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ARC Supplier Portal and Analytics

ARC Supplier Portal and Analytics. Agenda. Challenges in supplier collaboration Opportunities in supplier collaboration Value proposition Architecture SPA benefits Case study. Challenges of Retailer-Supplier collaboration. Effective Management of Suppliers & their needs.

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ARC Supplier Portal and Analytics

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  1. ARC Supplier Portal and Analytics

  2. Agenda • Challenges in supplier collaboration • Opportunities in supplier collaboration • Value proposition • Architecture • SPA benefits • Case study

  3. Challenges of Retailer-Supplier collaboration Effective Management of Suppliers & their needs Real time visibility, complex pricing, promo decisions Global CPG Majors Private Label Suppliers Small & Medium Suppliers Visibility Information Exchange Collaboration Orders, Status tracking Payments, Adjustments Sales, Demand forecasts Inventory New product introductions Pricing, Promotions, POG, NSO Joint business plan, Review Outright Vendor Managed Inventory Outright Outright Scan Based Training Concessionaire DOMESTIC IMPORTS Grocery, perishables, apparel, footwear, lifestyle, white goods, electronics Supplier Systems Retailer Systems ERP Warehouse Management PhoneEmailFax MerchandiseManagement Warehouse Management Orders Master Data Management Point of sales Space Management KeyAccount Manager Buyers Finance TradePromotions Finance Promotions

  4. Opportunities in Supplier Collaboration • Improve supply chain efficiency • The biggest opportunity does not lie in demand forecasting alone, but being able to respond to that demand • Supply chain response involves better orchestration of business goals/objectives across people, process, retail specific business practices • Improving supply chain visibility alone does not solve the efficiency problem; you need actionable analytics framework that drives true collaboration • Remove technology barriers • Data is scattered across multiple systems in the retailer and supplier sides; getting a synchronized, integrated and accurate information is key to enabling visibility and collaboration • Information exchange today is quite inefficient; buyers, account managers interact through phone, fax, email and other non-standard methods that constrain higher levels of collaboration • Implementing MDM strategies and GDS standards at source system levels have proved to be challenging, with a long ROI timeframe, involving huge change management • Reduce costs • With current processes, administrative overheads and transaction costs are huge (transaction costs run up to 7% of a supplier’s sales) • Supplier collaboration benefits have resulted in benefits in the range of 10%-20% of intake costs • Improve OOS • Retailers lose 8% of sales due to OOS at stores on an average • Suppliers lose about 3% of sales due to OOS and lack of visibility at downstream and store/shelf inventory movement • Supply chain visibility and supplier collaboration has a direct impact on balancing OOS levels against inventory carrying costs

  5. ARC SPA - Value Proposition • Automates and ensures complete transparency on all the interactions between supplier & retailer • Optimizes the process between supplier & retailer by providing close loop system & process • Provide analytical information to enable retailer and supplier with better decision making capabilities Supplier Portal & Analytics promises to OPTIMIZE PROCESSES & ENHANCE PERFORMANCE between retailer & supplier

  6. SPA - Solution Capabilities Automation of Business Process improving accuracy and visibility Collaborative Planning for Price, Promotion, Inventory Ex. PO Approval to stock delivery to payments Ex. Promotion plans, Price negotiations, New product introductions SPA Sharing of critical information for timely actions Vendor Management, Contract and Master Data Ex. Supplier stock visibility and sales info sharing Ex. Vendor sign-up, delisting, article updates Analytics for Better Negotiation and better business decisions Strategic Planning with Suppliers Ex. Supplier performance scorecards; SKU performance Ex. Joint Business Plan, OTB Plan

