, taking a bit of a forward look, what do you see on the horizon for SC collaboration? What are the leaders doing and planning?

  86. gregjohnsen
    March 21, 2014

    @Haily — modern supply chains are incredibly complex and dynamic.  Most companies are not vertically integrated any longer.  The sheer number of moving parts and players can be staggering.  These players have their own systems, their own protocols, etc.  Their own ERP systems!  So connecting the fabric together and enabling information sharing at that level  IS the name of the game now.  It requires radically different IT infrastructure than what companies have been buying and installling for the past 30 years.

  87. Hailey Lynne McKeefry
    March 21, 2014

    @dcamp, can you say more about the control tower concept?

  88. srambo
    March 21, 2014

    Are longer supply chains more susceptible to emergencies, and how do you plan for supply chain interuptions from disasters?

  89. gregjohnsen
    March 21, 2014

    @dcamp –yes control towers, when we use that term, are about network wide orchestration and collaboration.  They're designed to span the value chain, to monitor and drive decision support.  This is exactly where cloud-based collaboration architectures are most appropriate.

  90. Hailey Lynne McKeefry
    March 21, 2014

    @Greg, i know that IT folks have a love/hate relationship with the cloud. Too much”shadow IT” going on with it…people adopting services iwthout consulting IT. At the same time, by outsourcing a piece of it, you do get more time to do strategic stuff and it becomes an operational expense which can be good. What does IT have to do to get ready?

  91. dcamp
    March 21, 2014

    @Hailey in answer to the question on more about Control Tower: Control Towers are a set of capabilities supported by advanced technology. They are organized as a shared service. They are focused on improving business objectives such as forecasting, inventory optimization, supplier collaboration, etc.

     

  92. apek
    March 21, 2014

    @scrambo…Decentralizing supply chain also gives an immunity againsts interruption fo regular supply chain due to disasters. Pelase read my article on EBN http://www.ebnonline.com/author.asp?section_id=3315&doc_id=268703&

  93. Hailey Lynne McKeefry
    March 21, 2014

    @srambo, the extended supply chain certainly can be more susceptible to disaster… Greg, can the cloud mitigate that?

  94. gregjohnsen
    March 21, 2014

    @srambo — supply chains ARE a lot more exposed to risk today.  That's the nature of outsourcing, long lead times, many players in the mix, global volatility, etc.  My view is that one of the key ingredients to managing the risk is to be able to monitor supply chain activity pervasively.  When you've got a flood, or a labor strike, or unrest in a critical location or part of the world you rely on, you need to know quickly how much inventory is at risk, what your options for reallocating and diverting are, etc.  That's “control tower” ready.  Companies are still a long way from having that capability, generally.

  95. Hailey Lynne McKeefry
    March 21, 2014

    Thanks, dcamp, that's helpful. it's a new term for me. I've learned from you today! 🙂

  96. gregjohnsen
    March 21, 2014

    @dcamp — yes, exactly.  Totally agree re control tower as a shared service and the focus areas.

  97. Hailey Lynne McKeefry
    March 21, 2014

    @Greg, what needs to happen for organizations to have that capability? It seems to be critical and increasingly so.

  98. Hailey Lynne McKeefry
    March 21, 2014

    @all, i see we are at the 40 minute mark…so queue up any last questions for Greg!

  99. gregjohnsen
    March 21, 2014

    @Hailey, on “love and hate” cloud debate with IT.  I think in supply chain there is an enormous amount of work and innovation that internal IT teams can engage in around cloud.  This is a next horizon opportunity to extend the reach and power of in-house systems and to deliver real value to the business around areas that have not yet been fully tapped.  I think especially of external mission-critical processes that are still prone to spreadsheets and emails — like procurement and fulfillment, like invoicing and payment processes in the direct supply chain.  All these external processes are collaborative in nature, highly iterative, and ideal for cloud based “shared” platforms that engage the entire network of players around the process.

  100. gregjohnsen
    March 21, 2014

    Thanks Haily and to all of you.  I enjoyed the dialog!

  101. Mary E. Shacklett
    March 21, 2014

    @greg

    Has using the cloud assisted organizations in “speaking” the same language by using the same information repository on the cloud?

  102. Hailey Lynne McKeefry
    March 21, 2014

    @Greg There does seem to be a lot of promise for SC and the cloud.

  103. gregjohnsen
    March 21, 2014

    @Mary — I really like that line, “speaking the same language” … and yes, I'd say that's what these newer cloud platforms enable for the community.  They get everyone on the same page, speaking the same langague.  The PO I'm looking at is not only accurate and up to date, but it's the same one you're looking at.

  104. gregjohnsen
    March 21, 2014

    @Hailey — yes.  Lots of promise and lots more to do.  The future is very bright.

  105. Hailey Lynne McKeefry
    March 21, 2014

    Thanks, all for making this chat so lively! and thanks, Greg, for being in the hot seat for all our questions. I hope you'll stop by again sometime.

  106. Hailey Lynne McKeefry
    March 21, 2014

    Have a great weekend, everyone!

  107. Mary E. Shacklett
    March 21, 2014

    Thanks, Greg!

     

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