For Suppliers
Business Benefits: Supplier's Perspective
Improved Product/Customer Profitability (0.5 - 4.0% of Revenue)
Revenue Management
- Optimised Pricing & Negotiation
- Speedy response to market price changes
- Volume Allocation and Prioritisation to High Value Customers
- Profitable to Promise
- Value Pricing enablement
- Price Leadership enablement
- Spot sales for excess inventory
Cost Reduction Optimisation
- Optimised Cost to serve with differentiated Customer Value Propositions
- Reduced opportunity cost from supply chain disruption
- Reduce logistics costs through SWAP (co-producer collaboration)
Increased Sales Productivity (15 – 50% manpower savings)
Automated & Dynamic Processes -> Wider coverage of customers with less resources
New customer reach through enhanced Customer Discovery & Acquisition process
Improved Working Capital
Faster Inventory Turnaround and Cash Collection (e.g. Secure Cross Border LC)
Reduced Safety Stock (e.g. Customer Demand forecast sharing)
Enhanced Customers Life Time Value
Better Customer Experience & Needs Fulfilment (vs less nimble competitors) -> Foster Loyalty/Retention, Attract New Customers, Grow Share of Wallet (increase revenue by up to twice market average: McK Insights Feb 2017 Demystifying digital marketing and sales in the chemical industry)
Benefits Sources and Realisation of benefits are dependent on sophistication and maturity of processes (i.e. including impact from processes enabled by platform subscription plan)
Delivering Customer Centricity
Better customer experience through advanced online channel
Improve on time delivery and Reduce lead time
Quick response to customer requests or complaints
Deliver differentiated Customer Value Propositions according to their needs
Transparency & Visibility
Visibility to supply chain and payment status
Transparency of price formula, rebate, data used (e.g. exchange rate, tax/duties)
Visibility to Price Elements and Cost Components
Measurement of product and deal margin
Real-time visibility, transparency of “market price”
Fair trade
Analytics to understand customer’s price checking behaviour
Value Pricing (fair to supplier and buyer)
Service Level aligned with contribution of customers (offerings packages)
Performance or service level based pricing enablement
Foundation for Digital Disruption
New Business Model
Disrupt before being disrupted & learnings
Enhanced Compliance to regulatory requirements
Government license and permits