Category Archives: Technology

Simplifying Global Trade Management Systems

Recently, Industry Week ran a piece by Melissa Irmen of Integration Point (acquired by Thomson Reuters), a company I covered not too long ago in this post, that offered 10 suggestions on how to make the implementation of a new Global Trade Management (GTM) system as painless as possible. Since some of the suggestions were quite good, I’m going to summarize them for you in this post.

  • Consider SaaS
    As discussed in my e-Sourcing Wiki Paper [WayBackMachine], SaaS has a slew of advantages that traditional behind-the-firewall systems do not. Plus, in addition to being a low-cost way of getting started, it’s an operating expense.
  • Buy Only What You Need
    Find an extensible system that can be upgraded later as your needs mature. (Another reason to look at SaaS.)
  • Check References
    Ask current users of the provider about usability and weaknesses. Also, I’d include references the GTM provider doesn’t provide if you know about them!
  • Inform Your Supply Chain Partners
    Not only can they help you acquire the right data for the system, but they might be able to collaborate with you through the system.
  • Get Buy-In From Upper Management
    GTM crosses organizational boundaries. Without a mandate from upper management, it might be hard to get other teams to buy in to the system.
  • Ensure Access to Transactional Information
    Make sure all affected parties can access the information they need when they need it.
  • Insure the Solution Contains E-Document Management
    This saves time, effort, and money and insures documents are not “lost” when they are needed.
  • Evaluate Adaptability
    New GTM systems will generate a number of “false positive” alerts on the black-and-white rules of global trade embedded in the system — but some of these will not apply to your company’s particular situation. Make sure that the system can not only accept authorized overrides but that the rules can be updated to handle these situations by a system administrator.
  • Determine How You Will Stay Up To Date
    If you go SaaS, the vendor will take care of updating not only the system, but the critical data that includes free trade agreement amendments, denied party list updates, etc. But if you go installed, you will either have to update this data yourself or subscribe to a service that does it for you.
  • Check for Governmental Connectivity
    If the relevant government body can accept electronic documents, the system should support it.

IT : The Biggest Threat to our Energy Future

I’m normally not alarmist, and I’m usually not one to bash IT, especially since it’s the foundation of my living (no IT, no internet; no internet, no web-based software or blogs – and not much for me to do besides go back to academia and do philosawfical research), but, whereas environmental sustainability is concerned, the biggest threat to our future is not pollution from coal based factories, not the (over-exaggerated) dangers of nuclear energy, and not the continually impending shortage of oil – but computers! And I’m not talking about the bleak future painted by Arthur C. Clarke in his Space Odyssey, William Gibson in his groundbreaking Neuromancer, or any other bleak picture of the future where automated intelligence takes over the world and either tries to enslave or kill us, but the very real future where the crushing energy demands of data centers bring down the grid as their energy demands exceed what we’re able to produce.

The fact of the matter is that a single data center requires more energy to run than a small city of 40,000 people (The Greening of the CIO). And that’s just a small data center built two years ago. Today’s large ware-house size data centers (like those that would be required by companies like Google and Microsoft), which pack even more machines into the same amount of space, thanks to Moore’s law and continually decreasing hardware size, can require as much energy as a city of 100,000 to run! According to this recent article in PhysOrg.com, U.S. Data Centers cosume 45B kWh annually, and this is is expected to grow by 40% by 2010, according to another recent article in Environmental Leader. That’s over 70B kWh by 2010!

Now, it’s true that this is still a small fraction of the total energy consumption of the US, but it’s a fraction of use that is growing rapidly – and it doesn’t take into account all of the energy sucked up by computers which usually outnumber employees in an average office these days, or all of the energy sucked up by computers in the home. With over 200,000,000 computers in the US, sucking up 300-plus watts of power per hour, often around the clock (as many people don’t turn their computers off and many (backwards?) companies have policies that network computers must be left on around the clock, even when not in use, to enable network-based updates), even assuming they are only on half the time, that’s roughly another two hundred and sixty five (265) Billion kWh of energy, which is also increasing annually by a considerable percentage (as the number of computers continues to multiply like Fibonacci’s rabbits). This means that, in the US alone, IT is sucking up over 310 Billion kWh of energy annually, and that’s a very significant percentage – closing on 20% when you consider a a 1999 Green Earth Society study that found that computers consumed 13% of the entire electricity consumption of the US in 1999, and that this power consumption was expected to increase to at least 35% by 2020! (Source: Wikipedia.)

