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P8010-005 exam Dumps Source : IBM Commerce Solutions Supply Chain Mgmt Technical Mastery Test v1
Test Code : P8010-005
Test Name : IBM Commerce Solutions Supply Chain Mgmt Technical Mastery Test v1
Vendor Name : IBM
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ST. LOUIS--(business WIRE)--Perficient, Inc. (NASDAQ: PRFT) (“Perficient”), a number one digital transformation consulting company serving global 2000® and other significant enterprise valued clientele all through North the us, announced it has been named IBM’s 2019 Watson Commerce company partner of the 12 months. The IBM Excellence Award, announced during IBM’s PartnerWorld at believe 2019, recognizes Perficient’s ongoing boom and relationships with key consumers, and notion management across the IBM Watson client Engagement Commerce platform as an indispensable part for digital transformation.
“Our approach to commerce is concentrated on crafting a journey, connecting with customers, and delivering a seamless customer journey across channels and all the way through the enterprise, imperatives in nowadays’s consumer-pushed world,” observed Steve Gatto, national revenue director, Commerce options, Perficient Digital. “together, with their consumers, we’re transforming organizations in a way that not most effective drives growth but strengthens their common manufacturer, and they constantly evolve their choices to maintain consumers on the exact of their game. We’re honored to be recognized by using IBM, and we’re eager for sharing their imaginative options all over IBM suppose 2019.”
Perficient Digital Takes Commerce solutions beyond Transactions to seriously change the customer Lifecycle for a global various company
With branded producers and distributors beneath drive from the dramatic shift to online deciding to buy, a global diverse brand sought to digitally transform its commerce business. In partnership with Perficient Digital, both organizations delivered optimized customer sales, updated product advice (PIM), and streamlined the ordering system through construction of a B2B portal. With the implementation of IBM’s Sterling Order management system (OMS), and Perficient’s skills, the varied manufacturer is future-proofing its enterprise to align with business traits and market opportunities.
additionally, the enterprise’s OMS will provide them superior flexibility in managing advanced order administration situations, more desirable reliability in order processing and fulfilment, and a value reduction in imposing throughout its business. it'll further permit the company to convey carrier enhancements to its valued clientele, optimize its pricing, promoting and basic provide chain, raise income because of enhanced inventory visibility, and cut back costs via greater efficiencies so as visibility.
Perficient Digital Enhances the online consumer journey for a leading fabric Retailer
In a market that has historically relied on brick-and-mortar experiences, a leading material and craft retailer become challenged with extending the customer event online. Perficient partnered with the business to put into effect an IBM Watson Commerce answer that provided up-to-date visibility of its inventory and better tracking of its product volume, location, and availability. utilizing IBM Order administration, Perficient extra improved the answer through cloud migration that offers a single view of provide and demand, orchestrates order success processes across buy online Pickup In shop (BOPIS) and Ship-from-shop (SFS), and empowers company representatives to better serve purchasers each in call facilities and in-store engagements.
“Perficient has been deploying IBM Commerce options for virtually 20 years, proposing end-to-end digital commerce options that embody varied channels, and bring seamless and effective experiences throughout their total enterprise,” observed Sameer Peera, regular supervisor, Perficient’s commerce follow. “With the recent information that HCL took over building of IBM WebSphere Portal, IBM net content management and internet adventure factory, their purchasers continue to have interaction us for support with their digital commerce thoughts. We’re joyful to be their go-to associate as they navigate the altering market panorama and convey for his or her consumers.”
Perficient competencies in action at IBM feel 2019
in addition to its award-successful commerce solution knowledge, Perficient experts are available all the way through the IBM feel 2019 convention in sales space #320 to discuss its event and talents throughout the IBM portfolio , notably cloud, cognitive, information, analytics, DevOps, IoT, content material administration, BPM, connectivity, commerce, cellular, and customer engagement.
while IBM has announced its plans to promote its commerce portfolio, the information of its acquisition of pink Hat additionally signaled the criticality cloud building and beginning play in a hit end-to-end digital transformations. As an IBM global Elite accomplice, one of simplest seven companions with that fame globally, and a purple Hat Premier accomplice, Perficient is well located to work with each corporations via this transition. And, their consultants could be reachable throughout IBM feel to talk about the way to navigate the cloud market, share key client success experiences, and supply strategic knowledge on the alternatives forward for shoppers.
“know-how is changing so abruptly, and organisations deserve to retain pace or face disruption,” stated Hari Madamalla, vice president, emerging options, Perficient. “With talents and journey in all points of the commerce journey, to leading cloud, internet hosting, managed services and support options, enterprises turn to Perficient as a go-to accomplice for their digital transformations.”
be part of a couple of Perficient area matter specialists and their consumers as they existing during six IBM believe classes, including:
As a Platinum IBM enterprise associate, Perficient holds greater than 30 awards across its 20-yr partnership history. The enterprise is an award-winning, licensed software price Plus answer provider and one of the few companions to acquire dozens of IBM knowledgeable stage utility competency achievements.
