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What is SPI Vendor?MATTHEW ROBINSON
1. SPI Vendor Solution
2. Benefits
3. Modules
4. Case Study
AGENDA
5. Questions?
[VARIOUS DATA SOURCES]
SUPPLIERSRETAILER
• Inefficiencies
• Margin reductions
• Trust deficits
• Compliance issues
• Stock outs
• Business risks
For non-EDI standard communications:
Business is Messy
TRADEFLOW OPTIMIZATION
SPI Vendor automates the paperless, electronic exchange of supplier, product and pricing data between retailers and suppliers
SPI Solution: SPI Vendor Supplier Collaboration Suite
Available modules:
• Vendor Management
• Agreement Management
• Allowance Management
• AP Inquiry
• Item Management
• Dynamic Discounting
• Content Management
• Web Invoicing
SPI Vendor Features• Build and distribute electronic invoices based on real-time data
• Manage different types of agreements by vendor category
• Single repository of vendor promotion data, available to be integrated with any ERP
• Configure discount terms with vendors, manage early payment options and review payment history
• Invoicing module provides role-specific data including payment status, trial balances and charge-backs
• Item Management module allows you and your vendors to collaboratively manage a master list of items
Industry Pain PointsDrivers Impact
Hard copy Agreements/Allowances
Communication via Fax/Email
No clear channels to obtain approvals
Rekeying of hand written information
Manual three way matching
Multiple data storage locations
Manual retrieval of data
Allowances not being fully monetized
Missing/Incorrect/Duplicate Deals
Transactional Disputes & Tension
Delays & Lack of Visibility
Erroneous Payments, Auditing costs
Hard to access historic information
No reporting capability
Poor quality of data in the system
Low productivity & High admin cost
Missed allowance calculations
SPI Vendor – Benefits
Automates Existing Manual Processes
New Level of Accountability and Visibility
Integrates Various Technology Platforms
Enhances Efficiencies Revenue Growth/Margin ImprovementsSLA Based Alerts
SPI Vendor – Modules
ITEM PORTALEliminates manual item updates and allows
electronic updates of Vendor’s item attributes and product hierarchies. Item:
1) Attributes2) Product Hierarchies3) Cost/Retail4) Cluster/Locations
VENDOR ONBOARDINGAutomated, customizable vendor creation
and management workflow processes reduce complications of new partner
onboarding. Users can store and access vendor agreements in a central repository,
enabling key stakeholders to view the most up-to-date documents without the risk of
losing information.
AP INQUIRYCollaborating and Communicating AP data
with suppliers is now easier than before. Users can view a full range of role-specific
data including payment status, trial balances, remittance advices and charge backs.
TRADE FUND/REBATE MANAGEMENTSeamless integration with ERP systems for downstream promotion management and financial accounting, enabling users to develop and maintain Purchase and POS allowances.
TRADE FUND/PROMOTIONAL EVENT ENGINE• Bill back By $ Amount• Scan Allowance on Units Sold
TRADE FUND/REBATE CALCULATION ENGINECalculates daily, weekly, monthly, etc charge back reports with calculation detail. Handles a variety of rebate/allowance calculations, but not limited to: • Volume Rebate Performance• Actual Defective Units > Allowance• New Store or Warehouse• Price Protection / Markdown• Incomplete Fill Rate Impact
Web Based
Underlying Workflow
Vendor Workflow – Onboarding
Business Rule Engine
Agreement Management
AP InquiryAP Inquiry
Payment StatusBalances
Discrepancy
Receipt Inquiry
Queries
A/P Inquiries from Suppliers
Supplier
Supplier
Supplier
Supplier
SPI Vendor
AP Inquiry
Search for payment information based on:1) Supplier id2) PO number3) PO date range4) Invoice number5) Invoice date range6) Payment status7) Payment advice information8) Debit notes
Financial Sys.