The reality is, as pointed out in a recent post by Tyler Shears on Gimmie the Scoop, every time you search Google you could power an 11-watt light bulb for an hour. But that’s nothing compared to the energy utilized every time you access YouTube (which takes up 10% of Internet bandwidth). It’s not just your computer, your ISP’s infrastructure, and the YouTube data centers that consume power to fulfill your request – but every computer and network device in between! The reality is that we’ve left the information age, and entered the energy age – an age where we need more energy every day just to function in our ultra-connected lives. (So think about that next time you think you’re doing good by accessing your Green social network every waking hour of the day!) I don’t know about you, but you should be startled by the fact that Google is using 1.8 Billion watt-hours of energy a day just for basic search queries. Believe it or not, that’s just a fraction of internet traffic!

So again, just like I pointed out in Ten Green Ideas That Work – I, it’s not your SUV that’s the problem, it’s your computer (and your internet addiction), and the fact that almost 19%, or one fifth, of power in the US is generated by the burning of petroleum products (oil) or derivatives (gas and diesel). (In comparison, natural gas accounts for over 29% and coal roughly 31%. Nuclear is about 10% and clean sources such as wind, solar, hydroelectric, geothermal, and biomass combined account for barely 11%.) So what can we do about it? I’ll address that in upcoming Green IT posts.

Workforce Management: A Servigistics Approach

Workforce Management, as defined by Wikipedia, is a business process that encompasses all the responsibilities for maintaining a productive and happy workforce. A workforce management solution is a software-based solution that optimally plans and dispatches field service technicians and their properly stocked vehicles to a customer’s location in a timely manner in order to deliver on their service commitments. Such a system will typically addresses demand management, workforce scheduling, workforce dispatching, and mobility solutions.

The workforce management solution offered by Servigistics, a Strategic Service Management Solution Provider (that was discussed last year in Tomorrow’s Strategic Service Management Today) addresses all of these points. Its workforce planning component forecasts workload to determine the appropriate workforce size, its scheduling engine can automatically set and adjust optimal assignments based upon available data and available rules and update those assignments in real-time if higher-priority service calls enter the system, its web-based appointment request feature allows customers to self-schedule, and its service mobility solution not only enables workforce communication, but allows the technicians to indicate where they are in the delivery cycle.

The scheduling engine is an advanced engine that can take into account dozens of variables that include contract / SLA type, service level, customer priority, ticket type, visit number, severity, customer inquiries, and age scores as well as transit times – which can be automatically computed based upon optimal routes computed by its GIS-aware engine that integrates with Google Maps. It allows the user to define priorities and scheduling rules and will take those into account in its computations. It also allows users to define alerts, such as a technician being stuck in traffic or a missed SLA because a technician wasn’t able to make the repair during the first visit. This not only allows the user to escalate the issue, but notify a customer when a technician might be late or unable to make the repair in the estimated time. (This, of course, goes a long way to keeping the customer satisfied as they know the service provider is working on the problem and keeping them up to date.) Furthermore, the scheduling engine is very effective in both its production and automatic update of schedules in real-time. In some deployments, the default schedules are usable as is by Servigistics’ customers, who include multi-billion dollar global enterprises (like Dell), as much as 98% of the time.

The view engine contains your classic GANTT chart view with drill down for details into specific tasks, but also supports map views with multiple filter options based on time period, priority, job type, and technician, among other factors. In addition, the job indicators can be color coded based on priority, whether or not they have been completed on time, or technician. This allows a support representative to quickly find jobs that might need to be escalated or reassigned. Finally, it allows jobs to be displayed in a grid, with user-defined detail columns.