For updates throughout the adventure and after, connect with Perficient experts on-line by way of viewing Perficient and Perficient Digital’s blogs, or comply with us on Twitter @Perficient and @PRFTDigital.
Perficient is the leading digital transformation consulting enterprise serving world 2000® and commercial enterprise purchasers all over North the usa. With unparalleled advice expertise, management consulting, and inventive capabilities, Perficient and its Perficient Digital company deliver vision, execution, and price with surprising digital event, company optimization, and industry solutions. Their work permits purchasers to improve productiveness and competitiveness; grow and reinforce relationships with purchasers, suppliers, and partners; and cut back costs. Perficient's specialists serve customers from a community of places of work throughout North america and offshore places in India and China. Traded on the Nasdaq global opt for Market, Perficient is a member of the Russell 2000 index and the S&P SmallCap 600 index. Perficient is an award-successful Adobe Premier associate, Platinum level IBM company associate, a Microsoft countrywide service company and Gold licensed partner, an Oracle Platinum accomplice, an advanced Pivotal able companion, a Gold Salesforce Consulting associate, and a Sitecore Platinum companion. For greater guidance, talk over with www.perficient.com.
secure Harbor commentary
some of the statements contained during this news unencumber that are not only ancient statements discuss future expectations or state different forward-looking tips involving fiscal results and company outlook for 2018. these statements are subject to common and unknown risks, uncertainties, and different components that might trigger the exact effects to vary materially from these contemplated via the statements. The forward-searching advice is in accordance with management’s present intent, perception, expectations, estimates, and projections regarding their company and their business. you'll want to be conscious that these statements most effective replicate their predictions. specific events or effects can also fluctuate extensively. vital components that might cause their genuine consequences to be materially distinct from the ahead-looking statements include (however don't seem to be constrained to) those disclosed beneath the heading “risk components” in their annual document on form 10-k for the year ended December 31, 2017.
The marvelous price of facts that has earned it a spot above oil because the world’s most coveted useful resource is its skills to vigor enterprise techniques with ultra-specific details that enable more recommended choice-making. Now that companies have that vigor, their subsequent hurdle is positive implementation.
Katie Dunlap (pictured, correct), vice chairman of international unified commerce and marketing GTM at Bluewolf an IBM business, and Ben Cesare (pictured, left), world business solutions lead, retail alliance ecosystem, at Salesforce.com Inc., spoke with John Furrier (@furrier) and Lisa Martin (@LisaMartinTV), co-hosts of theCUBE, SiliconANGLE Media’s cellular livestreaming studio, all the way through the IBM believe event in San Francisco. They discussed how IBM and Salesforce work collectively to be sure records is used for a more personalised experience that advantage each company and client. (* Disclosure beneath.)
[Editor’s note: The following answers have been condensed for clarity.]
Martin: IBM is the number 1 implementer of Salesforce. talk concerning the partnership.
Dunlap: That partnership leverages the best of the technology from Salesforce, in addition to IBM, and together [we] create alternatives for the trade. today we’re talking about retail.
Cesare: when you focus on Salesforce, you discuss marketing, commerce, and service cloud. They call that the engagement layer. That’s how they in reality engage with their consumers, and to have a fine reference to consumers they should have a very good facts insights. They deserve to consider what’s occurring with the entire tips that drives choices for marketers. That’s why the relationship with IBM is so powerful; it's a knowledge-pushed relationship.
Dunlap: The native functionality for Salesforce is Einstein, an clever layer; and for IBM it’s Watson. taking a look at retail with commerce and marketing and service is the middle of that dialog on the engagement layer. How are they working with a consumer from a set of information tips standpoint and activating the facts all the manner via give chain? It goes all of the manner through servicing that consumer, returning, and making certain that suggestions is certain.
probably the most issues that they companion with Salesforce on is the engagement layer, and we've entry to Watson Embedded business Assistant that goes out and talks to all of the disparate systems. As a merchandiser, i will be able to ask the query and acquire assistance again from deliver chain.
Furrier: inform us concerning the adjustments in retail. What [are] one of the new experiences that have become new expectations?
Cesare: What you always desire is a fine customer experience, and what defines it is, “Are they serving me the items I desire, once I want them? If I even have an issue, how am I handled?” These are all things that they tackle with Salesforce options.
This 12 months there were over $300 billion in markdowns for agents. Half of these were unplanned, and that goes right to your [product and loss]. They are looking to make sure the issues they do satisfy the customer but now not on the price of the dealers. through the use of IBM provide chain data suggestions, they are able to competently service you.
It’s now not just the keep on-line; it’s retail everywhere, somebody selling their capabilities to you. The holy grail is knowing you notably. information has turn into a lots broader term; it’s simply no longer numbers. data is your developments on social media, videos you're viewing. All that together basically offers a retailer suggestions, stronger serve you.
