B2B INTEGRATION IN THE CHEMICAL INDUSTRY · PDF fileB2B INTEGRATION IN THE CHEMICAL INDUSTRY...

B2B INTEGRATION IN THE CHEMICAL INDUSTRYBalancing customer responsiveness and internal

CREATING TOMORROW'S SOLUTIONS

Balancing customer responsiveness and internal standardization over the past 10 years and in the futureDaniela Huber, Wacker Chemie AG and Simon Hardy, Elemica29 September 2011

B2B INTEGRATION IN THE CHEMICAL INDUSTRYBalancing customer responsiveness and internal Balancing customer responsiveness and internal standardization over the past 10 years and in the futureDaniela Huber, Wacker Chemie AG and Simon Hardy, Elemica

AGENDA

• WACKER Company Profile

• 2002 - Early days of E-Business at WACKER• 2002 - Early days of E-Business at WACKER

• 2007 - Customers demand more flexibility

• How Elemica keeps pace with their clients’ requests

• 2011 - Going beyond “real” connectivity

• The future

B2B Integration in the Chemical IndustryDaniela Huber, Wacker Chemie AG and Simon Hardy, Elemica, 29 September 2011, Slide

Business at WACKERBusiness at WACKER

Customers demand more flexibility

How Elemica keeps pace with their clients’ requests

Daniela Huber, Wacker Chemie AG and Simon Hardy, Elemica, 29 September 2011, Slide 1

PRODUCTS AND SOLUTIONS FOR KEY GLOBAL SECTORS

• WACKER is a technology leader in the chemical and semiconductor industries.

• We forge ahead with technical innovations and the

• Automotive & transport

• Construction

• We forge ahead with technical innovations and the development of new products for the world’s key industries.

• We offer solutions and innovations for a broad range of sectors.


• Construction

• Energy, electronics

• Coatings & Adhesives

• Elastomers, plastics

• Life science

PRODUCTS AND SOLUTIONS FOR KEY GLOBAL SECTORS

WACKER is a technology leader in the chemical and semiconductor industries.

We forge ahead with technical innovations and the

Automotive & transport • Paper, films & NIP

Construction • Photovoltaics

We forge ahead with technical innovations and the development of new products for the world’s key industries.

We offer solutions and innovations for a broad range of sectors.


Construction • Photovoltaics

Energy, electronics • Textiles, leather & fibers

Coatings & Adhesives • Semiconductors

Elastomers, plastics • Consumer care

Life science etc.

Wacker Chemie AG

OVER 90 YEARS OF SUCCESS

• Founded in 1914 by Dr. Alexander Wacker • Headquartered in Munich

WACKER Group

• Headquartered in Munich

• Sales:

• EBITDA:

• R&D:

• Investments:


• Employees:

Wacker Chemie AGFounded in 1914 by Dr. Alexander Wacker Headquartered in Munich

WACKER Group (2010)

Headquartered in Munich

€4.75 billion

EBITDA: €1.2 billion

€165 million

Investments: €695 million


Employees: 16,314

TECHNICAL AND WACKER ACADEMY CENTERS:GLOBALLY PRESENT AND CLOSE TO CUSTOMERS

BurghausenPortland

Adrian

Dubai

Moscow

Jandira

NünchritzAllentown

Mumbai

Freiberg


Technical Centers

Technical Center with

TECHNICAL AND WACKER ACADEMY CENTERS:GLOBALLY PRESENT AND CLOSE TO CUSTOMERS

• Global coverage via worldwide network

Shanghai

Melbourne

Singapore

Beijing

Hsinchu

KolkataHikari

AkenoSuwon

ShundeMumbai

network

• Local support for our customers

• Ideal platform for advanced training and industry-specific networking


Melbourne

Technical Center with

networking

• Promotion of innovations and know-how transfer

AGENDA






• The future






IN 2002 WACKER OFFERS TWO DIFFERENT ECHANNELS

CUSTOMER STRUCTURE

• many different industries

INTERNAL REQUIREMENTS

• many different industries• customer size varies from small

businesses to big multi national groups

• various business processes• different levels of e-procurement

capabilities


• standard processes• one global solution• low efforts for maintenance

IN 2002 WACKER OFFERS TWO DIFFERENT E-BUSINESS

STRATEGIC APPROACH

Offer two e-business channels depending Offer two e-business channels depending on customer’s size and ability:

Classic web-shop for every customer that is willing to use it

Process integration


Process integration for multi-national chemical companies and distributors

WACKER JOINS ELEMICA BECAUSE OF THE “CONNECT ONCE – CONNECTED TO ALL” APPROACH

vs.

