GlobalB2B-SupplyChainServicesMakingCompaniesFamousforSupplyChainExcellenceThrivinginchallengingeconomictimesrequiresflexibility.Buildingarobustsupplychainthatintegratesflexibilityintoyoursystemsandprocessesenablescompaniestoadjusttomarketconditions.TheNetworkedValueChainsm(NVCsm)isCGE&Y’ssolutionframeworkforbuildingmoreadaptivesupplychains.Tailoredtoeachclient’sspecificneeds,thisbusinessintegrationmodelisbuiltuponkeysupplychainandcustomerrelationshipmanagementprocesses.TheNVCsmmulti-tieredarchitectureenablescompaniestocollaboratewithbusinesspartnersatsignificantlyincreasedvelocity,whilegrowingabroader,moreloyalcustomerbase.Italsointegratesmultipleanddisparatesupplychainstodeliverdifferentiatedproductsandservicebundlestocustomers.Fromstrategythroughimplementation,NVCsmcontributesimprovedvisibilityofprod-uctandinventory,bettermanagementofdemandvariabilityandincreasedprof-itablevolumethroughthesupplychain.Inthe1980s,first-generationsupplychainsfocusedonfunctionalexcellence.Intheearly1990s,second-generationsupplychainsmovedtoatransaction-basedapproach.Today,networkedvaluechainsdemandnewwaysofthinking,involvingintegrateddecision-makingbetweentradingpartnersandeventhecollaborationofcompetitorstomakejointdecisions.Thisthirdgenerationofsupplychainexcellencedeliversmaximumsupplychainyieldsothatrevenueandprofitsincreaseandshareholdervaluegoesup.Tosupportthispointofview,B2Bexchangesconnectanorganization’sentireecosystemofsuppliers,partners,andserviceproviderstooptimizetheextendedsupplychain.Tohelpcompaniesaccomplishthisintegration,CapGeminiErnst&Young(CGE&Y)adoptsinnovativecapabilities,suchas: CollaborationPlatforms GlobalVisibility DynamicPricing IntegratedSupply/DemandManagement SuppliereHubsNetworkedValueChains:TheNextGenerationofSupplyChainExcellence1Overthelastyear,someofthemostdramaticbusinessdevelopmentsweretheexplosionoflarge-scalebusiness-to-businessdigitalmarketplaces,theshiftofpowerfrommanufacturersandsupplierstocustomers,andthedownturnoftheeconomyfromthedot.comdemise.EvenwiththefailuresandmoneytroublesofsomeB2Bmarketplaces,digitalexchangeshaverapidlytransformedthewayindustriesoperate,removedgeographicbarriers,andcreatednewchannelsofcustomeracquisitionandintegration.Inaddition,productsarenolongerpushedthroughthesupplychain.Theyarepulledbycustomerswhoarelesspatientandwhodemandincreasinglycomplexbundlesofproductsandservices.B2Bandsupplychainsolutionsarenolongerjustaboutreducingcosts.Theyhavebecomeprimarydriversforimprovingthecompetitivenessofanenterpriseintheconnectedeconomy.LeadersineverymarketsectorarerespondingtonewbusinesspressuresbyincreasingagilityandrevenuegrowththroughnewB2Bandsupplychainmanagementapproaches.CapGeminiErnst&Youngcreatesadaptive“networkedvaluechains”usingB2Btechnologiestoconnectbusinesspartnerssothatcompaniescansuccessfullyevolveintoday’schangingmarket..THESUPPLYCHAINEVOLUTIONFigure1:Inrecentyears,companiesfocusedonimprovingsupplychainefficiencythroughfunctionalexcellenceandintegrationwithlongturnaroundtimes.Today,thefocushasshiftedandnetworkedvaluechainshelpcompaniesrespondto,andinfluencecustomerdemand,baseduponsupplyavailabilityinrealtime.1980s1990sTodayFunctionalIntegratedNetworkedDimensionExcellenceSupplyChainsValueChainsIntegrationFocusOvertheWallTransactionalDecisionOrganizationFocusDepartmentalIntra-EnterpriseExtendedEnterpriseManagementApproachHierarchicalCommand/ControlCollaborativeTechnologyFocusPointSolutionERPWebConnectedPerformanceFocusCostCostandServiceRevenue&ProfitTimeFocusMonthstoWeeksWeekstoDaysRealTime“CapGeminiErnst&Youngwasranked#1inIDC’srecentreportonthe‘Top10SupplyChainServiceProviders’basedonworldwiderevenuesin2000.Mostofthetoptenwereabletocaptureamarket-leadingpositionbyaddingemerging,high-growthB2BeCommerceservicecapabilitiestotheircoresupplychainmanage-mentcapabilities.WorldwidedemandforSCSwas$23.1billionin2000andisexpectedtogrowto$82.8billionby2005.”IDCBulletin#B24695TheTop10WorldwideSupplyChainServicesProvidersAnalysts:TingPiper,LeoJ.Lipis,Ph.D.,andNellyZaharinovB2BMARKETPLACES:Creating,BuildingandConnectingforSuccessOrganizationswithflexiblenetworkedvaluechainscanactuallytakeadvantageofthespeedandvisibilityofaB2Bexchange.Notonlycanacompanytrackcurrentactivities,buttheycanalsochangethewaytheyinteractwithtradingpartners.Procurement,customerservice,supplychain,andnewproductdesigncannotberuncompetitivelytodaywithoutERP.TomorrowitwillbeB2Bmarketplacesthatbecomeindispensable.B2Bmarketplacesoffernewavenuesforprofitabilitythroughreducingcostsandincreasingrevenues.Somebusinessessponsorpublicexchangestogainnewmarketefficienciesandliquidity.Apublicmarketplaceisamany-to-manyexchangemadeupofagroupofindustryleadersthatcometogethertoprovidecollaborativeproductdevelopment,procurementandsupplychaintools.Forexample,CovisintisanexchangedevelopedbyDaimlerChrysler,Ford,GeneralMotors,NissanandRenaulttoenableOriginalEquipmentManufacturers(OEM’s)andsupplierstoreducecostsandbringefficienciestotheirbusinessoperations.Othercompaniesbuildprivatemarkets,one-to-manyexchangeseachrunbyasi