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Investing in the Future of Lubricants- Beyond e-Commerce. Marty.Stetzer@us.pwcglobal.com Lubricants: The New World Order Houston Conference 9/15/00. Thoughts for the day. Agenda outline… What to believe? What is different this time? How to apply to lubricants?
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Investing in the Future of Lubricants-Beyond e-Commerce Marty.Stetzer@us.pwcglobal.com Lubricants: The New World Order Houston Conference 9/15/00
Thoughts for the day Agenda outline… • What to believe? • What is different this time? • How to apply to lubricants? • What to always keep in mind? • How will we get beyond e-Commerce?
We know the Lube Business Our capabilities… • Personal corporate career • Respected client engagements • PwC wrote the book on EDI & E-commerce • Working with 29 industry exchanges
Lubricants - a very Complex Business Web Promise Profitable, but complex... Retail - Multiple channels - DIY, DIFM, DDIAA - Mass Merchandisers Wholesale - Distributors - Bulk - Industrial Specialty - Synthetics & greases - Segmented markets Marine & aviation Specialty oils Channel Enhancement Supply Chain Integration Mass Customization
e-Commerce Then EDI Computerized Company-to-company exchange Of routine business information In an industry standard format Often using a 3rd-party network A “BreakthroughTechnology!”
e-Commerce Then and Now EDI Web Promise Computerized Networked Company-to-company exchange B2B Exchanges Of routine business information Catalogs PO’s & Invoices In an industry standard format Multiple industry XML groups Often using a 3rd-party network Internet unlimited “free” bandwidth “Break ThroughTechnology!” “DisruptiveTechnology”
What is Different this Time? The cash keeps coming... Pwcmoneytreesurvey.com Think a jittery stock market is striking fear in the hearts of VC’s? Think again. Venture firms poured $200 million a day into companies from April to June, funding more than 100 businesses a week. $20 $15 In $ billion $10 $5 $0 1Q99 2Q99 3Q99 4Q99 1Q00 2Q00 Internet accounted for 60% of all VC money during 2nd qtr.
B2C Provides Insight Making sense of it all... Convergence IndustryTransformation Change to business Supply ChainIntegration Channel Enhancement Enabler Transformer Role of E-Business
B2C Leaders Key B2C technology and business innovators... Convergence IndustryTransformation Change to business Supply ChainIntegration Channel Enhancement Enabler Transformer Role of E-Business
Project Lucerne New Business Models PwC - Getting into e-Commerce Like clients, our own @.com experience grew... workshopdownstream.com Lessons learned Project Madrid Process View 1998 1999 2000
Lubricants: Marine Example Customer focus very important… • Customers • Maersk • Stolt Nielson • SUVA • NYK • Exxon • Mobil • BPAmoco • Stenna
New @.com customers SHIPIQ LevelSeas Sealogistics Shipdesk Lubricants: Marine Example Exchanges - customers or competitors… • Historic Customers • Maersk • Stolt Nielson • SUVA • NYK • Exxon • Mobil • BPAmoco • Stenna • ShipChem • Bulknet • GoCargo • Bunkerworld • OceanConnect
Exchanges: the Marine Vision Marine exchanges - a complex customer... New services as industry consolidates Combined procurement for services Supply chain & logistics integration More functionality Phase 1 Oil Tanker Segment Voyage logistics Vessel chartering More shipping market segments
Partners Organization Technology Making Sense of it All The right order is critical... Business Strategy An iterative process...
Lubricants Future is beyond E-Commerce Global connectivity is the "disruptive" technology… • Enables a new thoroughness in decision process • Lube business can achieve dividends • Lessons to be learned from others • All successful models have defensible business case • Stay open - no single solution dominant
In Conclusion Key lesson learned was speed, now it is sustainable business proposition “Every time I get this new E-business thing figured out, some start-up wrecks my business model.” - GM Senior Vice President Marty.Stetzer@us.pwcglobal.com