Supply Chain in the Cloud

Kurt Cavano

CEO, TradeCard

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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.

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Growing Trend of Interest

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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.

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Why Cloud Computing in the Supply Chain?

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Extensive Challenges to Execute Exist

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Complexity Challenges

Source: AMR

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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

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Obstacles to Supply Chain Goals

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Consider the Risk Involved in All Processes

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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

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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

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New Information Model for the Supply Chain

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Ties Together Networks of Networks

HT Code

Packing List

Customs

Purchase Order

Containers Port of Entry

HT Code Hong Kong

Commercial Invoice

Carton IDLocation Code

Long Beach, CA

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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

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TradeCard: A Global Business Network

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

Raw Materials Manufacturer

A strategic global business network for supply chain collaboration.

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Collaboration Platform for Brands & Retailers

The global leader in on-demand supply network collaboration

Secure & accurate transactions.

Supply chain visibility.

Automated workflow.

6,000 Members. 60 countries. $10 Billion settled in 2010.

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Sell MoreOperate For Less

• Manage Raw Material Commitments/Purchases

• Leverage financial strengths to reduce costs

• Quickly react to new sourcing trends

• Invoice Discount Programs

• Automated multi-party collaboration

• Process efficiencies via an integrated platform

• Exception management

• Payables Automation

• Impact Free Cash Flow

Enabling the Productivity Loop

Buy For Less

TradeCard’s MultiEnterprise Collaboration Value

Grow Sales

+ =

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Established Network of 6,000+ Members

NIKE

SERVICE PROVIDERS SUPPLIERS BRANDS & RETAILERS

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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

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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

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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

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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

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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

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TradeCard by the Numbers

Growth for 2010 & Forecast for 2011+30%

Platform uptime99.989%

Transactions processed per month$1 Billion

Supported by TradeCard60 countries & 32 languages

Transactions per month30,000

Clients+6000

Total individual users+31,000

By the Numbers

+1,200 Supplier activations in past 12 months

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More Information

Cloud Computing for CFOs article in Financial Executive Magazine, October 2010

Contact:– Kurt Cavano (

kcavano@tradecard.com)

– Steve Ford (sford@tradecard.com)