Furrier: What are one of the most learnings round this new engagement layer and with records intelligence?
Cesare: I believe the main thing I’ve discovered is the vigour of personalization. in case you study someone’s shopper basket, there’s an excellent quantity of stuff you may study them, but to do this for 25, 30 million valued clientele is very elaborate. to analyze the statistics, segment it, and customize it to you is extremely effective. If dealers can bear in mind your lifestyle, that opens the door to so many items and capabilities.
Commerce was a very linear thing, but now it’s going on wherever you are. You may well be anyplace and execute a transaction. the space between media and commerce has collapsed, It’s become real time. The immediacy of media and transaction [is] going to take marketers without warning.
Watch the comprehensive video interview under, and make sure to try extra of SiliconANGLE’s and theCUBE’s coverage of the IBM consider adventure. (* Disclosure: Salesforce.com Inc. subsidized this phase of theCUBE. Neither Salesforce.com nor different sponsors have editorial control over content material on theCUBE or SiliconANGLE.)image: SiliconANGLE due to the fact you’re here …
… We’d want to tell you about their mission and how which you could assist us fulfill it. SiliconANGLE Media Inc.’s business model is in line with the intrinsic cost of the content material, not promoting. unlike many online publications, they don’t have a paywall or run banner promoting, because they are looking to preserve their journalism open, devoid of influence or the should chase traffic.The journalism, reporting and commentary on SiliconANGLE — along with are living, unscripted video from their Silicon Valley studio and globe-trotting video groups at theCUBE — take a lot of tough work, time and funds. retaining the quality excessive requires the guide of sponsors who're aligned with their imaginative and prescient of ad-free journalism content.
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Tech business IBM has introduced that it is going to supply IT options to give chain logistics firm Gati Kintetsu categorical private limited (Gati KWE).
based on market estimates, the e-commerce market in India is expected to develop 37%, to reach $20 billion this year. “to fulfill the calls for of an increasingly savvy on-line inhabitants, dealers are beneath constant power to supply more advantageous buying experiences throughout cell instruments and shorter delivery times. This growing to be e-commerce market poses a challenge to logistics corporations, who should preserve tempo with the consumer demand for immediately attainable products offered at a aggressive expense,” IBM introduced.
Hyderabad-based Gati’s beginning network comprises air, road and rail coverage, operates a fleet of 3,500 vehicles with greater than three,000 business partners throughout India. To manipulate an expanding volume of enterprise with a multitude of retailers, Gati KWE tapped into IBM Commerce capabilities to combine and coordinate the complicated and time-delicate stream of items from warehouse to store to domestic, IBM mentioned.
“by means of the 12 months 2020 outsourced eCommerce fulfillment and associated value delivered functions are poised to grow to a dimension of Rs 3000 crore ($500 mn),” in accordance to Dhruv Agarwal, executive vp, Gati.
through implementation of this solution, Gati KWE aims to nook a dominant share of the opportunities in the e-achievement phase, he delivered. The solutions will be carried out through IBM and IBM enterprise accomplice Bridge solutions.
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With today's global and distributed commerce, organizations of all sizes are having to collaborate and exchange information with a growing ecosystem of divisions, partners and customers. Most companies want to communicate electronically and in real time, but beyond email, managing the exchange of data, messages and documents can be challenging and expensive.
Traditional EDI, networks or point-to-point integration systems are not providing the interoperability, agility and real-time information exchange businesses need to compete. In addition, companies need to do more than merely exchange data; they need to integrate complete business processes, such as procurement, supply chain management, eCommerce, benefit claims processing, or logistics, to name just a few.
As with other technologies, integration solutions are moving to the cloud in order to provide this increased flexibility and complexity. Today, there are an increasing number of technology vendors giving customers a choice of traditional on-premise integration - where the company manages the connections, mapping and business processes itself - or cloud-based products with strong self-service or managed service support.
While the cloud may not be appropriate for every company or solution, it is an ideal platform for integration, as it enables seamless interaction and collaboration across communities and systems. From clear economic benefits to increased IT agility to real business impact, a cloud-based integration solution brings value across the IT and business aspects of the organization. Below we've outlined the top 10 IT and business benefits of conducting multi-enterprise integration in the cloud.
Let's look at each of these in a bit more detail with real-world examples.
1. Improved partner and customer relations and retentionCompanies must make it easy to do business with them - it's no longer realistic to tell suppliers to adhere to a single format, such as EDI, as companies have investments in applications and systems they need to extend. Plus customers have more choices than ever before, so if you make it hard for a customer (or partner) to exchange information with you, they will go to a competitor.
A great example of this is a mid-sized electrical supply distributor, Mayer Electric Supply. An increasing amount of its business was being conducted online, but its eCommerce site and related processes were not keeping pace with customer demands, many of whom were large multinational organizations. Mayer chose to bring its online catalog in-house, having its internal IT team rework the catalog and manage the system, but it turned to a cloud-based integration platform to manage the eCommerce "punchout" and integrated purchase order exchange. This enabled all customers to shop with Mayer directly from their existing procurement systems and incorporate the process into its overall procurement work flow. The result for Mayer was improved customer retention and increased order size.
