Tag Archive - Outsourcing

Accenture Report that One Third of Irish Companies Have no Supply-Chain Strategy in Place

 

A report published this month by Accenture has produced a key finding that more than half (52%) of Irish companies have no clearly defined supply-chain strategy integrated into their businesses. The report further claims that 30% revealed they have no supply chain strategy at all.

Accenture reports on supply-chain strategy within Irish companies

I don’t think we needed this report to tell us that one of the biggest supply chain concerns is around environmental and regulatory challenges but it is a timely reminder for Irish companies. As initiatives like PEPPOL and Digital Europe gather pace it is incumbent upon Irish companies to be up to speed on environmental and regulatory requirements otherwise they will not be permitted to tender for new EU wide contracts.

 

The report threw up some other interesting findings:

  1. The biggest supply chain cost pressure at present is coming from three areas:
    1. Fuel costs @ 65%
    2. Staff costs @ 46%
    3. Raw material costs @ 41%
  2. Only 17% of Irish businesses believe that their supply chain is highly sustainable in terms of environmental, energy and regulatory trends
  3. To minimise supply chain risks some of those interviewed have:
    1. Established relations with other suppliers @ 69%
    2. Conducted risk appraisals of key suppliers and parts of the supply chain @ 52%
    3. Used business process outsourcing to reduce potential risks @ 33%

Armin Samali who is head of Accenture’s supply chain practice in Ireland commented on the results saying, “While there is an appreciation of the role of the supply chain in delivering returns for business, getting companies to align both their business and supply chain strategies remains a significant hurdle to be overcome if organisations are to minimise risk and maximise efficiency.”

 

 


Posted on March 6, 2012 in PEPPOL, Report, Supply Chain by
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e-Invoicing Up 20% Globally According to New Report

 

A new study commissioned by e-Invoicing provider Basware in conjunction with consultancy Billentis has found that the use of electronic invoices for B2B transactions rose by 20% during 2011. The report found that although many businesses elected to implement e-Invoicing for their own benefit, legislative changes in several countries also had a large part to play in the increased rates of adoption.

e-Invoicing Up 20% Globally

Mexico led the way with legislative changes, mandating that any business trading over a certain threshold must exchange electronic invoices – an approach set to be adopted by Greece, Spain, Norway and Kazakhstan during 2012. The Scandinavian countries, the Benelux union and German also introduced legislation designed to encourage the uptake of e-Invoicing, although most adoption throughout these states was as a result of businesses identifying their own economic benefits for doing so. Finland went one step further by insisting businesses submit invoices to state bodies electronically.

The study also found that the legal status of electronic invoices still varies between countries. In Japan and China, although electronic invoices can be exchanged, they are regarded legally as a copy requiring a paper invoice to be raised for regulatory purposes. Singapore, South Korea and Malaysia however grant electronic invoices the same legal status as a paper version.

Commenting on the results of the report, Karri Lehtonen, Vice President of Basware said, ‘Legislation regarding financial records varies between regions. Paper based invoicing requires a business to understand these legal variants to trade globally. e-Invoicing technology removes this headache as it automates compliance with countries’ different legal requirements.’

Further to Lehtonen’s observations, the use of an outsourced global platform for electronic invoicing has the potential to transcend diverse national legislation allowing businesses to focus on their customer’s requirements, without constructing complex EDI systems to cross borders. As more countries make e-Invoicing mandatory, the process will become more complex for businesses operating in multiple markets; a cloud-based platform such as Celtrino’s Smart Admin reduces the technical and regulatory burden on a business whilst allowing them to trade anywhere and everywhere.


Posted on February 24, 2012 in Cloud Computing, e-Invoicing, EDI, Report, Smart Admin by
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Electronic Invoicing – You Have to Go the Whole Hog

 

Electronic Invoicing – You Have to Go the Whole Hog he flexible nature of electronic invoicing allows for a phased approach, moving a tranche of accounts at a time and creating a hybrid system of physical and electronic accounts paperwork. For the small to medium business, such a system is workable but for the larger enterprise completely impossible.

For any business running physical and electronic invoicing systems in tandem, the overhead of managing such a workflow places a huge additional burden on accounts staff and thereby reduces many of the cost benefits associated with e-Invoicing. The greatest single motivator for migration to electronic invoicing tends to be the promised financial savings of the medium; if these savings are being reduced because of inefficiencies, your business loses out.

Electronic invoicing also provides a way to centralise accounts records, drawing information which would normally be held on a departmental basis into a single repository. Cash flow information can finally be retrieved immediately easing business decisions and allowing for a more agile trading model.