The solution also supports multiple built-in report types and trend computations on multiple built-in dimensions such as resolution time, tickets closed, technician utilization, and overall performance. In addition, the solution integrates with their Command Center, their Knowledge Management Solution, and their Mobility Solutions which allows technicians to be more productive and keep their home office up to date on the status of the current service call.

Considering their success at a number of global multibillion dollar companies across IT, telecommunications, manufacturing, and automotive verticals, among others, and their recent updates in the real-time scheduling and mobility domains, it’s certainly worth a look if service is a large part of your offering.

Fill Your Gas Tank with Coupa e-Procurement

These days, prices at the pumps are on everyone’s mind – consumer and business owner alike. And whether you’re a 3PL or a call center, your business depends on gas. Just like a 3PL will go under if it can’t afford to keep the fuel tanks in its fleet full, so will your business if your employees can’t afford the gas they need to get to work and you can’t afford to help them offset their transportation costs. But how are you to do that if everything else is going up in cost as well?

These days, the only way many businesses can consistently keep their costs down is to use e-Procurement – which has been found to lower an average organization’s costs by 4.8% (according to a recent Aberdeen study). But if you’re a small business, or even a smaller mid-size business on a limited budget, chances are you just don’t have the cash for the solutions offered by the self-proclaimed market leaders. (Ariba and Ketera, if you’re wondering.) But all is not lost – because there’s Coupa, the first e-Procurement platform for the mass market that any organization can afford. (Not just the Fortune 3000!) A true on-demand SaaS platform that takes advantage of Amazon’s cloud computing to keep prices as low as they can go, prices start as low as $295/month or $3540/year! Chances are that’s less than you’re paying Microsoft annually for it’s bloated, unstable, operating system that you run your business on – and within the reach of even the smallest of operations!

There’s no better time than now to investigate Coupa, who just today rolled out their latest update. On their seventh release (since their initial launch in July 2006), the platform is now well rounded for buyers, suppliers, and administrators alike – and still easier to use than Amazon.com. (Let’s put it this way, if Amazon truly was “one-click”, Coupa would be “no-click”.) Their search functionality now supports lists and gallery views and sorting by supplier, price, and relevance. Their form-based ordering now allows for “requisition copy” for instant re-ordering. You can now receive notification of approvals (which can be done by system administrators through e-mail) in real-time through your Instant Messenger client! And their checkout is still a marvel in simplicity – everything that can be pre-populated (such as shipping, billing, and receiving information) already is, and most of the time all you have to do is click “submit”! And, unlike many other systems out there (including the B2C leaders) if you have to order multiple items that require different billing information, whereas most systems would force you to create multiple orders, with Coupa, you can choose to specify billing at the line item level. And if only a few items require special billing information, you only have to specify the information for those items. Default billing information will be automatically populated for all of the other items.

It’s all based on Coupa‘s philosophy that no piece of data should need to be entered twice – ever – a philosophy that is even extended to suppliers. (A philosophy that the doctor wishes more software companies would wrap their head around and stop wasting time building flashy Cadillac UI’s to mask their problematic Model-T Ford engines.) With Coupa, your supplier can automatically generate an invoice off of your purchase order with a single click, and they only need to enter information (such as shipping, billing codes, etc.) not available on the purchase order. Considering that the vast majority of EIPP systems only allow for electronic submission of a supplier invoice, this is a huge benefit. Millions, if not Billions, of dollars are lost annually due to invoicing errors – which are easily prevented when the supplier does not have to re-key in data, as every keystroke increases the chance of an error. Furthermore, Coupa supports standard catalog formats and “punch out” (and has over 2300 suppliers already enabled in its system), so the chances of a pricing error are greatly reduced as the supplier does not have to create a separate price list for every client for off-contract goods and services (and only has to create one price-list for on-contract goods and services, and never has to re-key pricing on an invoice).

