Current Supply Chain Integration Strategies May Fail to Enable True Collaboration, According to New Research

Global Organizations Demand Easy, Fast, Flexible Integration Yet Struggle With B2B Integration Projects Within Trading Partner Networks

FOSTER CITY, Calif.--()--E2open, the leading provider of cloud-based supply chain management solutions, today announced that, according to a 2010 research survey conducted by GatePoint Research, supply chain integration strategies may fail to enable true collaboration.

The GatePoint Research study, themed “Real-Time Visibility and Control with B2B Managed Services,” surveyed supply chain executives and found that today’s large trading partner communities are increasingly outsourced, leading to high demand for fast, flexible, and cost-effective integration. However, as global B2B integration projects grow in size, they are often hindered by slow and complex onboarding of trading partners and therefore lack effective community management capabilities.

Research shows executives are placing a growing importance on effective B2B integration with lower total cost of ownership (“TCO”) as the number one driver. Other drivers included improved data quality and timeliness and effective trading partner community management. Specifically:

  • Over 70 percent of responders indicated commitment to backend integration and supply chain and B2B connectivity.
  • 70 percent of responders cited significant challenges with their current B2B programs—top among these included high TCO and slow and complex onboarding of trading partners.
  • 82 percent of responders recorded having more than 100 members in their supply chain communities, and 55 percent had over 500 members.

The global organizations surveyed represent businesses with some of the world’s largest and most complex trading partner communities:

  • 62 percent were companies with more than 500 trading partners
  • 78 percent were companies with more than 200 trading partners
  • 42 percent were companies with 100% in-house B2B connectivity
  • 70 percent were companies with less than 25 percent outsourced B2B connectivity

Research data indicates a significant market opportunity for B2B integration outsourcing, which provides the staff, bandwidth, software, and hardware resources needed to quickly integrate with customers and suppliers in real time.

E2open B2B Managed Services provides complete enablement of the trading partner community with significantly lower TCO and a predictable cost model. The technical infrastructure, staff, program management, and onboarding methodology required to execute and maintain an efficient B2B program are all included. Finally, with a network of more than 50,000 trading partners, E2open’s cloud-based offering provides one of the largest trading partner communities for today’s businesses, providing turnkey integration with existing business process networks.

“Global businesses today are under more pressure to cut costs and improve service levels than ever before,” said Mark Woodward, President and CEO of E2open. “An intelligent, industry-proven B2B integration program is one of the ways industry-leading companies are accomplishing these seemingly incongruous goals. With E2open B2B Managed Services, we are able to provide our customers with an out-of-the-box solution that offers rapid time to value and takes the frustration and risk out of trading partner integration.”

The GatePoint Research survey was conducted between February and April of 2010. Of the responders that participated in the survey, 97 percent were employed by global companies with greater than $1 billion in revenue; 35 percent represented companies with $10 billion and over in revenue. The responders were senior-level executives from a variety of industries, with 87 percent working at the director level or above, and 31 percent working at the VP level or above.

About E2open

E2open is a leading provider of cloud-based supply chain management solutions. The company provides software and services that enable visibility, collaboration, and control across large trading partner networks. Brand owners and global manufacturers with complex supply chains use the company’s B2B integration services and supply chain business process management solutions to maintain optimal alignment of supply and demand for lower costs and better service. By enabling complete transparency and performance management across the extended network, E2open also ensures that trading partners comply with both quality and environmental regulations. E2open customers include The Boeing Company, Celestica, Cisco, Dell, Hitachi, IBM, LSI Corporation, Motorola, Panasonic, Seagate Technology, and Vodafone. Headquartered in Foster City, California with operations worldwide, E2open is recognized by Gartner Research as a leader among SaaS integration service providers. For more information, visit www.e2open.com.

Contacts

E2open
Kate Zeigler, 650-645-6569
Marketing Communications Specialist
kate.zeigler@e2open.com
or
Point Communications Group
Stacey Collins Burbach, 415-310-9767
sburbach@pointcgroup.com

Release Summary

E2open today announced that, according to a 2010 research survey conducted by GatePoint Research, supply chain integration strategies may fail to enable true collaboration.

Contacts

E2open
Kate Zeigler, 650-645-6569
Marketing Communications Specialist
kate.zeigler@e2open.com
or
Point Communications Group
Stacey Collins Burbach, 415-310-9767
sburbach@pointcgroup.com