Supplier Collaboration - Doing it the right way And Top 10 benefits of an Integrated Supplier Portal

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
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19. Almost Always Self funded
10.
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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
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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
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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%
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25. Thank You
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