This presentation is a shorter executive level version of a webinar that will be launched in the near future. The presentation highlights some of the key trends in the emerging markets and goes on to discuss common B2B and infrastructure related concerns/issues as well.

1. B2B Trends in the
Emerging Markets

2. Slide 2 | © 2013 GXS, Inc.
Manufacturing 2.0, Rebooting Today’s
Global Supply Chains…
Global recession, wage strikes, natural disasters and changing
consumer demand are leading to manufacturers having to
restructure their global supply chains
Slide 2 | © 2013 GXS, Inc.

3. Slide 3 | © 2013 GXS, Inc.
What is Going on in Today’s Manufacturing
Supply Chain?
Sales
Manufacturing
Sales
Manufacturing
Back Office
Engineering
R&D
Western Expansion Near-Shoring China Expansion
Back Office
Engineering
R&D
Regional
Marketing &
Finance
Engineering
R&D Sales
Manufacturing
Sales
Manufacturing
Global
HQ

4. Slide 4 | © 2013 GXS, Inc.
Today’s Manufacturing Industry
• Continued globalisation of manufacturing hubs
and general supply chain restructuring
• Co-location of suppliers next to major
manufacturing hubs to simplify logistics flows
• Continued requirement to improve inventory
control & visibility across supply chains
• Convergence of manufacturing sub-sectors is
changing supply chain dynamics
• Increasingly driven by the ‘connected
consumer’ and the so called omni-channel
effect

5. Slide 5 | © 2013 GXS, Inc.
Key Trends - China
• Wage rises and continued strikes causing some
companies to re-shore manufacturing back home
• Some domestic Chinese manufacturers looking
to reduce costs by setting up operations in other
low cost countries, eg Thailand, Vietnam
• Government introducing tax and relocation
incentives to encourage investment in western
China, ie spreading wealth across the country
• Keen to embrace IT best practices brought in by
Western Joint Venture operations

6. Slide 6 | © 2013 GXS, Inc.
Key Trends - Brazil
• Brazil is currently receiving significant inward
investment from global manufacturers looking to
set up new plants in the country
• Establishing manufacturing hubs as a stepping
stone in to the lucrative North American Market
• Brazilian government introducing various import
taxes to encourage inward investment and use of
more locally sourced content
• Chinese companies, particularly automotive,
regard Brazil as a key growth market for their
products

7. Slide 7 | © 2013 GXS, Inc.
Key Trends - India
• Key global manufacturing hub, particularly for
labour intensive processes such as machining
• Increasing consumer wealth leading to increased
domestic sales of manufactured goods
• Land locked to the North by Himalayas means all
goods have to be imported/exported by sea,
hence 3PLs have complicated logistics flows
• ERP systems are widely used to support larger
Indian enterprises however in general many
companies are still using manual processes and
EDI usage is very low

8. Slide 8 | © 2013 GXS, Inc.
General Emerging Market B2B Trends
• Hesitation to move towards a completely
outsourced or cloud based service, prefer hybrid
approach, ie software and services
• Emerging markets ‘keen to learn’ about B2B
standards used in more developed markets
• Extensive use of home grown XML standards but
now interested in deploying more mature global
standards such as EDIFACT/ANSI
• Trading partner on-boarding, local support and
end to end supply chain monitoring are key
drivers for using B2B Managed Services

9. Slide 9 | © 2013 GXS, Inc.
Infrastructure Related Issues
• Utilities, particularly power supply networks
suffer regular outages
• Telephone communications and networking
infrastructure are relatively poor and offer slow
internet connectivity
• Some countries implementing new 3G/4G
mobile networks as this is quicker than trying to
repair/upgrade existing fixed networks
• Road and rail networks are generally poor
quality and hence challenging for 3PL providers
to provide reliable delivery service

10. Slide 10 | © 2013 GXS, Inc.
• JV needed to import car
parts/kits from their French
partner via global logistics
provider and then assemble in
new plant in Shenzen, China
• JV had no B2B experience or
knowledge of global B2B
standards but they needed to
exchange forecast and order
information with their French
partner
• Implemented GXS Managed
Services to exchange B2B
transactions between the JV,
their French partner and their
logistics partner
Chinese Joint
Venture Operation
Connect European and
Chinese Partners
• Moving production to China led to
a requirement to automate 100%
of their supplier related
transactions and business
processes. Also needed to
simplify TP on-boarding process.
• GXS Trading Grid for Excel was
deployed to simplify and automate
the exchange of EDI related
documents . GXS creates and
hosts all their business document
templates online.
• Provided 100% enablement of
their TP community allowing
business transactions to be
conducted electronically despite
limited ICT and B2B skills
US Printer
Manufacturer
Connect with TPs
Located in China
Emerging Markets Case Studies
Japanese Car
Manufacturer
Onboard TPs to New
Factory in Brazil
• Building new car manufacturing
plant in Brazil and needed to on
board local suppliers and
logistics providers to support
delivery of parts to new facility
• GXS Managed Services was
deployed to establish new B2B
platform and onboard local TPs.
Active Orders deployed to
provide full visibility of order
based transactions. Active
Logistics deployed to offer end
to end visibility of parts related
shipments between Japan and
Brazil via 3PLs/border agencies.
• New B2B platform supports
EDIFACT message flows
between Japan and Brazil
June 28, 2013 Slide 10

11. Slide 11 | © 2013 GXS, Inc.
Thank You For Your Participation
Phones
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GXS web sites
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EMEA: www.gxs.eu
Brazil: www.gxs.com.br