2. Increased revenue and marginOne of the greatest growth areas for cloud-based integration is in demand chain processes, because companies realize that keeping customers close and improving customer-facing business processes has a direct impact on the top and bottom line. With the companies we've surveyed, all of them have experienced improved metrics around retention, order size, revenue and margin.
Take, for example, Invitrogen (now Life Technologies Corp.), a $3 billion per-year supplier to the global life sciences community. The company wanted to improve its customers' online business experience to increase revenues. By leveraging a cloud-based integration solution, Invitrogen was able to accept transactions from diverse customer procurement systems via its website and rationalize an order management system that encompassed more than a dozen platforms. Invitrogen saw orders rise 29 percent after an account was integrated.
3. Improved order accuracyOver the last decade, they have seen a significant increase in demand for integrating eCommerce and procurement processes. These include procure-to-pay, order-to-cash and "punchout." By using a cloud-based integration solution, the experience to integrate these processes is seamless for customers and suppliers. One key benefit of this, as mentioned above, is increased revenue, but there is also a secondary benefit around order accuracy. One eCommerce company saw order accuracy improve to 99% after implementing a cloud-based integration process with its customers, improving inventory management and delivery times, and removing manual intervention from the process.
4. Faster time-to-marketAcross industries and markets, there is an increasing customer force around the "power of now. Customers want to receive products and services more quickly and with less effort. This is somewhat related to the overall trend around the consumerization of business technology, as business people want the same experience at work that they receive shopping or researching online at home. This requires significant improvements in business agility and in the ability to deliver products more efficiently to meet fast-moving markets. To achieve this, companies must work more closely than ever with suppliers, distributors, retailers and partners.
Cloud-based business integration enables real-time collaboration and the exchange of information surrounding logistics, parts, designs, inventory, customer order trends, procurement and other critical processes. Being able to receive messages in a matter of hours versus days or weeks can make the difference between getting the deal or not.
5. Greater competitive advantageThe ease of cloud-based integration can also help companies win new customers and boost market share, enabling small to mid-sized businesses to compete directly with much larger players. In addition, integration can ensure that companies can seamlessly work with customers and partners by not requiring that all business processes occur in a particular format, which may not be compatible with the format that the customer or partner is using.
For example, Office Depot turned a shortcoming that kept it from fulfilling portions of orders from customers into a competitive advantage. By moving specific transactions to a cloud-based integration platform, Office Depot was able to seamlessly work with a diverse set of customers using many different procurement systems. The result: A "gain in market share with very little investment."
6. Reduced costs and capital expenditures (CapEx)Traditional integration solutions can be costly, often require a specialized and expensive skill set from workers, and are prone to break at the slightest change in format or schema. Furthermore, IT departments are usually under pressure from the business side to improve IT operations and help drive greater revenue or business impact, but rarely are given the additional resources to do so.
Integrating existing systems through cloud-based integration helps companies avoid or delay the costs of replacing infrastructure. The Software as a Service (SaaS) subscription pricing model allows funds for integration to be moved from the capital budget to the operating budget, making integration easier to fit into the IT budget, and enabling IT to spend capital on other more capex-intensive projects.
7. Increased operational efficienciesSome of the greatest gains in operational efficiency come from transitional manual processes to automated ones. As they know, this also tends to reduce costs and improve accuracy. With cloud-based integration, fewer people need to manage connections and transactions, as it enables frictionless system-to-system business processes automation.
While every IT team needs to show operational improvements, nearly everyone they talk to is worried that cloud or SaaS-based solutions will mean a reduction in IT staff. They have not had one customer experience where this has occurred. On the contrary, what they have seen is IT staff moved to more strategic projects or to working on new innovations to drive business growth.
A great example of this is with the consumer products division of Cisco, which uses cloud-based business integration to help manage and automate key processes across a growing, global distribution network. While the company says the move to the cloud saved it the costs of two full-time staff, the IT team that had previously managed EDI connections and translations were moved to manage partner relationships and strategic projects.
The same is true for Whirlpool Corporation, whose North American CIO emphasizes that IT people are focused on managing strategic relationships and projects, and the company leverages the cloud and technology partners to manage much of its infrastructure and integration requirements.
8. Extended investments in legacy applications and systemsIntegration can extend the life of legacy assets by enabling all members in the integration community to work from existing systems. With cloud-based solutions, there is no "rip and replace" required, and there should be minimal to no software or hardware required behind the firewall. This is a great way to upgrade business processes or improve efficiencies without having to invest heavily in solutions or migrate processes to a new system. This interoperability and extension of systems is a critical reason many companies are turning to cloud-based integration solutions.
