How can I save with SCSN?
With SCSN, you can save on several fronts. The main advantage of SCSN is that your IT systems are directly linked to the systems of your supplier and customers. First of all, the administrative burden will be significantly reduced because you will no longer need to manually enter purchase/sales orders into your system. Instead of manually copying data for all orders, you can focus on managing the exceptions. In addition, you will have faster access to all the data you need. Some examples of this data are: order track and trace, accurate article catalogues, and real-time requests for price and delivery time information from your suppliers, which enable you to have products delivered just-in-time and therefore lower your stock levels.
How much could I save with SCSN?
Your savings with SCSN are of course strongly dependent on your type of organisation. The more you cooperate with suppliers and customers, the more data exchange will be necessary and therefore the bigger the savings will be. SCSN users estimate that the efficient organisation of supply chain cooperation can lead to a 20 per cent increase in productivity for the average manufacturing company!
What does it cost for a manufacturing company to participate in SCSN?
Manufacturing companies can connect to SCSN via a service provider. The service provider ensures that your IT systems are properly connected to the SCSN network and it processes your messages. As a manufacturing company, you are free to choose the service provider that best suits your needs. The various service providers in our network each have their own proposition. A number of service providers have published their rates on their own websites. The service providers each pay a portion of these costs to the SCSN Foundation (the independent management organisation of SCSN). You can compare them and decide for yourself which one suits your organisation best!
What does it cost for a service provider to participate in SCSN?
Every company is free to register as a service provider as long as they commit to the basic principles of the SCSN Foundation. The basic principles are linked to an annual financial contribution to the SCSN Foundation for, among other things, the management and further development of the SCSN standard. The contribution is calculated per connected party. For a starting or small service provider, the entry costs are therefore low and they grow along with the number of connected customers. The exact calculation of the annual contribution can be found in the Internal Regulations.
Which companies are already connected?
Currently, several hundred manufacturing companies are connected in the SCSN network. Participants range from larger OEMs and first-tier suppliers to SME second- and third-tier suppliers, but also (steel) wholesalers and even steel manufacturers.
The SCSN Directory enables you to find the affiliated users of SCSN. Unfortunately, this overview is not yet complete and it is therefore also advisable to consult the websites of the Service Providers.
How is SCSN different from a cloud platform and EDI?
Traditional EDI connections are often set up according to the two-corner model. This means that a tailor-made connection is set up between two parties who wish to do digital business with each other. For each new party that is connected, a new connection must be set up, which is often unique and therefore different from the previous connection. Each new connection costs the same investment to set up and manage. This model is very expensive and not scalable.
An improvement on this model is the cloud platform or broker model, which is set up in accordance with the three-corner model. This involves an intermediary IT party (i.e. a service provider) to which all manufacturing companies can connect. Once a manufacturing company has connected to this service provider, it ensures that a connection can be set up with all connected parties. In this model, only one connection is needed, which significantly reduces maintenance and costs.
However, this model only works in a scenario where there is only one service provider in the market. The reality is different, and there are currently dozens of service providers. This means that manufacturing companies still have to set up multiple connections (and thus pay costs several times over).
Even in a scenario where there is only one service provider, this model has its limitations. In this scenario, the service provider gains insights into business-sensitive data such as order transactions for an entire industry, which can be a major business risk. Furthermore, an entire industry is dependent on one IT party and thus a monopoly on data exchange is created. This problem has already become clearly visible in the B2C sector (for example: taxis, large web (retailers) and meal delivery companies) and has had major consequences for the sector. The lesson is that data sovereignty (i.e. the ability to control your own data) is essential.
What makes SCSN different?
SCSN is not only a communication standard, it is also a network that is designed according to the four-corner model; see also the image below. The SCSN network is a network of networks, in which all service providers/brokers are connected to each other. This enables every manufacturing company to communicate with all other manufacturing companies in the SCSN network, irrespective of the service providers to which the manufacturing companies are affiliated. This is made possible by strict technical and commercial agreements between the service providers, which are managed by the independent SCSN Foundation.
This network is comparable to the telecom sector. Everyone is free to choose a telecom provider that suits them best. The customers of the telecom providers can call all other connected people, regardless of which telecom provider they are connected to or which type of mobile phone they have.