Supply Chain in the Cloud
Kurt Cavano
CEO, TradeCard
Defining “Cloud Computing” - Wikipedia
 A style of computing in which dynamically scalable and often virtualized
resources are provided as a service over the Internet. Users need not have
knowledge of, expertise in, or control over the technology infrastructure "in the
cloud" that supports them.
 The concept incorporates infrastructure as a service (IaaS), platform as a service
(PaaS) and software as a service (SaaS) as well as Web 2.0 and other recent
(ca. 2007–2009) technology trends that have the common theme of reliance on
the Internet for satisfying the computing needs of the users.
 Examples include Salesforce.com, Google Apps or Windows Azure which
provide common business applications online that are accessed from a web
browser, while the software and data are stored on the servers.
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Growing Trend of Interest
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The Bottom Line
– Changes the economics of Computing from being a Capital investment to a
Utility
• You buy electricity you don’t buy generators
– Changes the way software is developed
• Hardware provisioning, deployment, and scaling now part of the development
lifecycle
• Not a Purchase Order / Requisition process
– Automates a huge layer of infrastructure tasks
• Backup
• Disaster Recovery
• Systems Management / Monitoring / Internet Security
– The Rule:
• If your application needs more capacity and you cannot get it instantly, then it is not
cloud computing.
• If there is no programmatic way to provision hardware, no pooled capacity and
even worse a purchase order to get new hardware/software, then it is not cloud
computing.
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Why Cloud Computing in the Supply Chain?
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Extensive Challenges to Execute Exist
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Complexity Challenges
Source: AMR
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Business Challenges
 Complex global supply networks
 Massive amounts of transaction
documents & information across
multiple parties
 Ever-increasing supply chain risk
– Delays
– Liquidity bottlenecks
– Trading partner viability
 Vendor compliance
 Regulatory compliance
– SOX
– 10+2
– CPSIA
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Obstacles to Supply Chain Goals
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Consider the Risk Involved in All Processes
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A Better Model is Needed That Can:
 Connect multiple networks of trading partners
 Deliver agility to shift suppliers, regions, logistics, financing
 Provide a single version of the truth
 Allow true collaboration across multiple layers in the supply chain
 Activate parties anywhere in the world
…WITHOUT REQUIRING EXTENSIVE RESOURCES OVERSEAS
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A Cloud Network Approach
 With traditional software, adding trading partners and service providers
requires
– On-site installation and service visits from vendor service teams
– Dedicated server hardware
– Support staff to manage it
– Therefore, larger trading partners and service providers that can afford to pay
get this level of attention.
 But for every large enterprise that purchases a line-of-business solution,
there are dozens of smaller and medium-sized businesses that could
benefit from such a solution, but that cannot afford the expense.
 A Cloud platform with a built-in trading partner and service provider
network can be a competitive edge
– Uniquely positioned to service the long tail of the extended supply chain
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New Information Model for the Supply Chain
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Ties Together Networks of Networks
HT
HT Code
Code
Hong
Kong
Commercial
Invoice
Customs
Packing
List
Purchase
Order
Containers
Port of
Entry
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Location
Code
Carton ID
Long
Beach, CA
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Supply Chain in the Cloud is the Future
 Connect all parties without overseas presence, IT
headaches and costs
 Agility to upgrade modules and technology
painlessly to meet new challenges
– 10+2
– CPSE
– 24 hr manifest
– RFID
– EDI
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TradeCard: A Global Business Network
A strategic global business network for supply chain collaboration.
 Visibility into ALL parties
 Rapid communication of changes
 Financial services to eliminate
credit- & liquidity- related risk
 Ability to rapidly respond to shifts in
demand
 Speed to market support
 Vendor & regulatory compliance
Raw Materials
Manufacturer
 Faster time to shipment strategies
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Collaboration Platform for Brands & Retailers
The global leader in on-demand supply network collaboration
6,000 Members. 60 countries. $10 Billion settled in 2010.
Secure & accurate transactions.
Supply chain visibility.
Automated workflow.
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Enabling the Productivity Loop
TradeCard’s MultiEnterprise
Collaboration Value
Grow Sales
Operate For Less
+
Buy For Less
• Automated multi-party
collaboration
• Manage Raw Material
Commitments/Purchases
• Process efficiencies via
an integrated platform
• Leverage financial strengths
to reduce costs
• Exception management
• Quickly react to new
sourcing trends
• Payables Automation
• Impact Free Cash Flow
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Sell More
• Invoice Discount Programs
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Established Network of 6,000+ Members
SERVICE PROVIDERS
SUPPLIERS
BRANDS & RETAILERS
NIKE
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DC Bypass at Columbia
 Fully automated process
 Enables floor-ready merchandize
to skip DC
 Increases packing accuracy
 Generates compliant carton
labels
 Ensures accurate and timely ASN
creation
 Reduces handling charges and
lead times
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Staying Close to the Source at Bauer
 Facilitates custom engraving in
Asia
 Uses one seamless process to
ship direct to customer
 Automates order processing from
online customer order thru factory
& carrier
 Eliminates storage and handling
in North America
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PO Agility at Belk
 Adjusting supply to latest
demand picture
 Provides portal to help suppliers
meet change requests
 Increases packing accuracy
 Ensures compliant carton labels
 Enables accurate and timely
ASN creation
 Fully integrated with LSP
 Reduces document errors
 Provides visibility to factory
activity
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Guess Eliminates Capital Costs & Risks
 Obtains transaction transparency with
suppliers and financial institutions
 Deploys self-funded early payment
program to provide suppliers immediate
access to cash
– Guess obtains discount & strong return
on cash
– Supplier cuts financing costs & knows
when cash will be available
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Benefits of a Collaborative Cloud Platform
 Streamlined/automated PO and





amendment delivery
Multi party collaboration-visibility
Standardization of all documents &
processes
Improved chargeback processing
Significant early payment discounts
due to automated payment approval
process
Best data from the source is delivered
immediately to all parties
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TradeCard by the Numbers
By the Numbers
+31,000
Total individual users
+6000
Clients
30,000
Transactions per month
$1 Billion
Transactions processed per month
99.989%
Platform uptime
+30%
Growth for 2010 & Forecast for 2011
60 countries & 32 languages
Supported by TradeCard
+1,200
Supplier activations in past 12 months
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More Information
 Cloud Computing for CFOs
article in Financial Executive
Magazine, October 2010
 Contact:
– Kurt Cavano
(kcavano@tradecard.com)
– Steve Ford
(sford@tradecard.com)
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