LeanCor Logistics Webinar: Supplier Performance - The Keys to Collaboration
Supplier Collaboration - Doing it the right way
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Transcript of Supplier Collaboration - Doing it the right way
1
Supplier Collaborationdoing it the right way !!
Retail & CPG Supply Chain Summit London, June 20th, 2011.
By: Hiren Doshi ([email protected])
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Evolution of Supplier Collaboration
Just in time
Quick
Response
ECR
CPFR
Value
Chains
19802010
CollaborationPrimarily Around Inventory
Technology Primarily Around Document Exchange
EDI
XML
Internet EDI
GDSN
Web Services
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Supplier Collaboration has come a long way
Source: Gartner Supply Chain Hype Cycle 2010
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Finance
Marketing Marketing
Commercial Buying
Manufacturing Technical
Logistics Demand/Logistics
Order Order Process
IT IT
SUPPLIER RETAILER
Departmentalized approach to Collaboration
Finance
Order Mgmt
Invoice/Payments
PIM
Scorecard
Auctions
Logistics
Product Intro
Registration
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Finance
Marketing Marketing
Commercial Buying
Manufacturing Technical
Logistics Demand/Logistics
Order Order Process
IT IT
SUPPLIER RETAILER
Leading to multiple supplier systems
Finance
EDI
CustomApplns
Phone
Fax
Spread sheets
Portals
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An example from a $5Bil Retailer
Supplier complaints
Cost checking
Trading agreements
Vendor
Management
Vendor promotions
Campaigns
Rebates and discounts
Promotions
Warehousing agreements
SC conflict resolution
Private label Mgmt
Cost negotiations
Product
Document Exchange
ASN and GRN
Self Service for AP
documents
Payments
& orders
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3= 14
Supplier Systems
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3
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• No Data Integration• No Decision Support Capabilities• No Process Integration or
Automation• Restricted 2-way communication• Primarily focused on top suppliers
Inherent Deficiencies
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Future of Supplier Collaboration
Single SupplierCollaboration
Platform
Orders/Payments
Vendor Mgmt
Product Mgmt
Promotion Mgmt
Finance
Marketing Marketing
Commercial Buying
Manufacturing Technical
Logistics Demand/Logistics
Order Order Process
IT IT
SUPPLIER RETAILER
Finance
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Top 10 Benefits of an Integrated Supplier Portal
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Automate Process not just Activities
1. NPI
De-list
CampaignPromotion
Store 1
Store 2
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Process + Data = Intelligence
2.
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Enables a two-way communication
2.3.
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Comprehensive and Actionable Information
4.
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Automate larger Supplier Community
5.
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Scalability beyond just the Top Suppliers
6.
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Find your true Mate
7.
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Every one speaks the same language
MarginOTIFOOSSell through
MarginOTIFOOSSell through
MarginOTIFOOSSell through
8.
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Take it to the next level across your organization
Commercial Supply Chain Merchandising
9.
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Almost Always Self funded
10.
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What is available today?
• Would it be nice if a single product can handle all Retailer-Supplier interactions and collaborative processes?
YES
• Does such a product exist today?
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Introducing Manthan SPA
– Automates and enables complete visibility across all the transactions between supplier & retailer
– Optimizes the process between supplier & retailer by providing close loop BI capabilities
– Provides a true 2-way collaborative platform to improve product, inventory, promotion and supplier performance
Supplier Portal & Analytics promises to
OPTIMIZE PROCESSES&
ENHANCE PERFORMANCEbetween retailer & supplier
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SPA Functional Capabilities
Ex. PO Approval to stock delivery to payments
Ex. Supplier stock visibility and sales info sharing
Ex. Supplier performance scorecards; SKU performance
Ex. Promotion plans, Price negotiations, New product introductions
Ex. Vendor sign-up, delisting, article updates
Ex. Joint Business Plan, OTB Plan
Automation of Business Process improving accuracy and visibility
Sharing of critical information for timely actions
Analytics for Better Negotiation and better business decisions
Collaborative Planning for Price, Promotion, Inventory
Vendor Management,Contract and Master Data
Strategic Planning with Suppliers
SPA
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A Complete Supplier Portal
ORDERSPAYMENTS
VENDOR RELATIONSHIPMGMT
PRODUCTPROMOTIONS MANAGEMENT
NEW STOREOPENING
PURCHASEORDER
PACKAGINGLIST
SUPPLIERINVOICE
SUBMISSION
ASN/SHIPMENTS
RECEIPTS
RETURN TOVENDOR
LABELPRINTING
REMITTANCEADVICE
DEBITNOTES
CREDITNOTES
STATEMENTOF
ACCOUNTS
NEW VENDORDETAILSUPDATE
VENDORPROFILE
AMENDMENTS
CONTRACTS &DOCUMENTS
SUPPLIERDELIVERY
CALENDAR
ASSORTMENTFOR THEVENDOR
MERCHANDISEHIERARCHY
NEWPRODUCT
INTRODUCTION
PRODUCTDETAILS
AMENDMENT
PRICECOST
AMENDMENT
OUT OF STOCKADVISORY BY
VENDOR
OBSOLETESTOCK
ADVISORY
REBATES &DISCOUNTS
SUPPLIERINITIATED
PROMOTION
STOREPROMOTIONS
CAMPAIGNBOOKINGS
PROMOTION AND MARKETINGCALENDAR
DELIVERYSCHEDULE
PROMOTIONS
FILL RATES
FILL RATEDISCREPANCY
TERMS OFTRADE
SALES PLAN
OTB PLAN
BUSINESSREVIEW
VENDOR REVIEW &SCORE CARD
GANDOLAHIRE
VENDORINITIATED
PROMOTION
STORELAYOUTS
ROLE BASEDDASHBOARD
ADVANCEDANALYTICS
PENDINGTASKS
SEARCH& ACT
CHAT BOX MY ALERTSMY
MESSAGESSTORE
LISTINGUSER
PROFILESINFORMATION
CALENDAR
SALESVENDOR
PERFORMANCEINVENTORY PROMOTIONS ASSORTMENT FINANCE
SPACEANALYTICS
PROCESS KPI –PO, PRODUCTPROMOTIONS
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Real life Business Benefits
• Purchase order corrections reduced by 15%
• Supplier led promotions increased by 30%
• Vendor fill rate enhanced by 5%
• OOS during promotion reduced by 15%
• New Vendor Registration time reduced by 70%
• New product introduction time reduced by 50%
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Thank You