But most importantly, because it’s 100% hosted, Coupa does not require anything besides the browser already sitting on your employee’s desktop. Furthermore, since it supports the creation of buying policies during set up, it’s essentially 100% touch-less buying from an administrative point of view. You don’t need any IT resources. You don’t need your approvers double checking every order to see if every good or service is on contract and at the contracted price (because you can set the system up to only allow on-contract purchases at contract prices without authorizations), and you can eliminate manual review of all purchases that represent normal business conduct (by setting up regular purchases and rules for what purchases require approval and human intervention and what purchases don’t).

And you can take comfort in the fact that as good as Coupa is today, it’s only going to get better with time! Between July 2006 and May 2008, Coupa had 7 major releases and over 13 updates! That’s at least 3 releases and 6 updates a year! And when you consider that they were

  • the first open-source e-Procurement platform
  • the first e-Procurement platform built for the mass market
  • the first mass-market e-Procurement platform built as SaaS from the ground up
  • the first supply chain platform to use Amazon cloud computing
  • the first e-Procurement platform to offer a free 30-day trial
  • the first, and still only, e-Procurement platform to offer drag-n-drop shopping
  • the first, and still only, e-Procurement platform to include “how to buy” policy support
  • the first e-Procurement platform that allows employees to contribute feedback

and that

  • the rate at which spend through the platform doubles decreases every quarter (it’s now down to 25 days)
  • the supplier count is exploding month over month (over 2300 connected suppliers and climbing fast)
  • the average “go-live” time for a new client is decreasing by the quarter (average is now 17 days to get the system fully configured for “touchless” buying and the suppliers who represent 80% + of your business enabled)
  • the average update has 100’s of improvements … and over a dozen new features
  • it also comes with extensive reporting for finance, logistics support, and even basic inventory management capabilities … with new functions being added every major release

you just can’t go wrong giving it a try if you’re an average small or mid-size business. (Especially since it has a free 30-day trial!)

And chances are, with Coupa, you’ll save enough to keep that gas tank full, even when everyone else is running on empty.

the doctor’s Guest Posts: The Year in Review II

Since last year’s summary of my guest post contributions (in June), I’ve blogged a number of guest posts over on eSourcing Forum [WayBackMachine] as well as authored or co-authored a significant number of wiki-papers over on the eSourcing Wiki. I’ve also contributed articles to the EyeForProcurement monthly newsletter as well as Efficient Purchasing.

e-Sourcing Forum

December 2007 to June 2008

Regulations Unlimited
Strategies for Supply Chain Finance
Customs & Security
The Seven Scruples of a Sourcing Sensei
Discovering Your Leverage Points
Seven Risk Mitigation Strategies You Can Do With Smart Optimization
If it ain’t Multi-Tenant, then it ain’t got SaaS (co-authored with David Bush)
Not All Free Trade is Equal
Best Practice Freight Bidding
CSI: Corporate Social Irresponsibility
Critical Skills of Supply Chain Leaders
Devising an RFP That Works
Core Capabilities of Supplier Enablement
Is it Center of Excellence or MindSet of Excellence
Successful GPOs Are About Value, Not Cost Savings
Don’t Swing the Wrecking Ball Unless You’re Prepared for the Falling Debris
Can you really afford to leave Millions on the table?
Are You Managing Your Talent Chain?

June 2007 to December 2007

Supplier Enablement
Confucious eSourcing Project Management Tips
Brunswick Corporation’s e-Auction Best Practices
Collaborative Negotiation
Seven Tips for SaaS Selection
Incentives Motivate
Optimal E-Tool Selection
Five Ways to Take Your Sourcing to the Next Level
A Global Trade Primer
Applications of Spend Analysis
The Benefits of Purchasing Consortiums
Optimization is the Future And The Future is Now
Some Low Cost Country Sourcing Insights
Twelve Steps to Purchasing Program Predominance
Ten Tips for Talent Retention
A Case for E-Sourcing and E-Procurement Integration
Nine Steps to e-Procurement Success
Key Challenges of Tomorrow, Part II
Key Challenges of Tomorrow, Part III
Ten Common Negotiating Mistakes

Articles

Why aren’t you optimizing?, Efficient Purchasing Issue 5, Fall 2007

Why Aren’t You Optimizing Your Sourcing Decisions? EyeForProcurement August 2007 Newsletter