9. Aligns IT with business goalsHow many times have IT leaders heard it's all about "business technology" and making sure IT impacts the business? Wouldn't it be nice to find a solution that provides this alignment with little effort? Business integration is one of those areas that is truly a win-win. Oftentimes, it is the line of business that discovers the need for improved integration, such as the logistics, procurement or eCommerce manager, where there is a clear pain and a need to improve processes. By working with the business on integration challenges and using cloud-based solutions to manage it, you can quickly achieve business impact without negatively impacting your IT budget or goals.
10. Easy scalability and flexibilityDuring the recent economic downturn, it was more important than ever for companies to have the option to scale back on IT and in some cases integration costs. With an on-demand integration solution, companies can quickly and easily increase or decrease connections, transactions or the number of companies in their integration community, and then scale back up when business requires it. In addition, one of the greatest benefits of cloud solutions is the ability to start small and expand as needed, when you are ready.
These are some of the top ways companies can see measureable IT and business benefits from a SaaS-based integration solution, many of which are realized in a matter of weeks or months. Integration enables business process automation across the supply chain, demand chain, general operations, procurement, eCommerce and other business areas. A SaaS-based integration solution can also help remove the challenge of traditional business integration methods while delivering substantial business and IT value.
Beyond the transaction, it can provide visibility into business processes, partner operations and customer needs. Benefits are realized across an entire organization, from business units to IT to the CIO, providing predictable costs, greater operational efficiency, higher margins and revenues, and automated business processes. For these reasons and others, business-to-business integration should be a key element of consideration for any company's overall strategy.
In a history that stretches over more than 70 years, the Sappi Group has grown continuously with a series of acquisitions. Today the corporate group unifies a variety of previously independent production facilities. Its IT landscape is just as complex and unique as its business. To balance the load on its operations as efficiently as possible and to optimize the value chain in South Africa, Europe, North America, and the Asia-Pacific region, the paper manufacturer uses SAP software. Along with SAP R/3 and business intelligence functionality from SAP, the company uses mySAP Supply Chain Management (mySAP SCM) and mySAP Customer Relationship Management (mySAP CRM) to support its logistics, sales, and distribution processes. SAP Advanced Planning & Optimization (SAP APO) supports the simulation of requirements and SAP Enterprise Buyer (SAP EB) serves as the basis for the group’s comprehensive purchasing portal. Electronic data interchange (EDI) and archive solutions enhance the IT environment. Overall, the SAP landscape at Sappi consists of 30 systems spread over 100 CPUs.Two separate landscapes move toward each other
Currently, the paper manufacturer’s SAP environment is split in two. One environment serves users in South Africa; another environment serves employees in Europe, North America, and the Asia-Pacific region. Until the fall of 2005, two different service providers in South Africa and Europe operated the SAP installations. But the medium-term goal at Sappi is to consolidate its SAP landscapes into one worldwide system to enable uniform business processes for its numerous locations around the world. That’s why the group looked for a service provider that could operate both landscapes from one source and ultimately merge them into a global installation.The choice was T-Systems Austria. The company made a convincing case for itself because of its flexible pricing, which enabled Sappi to forecast its costs exactly. Its service offering was also impressive. “The decisive factors included a cost-effective solution, very flexible and customer-focused service, and on-site assistance,” says Guido Lauwers, the CIO of the Sappi Group. He believes the group’s SAP installation is in good hands at T-Systems Austria. “T-Systems bends over backwards for Sappi,” says Lauwers.Even before the contract was signed in the summer of 2005, the service provider proved itself when Sappi needed to implement new software. Without any bureaucratic haggling, the T-Systems team set up the new infrastructure and installed the software – even before it had taken over operations of the SAP installation in South Africa. The SAP team at Sappi simply had to perform quality assurance, which it could accomplish over remote access.No risk for day-to-day business
One of the conditions for the transfer of the SAP landscape was keeping the existing IBM AIX system platform. Sappi did not want to accept any risk to the day-to-day operations of core SAP functionalities, such as materials management, financial accounting, and human resources or to SAP APO by migrating the operating system. Given the complex system layout, which includes a large number of interfaces and scripts, the effort needed to install a new operating system and the danger of errors were unacceptable risks.In the T-Center computer center, IBM p5 servers serve as the basis for the cluster computers and database servers of the Sappi installation. Because of its modular system nodes and dynamic portioning abilities, the architecture serves as a platform for the adaptive computing concepts of T-System customers. Sappi uses adaptive computing in a targeted manner with database services and SAP APO. For the most part, the applications run on HP Blade servers with Intel processors on Linux, which also provides resources for flexible, customer-independent adaptive computing.Because the paper manufacturer uses SAP software as a strategic platform for all its business processes – from procurement to payroll accounting – its SAP installation is one of the most functionally comprehensive in the computer center of T-Systems. The complex computer infrastructure demands good documentation and effective monitoring to avoid disruptions to operations and to correct errors quickly.Transferring data halfway around the world
