Your e-solution for universal supply-chain connectivity
The Problem: Streamline operations
vs. alienate valuable suppliers?
In today's competitive markets, the need for operational efficiency can sometimes seem at odds with the need to build and maintain strong relationships, particularly with your company's suppliers.
Universal electronic connectivity with suppliers can help reduce administrative costs resulting from manual, paper-intensive processes within accounting, logistics and purchasing and eliminate errors in the purchase order process. However, this needs to be accomplished without forcing suppliers to incur significant investments in information technology.
An additional challenge is the wide range of supplier connectivity capabilities. Some suppliers utilize EDI or other e-commerce systems; others prefer traditional purchasing processes.
- 30% or less of a company's supplier base (the largest suppliers) are likely to have EDI capability.
- Companies often maintain another set of processes to support the remaining 70% of the supplier community, which means time, money and resources that could be better spent on other initiatives.
- Most suppliers want a solution that offers them full electronic capability without the usual high technology barriers, a minimal investment/start-up fee, low cost of ownership and the ability to use the solution with multiple customers.
Since up to 80% of a company's supply chain are small to medium-sized enterprises, any successful supply chain integration effort must recognize and scale for "high tech," "low tech" and "no tech" suppliers.
That is exactly the solution MotherLode North America offers.
The solution = PASS
PASS is a centralized operational service that serves as a bridge between your company's electronic supply interface and your suppliers' interfaces, whether or not they're electronic.
The flexibility to accommodate both electronic-based and legacy, paper-based supplier systems is inherent in PASS's structure. Your company does not need to buy additional software applications AND your suppliers do not need to modify their systems or operations. Instead, PASS uses a powerful combination of technology, processes and resources to be able to "talk" with all your suppliers, in both in-coming and out-going communications.
The result? Total or near 100% supplier electronic procurement connectivity – and associated cost savings.
According to the Aberdeen Group, e-procurement can garner savings of 5%-10% in material costs, 25%-50% in inventory carrying costs, and 40%-45% in controlling maverick purchasing costs. Many enterprises achieve six-to-seven figure cost savings by implementing this service.
How PASS works
The service establishes a standard electronic interface between buying company and suppliers.
This interface electronically transmits a wide range of documents:
- purchase orders and P.O. acknowledgements
- advanced shipping notices
- shipping labels (with or without bar codes)
- invoices and other purchasing "forms" that are a part of the purchase process flow between the buyer and the supplier.
Because PASS is independent of back office software technology, it requires no additional technology investment by the buyer or the supplier. And your suppliers can use the service to transact business with multiple customers.
In most cases it takes only 90 days to get the PASS system up and running – so your company can quickly begin to reap the rewards of e-commerce.
Other benefits of PASS include:
- A comprehensive non-exclusive enablement program with resources to connect hundreds of supplying companies.
- Proven process to insure quick implementation with effective supplier communication.
- Ongoing technical support that provides the assistance you and your suppliers need to maintain smooth operation.
Don't let benefits PASS you by!
PASS's elegant, efficient structure delivers immediate and long-term value to your company.
- Reduce purchase order processing costs
- Reduce paperwork
- Reduce shipping errors
- Improved turnaround = lower min/max inventory levels
- Improved planning/scheduling processes because delivery dates are eceived electronically
- Increased efficiency = more resources for new projects
- Streamlined supplier alliances