So although the hybrid system may work for a while, the overall goal must be a total switch to electronic invoicing. This goal may be easier to achieve in some industries than others, but with careful planning and by securing the agreement of suppliers and customers, any business can eventually manage total migration.

Unfortunately there will always be a level of resistance to change from certain key suppliers, much of which is caused by ignorance of e-Invoicing and the fact that suppliers also stand to reap benefits from electronic invoicing. Successful supplier on-boarding should therefore be a consideration when choosing a platform for electronic invoicing; if the supplier of your invoicing system can assist, so much the better.

Fortunately Celtrino are masters of outsourcing electronic invoicing services and uniting supply chains for the mutual benefit of all involved. If you need help going the whole hog with your e-Invoicing roll-out, please get in touch – we’re happy to help!


Posted on February 15, 2012 in Cash Flow Management, e-Invoicing, EIPP, Supply Chain Management by
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Boeing Outsource When Lacking Skills

 

OutsourcingThe epic Dreamliner project instituted by Boeing changed the way many businesses look at supply chain management permanently. Although Boeing recorded several glaring problems, such as a 3-year delay in delivery of their first aircraft, the changes to their manufacturing and delivery process have fundamentally changed the future operations of their business for the better.

From the outset, the Dreamliner eschewed the traditional engineering goal of greater speed in favour of increased efficiency and economy. The lynchpin of this design was to be the use of carbon reinforced plastic composite materials for nearly 50% of the aeroplane, including the wing and fuselage.

As good as the idea was however, Boeing lacked the skills and equipment required for creating carbon composite components, fundamental to the success of the Dreamliner. The manufacturing of these parts was therefore outsourced to contractors who had the requisite abilities.

This shift to outsourced component construction required a paradigm shift in the Boeing supply chain and the way it was managed. To allow for free data interchange between supply chain members, Boeing implemented a ‘collaboration hub’ that kept stakeholders fully informed of manufacturing progress.

As the project progressed, the contractors encountered a number of problems which delayed the project as a whole and required direct intervention by Boeing. As roles were adjusted and responsibilities shifted around the supply chain, the implementation of the collaboration began to prove its worth by providing a single point of reference for every stakeholder. Production information was available in real time allowing for tweaks and balances at each supplier (of whom there were over 50).

Boeing took the brave step of starting a project which they themselves could not complete, but choosing a supply chain management system which would not only underpin the project, but adjust according to circumstances. Applying this scenario to your own business, how could a radical supply chain alteration benefit you? Is your current supply chain management system flexible enough to cope?


Posted on January 23, 2012 in Supply Chain, Supply Chain Management by
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Boeing Tighter Supply Chain Integration for Success

 

Keeping a close eye on the supply chain is essential to ensure raw materials are successfully converted into saleable goods, but is observation enough to succeed? Boeing’s epic Dreamliner project demonstrated that tighter integration of the supply chain constituents was absolutely essential in order for the first of the new aircraft to be delivered.

The Dreamliner was born out of a desire for greater efficiency both in the aircraft itself and in the construction process behind it. Boeing took the previously unheard of step of outsourcing the manufacture of the aeroplane components to 50 specialist subcontractors and used a central supply chain management portal to keep tabs on progress. The idea was that the components would be created simultaneously at various plants and then delivered to Boeing for final construction in a three-day window.

Such a deadline requires that members of the supply chain be working in synchronisation with each other and that they are fully informed about progress at each point. As problems arose during manufacture, partners were kept abreast with delays and developments allowing them to adjust their own processes to compensate.Boeing Tighter Supply Chain Integration Success

The collaboration hub also allowed Boeing to keep a tight handle on supplier progress and provided a mechanism by which they could address issues with contractors as and when they arose. At certain points during the project, Boeing was forced to step in and reclaim certain responsibilities to ensure the project continued on track.

The stated goals of the Dreamliner project were impossible to achieve without close integration between suppliers, subcontractors and Boeing themselves. Close communication and working practices made the dream a reality where many industry pundits had predicted disaster.

Collaboration between suppliers has often been seen as an evil necessity, rather than a genuine route to success. The eventual success of the Dreamliner was hard won, but the lessons learned by Boeing will shape the way they work with subcontractors permanently.

How would your business benefit from tighter supply chain integration? What would you need to change to make it a reality?


Posted on January 20, 2012 in Supply Chain, Supply Chain Integration, Supply Chain Management by
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Are you Over Complicating e-Invoicing?

 

The rush for the paperless office and associated riches available through efficiencies and cost-savings is a compelling argument for many businesses. They then rush through the initial planning only to discover that the complexity of such a deployment is far greater than they had initially anticipated.  Discontent is quickly followed by despair and can even result in the new system being ditched altogether.Over-complicated e-Invoicing?

