Published on March 7, 2014
OpenText GXS in Automotive
OpenText Information Exchange OpenText Confidential. ©2014 All Rights Reserved. 2
Today’s Automotive Supply Chain Distributed Operations in Multiple Countries Engineering R&D Regional Marketing & Finance Engineering R&D Manufacturing Sales Manufacturing Sales Global HQ Engineering R&D Manufacturing Back Office Manufacturing Sales Western Expansion Back Office Sales Near-Shoring China Expansion OpenText Confidential. ©2014 All Rights Reserved. 3
Automotive Industry Trends Resurgence of automotive industry in NA/UK Continued expansion into new markets eg Brazil, Russia, India, Mexico & Thailand Both design and manufacturing functions continue to be more de-centralized Convergence of auto & high tech supply chains due to consumer demand for the ‘connected car’ Google looking to extend their services into the automotive sector, eg Android based in-car entertainment systems OpenText Confidential. ©2014 All Rights Reserved. 4
Consumer Driven Industry Convergence High Tech Companies Diversify into Automotive 4G LTE Connection Open Source Apps Wireless Charging Cloud Telematics Gesture Control Autonomous Driving OpenText Confidential. ©2014 All Rights Reserved. 5
Supporting Global Automotive Customers 100% of the Automotive Companies in the Fortune 500 90% of the Top 20 Car Manufacturers (OICA) 84% of the Top 100 Global Automotive Suppliers 100% of the Top 20 NA Automotive Suppliers 95% of the Top 20 EMEA Automotive Suppliers 85% of the Top 20 ASPAC Automotive Suppliers * Statistics created from Automotive News ‘Top100 Global Automotive Suppliers’, July 2013 OpenText GXS mediates between any standard and connects to the major automotive networks OpenText Confidential. ©2014 All Rights Reserved. 6
Supporting the Largest Automotive Customer Base in the world OEMs – Toyota, GM, Ford, Daimler, Chrysler, Jaguar Land Rover, Honda, Nissan, Mitsubishi, Isuzu, Mazda, Hyundai, Kia, Daewoo, BMW, VW, Audi, PSA, Renault, Volvo, Daihatsu, Hino, Suzuki, Isuzu, Subaru, Komatsu, Changfeng Suppliers - Dana, Delphi, Dura, Federal Mogul, Goodyear, Lear, Magna, Textron, TRW, Visteon, Yazaki, Autoliv, BorgWarner, Continental Teves, Faurecia, Freudenberg, Hella, Infala, Intier, Mahle, Michelin, OSRAM, Robert Bosch, Siemens VDO, Thyssenkrupp, ASE, Baosteel, Daeki, Chungyang Industrial, China Spring, NTN, Denso, Aisin, NGK, NHK, Tianjin CMT, Zhaoqing, Hongteo, Dalian Yaming, Shanghai Baoshan, Shanghai GKN OpenText Confidential. ©2014 All Rights Reserved. 7
Many Range Rover Evoque Suppliers are Connected to Trading Grid® OpenText Confidential. ©2014 All Rights Reserved. 8
The Automotive Industry has some Interesting B2B Challenges Consolidation or Provide Global Improve Integration to Modernization of B2B Interoperability ERP Systems Extensive M&A activity Increasing requirement to Consolidation of ERP leading to a need for B2B provide connectivity to instances and upgrade to network consolidation to global manufacturing hubs new modules is driving new reduce costs and improve located in established and ERP/B2B integration efficiencies emerging markets projects OpenText Confidential. ©2014 All Rights Reserved. 9
The Automotive Industry has some Interesting B2B Challenges Support Expansion into Adhere to Complex Increase Supply Chain Emerging Markets e-Invoicing Regulations Resilience Introduction of new global More countries such as Recent natural disasters manufacturing hubs is Brazil and Mexico are now have led to companies leading to a need to mandating the use of e- needing to improve supply improve on-boarding and Invoices as a condition of chain disaster response ensure 100% supplier doing business within their procedures automation country OpenText Confidential. ©2014 All Rights Reserved. 10
Trading Grid® Provides a Single Integration Point Into the Enterprise Plant 2 HQ Plant 1 OpenText Confidential. ©2014 All Rights Reserved. 11
B2B Outsourcing Environment OpenText Confidential. ©2014 All Rights Reserved. 12
Research Findings Validate ROI 3rd Party Validation From Leading Institutions 68% Said that Managed Services helped improve Managed Services Trends Study by Stanford University the efficiency of on-boarding new customers 59% Said that Managed Services helped enable a reduction in B2B integration costs 74% Said that replacing capital expenditure with a monthly fee was valuable to their business 59% Said that Managed Services helped to better 96% Reported that Managed Services Added Significant Value to their Overall B2B Integration Programs meet/respond to change in customer requirements B2B Managed Services Value & Trends Study conducted by Stanford University – Global Supply Chain Management Forum OpenText Confidential. ©2014 All Rights Reserved. 13
