Global Logistics and Supply Chain Strategies - March 2008 - (Page 53)

laboration. They assumed their enterprise resource planning systems could handle the job. That’s fine for managing internal processes, Martinelli says, but it’s insufficient for communicating with a wide range of partners outside the organization. The advent of software as a service (SaaS), whereby applications are hosted by vendors from an outside location, has helped to promote the development of portals. The technology avoids the need to invest in elaborate in-house systems, Martinelli says, while making it easier for companies to adjust to changes in the market, and install updates. Turmoil in Retail In the portal wars, the retail industry has seen its share of turmoil. For a time, two entities – the Worldwide Retail Exchange (WWRE) and GlobalNetExchange (GNX) – vied for sponsorship from big retailers. Neither ended up delivering on its promised value. In 2005, they were merged into Agentrics LLC, which today boasts participation by more than 50 of the world’s top retailers, including Carrefour, Kroger, Tesco and Walgreen’s. Wal-Mart Stores sparked the concept of supplier portals with creation of its proprietary Retail Link software, says Mike Reardon, director of collaborative solutions with Alexandria, Va.-based Agentrics. Another trigger was the industry effort known as Collaborative Planning, Forecasting & Replenishment (CPFR), which provided a means for suppliers and retailers to get together on promotions and other activities. The idea, says Reardon, was to “encourage the supplier to participate in demand planning and the supply chain process that had previously been owned by the retailer.” WWRE and GNX were attempts to translate the Wal-Mart model into a pooled entity with multiple customers. Because major retailers were split between the two, however, neither had enough clout to achieve desired economies of scale. “It made sense for them to come together,” Reardon says. Earlier this year, Agentrics further boosted its influence by joining with Germany’s SINFOS GmbH, another retail data pool, to create SA2 Worldsync. The new effort will help small and mid-sized suppliers to synchronize their data with retailers. The deal creates what Reardon claims is “the world’s largest global data pool for data synchronization.” Agentrics is paying special attention to private-label merchandise. Its platform allows users to share information on product ingredients, growers, packaging and design. Auctions can be conducted through 54 MARCH 2008

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Global Logistics and Supply Chain Strategies - March 2008 Editorial GL & SCS Exclusive FastForward Up Front The Green in Green Think Inside the Box Have a Second Look Can't Happen Here Opinion: Stay in the Black as Your Workforce Fades to Gray Opinion: Four Critical Steps to Managing Change in the Supply Chain Industry Voices

Global Logistics and Supply Chain Strategies - March 2008

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