Tradecloud Business Case Elements
- Up to 50% savings on manual work (e.g. order entry, chasing exceptions, expediting, etc.)
- Up to 27% higher supplier reliability (e.g. goods on time)
- Up to 25% fewer errors (e.g. wrong revisions made, wrong items delivered)
- More speed (e.g. 5-10 days shorter throughput times)
- Better communication (real time communication resulting in better collaboration)
Besides just cost savings, there is no doubt that the pandemic has magnified and accelerated the need for supply chains that are both resilient and agile. With market conditions changing fast, being prepared matters more than ever. Companies are using Tradecloud to achieve transparency, real time visibility, rapid decision-making and flexibility of response. These new rules for resilient supply chains will affect the entire process, from product innovation, manufacturing and planning, to logistic operations and after sales service.
“We now have insight into the entire purchase order flow within the platform.”
“We focus on the manufacturing industry and Tradecloud fits in perfectly with that as a tailor-made B2B Platform and eCommerce solution.”
“We needed a platform where our suppliers had better insight into our orders. Thanks to Tradecloud, our order administration is now automated and we respond faster.”
Business case – example of an SME+ company
Based on 100,000 order lines per year for a medium-sized trading/production company with 6 FTE operational purchasing and EUR 50 Mio. purchasing value
|Subject||Current costs||After Tradecloud||Savings per year
|Manual order administration||420.000,-||50% less||210.000,-|
|Errors in deliveries and communication||500.000,-||25% less||125.000,-|
(8% x 5 Mio stock)
|Total savings per year||395.000,-|
|Prescription Tradecloud per
year, excl. implementation
Additional indirect savings (‘priceless’):
- Shorter lead times for the purchasing process, resulting in more satisfied customers and higher turnover
- Better alignment of the supply chain to changing market conditions (e.g. COVID-19)
(*) Business case realized at at least 2 companies that meet these criteria. On request, the details can be provided after NDA and permission from our relation.
Leading companies are already active on Tradecloud
Where are the savings?
Costs Savings and Increased Efficiency
The main cost saving is the elimination of manual work. Through improved communication, suppliers gain a better understanding of their customers’ business in order to better serve needs. When challenges or problems arise, systems and controls in Tradecloud enable both parties to identify and address them. Suppliers anticipate and adapt to needs more quickly, eliminating redundancy and streamlining processes.
Through greater operational efficiencies derived from Tradecloud, both the supplier and the buyer can increase revenue growth at better margins.
Real time access allows for faster intervention in situations that may pose risks. Such as an incorrect or late delivery.
Constantly changing suppliers is expensive and time-consuming as it requires internal resources to identify suppliers and conclude contracts. Even if a new supplier promises lower costs, the long-term relationships with strategic partners generate more value relative to potential short-term gains.
Moba | Tradecloud Case Study
- Too much manual work
- Low reliability
- Too much stock
- EDI or Tradecloud approach
- ERP : Infor M3
- Goal: connect 95% of all suppliers
- 50% savings on order administration
- Supplier reliability +22%
Agrifac | Tradecloud Case Study
- Low supplier reliability
- Lack of insight in risks
- 6 FTE order administration
- Goal: integrate 95% of the suppliers
- ERP : Exact Globe
- 20.000 order lines almost zero touch
- Supplier reliability +27%
- Towards demand-driven