1:1 connectivity


WACKER becomes Elemica Member in 2002

WACKER JOINS ELEMICA BECAUSE OF THE CONNECTED TO ALL” APPROACH

Connected once –connected to all


WACKER becomes Elemica Member in 2002

EFFICIENT CUSTOMER ROLL-OUT WITHIN THE FIRST YEARS

• Elemica offers two basic connectivity models depending on customer’s IT infrastructureinfrastructure

• All ChemXML messages for the orderto-cash process are implemented:

order, order response, order change, ASN, invoice

• Only one interface and messaging standard to maintain at WACKER

• Easy on


• Easy on

• Elemica business rules form the basis for standard processes

OUT WITHIN THE FIRST

Elemica offers two basic connectivity models depending on customer’s IT infrastructureinfrastructure

All ChemXML messages for the order-cash process are implemented:

order, order response, order change, ASN, invoice

Only one interface and messaging standard to maintain at WACKER

Easy on-boarding of new partners


Easy on-boarding of new partners

Elemica business rules form the basis for standard processes

•

CASE STUDYUSING ELEMICA WITH DISTRIBUTORS

“The system saves time and

•

•


“The system saves time andreduces complexity and errors.”Cindy Bader, Brenntag Great Lakes,Materials Management Group

Brenntag is Wacker’s largest distributor in the Americas

USING ELEMICA WITH DISTRIBUTORS

distributor in the Americas

In the US three WACKER locations deliver materials to 7 Brenntag regions

All order transactions were automated


AGENDA






• The future






IN 2007 THE ELEMICA CONNECTIVITY MODELS ARE NOT SUFFICIENT TO FULFILL CUSTOMER NEEDS

Messaging Standards used by Germany‘s Top 100 EDI companies

Inhouse18%

XML29%

EDIFACT85%

Others45%


29%

VDA 61%

Source: Cross Automation Champion 2006

IN 2007 THE ELEMICA CONNECTIVITY MODELS ARE NOT SUFFICIENT TO FULFILL CUSTOMER NEEDS

STATUS OF PROCESS INTEGRATION AT WACKER

• Connections with all major Elemica members and distributors established

• Focus on customers outside the chemical industry

• EDIFACT is still the predominant messaging standard

• Switch to ChemXML and becoming Elemica member does not add value


Elemica member does not add value for many customers

• Target to expand Elemica connections to Japan

ELEMICA OFFERS A SOLUTION TO COMBINE PROCESSES FROM THE AUTOMOTIVE AND THE CHEMICAL INDUSTRY

AUTOMOTIVE INDUSTRY

regular delivery forecast messages

Replenishment Solution


Solution

ELEMICA OFFERS A SOLUTION TO COMBINE PROCESSES FROM THE AUTOMOTIVE AND THE CHEMICAL INDUSTRY

CHEMICAL INDUSTRY

new ordernew order

order change

Replenishment Solution


Solution

WACKER JAPAN SETS A TARGET OF 50% E

Situation in Japan Solution

• Limited number of customers

• High amount of order lines

• Short lead times

Akeno

Elemica Buyer Direct

• Does not require advanced IT infrastructure at the customer

• Direct feedback to


• Short lead times

• Quick order entry and fast feedback to customers is crucial

• Direct feedback to the customer that the order was transmitted

• Order response email with details

WACKER JAPAN SETS A TARGET OF 50% E-BUSINESS

Solution Result

Elemica Buyer Direct

Does not require advanced IT infrastructure at the

Direct feedback to

• high acceptance at the customer because of Elemica’s local support

• quick onboarding of the first customers


Direct feedback to the customer that the

transmitted

Order response e-mail with details

first customers

• 50% share of orders via Elemica was reached at the beginning of 2011

WITHIN SHORT TIME ELEMICA OFFERS THE RIGHT CONNECTIVITY OPTION FOR EVERY CUSTOMER

Elemica connectivity / Elemica Buyer directChemical Industry

Elemica Buyer direct with local support in Asia

Connection via another HUB

Replenishment solution

EDI connectivityConstruction Industry

Tire&RubberIndustry

Japanesecustomers

Automotive Industry


�only one external interface must be maintained at WACKER�only one message format must be supported�SAP processes do not need to be changed