The greatest challenge of the project was transferring data from group headquarters in Johannesburg, South Africa to Vienna, Austria. The transfer involved moving a terabyte of data just for the production systems; the development and test systems required were two-and-a-half times that volume. Because Sappi planned to covert the South African applications in September 2005, the migration had to be complete only eight weeks after the contract was signed. By the end of 2005, the data had to be moved to Vienna for the SAP users in Europe, North America, and the Asia-Pacific region who previously used systems operating in Schweinfurt, Germany.The project began in July 2005 with the design of the system, hardware installation, and testing. The data was placed on storage media and flown from South Africa to Vienna. It was then migrated to the new systems over one weekend. “The different approaches to work caused by cultural differences were a special challenge to their team. They were taken into account as part of the transition phase in the various regions of Europe and South Africa and played an important role in the project. Despite the perfect mastery of all technical and highly complex requirements, they ultimately focused on the human beings involved, which is true of all global projects undertaken by T-Systems,” says Larissa Gaugl, transition manager of the project.Ahead of schedule
Although the project involved 30 SAP systems halfway around the world, T-Systems Austria completed the conversion phase as planned. This successful conversion project earned the service provider third place in the International Project Management Award (IPMA) in Shanghai, China.The system landscapes for South Africa and those for Europe, North America, and the Asia-Pacific region now run in parallel on separate infrastructures in the T-Center computer center. Integration of the applications on a foundation of mySAP ERP 2005 is planned for September 2007. Sappi is also considering an upgrade to SAP NetWeaver 2004s.Today, 5,500 Sappi employees on four continents access the SAP infrastructure in the computer center in Vienna in parallel. The group has only one contact person for all questions about the operation of its corporate solutions. And Sappi has moved one step closer to meeting its goal of consolidating its SAP landscape around the world and setting up uniform business processes. As CIO Lauwers says, “After one year of operations, I can clearly say that this outsourcing project has reached its planned objectives. Sappi was able to reduce its outsourcing costs substantially and took an important step toward the realization of a single SAP system. T-Systems has proved itself to be a real partner by creatively working together with Sappi to develop solutions. Sappi has a very complex environment and tends to implement the newest tools from SAP. Although the right knowledge is not always available for the tools, T-Systems puts the necessary resources in place to implement the tools successfully.”Karl Strässler
All the companies I mentioned at the beginning of this article share the same operating model. This model has been brilliantly described by Aaron Dignan:
His model (Purpose, Process, People, Product, and Platform) is interesting as it extends the classic People, Process, and Technology (or Talent, Transition, and Technology — How Do They Drive Technological Advances? Part I, Sourcing Innovation). It also puts front and center crucial aspects unique to the full potential of a true digital transformation.
“[Companies like Amazon, Airbnb, and Uber] aren’t just market matchmakers using data-driven algorithms to drive better buyer-seller matches; they invest in new value creation. In platform markets, cultivating user capability becomes as strategically important as reducing transaction costs. Successful platforms empower their users”. The Best Platforms Are More than Matchmakers, Harvard Business Review.
Envisaging Procurement as a platform brings together, in a coherent and consistent “package” several characteristics and attributes that will contribute to Procurement’s survival and/or to elevating its role to a strategic one. It also creates the foundations required to be more adaptable and responsive to trends in the modern economy and society.
For example, in another report, he Hackett Group lists the Five Imperatives for Creating Greater Procurement Agility:
PaaP addresses all five because platform-based operating models:
Also, looking at Procurement as a platform is coherent with the peculiar role that technology plays in today’s digital and physical business world.
“The effect of digital technologies is to blur the distinction between creating value in the tangible world of atoms and creating value out of the data that comes from sensing and controlling that tangible world”. Digital to the Core: Remastering Leadership for Your Industry, Your Enterprise, and Yourself, Graham Waller & Mark Raskino.Purpose: empowered relationships as competitive advantage
As a response to a world in constant change, long-term relationships between customers and suppliers in the supply chain is emerging as a critical way to get competitive advantages. It is what I described as SRM²:
PaaP allows organizations to translate the SRM² principles into practice. It is because to function, platforms rely on:
This is what creates adherence and adoption.
It is important to remember that it is not just about digital solutions. PaaP is about the whole experience of working with (and in) Procurement. It encompasses all the various touchpoints in the Procurement processes: the digital ones and the physical ones. Another key characteristic of PaaP is to deliver a first-class and experience (digital and in real life) removed of frictions, of unnecessary bottlenecks, and of unnecessary intermediaries.Process: experience, journeys, and touchpoints
“Speed and access change everything. [M]assive organizations are feeling intense pressure to innovate, as unencumbered startups take shots across their bows. Legacy processes that enforce bureaucracy, command-and-control structures, waterfall development, and risk management are still largely the standard among big corporations, yet they are liabilities in this fight”. The Operating Model That Is Eating The World, Aaron Dignan.
