Price Support (Vendor Rebates) Outside Vendor Window Black Belt: Debbi Youmans-McCreary Division:...
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Transcript of Price Support (Vendor Rebates) Outside Vendor Window Black Belt: Debbi Youmans-McCreary Division:...
Price Support (Vendor Rebates) Outside Vendor Window
Black Belt: Debbi Youmans-McCreary Division: INA - eIKONBU – Ops/Vendor Credits/Southeast
2
Project Charter
START POINT: Receipt of registration from Canon, CSMP, or Ricoh, DMAP, for price support credits by IKON-SED
GOAL: Maximize credits received by IKON
END POINT: Credit application by IKON A/P
Let the opportunities begin!
3
Use C&E, FMEA and detailed flowchart to find problems and focus data collection
Extrapolate, from sample data,: 1. Number of registrations with errors and number of claims not filed2. Number of claims not credited
Continue data collection plan1. Build ACCESS database to compare vendor to IKON – Why aren’t claims
visible?2. Utilize new Rejection reports for Vendor Credit Specialists – Why aren’t claims
filed within the vendor terms?
Strategy for Data Collection
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What are we dealing with?
C A N O N
R I C O H
VCTSORACLE SALESON LINE
5
Cause and Effect Score
Invoice and Serial Nos.
32%
VCS Error Resolution9%
ROL Submission15%
Sales Entry29%Canon Submission
15%
61% of errors are due to Invoice/Serial or Sales Entry Problems – we think…
6
B
IKONVendor
SpecialistsIs the vendor
Canon or Ricoh
Key info toSpreadsheet (list
all ACC andEquip.) and send
package withinvoice to Canon
Ricoh
Canon
Enter informationand date sent to
vendor into VCTS;if serial number isnot present thenmust manually
enter serialnumber to VCTS(added per JW 9/
5)
Resolve errorsand sends
corrections toVCTS
Endinstall base information
serial number if applicable
Date and name ofsubmitter
vendor credit registrationreport
Install base
Detailed Process Map: Where are the issues?
registration #Commitment levelstart/end datesType of coverage
Sales Enters committment leveland registration number, startad end dates to appropriate
organization, party/site in OSO
Create opportunity oruses opportunity alreadyset up against correct
org, party /site
Is this a vendorsupported special
pricing?
VCS formats special pricingtable and then advance pricing
team uploads table.
IKONSales
Customer information andplacement opportunity
Sales Rep or submitterreceives registration
number from VCS/vendor/Reps/Admin Assist.
Correct customer setup in Oracle/OSO
Customer contactagreement with customer
Yes
No
Special Pricing table from vendor
Can this orderbe entered in
OSO?Yes
Type of transaction
RTP=51% if failure is discrete(Validation in progress)
37% of registrations sampled are entered incorrectly
19% of claims sampled are late
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FMEA: Sales Entry Errors
0
200
400
600
800
1000
1200
Registration#
Volume Start/EndDates
Category Customersetup
Initial Sales Entry of Registration Information
Sco
re
0
500
1000
1500
2000
2500
3000
3500
4000
4500
Registration#
Volume Start/EndDates
Category Customersetup
Initial Sales Entry of Registration Information
FMEA Risk Scores Data Sample
# o
f E
rro
rs
8
FMEA: Invoice and Serial Number Errors
0
200
400
600
800
1000
1200
1400
Order # Invoice # InstallBase
D&A Serial #
Invoice and Serial Number errors
Sco
re
0
10
20
30
40
50
Order #,D&A, InstallBase
Invoice # Serial #
Invoice and Serial Number errors
# o
f S
amp
les
Data SampleFMEA Scores
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Data Collection: Get visibility to claims to file for credits!
CANON: 874
RICOH: 794
VCTS: 9148
RICOH
CANON
IKON:A/P
ORACLE 7593
IKON:OSO - 1492
Registration Claims to Credits
10% Loss Rate 16% Reject Rate
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Problem Statement “Crystallized”
IKON loses credits! Incorrect entry of CSMP or DMAP equipment registration information
to Oracle NO entry of registration number
IKON misses vendor deadlines to file claims for credits!
Serial numbers are missing or not linked to the mainframe Invoice numbers and/or copies are not present
How do I know this? Six Sigma tools!
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Preliminary Recommendations
PROCESS:Centralize entry and control of who files, enters and monitors registration
information Eliminate lost registrations Build standard for entry of registration information Give direct responsibility to one Team
IT:Automate process control Build web-form for Sales to request registration from VCS who would file with the
vendor Add edit to OSO field standardizing numeric and formatted information Build EDI or ACCESS database to ensure vendor to IKON reconciliation
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Next Steps…
Focus Data Collection Validate benefits in terms of dollars
Obtain invoice information to find specific issues with D&A, Install Base and serial number errors
Continue building ACCESS database to obtain visibility to vendor registrations not entered to Oracle
Request Process Change Institute standard registration number format between vendor and IKON
Add edit to OSO field requiring entry of numeric and formatted information
Determine feasibility of centralization