Elemica Buyer direct with local support in Asiacustomers

WITHIN SHORT TIME ELEMICA OFFERS THE RIGHT CONNECTIVITY OPTION FOR EVERY CUSTOMER

Elemica connectivity / Elemica Buyer direct


Connection via another HUB


only one external interface must be maintained at WACKERonly one message format must be supportedSAP processes do not need to be changed


AGENDA






• The future






• Founded by the chemical and tyre and rubber industries

• Greater than $70 Billion of

ABOUT ELEMICA

• Greater than $70 Billion of transactions handled annually through Elemica Solutions

• Global presence with offices in Atlanta, Amsterdam, Frankfurt, London, Seoul, Shanghai, Singapore, and Tokyo. Global Headquarters in Exton, Pennsylvania. Pennsylvania.

• More than 3,000 companies connected through the QuickLink™ network supporting a wide range of industries


QuickLink™ network supporting


� Process Integration requirements are met with Elemica's SmartLink™ Supply

ELEMICA’S PRODUCT PORTFOLIO: QUICKER AND SMARTER

Elemica's SmartLink™ Supply Chain Solutions

� Data Integration requirements are met with Elemica’s QuickLink™ Network

� We harmonize both Process and Data Integration


Elemica's SmartLink™ Supply

ELEMICA’S PRODUCT PORTFOLIO: QUICKER AND SMARTER

Elemica's SmartLink™ Supply

Data Integration requirements


• For customer service and sales organizations. The Customer Management Suite

SMARTLINK™ PRODUCT SUITES: PROCESS INTEGRATION

Customer Management Suite will:

• Improve day to day supply chain service & reliability

� Increase the “perfect order "percentage

� lower the cost of errors

• Increase asset utilization• Increase asset utilization

• Reduce customer invoice errors – enabling you to get paid sooner




• Customer Management Products Include:


• Sales Order Management

• Invoice Management

• Vendor Managed Inventory

• Delivery Forecast

• Repeat Order Entry• Repeat Order Entry

• Rail Car Fulfillment

• Certificate of Analysis (CoA)




QuickLink ERP ™

QUICKLINK™ CONNECTIVITY: FOR ALL SUPPLY CHAIN PARTNERS

Buyers of:- Raw Materials- Logistics Services- MRO products


QuickLink Email™ and QuickLink Print ™

QuickLink ERP ™

QUICKLINK™ CONNECTIVITY: FOR ALL SUPPLY CHAIN

Sellers:

- Chemical Companies- Service Providers- Equipment Sellers


QuickLink Portal ™

AGENDA






• The future






QUICK LINK E-MAIL IS CLOSING THE GAP BETWEEN WEBSHOP AND PROCESS INTEGRATION

WACKER INTERNET WEBSHOP WACKER INTERNET WEBSHOP

GAPELEMICA QUICKLINK E


ELEMICA INTEGRATED ORDER PROCESSING

MAIL IS CLOSING THE GAP BETWEEN WEBSHOP AND PROCESS INTEGRATION

WACKER INTERNET WEBSHOP WACKER INTERNET WEBSHOP

ELEMICA QUICKLINK E-MAIL


ELEMICA INTEGRATED ORDER PROCESSING

QUICK LINK ROLL-OUT PROJECT AT WACKER

• 30 customers connected in the first 6 months (Europe and US) with the QuickLink EQuickLink E

• Quick and efficient rollfrom Elemica

• Almost no changes in the customer’s ordering process needed

• Customers are only involved at a very late stage during testing

• First mapping for orders with Chinese


• First mapping for orders with Chinese characters was completed successfully

OUT PROJECT AT WACKER

30 customers connected in the first 6 months (Europe and US) with the QuickLink E-Mail solutionQuickLink E-Mail solution

Quick and efficient roll-out support from Elemica

Almost no changes in the customer’s ordering process needed

Customers are only involved at a very late stage during testing

First mapping for orders with Chinese


First mapping for orders with Chinese characters was completed successfully

AGENDA






• The future






THE FUTURE


Coming together is a beginning; keeping together is progress; working together is success.

(Henry Ford)


Coming together is a beginning; keeping together is progress; working together is success.

(Henry Ford)

QUESTIONS?

Simon HardyKey Account Director

Elemica


Elemica

E-mail: [email protected]

Daniela HuberE-Business Manager

Wacker Chemie AG


Wacker Chemie AG

E-mail: [email protected]

THANK YOU FOR YOUR ATTENTION.


THANK YOU FOR YOUR ATTENTION.


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