In many organizations, people complain about the technology that they use at work (and not just Procurement technology) and say “It should be as easy as Google or Amazon.” This explains why technology providers describe their offering to be Google-like or Amazon-like as they are what people often use as benchmarks. This shows that polishing and simplifying the design of the experience (the term experience covers the process and the technology that it supports) is important. (But, it would be a misunderstanding of the psychology of change to believe that it is the only aspect that matters for long-term adoption).
“There can be little question that the relatively mundane, repetitive jobs in today’s Procurement functions will disappear. Indeed, that extends to many jobs that SHOULD be mundane and repetitive and are only ‘complex’ because they choose to make them so (and it should be noted, this is an issue that is endemic to business activity, in no way specific to Procurement)”. Procurement — it’s time for a re-birth, Tim Cummins, CEO of the International Association for Contract & Commercial Management (IACCM).
As technology usually follows process, blaming technology to be too complex is very often a reject of the process itself. And, as the quote above illustrates, processes became complex by design (maybe not consciously, though).
So, Procurement has to also move to an experience-based approach to designing its processes. Like it is the standard practice on the sales/marketing side of business. To do so, it should not only aim at automating current processes but at obliterating them:
“Companies tend to use technology to mechanize old ways of doing business. They leave the existing processes intact and use computers simply to speed them up.” Reengineering Work: Don’t Automate, Obliterate, Harvard Business Review.
Striving to remove frictions changes the perspective. Instead of continuing to do the same as before (and doing most probably like all others — the so-called best practices), it encourages to look at doing things that were previously impossible.
“Challenging people to visualize processes as platforms completely changes how trade-offs between innovation, optimization, and user experience are debated and discussed”. Instead of Optimizing Processes, Reimagine Them as Platforms, Harvard Business Review.
Here are a couple of examples of processes illustrating a user-experience based approach.- Touchless:
The first example that comes to my mind is what Amazon did with Amazon Go.
Beyond the buzz and technobabble, Amazon Go should provoke the interest of Supply Chain professionals.
By the way, it is “just” taking the use of vending machines (for MRO, for office supplies, or other consumables) a step further.
“We can start to imagine all those occasions and processes where the administration of stuff being handled, moved, bought, consumed could be made “touchless” — no need for the humans involved to do” anything consciously in order for the parties involved to know that the activity has taken place”. Amazon Supply Chain Innovation — Just Help Yourself!, Spend Matters UK
Compare the seamless experience of Amazon Go with a typical consignment process! Now, imagine what that consignment process could be if it was designed in the same spirit as Amazon Go. The design of the experience is centered on “growth”. Meaning that it enables parties to mutually realize their potential and remove the superfluous from the foreground and make it happens behind the scenes.- Assistants and chatbots:
Another illustration of entirely rethinking processes as experiences, journeys, and touchpoints to make them more efficient and effective (and in par with mainstream ones) is what I called a Procurement assistant:
The idea behind the assistant is what the technology world is currently doing (Siri, Cortana…). Chatbots and conversational commerce are hot topics in the tech sphere. Even if no one has yet fully figured it out and moved beyond the gadget/geeky aspects (except, maybe, Amazon — again! — with Alexa), it is a massive opportunity to revamp experiences regarding interactions and personalization.- Blockchain:
The blockchain, beyond Bitcoins and other digital currencies, has the potential to drastically change the way organizations manage transactions and the exchange of value. But there is more.
As I mentioned earlier, PaaP supports the SRM² model. And, for the model to work, a certain number of conditions exist. One is trust:
These three “circles of trust” are the building blocks of a genuine dialogue (instead of one-way communications). Blockchain is the means to create digital trust between parties by bringing security and transparency in transactions.
“[The] blockchain is a major breakthrough. That’s because its decentralized approach to verifying changes in important information addresses the centuries-old problem of trust, a social resource that is all too often in short supply”. Blockchain technology: Redefining trust for a global, digital economy, Michael Casey
One of the more direct benefits of using blockchain is to lower transaction costs. From contracting (more on that later) to payments, blockchain removes intermediaries and fees. It is therefore the ideal solution to streamline processes where what you do to buy costs more (or close to) that what you actually buy. It will have Procurement rethink what to do with the tail spend! Also, the experience is quite different when compared to traditional processes. Easier and faster are the keywords as explained in this episode of the Thriving At The Crossroads podcast.
In addition to payments, the blockchain opens new horizons for contract management. As Alec Ross says in “the industries of the future” (using the purchase of a house as an example), contracting hasn’t fundamentally changed in the last 45 years and involves a lot of papers, lots of signatures and lengthy procedures. It is because of the lack of trust between parties with regards to the financial transaction and the timeframe of such transactions. Also, the need to prove/define ownership adds to the burden. As already mentioned earlier, blockchain can make payments real-time, and it also solves ownership issues as blockchain records log who owns what in an easily retrievable (public), up-to-date, and secure manner (which also represents benefits for IP protection).
