34 Last Word
THE KEY TO THE EXTENDED SUPPLY CHAIN PUZZLE:
ADVANCED, REAL-TIME VISIBILITY
I
nformation technology has enabled manage key trading partner relationships. identify and automatically correct problems
companies to build internal control By displaying individual steps within the as they occur. With timely and accurate
systems that are highly integrated, value chain as a single long-running supplier information, for example, a company
cost-effective and secure. Companies business process, a visibility intelligence can operate with fewer inventories, improve
have sought the same kind of gains tool can provide status on each transaction customer satisfaction, reduce costs and
by building closer relationships with as well as how they reconcile within the better manage supply chain exceptions.
suppliers and other strategic partners, process in real-time. This provides
but close collaboration at the transaction advanced insight into the trading community Community-collaborated advanced
level has been hard to achieve because and helps companies utilize transaction visibility also empowers the business
partners come in different sizes, make lifecycle information more effectively. decision maker to make better, real-time
different demands, and vary in technical Tracking transaction lifecycle milestones decisions with their trading partners.
sophistication. All of this impairs visibility can help a company to reduce its order cycle Visibility intelligence tools can enable
to vital business information. time and cash conversion cycle days and business managers to see more deeply
With enhanced visibility into an provide the needed documentation as proof into business transactions as they occur,
enterprise’s partner, supplier, and of customer compliance. rather than in after-the-fact paper reports.
customer value chain community, a By providing data in formats that make
company can not only be better informed, To work effectively in the multi-enterprise sense to business decision makers,
but can utilize this critical information for environment created by today’s complex the tool can improve the flow of funds
meeting customer demands and other supply chains, the tool should support a throughout the transaction life cycle.
important operational requirements. wide array of communications protocols, Notification of non-compliant business
However, most visibility intelligence both new and legacy, from AS3 to bisynch processes can be automated to ensure
tools treat a process as a stream of communications. Growth opportunities accurate, timely information to increase
unassociated transactions. Visibility is will require support for more and more the effectiveness of accounts payable/
only provided for an individual document standards. As a company expands into receivable and distribution functions.
without vision into the state of the rest of different industries, it often faces the Real-time transaction management
the process. For example, within the retail need for a tool that supports proprietary, for business managers should offer a
supply chain, most visibility tools offer one non-EDI or unstructured data. And, as graphical user interface that does not
view of the purchase order, one view of the it expands globally, the company will require IT intervention. Data should be
acknowledgement, one view of the ship need a tool that adopts and supports extracted in formats that make sense to
notice, one view of the invoice, one view international standards. decision makers.
of the remittance and so on. These siloed With visibility into transactions as a With a unified, interactive view inside
views cannot tell the whole story, and process, companies can move to the key business processes that may involve
therefore limit enterprise growth. next level and start to gain business multiple suppliers and customers — even
So, the key to this puzzle is to gain a performance insights into those processes. those with limited system integration tools
new view of your supply chain that lets Tracking key business performance data of their own — multiple partners, suppliers
a company focus on — and control gathered across the transaction lifecycle and customers can collaborate with
— purchase orders, shipping orders, bills enables companies to optimize the increased visibility and efficiency. The
of lading and invoices simultaneously. With performance of their supply chains by end result is greater control over today’s
this visibility, the company can
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Identifying potential process gaps complex, extended supply chain to help
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View the flow of the order-to-cash process
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Determining what must be monitored to a company realize new cost savings,
as a single, ongoing business transaction detect improvement opportunities process improvements, and competitive
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Track key business performance indicators
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Putting monitoring, alert, response advantages for your business.
and set up alerts to identify the problems tracking, and escalation notification
as they occur so that they can be mechanisms in place
addressed immediately
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Monitoring effectiveness of the performance Theresa Hodgson,
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Keep key people in your business informed, and performance tracking system. Director of Global Product Marketing,
as well as enable business users to easily Advanced, real-time, visibility intelligence Sterling Collaboration Network.
locate the information they need to serve and empowers companies to set up actions to
Supply Chain Digital Launch 2007
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