Manufacturing Executive - March/April 2009 - (Page 36) Croc to be able to exchange order, advance ship notice, and other information via an electronic data interchange (EDI) system integrated directly with Mad Croc’s backend systems.“The big-box retailers have their own, very specific requirements for EDI,” says Chuck Andrews, an IS consultant who works with Mad Croc. “If you want to run with them, you have no choice but to comply.” There was just one problem: Mad Croc’s SaaS ERP supplier, NetSuite, didn’t directly support business-tobusiness integration via EDI. So Andrews set out to find a third-party provider that, he hoped, could integrate merce. “B2B integration wasn’t a chief concern.” Indeed, experts say, because most of the early SaaS focus was on internal business processes, such as sales force automation and human resources management, there wasn’t a big requirement for B2B integration in connection with SaaS applications. Most SaaS vendors tended to focus first on enterprise application integration rather than B2B integration. they’re will“More companies saycover a wide ing to buy into SaaS to range of business processes, even manufacturing. ut that’s beginning to change because manufacturers such as Mad Croc are increasingly considering using SaaS applications to automate functions such as material management, supply chain management, and warehouse management, all of which typically require significant B2B integration. “We’re seeing more companies say they’re willing Ian Finley to buy into SaaS to cover a wide range of business proAnalyst, AMR Research cesses, even manufacturing,” says Ian Finley, an analyst at AMR Research. “Of course, saying you’re willing with NetSuite and offer EDI as an on-demand service. to do it and doing it are two different things. But more Fortunately, Andrews found SPS Commerce, a provider companies are definitely open to the idea.” of SaaS-based B2B integration services that was just And vendors are beginning to ofcompleting an integration between fer SaaS applications that automate its platform and NetSuite. Mad Croc processes requiring more B2B became the first production user of integration. NetSuite, for example, the EDI integration, which supports INTEGRATION REMAINS recently enhanced its SaaS ERP basic documents, such as invoices A TOP CONCERN with light manufacturing and supply and purchase orders. For which of the following reasons are chain management functionality. Now, Andrews says, Mad Croc you not at all interested in software-asPlexus Systems has provided SaaS is anxious for SPS to add support a-service? ERP and MES applications for some for a wider range of EDI docuIntegration issues time. QAD provides on-demand ments, including those supporting 65% 2008 versions of its enterprise applicadrop shipments and advance ship58% 2007 tions. And SAP has promised that ment notification. Total cost concerns its coming Business ByDesign SaaS Andrews isn’t the only one 58% 2008 suite will support supply chain likely to be pushing vendors for 54% 2007 management, manufacturing, and better B2B integration links to warehouse and logistics manageSaaS applications. Unfortunately, Lack of customisation 50% 2008 ment, among other things. SaaS application vendors and At the same time, several providers of B2B gateways are just 48% 2007 emerging vendors are beginning to beginning to address the requireSecurity concerns deliver SaaS applications that go ments of manufacturers such as 47% 2008 well beyond sales force automaMad Croc for the kind of advanced 55% 2007 tion and HRM. SmartTurn Inc., for EDI and other B2B integration Complicated pricing models example, is a 4-year-old provider capabilities that have long been 43% 2008 of SaaS inventory and warehouse standard features of on-premise 40% 2007 management applications for enterprise applications. Can’t find the application we need manufacturers with networks of “Initially, when the whole 40% 2008 smaller warehouses. CoreSense Inc. software-as-a-service model came 28% 2007 provides SaaS inventory manageout, it was seen as a way for small ment with a retail focus. And 3PL and mid-sized companies to get Application performance Central Inc. provides on-demand applications on the cheap,” says 38% 2008 logistics and warehouse manageRichard Douglass, global manufac43% 2007 ment for third-party logistics and turing executive at B2B integration Source: Forrester Research warehouse operators. software vendor Sterling Com- “ B Open to New Uses SNAP SHOT 36 Manufacturing Executive MAR/APR-09
For optimal viewing of this digital publication, please enable JavaScript and then refresh the page. If you would like to try to load the digital publication without using Flash Player detection, please click here.