On top of that, execution of contracts can be drastically streamlined and automated with smart contacts:
“A smart contract has the capability to facilitate, execute and enforce the performance of negotiation of a contract. The entire lifecycle of a smart contract is automated and can provide valuable as a complement to or substitute to a legal contract”. Blockchain enabled Trust & Transparency in supply chains, Jørgen Svennevik NotlandSource: How smart contracts automate digital business, PwC
Other applications tap into the traceability and transparency that the blockchain embeds. By being a permanent and secure record of all transactions between all tiers of the supply chain, it can replace all existing paper-based systems. Plus, as it is available publicly (anyone or all partners in a network), it is broader and deeper than usual practices that only apply to Tier 1 (sometimes Tier 2) suppliers.
“The project — a collaboration between Walmart, IBM and Tsinghua University in Beijing — was first unveiled in October, when the project partners claimed they were creating a new model for food traceability, supply chain transparency and auditability. “By harnessing the power of blockchain technology designed to generate transparency and efficiency in supply chain record keeping, this work aims to help enhance the safety of food on the tables of Chinese consumers,” noted an IBM press release. In fact, the pilot project was initially planned to track and trace Chinese pork; U.S. produce was added later.” Walmart Testing Blockchain Technology for Supply Chain Management, Bitcoin Magazine.
Blockchain may sound like science-fiction or for the uber-geeks only, but it is not. Mainstream companies and actors use blockchain or enable the use of it. For example, Microsoft. Also, blockchain exemplifies the “platform” philosophy. Organizations can build numerous applications on top of the blockchain architecture (technical platform). Also, it removes friction and intermediaries allowing
“The notion of shared public ledgers may not sound revolutionary or sexy. Neither did double-entry book-keeping or joint-stock companies. Yet, like them, the blockchain is an apparently mundane process that has the potential to transform how people and businesses co-operate”. The promise of the blockchain. The trust machine, The Economist
All the examples I just mentioned illustrate the fact that Procurement has to think about engaging internal customers/stakeholders and suppliers in different ways. Procurement has to build omnichannel and replicable but unique experiences that fits with:
The concept of omnichannel experiences extends to the real world. Not everything is about technology and digital. Human touchpoints are also very critical to manage, maintain, and nurture relationships.
For example, organizing business reviews (BR) with key stakeholders and with major suppliers is an opportunity to look at the business from a different perspective than during day-to-day interactions. Here too, it is crucial to design the BRs in a way that matches the relation and the business needs. BRs are moments where involved parties have more intimate and trust-based exchanges about where they are and where they want to go.
In the same spirit, setting up “single points of contacts” (SPOC) participates, like the BRs, to creating more proximity and intimacy between Procurement and stakeholders.
“The client contact is mapped out, and the procurement team becomes aware of every senior new role or person in the organisation they need to consider. They execute these important steps — they contact and communicate with them; they make a point of understanding their particular business objectives; they understand what type of person they are; they collect information and keep up to date with issues and goals in those business teams”. The Fujitsu Procurement Transformation Story (Part 2), Spend Matters UK
The same is transposable to the supply side: one buyer is assigned as the main contact of a supplier. He is able to speak for the whole organization during BRs, negotiations, and escalations. That gives him access to a higher level of interlocutors at the supplier. It also provides the suppliers with privileged access to information, market, and power.People: new ways to manage talent
Physical touchpoints exemplify that business is Human-to-Human (H2H) and that all of it must not be left to technology. Considering Procurement as a platform whose primary objective is to efficiently and effectively manage the dependencies between an organization and its suppliers has the effect to position the choice of
as somehow secondary and as a consequence of their purpose.
Also, the various possibilities listed above can co-exist in the same organization. The principles of omnichannel and personalization also apply there. Depending on the category, the stakeholders, the internal resources, the organization can select the most appropriate model. The objective being to employ the best talent (from an individual and collective point of view) and to continuously adapt to the needs and the market.
Many organizations do not have the required expertise available in-house for all the categories they manage. They focus on the most critical ones. And, because of a particular project or because of a merger & acquisition or because of the emergence of new technologies on the supply market, what was marginal may become vital. To ramp-up capabilities and to temper its talent, the organization can decide to:
Technology (automation and AI) redistributes work and redefines skill sets. Cognitive Procurement is about “People + Technology” and not “People vs. Technology”:
This reinforced collaboration with machines has profound impacts that PaaP can help mitigate as it provides a system that is more agile, scalable, and adaptable.
“Automation has begun to displace human workers, as some predicted, but the effect is more than just replacement — it’s advancement. The influx of sophisticated technologies will enable us to think of work in new and innovative ways. […] They are witnessing the emergence of the “liquid workforce” and the “human cloud” as new workforce models. The “liquid workforce” refers to employees who are able to re-train and adapt to their environment in order to stay relevant during the digital revolution”. The future is automated. Here’s how they can prepare for it, The World Economic Forum.
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