How Cloud B2B Enables Michelin’s International Operations

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Information about How Cloud B2B Enables Michelin’s International Operations
Business & Mgmt

Published on March 10, 2014

Author: MarkMorley68

Source: slideshare.net

Description

This webinar was prepared with the help of Michelin and discusses how Cloud B2B integration helps to support Michelin’s international operations. The presentation discusses some of the trends across todays’ manufacturing industry before Michelin discusses how they manage international operations using B2B solutions from OpenText GXS.

How Cloud B2B Enables Michelin’s International Operations

OpenText Confidential. ©2014 All Rights Reserved. 2 Introduction to Today’s Presenters Jean-Luc Faye IS Functional Domain Manager Member of Michelin’s worldwide EDI service centre and is responsible for the delivery of EDI services across Michelin’s Global operations. Mark Morley Industry Marketing Director Heads up OpenText’s go to market strategy for the manufacturing sectors. Extensive experience of working with global companies looking to expand their B2B platform into different markets.

OpenText Confidential. ©2014 All Rights Reserved. 3 Agenda  Introductions  Today’s Manufacturing Industry  How Cloud B2B Integration Enables Michelin’s International Operations  How OpenText GXS Helps Manage International Expansion  Conclusions

Today’s Manufacturing Industry

OpenText Confidential. ©2014 All Rights Reserved. 5 Manufacturing 2.0, Rebooting Today’s Global Supply Chains… Global recession, wage strikes, natural disasters and changing consumer demand are leading to manufacturers having to restructure their global supply chains

OpenText Confidential. ©2014 All Rights Reserved. 6 What is Going on in Today’s Manufacturing Supply Chain? Sales Manufacturing Sales Manufacturing Back Office Engineering R&D Western Expansion Near-Shoring China Expansion Back Office Engineering R&D Regional Marketing & Finance Engineering R&D Sales Manufacturing Sales Manufacturing Global HQ

OpenText Confidential. ©2014 All Rights Reserved. 7 Expansion into China  Wage rises and continued strikes causing some companies to re-shore manufacturing back home  Chinese manufacturers looking to reduce costs by setting up operations in other countries  Government introducing tax and relocation incentives to encourage investment in western China, ie spreading wealth across the country

OpenText Confidential. ©2014 All Rights Reserved. 8 Expansion into Brazil  Brazil is currently receiving significant inward investment from global manufacturers  Establishing manufacturing hubs as a stepping stone in to the lucrative North American Market  Brazilian government introducing various import taxes to encourage more locally sourced content  Chinese companies, particularly automotive, regard Brazil as a key growth market

OpenText Confidential. ©2014 All Rights Reserved. 9 Expansion into India  Key global manufacturing hub, particularly for labour intensive processes such as machining  Greater consumer wealth leading to increased domestic sales of manufactured goods  Land locked to the North by Himalayas means all goods have to be imported/exported by sea  Extensive use of manual based business processes and limited use if EDI

OpenText Confidential. ©2014 All Rights Reserved. 10 General Emerging Market B2B Trends  Hesitation to move towards a completely outsourced environment, prefer hybrid approach  Emerging markets ‘keen to learn’ about B2B standards used in more developed markets  Extensive use of home grown XML standards, now interested in deploying EDIFACT/ANSI  Trading partner on-boarding is a key driver for using B2B Managed Services

OpenText Confidential. ©2014 All Rights Reserved. 11 Infrastructure Related Issues  Utilities, particularly power supply networks suffer regular outages  Telephone communications and networking infrastructure are relatively poor and slow  New 3G/4G mobile networks are being setup as they quicker than building fixed lines networks  Road and rail networks are generally poor quality and offer unreliable service

How Cloud B2B Integration Enables Michelin’s International Operations

OpenText Confidential. ©2014 All Rights Reserved. 13 MICHELIN A better way forward Source: Annual and sustainable development report

OpenText Confidential. ©2014 All Rights Reserved. 14 EVERYWHERE AROUND THE WORLD WE EQUIP EVERYTHING ON WHEELS, TO SERVE EVERY MOBILITY NEED 184mTIRES PRODUCED 69 PRODUCTION FACILITIES IN 18 COUNTRIES 170MARKETING OPERATIONS IN MORE THAN 170 COUNTRIES 14.8%SHARE OF THE GLOBAL TIRE MARKET BY VALUE Tire Business 2011 Global Tire Company Rankings No.1IN THE WORLD IN HIGHPERFORMANCE TIRES FOR CARS No.1IN THE WORLD IN RADIAL TIRES FOR TRUCKS, EARTHMOVERS, AIRCRAFTS No.1IN EUROPE IN TIRES FOR FARM MACHINERY, MOTORCYCLES Source: Annual and sustainable development report

OpenText Confidential. ©2014 All Rights Reserved. 15 3.300PRODUCT AND SERVICE DEALERSHIPS IN 27 COUNTRIES 10mMAPS AND GUIDES IN 15 LANGUAGES PUBLISHED IN 2011 No.1IN SERVICE CONTRACTS FOR TRUCKS, EARTHMOVERS AND AIRCRAFT FLEETS No.1IN RETREADING 950mITINERARIES CALCULATED BY VIAMICHELIN ACTING LOCALLY WE FACILITATE MOBILITY FOR EVERYONE, EVERYWHERE AND IN EVERY WAY Source: Annual and sustainable development report