CIOs are Embracing Cloud Computing "The strategy will be one of simplification, standardisation and modernisation. Where I can deem services and technology as being commodity I will seek to externalize, outsource or place them in the cloud” - CIO JLR OpenText Confidential. ©2014 All Rights Reserved. 14
Benefits of Cloud Based B2B Integration Offers Scalability & Flexibility Simplifies Connectivity Provides End-toEnd Visibility Improves Collaboration Simplifies Integration Increases Security OpenText Confidential. ©2014 All Rights Reserved. 15
OpenText GXS OEM Customers North American OEM Needed to implement a new treasury management solution that leveraged their extensive investment in existing financial applications. European OEM GEPARA connects to 10 banks, 161 GM business units across 48 countries. Over 4M payments processed with $233B value. Needed to establish their own B2B platform as quickly as possible following divestiture from parent company OpenText GXS Active Payments consolidates payments into a unified workflow to create a centralized payment ‘factory’. GEPARA controls disbursements through a single B2B gateway which is connected to multiple banks, countries and divisions. Chose OpenText GXS to implement a Managed Service to on-board over 1000 suppliers and went live in 2010. 80 suppliers are connected through hub paid web portal environment. Hosted, cloud based B2B platform provides scalability and flexibility to grow as the company grows. New platform will be integrated to SAP at a later date. Chinese Joint Venture JV needed to import car parts/kits from their French partner via global logistics provider and then assemble in new plant in Shenzen, China JV had no B2B experience or knowledge of global B2B standards but they needed to exchange forecast and order information with their French partner Implemented OpenText GXS Managed Services to exchange B2B transactions between the JV, their French partner and their logistics partner OpenText Confidential. ©2014 All Rights Reserved. 16
OpenText GXS Tier 1 Customers North American Tier 1 Systems European Tier 1 Lighting Supplier North AmericanTier 1 Interior Systems Following divestiture this company needed to establish their own B2B platform to support their global operations Required to work with global customers and to centralise their IT resources so they could reduce on-going costs Embarking on a major SAP implementation and wanted to consolidate multiple EDI platforms onto one provider OpenText GXS Managed Services provided implementation of 600 maps and connectivity to 3000 trading partners. Full integration with SAP to exchange IDOC files. Platform provides truly global connectivity. Trading Grid Messaging Service provides global interoperability and mediation between any document format and communications protocol Implementing OpenText GXS Managed Services to provide global B2B requirements to manage operations in North America, EMEA and ASPAC. Provides flexibility & scalability via one common platform. Removes complexity of working with many customers. Realised significant saving in resource to manage the new platform. Improved 24/7 support. Able to realise a 95% reduction in their EDI team. The new B2B platform allowed this company to establish a single, global order processing system. Provides a single global B2B platform which integrates to SAP, offers high availability and allows true end to end visibility across all business units OpenText Confidential. ©2014 All Rights Reserved. 17
Conclusions Automotive companies are continuing to look for ways to cut costs in order to become more competitive. Increased adoption of B2B helps to: Consolidate legacy B2B infrastructures on to one common platform Improve internal communications between manufacturing plants and external communication to global trading partners Provide improved integration to manufacturing systems such as ERP platforms Support expansion into new markets Adhere to regional e-Invoicing regulations and reduce the amount of paper based documents flowing across the extended enterprise Minimise supply chain disruption through improved information management & collaboration OpenText Confidential. ©2014 All Rights Reserved. 18
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