THE WORLD’S LEADING DIGITAL SUPPLY NETWORK
Go Digital. Transform.
ELEMICA
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DRIVING DIGITAL TRANSFORMATION IN SUPPLY CHAINS With the importance of remaining agile and lean fundamental to the success of all companies in the supply chain space, the influence that new technology is having on firms is clear. In a bid to help companies achieve a full digital transformation, Elemica connects systems to automate supply chain transactions and facilitate collaboration among its network of trading partners. As the leading cloud-based digital supply network for the global process industries, the firm operates with a mission statement of providing visibility into companies’ supply chains. Offering an end-to-end digital supply network that processes manufacturing enterprises and their trading partners to digitally transform supply chains, Elemica integrates processes and harvests visibility in the supply chain as it helps companies accomplish their digital transformation ambitions through a full suite of Elemica applications. w w w.e l e mi ca . com
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Rich Katz, Chief Executive Officer (CEO) of Elemica, has been working at Elemica for 16 years, having started as Senior VP Product Management before becoming Chief Technology Officer and ultimately moving onto his current role as President in 2018. Katz reflects on his firm’s digital transformation strategy and discusses the benefits that it provides to not only Elemica, but to its customers too. How important is procurement 04
and supply chain transformation to Elemica? Digital transformation is fundamental to Elemica and our customers. We
to reduce errors, improve compliance,
facilitate their digital transformation
lower admin time, reduce expedited
within the supply chain by automating
freight costs, and much more.
business processes from end-to-end, helping businesses to gain efficien-
With digital transformation of the
cies within their procurement, produc-
supply chain vital, in what ways does
tion, transportation, manufacturing,
Elemica incorporate its platform?
and other business operations.
Our platform has been implemented
By removing paper-based business
by major process manufacturers, and
processes, our customers can
we have thousands of suppliers and
balance inventory, working capital,
logistics service providers that
and customer service levels while
connect to it. Our platform helps
improving the Total Cost of Ownership
businesses accelerate their digital
(TCO). Automating processes helps
transformation. The network digitises
“ The network digitises transactions with all network partners, taps into modern data sources, and integrates external data to internal operating systems” — Rich Katz, CEO, Elemica 05
transactions with all network partners,
The Elemica team has years of
taps into modern data sources, and
experience in design, engineering,
integrates external data to internal
implementation, and service. We have
operating systems. Companies
visionaries on our team. It is essential
establish a connection to Elemica’s
to drive these visions to relate to
platform and reuse that connection to
customer issues and at the same time
access all other partners on the
address challenges in the industry as
network, automate various processes
a whole.
across those partners and gain visibility into their supply chain.
How did Elemica begin and what is the vision for the next few years?
How instrumental are your leader-
Elemica started when 20 top global
ship skills to the future success of
chemical companies got together to
your team?
create a network that would facilitate w w w.e l e mi ca . com
ELEMICA
these companies to buy and sell to/
and data sharing so that critical
from each other. About a decade ago,
business decisions could be made
we redeveloped our network, in
by well-informed participants.
response to what the customer wants,
For the future, Elemica will continue
in order to incorporate new technolo-
to add functionality to the network
gies that made the network become a
that will improve interoperability
platform that would make it easier for
between disparate systems and
companies to conduct commerce with
networks. Next-generation technolo-
each other while addressing other
gies like blockchain, machine learning,
business processes. We made it
IoT, supply chain quality, and others
easier for business trading partners
are being tested, implemented, and
to connect to the network and added
integrated into the network and
more intelligence to the transactions
Elemica offerings.
06 E X ECU T I VE P RO FI LE
Rich Katz Rich Katz, a 1990 graduate in Electrical Engineering from Georgia Tech has been with Elemica for over 16 years in roles as President, Chief Technology Officer, Senior Vice-President of Product Management, and Vice-President of Research and Development. Rich is responsible for setting the overall direction of Elemica’s Technology Roadmap, Market Positioning, and will oversee Corporate and Product Marketing. Prior to Elemica, Mr. Katz was the Director of Implementation Services for ATT’s Enterprise’s Ariba Practice (formerly USI) and has held Senior Manager positions in Arthur Andersen’s Advanced Technology and ERP practices.
CLICK TO WATCH : ‘ELEMICA ACCELERATES YOUR DIGITAL TRANSFORMATION’ 07 What does Risk Management mean
data, correlating incidents with a
to you, and how can Elemica assist?
customer’s network assets, orders
Companies today are hit with supply
and shipments to detect and under-
chain disruptions from all angles
stand the impact of disruptive events.
including bad weather, late payments,
Elemica customers can discern which
loss of transport mode, socio-econom-
orders and products are impacted
ic, political issues, and more. Enterpris-
by location, what alternative shipping
es need to be prepared to address and
methods exist and the economic
mitigate supply chain risks to continue
impact if orders are delayed. Elemica
providing value, to exceed customers
Risk is a visibility application incorpo-
and partners expectations, and
rating supply chain threat detection,
maintain brand integrity.
