Real cases from the pilots (quantitative analysis of benefits)
Medium-large clothing:
A Medium-large clothing company, exchanging order documents with a medium size textile company. Both based in a “high labour cost” European Country and using a fax/email system for document exchange before eBIZ.
At the end of the pilot implementation, the eBIZ compliant system covered around 30% of the overall customer orders and around 10% of the overall orders of the supplier. The gain in order processing time is calculated in 80% for the supplier and 50% for the customer. Assuming this rate of adoption, the actual cumulated gain for one year can be calculated to around 100 orders’manager mandays. The potential gain, when all the orders of the two companies will be processed through eBIZ, exceeds 400 orders’manager mandays, that amount to over 100.000 Euros of labour cost in just one year.
Early evidence from the pilot show errors in order processing dropping from a 10% average to virtually null.
The average response time for an order halved.
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Small footwear company:
A Small footwear company, exchanging order documents with a very small component supplier and selling to a small chain of large surface specialised stores. Both based in a “low labour cost” European Country and using a fax/email system for document exchange before eBIZ.
At the end of the pilot implementation, the eBIZ compliant system currently covered just a small fraction of the overall orders for all the participants. The companies involved are very small and need strong support to expand the number of suppliers/customers committed to eBIZ. As the legacy systems were very inefficient (mainly phone/fax) the gains in order processing time experimented with the pilot implementation are huge (over 90% of time is saved in order processing). Given the current low rate of adoption, the actual cumulated gain for one year are limited to around 10 orders’manager mandays (expected to grow to 20 days within 2010). The potential gain, when all the orders of the two companies will be processed through eBIZ, on the other hand is substantial, exceeding 380 order manager mandays, that amount to over 40.000 Euros of labour cost in just one year.
Early evidence from the pilot show errors in order processing dropping from a 10% average to around 1%. The average response time for an order halved.
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Large retailing chain of independent stores:
A Large retailing chain of independent stores, order and stock availability documents are among the stores the central buying organisation and the apparel producer. The retailers and the buying organisation are based in a “high labour cost” the clothing producer is based in a “low labour cost” European Country and using a fax/email system
for document exchange before eBIZ.
At the end of the pilot implementation, the eBIZ compliant system currently covered around 1% of the overall orders
of the central buying organisation, a coverage of 30% is expected within 2010. The gain in order processing time
is estimated to around 75% for the central buying organisation and higher for the clothing supplier. Assuming the
expected end of 2010 rate of adoption, the actual cumulated savings for one year can be calculated to around 220
orders’manager mandays that amount to over 23.000 Euros of labour cost in just one year.
The potential gain, when all the orders of the two companies will be processed through eBIZ, exceeds 750 orders’manager mandays, that amount to around 85.000 Euros of labour cost in just one year.
The average response time for an order dropped dramatically from a full day with very long dead times, to around
5 minutes.
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Published for eBIZ-TCF project.