Downloads - empirica

e-Business in the chemical, rubber and plastics industrycustomers a more cost-efficient way of trading with business partners. The officialcompany motto is "connect once – connect to all" 147 , in contrast to having to maintainnumerous point-to-point connections with trading partners (via EDI, for example). Thegoal is to offer customers a "one-stop" experience through browser-based and EnterpriseResource Planning (ERP) connectivity with their business partners.In 2007 about €35 billion worth of transactions were handled through Elemica, involvingover 1,800 industry trading partners. 148 Customers include companies in a variety ofindustries including chemicals companies and their customers and suppliers, notablyfrom the automotive, consumer packaged goods, paper, plastics and pharmaceuticalindustries.5.3.2 e-Business activityElemica offers a range of solutions, including light connectivity and more sophisticatedforms of system integration. Smaller companies, notably those that do not have an ERPsystem, will typically opt for the light modules "Buyer Direct" and / or "Seller Direct", whilelarger customers may prefer the more advanced Elemica Connected Solution. Theservices portfolio includes the following options:Elemica Connected Solution ("Connect Once – Connect to All"): the mostadvanced type of connection, offering full ERP connectivity;Elemica Buyer Direct: the "light" integration connectivity for buyers or sellers;Elemica Web Solutions – Elemica Seller Direct: this complements standardERP connectivity by supporting additional electronic message types; it functions asthe technology bridge that allows a seller to receive and process orders from anERP-connected buyer using a web browser interface;Elemica Supply Chain Solutions, such as supply chain planning, VMI (vendormanaged inventory, and CPFR (collaborative planning, forecasting and replenishment).By connecting with business partners through one of these solutions, companies expectto increase the efficiency and effectiveness of transaction processes. "Effectiveness"translates into a reduced error rate compared to manual or other non-standardised formsfor data entry and transmission. "Efficiency" means in particular reduced processingtimes. Ultimately, these improvements are expected to turn into cost savings. Elemicaclaims that in sales companies can achieve an 80% reduction in order entry time and a20% reduction in the number of order changes. In procurement, Elemica expects a 75%reduction in invoice errors, 60% in order processing time and 50% in payment processingtime. 149 Even if these figures sound optimistic, the potentials for improving processefficiency and the resulting cost savings can be significant. Celanese, for example, one ofthe users of Elemica, is quoted to have realised cost savings of over US$ 700k bymanaging their logistics through Elemica. 150147 See http://www.elemica.com/default.aspx.148 The figure quoted by Elemica is US$ 50 billion. seehttp://www.elemica.com/About/History/page.aspx (accessed in January 2008).149 Elemica – Connect once connect to all. Company presentation by Mike Mc Guigan, May 2007,p. 12.150 ibid.146