Step 1: Educate yourself.
Begin by reading everything possible about trading exchanges in business and trade
publications. Find examples of companies within your industry that have taken first steps at
creating an exchange, and start researching solutions providers that can provide you with the
expertise to integrate your company with your trading partners, no matter what systems or
platforms they bring to the picture.
Step 2: Formulate a vision.
Unlike other major undertakings, your vision of a trading community is critical to its long-term
success -- ensure it complements your long-term e-business strategy. Because setting up a
trading community is not a big bang implementation, but rather a journey, your design and
implementation teams will need a firm vision to guide them toward milestones and allow for
adjustments along the way. Begin communicating with your trading partners to determine what it
will take to get them connected with your company.
Step 3: Investigate solution partners.
Narrow the field to a short list of potential partners that have the right technology, experience
and solution that can be customized to your particular operation. Whether your planned
exchange is public or private, you'll need to find a company that is an expert in integrating
different trading partners and their many systems, communication formulas and applications. It's
not feasible to install one solution at your end and then make all your trading partners adhere to
that solution. Wouldn't it be better if you could use one solution that enabled you (and your
trading partners) to leverage your existing IT investments? Complex integration becomes much
more simple with the right partner providing an open exchange infrastructure.
Step 4: Partner with those who can help you achieve your vision.
A good partner will understand your unique needs, help you build your vision and will bring
many years of supply chain and integration expertise to the table. This partner won't turn away
from complex integration issues, instead will tackle them head-on and overcome each obstacle.
Step 5: Begin strategic and tactical planning.
While you are choosing a partner, you can determine your internal team members who will plan
and manage the trading community. Involve them from the beginning. This group will learn how
to operate the online trading community, help you manage the rollout, and ultimately own the
day-to-day operations, growth and maintenance of your exchange.
Step 6: Perform an e-business assessment.
Performing an assessment at this stage can help you ensure rapid, meaningful returns in setting
up the infrastructure of your trading community. An assessment will help you prioritise your
rollout steps by defining effort, payback and risk. By conducting this assessment, you'll see that
implementation time can be measured in days and weeks, not months and years.
Step 7: Don't hesitate. Get started.
After the assessment is complete, take these first steps:
Step 6: Perform an e-business assessment.
Performing an assessment at this stage can help you ensure rapid, meaningful returns in setting
up the infrastructure of your trading community. An assessment will help you prioritise your
rollout steps by defining effort, payback and risk. By conducting this assessment, you'll see that
implementation time can be measured in days and weeks, not months and years.
Step 7: Don't hesitate. Get started.
After the assessment is complete, take these first steps:
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Conduct internal functional area interviews and external interviews with trading partners.
From information you receive, prioritise actions based on risk, payback, vision and
strategy.
Construct high-level information flows.
Identify short and long-term system, software and network requirements.
Step 8: Establish metrics, set up feedback loops and monitor
operations.
Once you have established the appropriate metrics, construct feedback loops. Feedback loops
are gauges that help you monitor the performance of you and your trading partners within the
new exchange.
Step 9: Measure results, formulate next steps and continue the
rollout.
At an established milestone, stop and reassess. Doing so helps you adjust to changing
priorities, new partners and the unforeseen.
Step 10: Plan strategically so you can adjust tactically.
You need the ability to adjust your exchange based upon changes in the market and in
technology. Start by having team members track market trends and brainstorm contingency
plans. Make your plan as flexible as possible from the start, and take pains to ensure it remains
flexible.
Timing is everything, and the timing couldn't be better to start your own online trading
community. The excitement in the marketplace is palpable, and the tangible benefits of an online
exchange are within your reach. Connect, communicate and collaborate with your trading
partners and bring your linear supply chain full circle today.