Reducing Internal Information Technology Resource Allocation Through Global Upstream Electronic Business Standards: A Case Study in Novozymes
DOI:
https://doi.org/10.12660/joscmv4n1p37-50Keywords:
GUSI, Supply chain, Integration, Visibility, Standards, VMIAbstract
An increasing number of organisations are beginning to operate in a standardised business process environment suggesting that there is benefit in a standardised business messaging infrastructure.Novozymes A/S is the first known industrial biotech organisation in Denmark to apply the GS1 and the Consumer Goods Forum's global upstream standards initiative (GUSI) in a Vendor Managed Inventory (VMI) scenario. The combination of applying a standardised VMI business process using the aforementioned integration standards for electronic business messaging and pre-agreed standardised message choreography has been proven by Novozymes to add significant business benefit to their organisation.This case study methodology outlines the results of Novozymes' application of GUSI standards over three separate implementations replenishing 25 customers' factories and describes the resultant reduction in internal IT effort. The implementation data were collected from a total of twenty five factories (sites) which Novozymes, today, replenish using GUSI VMI. The 'ex post' results were then compared and interpreted against a Novozymes internal benchmarking analysis which was used an 'ex ante' base line.The findings strongly suggest that the GUSI VMI application provides not only reduced integration effort, but also is a foundational basis for higher rent generating processes and improved demand transparency management.Downloads
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