Manufacturing Executive - September 2008 - (Page 30)

SUPPLY CHAIN R challenge. Celent’s Camerinelli points to Citi“SWIFT is a club,” says Celent’s Camerinelli, group’s agreement in June to use technology who points out that it only recently started alfrom Ariba Inc. as an example of a bank trying to lowing in corporate members on a selective baimprove its supply chain ser vices. “Citigroup sis. What’s more, says Intel’s Woodward, “they knows they’re good at selling money, but not let the corporates in, but they still don’t let them good at managing the supply chain process, so talk to each other.” Rather, the banks exchange they teamed up with Ariba,” Camerinelli says. information on behalf of the buyers and sellers. Likewise, Gaithersburg, MD-based e-commerce Tom Buschman, CEO of TWIST, the emerging technology company GXS at press time was nearSWIFT competitor, finishes the thought. “If you ing a partnership deal with a major London bank were a manufacturer, why would you put that beto furnish supply chain financing. The deal would tween you and your suppliers?” The idea behind be similar to one GXS struck late With the enormous increase in global trade, “I last year with U.S. bank BB&T. One bank taking a leading role us- would say our supply chain financing business ing its own information technology is JP Morgan Chase, which offers a is two to three times what it was two or three service it calls simply supply chain fi- years ago.” — Jeremy Shaw, JP Morgan Chase nancing. The bank promotes this as a way to “leverage a technology-driven factoring soLondon-based TWIST is to use an open source lution that delivers mutually beneficial financing to messaging technology, unlike the proprietary techsuppliers and buyers in your global supply chain.” nology that he claims SWIFT uses. An open apJeremy Shaw, JP Morgan’s London-based proach would facilitate standard messaging and EMEA global trade services executive, says that invoicing around the supply chain, he says. TWIST with the enormous increase in global trade, “I is building its system around a protocol called would say our supply chain financing business AMQP, which JP Morgan also backs. is two to three times what it was two or three Regardless of whether banks or newfangled years ago. We are trying to raise more and more financial suppliers start better serving the supply corporations’ awareness.” At the same time, he chain, there’s little doubt of the need, especially says, letters of credit have declined as a proporas the credit crunch stresses manufacturers’ tion of the bank’s overall trade. working capital. Many experts agree that while supply chain technology has improved, the cash MOVING SWIFTLY? flow that accompanies it has not. That has Many payments in Europe travel through to change. SWIFT, a payment consortium owned by various “Supply chains have become so optimized that banks. SWIFT itself is attempting to modernyou can deliver goods to the rest of the world ize. Last year, it introduced a facility called trade very quickly, but the cash flow has been manservice utility aimed at allowing banks to more aged only by the CFO. It’s had little meaning to efficiently move information around the world logistics,” says Pierfrancesco Manenti, Milanabout customers’ movement of goods. Later this based research director for IDC Manufacturing year, it plans to add a “notice of intent to pay” Insights. “Logistics, supply chain guys need to component to the system, acevolve from a cost-related role to a more busicording to Mary DeTuerk, senior ness role. They need to think more about workESOURCE CENTER product manager for SWIFT. ing capital.” But by SWIFT’s own admisAnalyst Mickey North Rizza with AMR ReARTICLES: sion, there are shor tcomings. search agrees, saying, “Companies are trying to E-Commerce: Taming the Beast www.managingautomation.com/ecommerce “Nobody would claim right now better understand how much cash they have inthat SWIFT is the cheapest way Cashing In on the Promise of RFID side the company, so the technology and service www.managingautomation.com/rfid10 to get data around from A to B,” vendors are now starting to target the CFO, and says Andrew Muir, securities inibanks are starting to talk to the supply chain.” RFID Collects Proof of Delivery (Collecting Proof of Delivery) tiatives manager of SWIFT. The common thread in all of this is informawww.managingautomation.com/rfid11 “SWIFT does not do white-hot, tion. “The reason why the cost of money is so leading-edge technology. SWIFT high is because there’s been a lack information COMPANIES MENTIONED: does reliable technology.” on which the funding is based,” says Intel’s Ariba Inc. A common complaint is that Woodward. www.managingautomation.com/ariba SWIFT favors the bank system So, may the best information mover win the GXS and does not facilitate direct comsupply chain finance sweepstakes. Could a Google www.managingautomation.com/gxs pany-to-company interaction. Finance & Credit Corp. be on the horizon? ■ 2008 30 September http://www.managingautomation.com/ecommerce http://www.managingautomation.com/rfid10 http://www.managingautomation.com/rfid11 http://www.managingautomation.com/ariba http://www.managingautomation.com/gxs

Table of Contents Feed for the Digital Edition of Manufacturing Executive - September 2008

Manufacturing Executive - September 2008 Contents Editor's Letter Opinion By David Humphrey Starters Road Trip Part 1: Innovation or Efficiency? Part 2: The Innovation Gap Opinion By Lisa Bodell Special Report: Great Aspirations Supply Chain: The New Money Machine Product Design: Fruehauf Gets into High Gear with 3D CAD Business Intelligence: Food Distributor Turns Up the Heat on Manufacturers Software: Manufacturers Face SaaS Hurdles Dialogue Opinion By Pierfrancesco Manenti

Manufacturing Executive - September 2008

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