OpenText Confidential. ©2014 All Rights Reserved. 16 AN ENGAGED ENTERPRISE, WE INNOVATE TO FOSTER SAFE, CLEAN, CONNECTED MOBILITY No.1IN THE WORLD IN FUEL-EFFICIENT TIRES 38mTONNES OF CO2 NOT EMITTED SINCE 1992 2011/2020OFFICIAL PARTNER OF THE UNITED NATIONS’ DECADE OF ACTION FOR ROAD SAFETY AND THE ROAD SAFETY CAMPAIGN ORGANIZED BY THE FÉDÉRATION INTERNATIONALE DE L’AUTOMOBILE (FIA) 15bnLITERS OF FUEL SAVED SINCE 1992 11TH MICHELIN CHALLENGE BIBENDUM 6,000 PARTICIPANTS, 10,000 VISITORS Source: Annual and sustainable development report

OpenText Confidential. ©2014 All Rights Reserved. 17 • TC : Tourisme camionnette • PL : Poids lourd • SP : Pneus de spécialités MICHELIN ESTABLISHED Close to its Global Customers 69115 000 employees (108 300 Full-time equivalent employees) production facilities in 18 countries Source: Annual and sustainable development report Western Europe 32 plants 10 for passenger car and light truck tires 12 for truck tires 7 for specialty tires 6 for components and semi-finished products Eastern Europe 8 plants 5 for passenger car and light truck tires 3 for truck tires 3 for specialty tires 1 for components and semi-finished products Asia (without India) 7 plants 4 for passenger car and light truck tires plus 1 under construction 3 for truck tires plus 1 under construction 2 for specialty tires 2 for components and semi-finished products Africa, India and the Middle East 1 plant 1 for truck tires plus 1 under construction South America 4 plants 2 for passenger car and light truck tires plus 1 under construction 3 for truck tires 1 for specialty tires North America 17 plants 10 for passenger car and light truck tires 4 for truck tires 3 for specialty tires 2 for components and semi-finished products

OpenText Confidential. ©2014 All Rights Reserved. 18 2011-2015 : A NEW PHASE OF DYNAMIC GROWTH TO SUCCEED IN THIS NEW PHASE OF ASSERTIVE GROWTH AND MEET ITS OBJECTIVES, MICHELIN CAN CAPITALISE ON SUCH SOLID COMPETITIVE ADVANTAGES AS ITS TECHNOLOGICAL LEADERSHIP, SUPERIOR PRODUCTS AND SERVICES, DEMONSTRATED BRAND APPEAL, OPERATIONAL EFFICIENCY AND ROBUST BALANCE SHEET. Source: Annual and sustainable development report

OpenText Confidential. ©2014 All Rights Reserved. 19 PRIORITY GOALS INNOVATE TO MEET CUSTOMER NEEDS MORE EFFECTIVELY ENHANCE COMPETITIVENESS DRIVE STRONG, DIVERSIFIED GROWTH ENSURE RESPONSIBLE GROWTH AN ASSERTIVE STRATEGY BASED ON… Source: Annual and sustainable development report

OpenText Confidential. ©2014 All Rights Reserved. 20 AN ASSERTIVE STRATEGY BASED ON… GROWTH DRIVERS A GLOBAL R&D THE MICHELIN BRAND AND THE BRAND PORTFOLIO THE RIGHT TIRE FOR ANYTHING ON WHEELS EMPLOYEE PROFESSIONALISM AND COMMITMENT Source: Annual and sustainable development report

OpenText Confidential. ©2014 All Rights Reserved. 21 +25% Unit sales growth, 2011-2015 MORE THAN 10 days of training per year for everyone (on average) €2bn Annual capital expenditure 33% of women among new hires (excluding production operators) €2.5bn Operating income in 2015 Before non recurring items -45% Reduction in the environmental footprint as measured by the Michelin sites Environmental Footprint (by 2016 compared with 2005) 30% Dividend payout rate of around 30% of consolidated net income Before exceptional items MAIN OBJECTIVES FOR 2015 Source: Annual and sustainable development report

OpenText Confidential. ©2014 All Rights Reserved. 22 -33% Lost-time incidents 115,000 Employees €20.7bn Net sales 14,036 New hires Up 6.7% Up 15.8% In volume In value 7.2 million Hours of employee training €1.945bn Operating income 0 In Group plants 22% Net debt-to-equity ratio €1.7bn Capital expenditure Before non recurring items 26 Michelin sites Environmental Footprint reduced by KEY FIGURES

OpenText Confidential. ©2014 All Rights Reserved. 23 B2B Integration Platform in 2011 (Europe)

OpenText Confidential. ©2014 All Rights Reserved. 24 Target Architecture for the Group Bank Connectivity Connectivity to everyone else, eg customers, suppliers, raw material providers

