Supplier Collaboration - Doing it the right way

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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



Order Order Process

IT IT

SUPPLIER RETAILER

Leading to multiple supplier systems

Finance

EDI

CustomApplns

Phone

Email

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



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



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