Discrepancy
Promotion Allowance• Audit Trail• Ability to add
internal comments
• Upload items • Shows status• Owner
Need for a Common portal for all vendors for accessing Agreement Management, Accounts Payables Inquiry and Content Management applications that incorporated all current information
The vendor portal was designed to be an on-line, real-time and highly scalable solution Used a web-based architecture offering functionally rich graphic user interface The data from all the applications could be combined and delivered The portal can be easily integrated with the rest of the applications
BUSINESS PROBLEM
SOLUTION HIGHLIGHTS
BENEFITS TO THE CLIENT Lead time to on-board new vendors has been
reduced by 75% Provided single web access point on the internet Manage special allowance agreements
Vendors could self service to see their Accounts Payable reducing required resources
Vendor creation process was automated starting from approvals
SPI Vendor – Case Study$5 Billion Apparel Retailer
SPI Vendor – Case Study
Seamless Integration with Retek RMS and Pracbiz for Real time Information along with Single sign-on facility. The retailer was the first to pioneer the TradeFlow solution. It has received industry wide positive response for
suppliers and retailers
BUSINESS PROBLEM
SOLUTION HIGHLIGHTS
BENEFITS TO THE CLIENT Source the information related to Retailer
and Vendor at one place and to manage it effectively
Manual processing of contracts between customer and their suppliers – high processing time Poor tracking/visibility Inability to track customer address/contact changes Ad hoc communication techniques
Enhanced Operational Execution Process, better tracking and visibility for the management towards trade flow activities
Vendor Creation went from 12 – 20 days to 3-8
Largest Healthcare and Beauty Chain in Asia
Our customer is a leading health, beauty and personal care retailer in the Asia Pacific region. Its product range includes cosmetics, toiletries, snacks and beverages, fashion and medicines.
Business Problem Benefits to the Client
• Legacy and paper based approach to review, approve Vendor information and creation of the Vendor
• Conflicts and disagreements between Retailer and Vendors due to lack of historical information, scattered data and human errors
• Extra effort in controlling and monitoring the communication channel between Buyers and Vendors to identify agreement issues
• Discussion points/data captured by the Buyers resided in their emails and was challenging for the new members to retrieve the agreements that were made between the Vendors and Buyers
• Source the information related to Retailer and Vendor at one place and to manage it effectively
• Seamless Integration with Retek RMS and Pracbiz for Real time Information along with Single sign-on facility
• Enhanced Operational Execution Process, better tracking and visibility for the management towards trade flow activities
• Improved efficiency in vendor on boarding activities:
Activity Before SPIVendor
After SPI Vendor
Vendor Creation 12-30 Days 3-8 Days
CASE STUDY
Vendors’ lack of visibility to invoice payment status, history and trial balance Manual processes required to sustain the superior service Neiman Marcus aspired to maintain Visibility internally within Neiman Marcus regarding workflow behind the scenes
SPI and Neiman Marcus automated the supplier collaboration process using SPI Vendor’s A/P Inquiry Module, and Dynamic Discounting Module.
Ability for vendor to better track cash-flow by offering the ability to download check details into Excel.
BUSINESS PROBLEM
SOLUTION HIGHLIGHTS
BENEFITS TO THE CLIENT Decreased headcount due to increased
efficiencies Annual Labor Savings: $300,000
Vendors can report on brands individually or combined in a roll-up report
Central repository of Accounts Payable documents including invoices
NEIMAN MARCUS
SPI Vendor – Case Study
$5 Billion Apparel Retailer
Key FeaturesTransforms Retailer/Vendor
Collaboration
Automates Existing Manual Processes
New Level of Accountability and Visibility
Integrates Various Technology Platforms
Enhances Business/Supply Chain Agility
Revenue Growth/Margin Improvements
SLA Based Alerts
SPI Vendor delivers as a secure vendor portal so that you and your vendors cancollaborate faster and more closely than ever before.
The layered architecture of the SPI Vendor platform allows it to be integrated withthe retailer's existing IT landscape with ease.
The robust architecture and redundant infrastructure make it a highly available andscalable platform.
Allows business teams to define service levels for each transaction. They can alsodefine escalation paths and alert notifications in situations where these servicelevels are breached to draw management attention when required.
Through improved operational efficiencies across the supply chain, retailers canreap benefits via on-time receivables, payment initiatives and accounts payablestrategies.
The ability to turn on and off audit trails at individual field level provides thedegree of transparency and visibility each is required.
Businesses are built on value chains that extend from online to in-store and all theway back to the manufacturer. Create faster decision making as a result of real-timeinformation and sharing with stakeholders.
Questions?
