1. E -THEMATIC THEMATIC NETWORK ON E-FULFILMENT Steering Committee Meeting Berlin, 1 April 2004

2. AGENDA

3. PRESENTATION OF PARTICIPANTS

4. MEETING OBJECTIVES Presentation of interim results of cluster work Creation of synergism with related RTD projects and national activitities Determination of future e-Thematic workplan

5. PRESENTATION OF THE E-THEMATIC NETWORK

6. E-THEMATIC Addresses the area of e-Logistics, focusing specifically on e-Fulfilment 3-year project: July 2002 - July 2005 Funded by European Commission Directorate General for Information Society as part of the 5th Framework Programme for Information Society Technologies

7. E-THEMATIC PARTNERS Project Coordinator: Dissemination Coordinator:

9. NETWORK OBJECTIVES Platform to exchange know-how and enhance discussion amongst e-Fulfilment stakeholders, regarding innovative technologies, research results, policy developments and commercial activities

10. STRATEGIC OBJECTIVES Make policy recommendations regarding future European research in the area of e-Fulfilment Identify emerging applications and technologies Identify good practice examples from the industry and the research sector Provide an information base regarding e-Fulfilment (www.e-thematic.org)

12. Traditional Business Models Enterprise Information silos with access limited to select few Lack of universal access to relevant information Duplication of effort

13. E-Business models Higher customer satisfaction Lower costs Competitive agility Accelerated time to market Higher employee efficiency Enterprise

14. Some examples Source: www.cisco.com Traditional Business Inefficiencies Removed Trend Setters

15. Traditional Logistics vs. Supply Chain Management Source: Buck Consultants International, 2002 “E-logistics is a natural outgrowth of the e-commerce revolution, ultimately providing access to true, rather than forecasted supply and demand information” (businessweek.com, 2002)

16. Supply Chain Focus Supply-side Demand-side Suppliers Manufacturers EnterpriseDistributors Customers 1980’s - 1990’s: Quality & Price Some problems: focus only on physical movement of goods mismatch between supply and demand (customer demand not met) information bottlenecks and functional silos

17. Supply Chain Focus Supply-side Demand-side Suppliers Manufacturers EnterpriseDistributors Customers End 1990’s - present: Customer Focus Today’s Firms need to... reorganise their supply chain processes to operate around real time information about customer needs and their own production and delivery capabilities. This entails… simultaneously managing cross-organisational information and material flows in order to source, manufacture and deliver products and services better, faster and cheaper.

18. Definition E-Fulfilment defines that part of e-Business, which aims at efficiently and effectively integrating a company’s back-office processes, activities and functions, arising from order capture through to final delivery to the customer.

19. E-Fulfilment Process Stock Verification Logistics Internet-enabled Front office Back office Sales&Marketing Financial Verification Finance Order capture Order management Order release Order delivery Custome r

20. Scope of e-Thematic Actors: – Companies with online retailing presence (dot-com, brick&mortar, bricks&clicks) – Application providers – Customers Related activities: – Order management, customer service, shipping, inventory management, electronic billing, warehousing – The scope of e-Thematic does not include manufacturing, procurement and reverse logistics

21. Almost 78% of Dell’s revenue comes from internet-sales via www.dell.com. Dell’s internet pages offer: online ordering; product configuration; real-time order tracking; invoicing; technical documentation; and other services. An Example: DELL

22. REVIEW OF E-THEMATIC WORK WHERE ARE WE NOW? CLUSTERING ACTIVITIES REVIEW OF DELIVERABLES INTERIM RESULTS STATE-OF-THE-ART CASE STUDIES

23. Approach Collecting general information Defining e-Fulfilment related themes and issues Standards Defining RTD-gaps

24. Clustering activities 2 clusters/working groups 3 themes per cluster Applications&Technologies Good practices EU-US cooperation Applications&Technologies Good practices EU-US cooperation B2BB2C

25. Applications & Technologies Inventory of the technologies and applications available on the e- Fulfilment market today and the challenges for the future Good Practices Analysis of business cases and ongoing and finalised European RTD to help setting priorities for future research strategies EU-US cooperation Analysis of the e-Fulfilment market in the US compared to the EU. Clustering activities

26. Overview of Deliverables

27. Clustering report 1. Defining e-Fulfilment 2. Some key issues in e-Fulfilment 3. Overview of European RTD 4. Good practice examples Some e-Definitions

28. State-of-the-Art report 1. Setting the stage 2. B2B and B2C markets 3. Organisations, Applications and Technologies 4. Integration: Software, Standards and Technology 5. Emerging technologies 6. Bottlenecks and RTD-proposals Questionnaires Company database

29. Company Database Database entries and analysis on – B2C organisations in food, clothing, books, lifestyle and electronics (approx. 100 sites) – B2B exchanges (approx. 100 sites) – Logistics/e-fulfilment providers (19) – Unattended delivery Solutions (5)

30. Advantages of e-Business for SCM Transparency Real-Time Management

31. Advantages of e-Fulfilment for SCM Customers are becoming virtually in command. Demand sensitivity and business agility are coming within reach. Supply-side Demand-side Supply Chain Suppliers Manufacturers EnterpriseClients Distributors focus e-THEMATIC

32. Advantages of e-Fulfilment for SCM

33. An example: CISCO SYSTEMS In 2003, Cisco saved US$2.1 billion by relying on InternetUS$2.1 billion

34. What is REALLY happening Few companies have applications in place that cover entire e-Fulfilment process (eg. Dell, Amazon,...) Currently available e-Fulfilment packages generally lack integration with existing software suites

35. Need for end-to-end e-Fulfilment solutions

36. Bottlenecks Available Applications not ready to support complex B2B trading relationships (some vendors are emerging) Integration with third party systems requires dedicated development and/or enterprise integration Numerous communication standards (EDI, ebXML, Rosettanet, UDDI,….)

37. Bottlenecks Privacy and Security concerns arising from integrating and exposing systems to outside partners Cost of Integration can be anything between €20,000 - €150,000 Restructuring of a firm’s warehouse and transport systems often required when moving from traditional SCM to e-Fulfilment

38. AREAS FOR DISCUSSION

39. Future RTD Standardisation of connectivity Build-up of further information on good practices in e- Fulfilment How to lower barriers to entry and opportunity costs? E-Fulfilment benchmarking Last mile logistics

40. Proposed Workplan Expand company database e-Fulfilment questionnaire (focus on quantitative results) Focus group meeting Expand website Promote e-Thematic

41. DISCUSSION

42. COFFEE BREAK

43. PRESENTATION OF RTD PROJECTS

44. PRESENTATION OF NATIONAL ACTIVITIES

45. DISCUSSION

46. CONCLUSIONS

47. Contact information Project CoordinatorKarel Vanroye Buck Consultants International karel.vanroye@bciglobal.com Tel: +32 (0)2 709 77 50 Dissemination ManagerJacob Bangsgaard ERTICO – ITS Europe j.bangsgaard@mail.ertico.com Tel: +32 (0)2 400 07 00