OpenText Confidential. ©2014 All Rights Reserved. 25 Alignment with Michelin’s IS Strategy  Use of standard solutions versus customized packages  Increased use of SaaS solutions and integrate in a secure and efficient way with our backend information systems  Deploy faster everywhere with minimal disruption to the business

OpenText Confidential. ©2014 All Rights Reserved. 26 Benefits from working with GXS  Future proof and modern B2B Platform  Scalable and flexible platform providing a broad range of options in terms of global connectivity and formats  Global e-Invoicing solution to meet local tax and compliance regulation changes  Multi-lingual Support and Trading Partner on- boarding

OpenText Confidential. ©2014 All Rights Reserved. 27 Future Plans  Complete European migration project  Initiate migration of North America, Asia and South America regions to our Managed Services environment  Offer high end B2B integration services to our customers and suppliers in conjunction with the global Up & Down stream supply chain initiative roll-out  Build a stronger partnership to embrace the B2B capabilities that Michelin needs to succeed in a challenging global economy

How OpenText GXS Manages International Expansion

OpenText Confidential. ©2014 All Rights Reserved. 29 Supporting Global Manufacturers GXS mediates between any document and communication standards 100% of Automotive Companies in the Fortune 500 84% of Top 100 Global Automotive Suppliers 78% of High Tech Companies in Fortune 500 80% of Top 10 Mobile Device Manufacturers

OpenText Confidential. ©2014 All Rights Reserved. 30 Provide Global Interoperability How OpenText GXS Addresses the B2B Challenges Faced by Manufacturers Increase Supply Chain Resilience Consolidation and Modernisation of B2B Integration to Enterprise Systems - ERP Support Expansion into New Markets Adhere to Country Specific eInvoicing Regs

OpenText Confidential. ©2014 All Rights Reserved. 31 B2B Knowledge/Skills Dedicated B2B Resources Automating Manual Processes Web Forms, Microsoft Excel Problem Resolution 24/7 Multilingual Support Local Standards Support Any to Any B2B Mediation Typical B2B Challenges How OpenText GXS Addresses This How OpenText GXS Helps International Expansion Projects

OpenText Confidential. ©2014 All Rights Reserved. 32 B2B Managed Services A Better Approach for Managing International Expansion Managed Services Environment

OpenText Confidential. ©2014 All Rights Reserved. 33 Research Findings Validate ROI 3rd Party Validation From Leading Institutions  68% Said that Managed Services helped improve 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 meet/respond to change in customer requirements Managed Services Trends Study by Stanford University 96% Reported that Managed Services Added Significant Value to their Overall B2B Integration Programs B2B Managed Services Value & Trends Study conducted by Stanford University – Global Supply Chain Management Forum

OpenText Confidential. ©2014 All Rights Reserved. 34 GXS B2B Community Management B2B Community Management Automating Both Your Data Network and People Network OpenText GXS Active Community is Part of a Comprehensive Suite of Community Management Solutions B2B Community Management

OpenText Confidential. ©2014 All Rights Reserved. 35 Increasing Pressure to Improve the People Aspect of Community Management • No single source of supplier information • Minimal automation of supplier setup & registration • Continuing need to onboard suppliers faster Is an enterprise community management tool that delivers people and process solutions across Trading Grid® • Reduce supplier onboard and management costs • Monitor supply chain risk & performance • Legal & Regulatory compliance Problems: Solution:

OpenText Confidential. ©2014 All Rights Reserved. 36 Fax Microsoft Office Web Forms Integration Broker Enterprise Resource Planning Small Mid-Size Large Desktop Translator Microsoft Dynamics SOHO Very Small Small National Global Size of Trading Partner Medium Complexity of B2B Enabler Trading Partner Enablement Options Connectivity options for technically challenged Trading Partners

OpenText Confidential. ©2014 All Rights Reserved. 37 Conclusions  Cloud based B2B integration offers many benefits to Michelin’s global operations:  Ability to scale their B2B infrastructure according to the needs of the business  Improves remote on-boarding and on-going collaboration with global trading partners  Removes complexity from their supply chain  Allows their business to respond more quickly to changing customer requirements or market demands

OpenText Confidential. ©2014 All Rights Reserved. 38 Thank You Jean-Luc Faye IS Functional Domain Manager jean-luc.faye@fr.michelin.com www.twitter.com/LatyrF fr.linkedin.com/in/LatyrF +33 473 302795 mark.morley@gxs.com gxsblogs.com/morleym www.twitter.com/markmorley uk.linkedin.com/in/markmorley +44 1932 776040 Mark Morley Industry Marketing Director

OpenText Confidential. ©2014 All Rights Reserved. 39 Additional Resources B2B Managed Services Website – www.b2boutsourcing.co.uk New Stanford University Reports on B2B Managed Services – www.gxs.co.uk/stanford New International Expansion Report – www.gxs.co.uk/fieldworks

OpenText Confidential. ©2014 All Rights Reserved. 40 Thank You For Your Participation twitter.com/opentext facebook.com/opentext linkedin.com/company/opentext www.opentext.com

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