qualification, early warning, and
Elemica provides a Risk Management
network assessment. Understanding
solution called Elemica Risk. It integrates
events that disrupte their ability to
with weather and global risk event
deliver to customers and take steps w w w.e l e mi ca . com
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to mitigate before interrupting service saves Elemica’s customers from losing significant revenue. What do you feel are the major trends you are observing in the supply chain industry and how is Elemica responding to them? Companies are always looking for ways to increase revenues, sustain growth, and improve the customer experience. This can happen when the supply chain is digitally trans08
formed, providing greater visibility into what is happening across the enterprise. We are seeing companies wanting to integrate outside of their four walls. This can be done with a collaborative network that digitally connects all trading partners within a company’s ecosystem quickly, easily and cost effectively. Global supply chains are continually being regulated by government regulations and compliance requirements. To help manage compliance, supply chain and quality management leaders organise material and shipment information with appropriate certifications. Through Elemica
“ Elemica Quality’s proactive alerts help to prevent non-conformance and save monies while ensuring customer satisfaction” — Rich Katz, CEO, Elemica
Quality, alerts can also be set up to know well in advance if certifications are about to expire or deviations in material are occurring during the transportation process. Elemica Quality’s proactive alerts help to prevent non-conformance and save monies while ensuring customer satisfaction. We are seeing trends in the integration of emerging technologies (Blockchain, Machine Learning, and AI) within the supply chain, from pilot projects to full production. In a Blockchain pilot programme, Elemica and crossinx, a network for financial business collaboration solution, exist as nodes on a public blockchain, connecting structured data with unstructured data, such as documents, to enable multi-tier payment. In the pilot, two large global chemical companies facilitate document and data transfer of invoices, purchase orders, delivery tenders and proof-ofdelivery posts. With the ability to connect to a digital network, blockchain functionality can be made accessible to support a many-tomany connection of companies, facilitating payment processing. w w w.e l e mi ca . com
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Do you have any involvement in
do you manage to continue to
award programmes either internally
innovate and set the trends?
or externally or both?
Elemica continues to drive innovation
Elemica applies for numerous awards
in its digital supply network and supply
for executives, for the business, for our
chain applications to bring improve-
technology, and for the supply chain
ments in efficiency and productivity
industry. We have won a significant
across the supply chains of our
number of awards in these categories.
customers. We continually strive to drive value for clients by bringing
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In terms of innovation, how impor-
greater efficiencies to their organisa-
tant is that to Elemica? In what ways
tions through improved collaboration
and lower supply chain spend. As part of continued innovation,
the big drivers in transformation are at the moment?
Elemica participates in leading
In today’s competitive world, businesses
industry trends and forums, listens to
undergo a digital transformation of their
customers, and follows social and
supply chains to sense, respond and act
business market trends that drive our
more effectively with the ultimate driver
product roadmaps across vertical
to improve efficiencies, bottom-line
industries and geographical markets.
profits and customer satisfaction. Companies join Elemica’s Digital
If you had to look at the supply chain
Supply Network (DSN) because it
industry overall, what do you feel
captures event and transaction data across the entire supply chain. This creates a critical mass of real-time
“ We continually strive to drive value for clients by bringing greater efficiencies to their organisations through improved collaboration and lower supply chain spend” — Rich Katz, CEO, Elemica
business information that allows partners to collectively sense and react properly to supply and demand changes and risks in the market. Participants gain a comprehensive picture of business performance both inside and outside their four walls, which allows them to generate strategic and actionable insights from their supply chain network, leading to more mutually beneficial relationships and a clear competitive edge. Companies also want to eliminate silos within their own four-walls to enable interoperability and integration between other departments’ systems using open APIs, which makes the integration easier and more cost-effective. w w w.e l e mi ca . com
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Finally, many companies are seeking technology that helps increase revenue by connecting the longtail of the supply chain for complete visibility and greatest agility. The Elemica Digital Supply Network allows businesses to easily buy and sell from each other via automated processes. With the future in mind, how do you ensure Elemica continues to grow? We strive to continually shape our products to include both new technologies and also address changing 12
market demands. Elemica ‘s network and supply chain solutions are built with cloud technologies, making integration, support and maintenance much easier. With cloud technologies,
supply chain network by offering
most customers can easily upgrade
greater self-service tools allowing
their software without having to use
companies to more easily connect
any IT support. The new develop-
with their trading partners. Our tools
ments are constantly incorporated
clean and enrich the data shared
into our network platform and the
across the network.
application suites we provide are able
We are also working on incorporating
to adapt and be flexible in support of
more next-generation technologies
industry initiatives.
into our solutions, such as artificial
Elemica is committed to providing
intelligence, IoT and machine learning.
solutions and a platform that is easy,
We offer smart contract development
cost-effective, and enables quick
to address specific industry and
connectivity. We have extended our
geographical needs.
“ We strive to continually shape our products to include both new technologies and also address changing market demands� — Rich Katz, CEO, Elemica
Our innovations also connect to
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food or as part of processing it. These
larger societal issues. For example,
methods and the execution of their
Elemica Quality improves customer
processes are invisible to consumers
satisfaction, corporate profits, and
but are driven by a focus on quality, i.e.,
product quality. Morton Salt uses
the performance of their products for
Elemica Quality to reduce the cost
which they are intended.
and time associated with the production of customer-bound certificates. As consumers, we are generally most familiar with the salt we use in food, but even here, the story is not as simple as it sounds. Different methods are employed to incorporate salt into our w w w.e l e mi ca . com
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