Supplier Collaboration - Doing it the right way
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The document discusses the evolution and future of supplier collaboration in retail and consumer packaged goods, emphasizing the transition from outdated methods to integrated platforms. It outlines the benefits of a unified supplier portal, which enhances data integration, communication, and operational efficiency. The introduction of Manthan's SPA supplier portal and analytics aims to optimize processes and improve collaboration between retailers and suppliers, resulting in significant business benefits.
Supplier Collaboration - Doing it the right way
- 1. Supplier Collaboration doing it the right way !! Retail & CPG Supply Chain Summit London, June 20th, 2011. By: Hiren Doshi (hiren.doshi@manthansystems.com) 1
- 2. Evolution of Supplier Collaboration Value Collaboration Chains Primarily Around Inventory CPFR Technology Primarily Web Services Around Document Exchange ECR GDSN Internet EDI Quick Response XML Just in time EDI 2010 1980 2
- 3. Supplier Collaboration has come a long way Source: Gartner Supply Chain Hype Cycle 2010 3
- 4. Departmentalized approach to Collaboration SUPPLIER RETAILER Order Mgmt Finance Finance Invoice/ Marketing Payments Marketing Commercial PIM Buying Manufacturing Scorecard Technical Logistics Auctions Demand/Logistics Order Logistics Order Process IT Product Intro IT Registration 4
- 5. Leading to multiple supplier systems SUPPLIER RETAILER EDI Finance Custom Finance Applns Marketing Marketing Commercial Phone Buying Manufacturing Technical Email Logistics Demand/Logistics Fax Order Order Process Spread IT sheets IT Portals 5
- 6. An example from a $5Bil Retailer Warehousing agreements Document Exchange SC conflict resolution Payments ASN and GRN Product Private label Mgmt & orders Self Service for AP Cost negotiations documents 4 4 Vendor promotions Supplier complaints Vendor Promotions Campaigns Management Cost checking Rebates and discounts Trading agreements 3 3 = 14 Supplier Systems 6
- 7. Inherent Deficiencies • No Data Integration • No Decision Support Capabilities • No Process Integration or Automation • Restricted 2-way communication • Primarily focused on top suppliers 7
- 8. Future of Supplier Collaboration SUPPLIER RETAILER Single Supplier Collaboration Finance Platform Finance Marketing Marketing Orders/ Payments Buying Commercial Vendor Mgmt Technical Manufacturing Product Mgmt Logistics Demand/Logistics Promotion Mgmt Order Order Process IT IT 8
- 9. Top 10 Benefits of an Integrated Supplier Portal 9
- 10. Automate Process not just Activities 1. NPI De-list Store 1 Campaign Promotion Store 2 10
- 11. Process + Data = Intelligence 2. 11
- 12. Enables a two-way communication 3. 2. 12
- 13. Comprehensive and Actionable Information 4. 13
- 14. Automate larger Supplier Community 5. 14
- 15. Scalability beyond just the Top Suppliers 6. 15
- 16. Find your true Mate 7. 16
- 17. Every one speaks the same language 8. Margin OTIF OOS Sell through Margin OTIF Margin OOS OTIF Sell through OOS Sell through 17
- 18. Take it to the next level across your organization 9. Commercial Supply Chain Merchandising 18
- 19. Almost Always Self funded 10. 19
- 20. 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? 20
- 21. Introducing Manthan SPA Supplier Portal & Analytics promises to OPTIMIZE PROCESSES & ENHANCE PERFORMANCE between retailer & supplier – 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 21
- 22. SPA Functional Capabilities Automation of Collaborative Business Process Planning for Price, improving accuracy Promotion, and visibility Inventory Ex. PO Approval to stock delivery Ex. Promotion plans, Price to payments negotiations, New product introductions Vendor Sharing of critical information for SPA Management, Contract and timely actions Master Data Ex. Supplier stock visibility and Ex. Vendor sign-up, delisting, sales info sharing article updates Analytics for Better Negotiation and Strategic Planning better business with Suppliers decisions Ex. Supplier performance scorecards; Ex. Joint Business Plan, OTB SKU performance Plan 22
- 23. A Complete Supplier Portal ORDERS VENDOR RELATIONSHIP PROMOTIONS NEW STORE PRODUCT PAYMENTS MGMT MANAGEMENT OPENING NEW VENDOR ASSORTMENT SUPPLIER VENDOR PURCHASE REMITTANCE TERMS OF DELIVERY DETAILS FOR THE INITIATED INITIATED ORDER ADVICE TRADE SCHEDULE UPDATE VENDOR PROMOTION PROMOTION VENDOR PACKAGING DEBIT MERCHANDISE STORE STORE PROFILE SALES PLAN PROMOTIONS LIST NOTES HIERARCHY PROMOTIONS LAYOUTS AMENDMENTS SUPPLIER SUPPLIER NEW CREDIT REBATES & GANDOLA INVOICE DELIVERY OTB PLAN PRODUCT FILL RATES NOTES DISCOUNTS HIRE SUBMISSION CALENDAR INTRODUCTION STATEMENT PRODUCT ASN/ CONTRACTS & BUSINESS CAMPAIGN FILL RATE OF DETAILS SHIPMENTS DOCUMENTS REVIEW BOOKINGS DISCREPANCY ACCOUNTS AMENDMENT PRICE LABEL VENDOR REVIEW & PROMOTION AND MARKETING RECEIPTS COST PRINTING SCORE CARD CALENDAR AMENDMENT OUT OF STOCK RETURN TO ADVISORY BY VENDOR VENDOR OBSOLETE STOCK ADVISORY ROLE BASED PENDING SEARCH MY STORE USER INFORMATION CHAT BOX MY ALERTS DASHBOARD TASKS & ACT MESSAGES LISTING PROFILES CALENDAR ADVANCED PROCESS KPI – VENDOR SPACE SALES INVENTORY PROMOTIONS ASSORTMENT FINANCE PO, PRODUCT ANALYTICS PERFORMANCE ANALYTICS PROMOTIONS 23
- 24. 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% 24
- 25. Thank You 25