Best-in-Class companies two times more likely to excel in process collaboration

Businesses are finding an increasing need for multi-enterprise supply chains, or business networks, to be focused on process integration and collaboration, according to the benchmark report titled Process Collaboration in Multi-Enterprise Supply Chains by Aberdeen, a Harte-Hanks Company. This is due to a variety of business pressures such as rising costs, global competition, and the need for reduced cycle times. Working in a multi-enterprise supply chain world requires bi-directional electronic connectivity (referred to as process integration in our research), as well as process collaboration to succeed. Process collaboration is an advanced stage of process integration that includes not just data transfer but also includes business processes that span the collaborating enterprises.

Illustrating the importance of these dynamics, benchmark data from a recent survey of over 117 companies shows the following trends:

' 68% of companies reported an increased emphasis on customer collaboration over the last two years whereas 2% reported a decrease

' 74% of companies reported an increased emphasis on supplier collaboration over the last two years whereas 0% reported a decrease

Best-in-Class companies are determined based on business performance and are:

' Two times as likely to have stronger capabilities in collaborating with suppliers and customers

' Two times as likely to have ability to support unique business processes for selective product categories, customers or channels

' 1.5 times as likely to look at process integration and collaboration in a holistic approach rather than in a siloed manner

' Four times as likely to have enhanced visibility into the performance of business processes

Best-in-Class companies are ahead in terms of both process integration (data connectivity) as well as process collaboration (enabling business processes across multiple enterprises) as compared to all other companies.

"The lengthening of supply chains at both the suppliers and the customers' side of the equation has resulted in an increased need for both structured and unstructured collaboration. Structured collaboration refers to traditional approaches of creating a standardized and parameterized business process for which electronic connectivity approaches such as EDI, XML, AS2, etc., are used. Unstructured collaboration refers to creating semi-standardized business processes using internet and telecommunication tools," according to Nari Viswanathan, Research Director, Supply Chain Management and author of the report.