What goes wrong? Many businesses are simply not prepared for the culture shock associated with the changes required to their processes and cannot adjust to the more rigid structures required. Although “touchless” systems promise the greatest returns on investment, the fact that they also affect every part of an organisation means the greatest disruption, even if it is only short-lived.

And here lies the nub of the problem. The deployment of an e-Procurement system is all or nothing; it must be implemented across the entire company simultaneously, or not at all. There are no piecemeal implementation options.

Contrast this with e-Invoicing which is the process of replacing paper-based invoice documentation with its electronic equivalent. In this scenario, all of the benefits of a touchless system are still available (reduced staff burden, reduced time to payment, ongoing reduced costs), but the impact is borne by the accounts department alone.

The implementation of an e-Invoicing system for many companies provides the perfect opportunity to test out a single paperless department and solve the common deployment problems on a smaller scale. These lessons can then be carried forward, once the business benefits have been properly recognized, and a wider deployment authorised.

The implementation of any electronic platform will always require changes to business processes, but much of the complication can be reduced by taking on a smaller challenge first. Although e-Procurement may be your company’s eventual target, an e-Invoicing roll out may provide the practice you need to get the process right.


Posted on December 19, 2011 in Business Process Automation, e-Invoicing, eProcurement by
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Global Financial Crisis – The Basis for e-Invoicing Success?

 

Success, Profit, BusinessAs any business owner knows, particularly those in the SME market, securing credit from a bank is nigh on impossible at the moment. Concerns about capitalisation and liquidity are causing banks to keep hold of cash, making loans to businesses extremely difficult, if not impossible, to obtain. As a result wider economic growth is stalled as businesses cannot afford to invest in order to expand. Consequently, companies are being forced to identify efficiencies and costs savings which can potentially free up cash for re-investment, undertaking detailed analysis of financial routines in way that during the “good times” may have been neglected.

These internal reviews are forcing businesses to look ever harder at their own cash flow and the way it is managed. Many have already discovered that the process streamlining available through e-Invoicing has significant benefits, particularly when extended to the wider financial supply chain. The automation of various accounting functions reduces workload whilst maintaining the controls required for low-level financial analysis.

The European Union’s continued promotion of e-Invoicing coupled with similar requirements of many national governments are steadily moving businesses towards electronic invoice presentation and payment anyway, but the global financial instability could be accelerating uptake too. The political drive to increase e-Invoicing should see the concept reach critical mass with SMEs in the next few years and as uptake climbs, so too should use of these platforms in the B2B markets as well as the B2G.

So at a time where literally every penny counts, business decision makers should be following the lead set by the European Union and investigating the potential benefits and savings available through business process automation and outsourcing. e-Invoicing could be one of the ways to ensure business survival and growth despite the apparent obstructions put up banks.


Posted on November 28, 2011 in B2G e-invoicing, Business Process Automation, e-Invoicing, EIPP, Electronic Invoice Presentment & Payment, EU, European Union, Supply Chain by
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e-Invoicing – Environmentally Friendly Invoicing

 

More than ever before, businesses are being asked to prove their environmentally friendly credentials by both customers and suppliers in an effort to help prove the business’ green credentials. Local government and international carbon reduction targets are beginning to bite, and the threat of increased green taxes are forcing businesses to reconsider their business processes to make them as eco-friendly as possible.Eco-friendly Invoicing

Paperwork has long been recognised as a cause of inefficiency, but less well known is the environmental impact bureaucracy can have. It therefore follows that a reduction in paperwork will also result in a reduction in the environmental impact a business may have.

Paper-less

Paperwork, particularly that which requires transportation between each member of a supply chain, is a significant contributor to the carbon footprint of a business. The production of paper in itself uses energy, a by-product of which is carbon dioxide. Factor in processing of the paper, transportation to supplier and then onto the end user and the carbon footprint is again increased. And all this before the paper is even printed and used by a business.

Sending paper invoices and remittance advice further exacerbates the problem, with each postal transaction involving mechanical or automotive transportation – another significant producer of carbon dioxide, and thereby a contributor global warming. Reducing the toing and froing of paper between each link in the supply chain helps reduce environmental impact along the way.

By replacing traditional paper invoicing systems with an electronic equivalent, the carbon costs associated with the production and transport of paper can be immediately negated.

Power-less

The move to e-Invoicing is only the start of the potential environmental benefits. By outsourcing invoicing and other supply chain management systems, additional savings can be made through a reduction of the need for in-house IT systems. A reduction in physical computers and servers results in reduced electrical consumption. Less energy used equates to less carbon produced, which in turn means a more eco-friendly business.

To find out more about how e-Invoicing and outsourced business process management could help reduce your business’ carbon footprint, please contact Celtrino and ask about our Smart Admin platform.


Posted on November 14, 2011 in Business Process Outsourcing, Celtrino Platform, Cloud Computing, e-Invoicing by
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Supply Chain Integration Introduction Part 5 – The Future

 

For businesses looking to implement their first supply chain integration systems, or those looking to improve that which they already have, the future of the methodology will remain of interest. The continued explosion of hosted systems (also known as Software as a Service – SaaS), has already begun to radically alter the supply chain integration landscape.

As discussed elsewhere throughout this short series of articles, supply chain integration is currently a job requiring extensive (expensive) expertise due to the complexities inherent in joining multiple computer systems. As with most technological advances, implementation of integrations should get inherently easier as on-site complexity is reduced. Suppliers will be faced with the choice of rolling out the exact same ERP system in each of their own businesses, or to outsource the EDI functions required to communicate between disparate systems to a third-party.The Future written on the white board

As cloud-based software and services continue to mature, the use of on-site systems becomes more expensive and effectively redundant. By outsourcing functions to the cloud such as invoicing and billing, businesses immediately benefit from a reduction in complexity and duplicated effort. An ideal Business Process Outsourcing (BPO) platform will take input from any ERP or accounting system, as Celtrino’s Smart Admin product does, and seamlessly convert and transfer the data to a receiving system. The onus for translation and EDI connectivity becomes the responsibility of the hosted service provider.

In such a scenario, the cloud service provider configures and maintains the EDI connectors for the systems of all of their service users, for the same subscription fee. The clients are then able to make savings on the costs of hiring EDI consultants every time a reconfiguration of the data interchange layout is required.

Business Process Outsourcing as part of a Supply Chain Integration is a hot topic and looks set to remain so for some time. As demand for BPO increases, service providers will be forced to further tune and improve their offerings. All this is great news for the customer and their customers in turn.

If you would like to know more about how Celtrino’s Smart Admin platform can be used to assist your business in Supply Chain Integration, please do not hesitate to contact us.

 
Supply Chain Integration Part 1

Supply Chain Integration Part 2

Supply Chain Integration Part 3

Supply Chain Integration Part 4

 


Posted on October 26, 2011 in B2B Platform in the Cloud, Business Process Outsourcing, Integrated Supply Chain Management Platform, Supply Chain Integration, Supply Chain Management, Supply Chain Performance by
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Supply Chain Integration Part 4 – Best Practice

 

Best Practice written on a white boardThe recognition that supply chain integration with your suppliers and partners is of paramount importance is the first step in a sometimes challenging and complex process. Each member of a supply chain has their own way of doing things, using a variety of different systems which at first glance are probably not fully interoperable.

Despite being a “standard” Electronic Data Interchange, or EDI as it is known for short, there are many minute variations and tweaks required in order for one computer system to “talk” to another. As a result, reconfiguration will have to take place at each supplier to allow for smooth communications. EDI setup and maintenance is an expert job and being time intensive, is also costly. As a result the use of an outsourced service which does the required EDI translations automatically is preferable.

The use of an externally hosted Electronic Invoice Presentment and Payment (EIPP) system allows every member of the supply chain to integrate their payment systems for maximum compatibility, whilst retaining complete autonomy over their own data and in house processes. During the supply chain integration process, companies can choose to enable as much or as little interchange as they desire. Obviously the more interchange permitted, the greater the on-going cost savings through a reduction in labour costs that would be accrued through manual processing of the same actions.

Clearly the complexities of such an integration is outside the experience (or interest) of most businesses and so they will need to secure the services of a specialist consultancy. Here are three suggestions to help when choosing:

  1. A proven track record in successful completion of supply chain integration. Any company you consider should have verifiable testimonials from previous customers and reference sites which can be visited for first-hand verification.
  2. Experience in trading community onboarding. Integration projects deal not only with system interoperability, but also the political issues raised by bringing together businesses with differing values and ethics.
  3. The ability to make integration as simple as possible with the minimum of disruption for any member of the supply chain.

In the light of these suggestions, expertise in supply chain integration is just one facet of the decision process. The technology and methodology used is just as important with on and off site implementations of supply chain integration. Clearly Business Process Outsourcing (BPO) options which see the EDI services hosted externally are preferable in terms of scalability, speed of deployment and minimisation of disruption – all data interchange is performed externally with minimal local reconfiguration required.

 

Supply Chain Integration Part 1

Supply Chain Integration Part 2

Supply Chain Integration Part 3

Supply Chain Integration Part 5


Posted on October 21, 2011 in BPO, Business Process Outsourcing, EDI, Electronic Invoice Presentment & Payment, Outsourced EDI, Supply Chain Integration, Supply Chain Performance by
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