  7. A complete Retail Supplier Portal & Analytics Platform ORDERS PAYMENTS VENDOR RELATIONSHIPMGMT PRODUCT PROMOTIONS MANAGEMENT NEW STOREOPENING PURCHASEORDER REMITTANCEADVICE NEW VENDOR DETAILS UPDATE TERMS OF TRADE ASSORTMENT FOR THE VENDOR SUPPLIER INITIATED PROMOTION VENDOR INITIATED PROMOTION DELIVERY SCHEDULE PACKAGINGLIST DEBIT NOTES VENDOR PROFILE AMENDMENTS SALES PLAN MERCHANDISE HIERARCHY STORE PROMOTIONS STORE LAYOUTS PROMOTIONS SUPPLIERINVOICESUBMISSION CREDIT NOTES SUPPLIER DELIVERY CALENDAR OTB PLAN NEW PRODUCT INTRODUCTION REBATES & DISCOUNTS GANDOLA HIRE FILL RATES ASN/ SHIPMENTS STATEMENT OF ACCOUNTS CONTRACTS & DOCUMENTS BUSINESS REVIEW PRODUCT DETAILS AMENDMENT CAMPAIGN BOOKINGS FILL RATE DISCREPANCY RECEIPTS LABELPRINTING VENDOR REVIEW & SCORE CARD PRICE COST AMENDMENT PROMOTION AND MARKETING CALENDAR RETURN TOVENDOR OUT OF STOCK ADVISORY BY VENDOR OBSOLETE STOCK ADVISORY ROLE BASED DASHBOARD PENDINGTASKS SEARCH& ACT CHAT BOX MY ALERTS MYMESSAGES STORELISTING USERPROFILES INFORMATIONCALENDAR ADVANCED ANALYTICS SALES VENDOR PERFORMANCE INVENTORY PROMOTIONS ASSORTMENT FINANCE SPACE ANALYTICS PROCESS KPI – PO, PRODUCT PROMOTIONS

  8. Handles all retail purchasing models PURCHASE ORDER FLOW FOR DIFFEENT VENDOR TYPES OUTRIGHT IMPORTS PO GENERATION IN MMS/ERP PURCHASE ORDER APPROVAL PO ACKNOWLEDG- EMENT BY SUPPLIER PACKING SLIP INVOICE ADVANCE SHIPPING NOTIFICATION PHYSICAL RECEIPT RECEIPT CONFIRMATION GRN OUTRIGHT DOMESTIC PO GENERATION IN MMS/ERP PURCHASE ORDER APPROVAL INVOICE ADVANCE SHIPPING NOTIFICATION PHYSICAL RECEIPT RECEIPT CONFIRMATION GRN VENDOR MANAGEMENT INVENTORY SALES REPORTS TO VENDOR STOCK REPORTS TO VENDOR VENDOR PROPOSE SKU STORE ALLOCATION PO GENERATION IN MMS/ERP PURCHASE ORDER APPROVAL PO ACKNOWLEDG- EMENT BY SUPPLIER INVOICE ADVANCE SHIPPING NOTIFICATION PHYSICAL RECEIPT RECEIPT CONFIRMATION GRN SCAN BASED TRADING/CONSIGNMENT VENDOR PROPOSE SKU STORE ALLOCATION ADVANCE SHIPPING NOTIFICATION PHYSICAL RECEIPT SALES REPORTS TO VENDOR INVOICE GRN CONCESSIONAIRE SALES REPORTS TO VENDOR INVOICE GRN

  9. ARC Supplier Portal & Analytics Architecture • Integrated, secure web-based solution platform deployed by retailers to collaborate with suppliers • Unified view of information from disparate sources such as MMS, WMS, Order management and financial systems • Self-service, personalized portal • Real-time collaboration • Supports data exchange formats such EDI, XML, CSV etc. • Instant alerts and notifications • Easy document uploads and sharing • Platform independent Role-Based Accessfor Retailers Role-Based Accessfor Suppliers Portal based Web Interface Buyer View Product Manager View SPA Applications DASHBOARD ORDERS PAYMENTS VENDORMGMT PRODUCT PROMOTIONS NEW STOREOPENING QUALITYASSURANCE Merchant View Account Manager View BUSINESSREVIEW PLANOGRAM TEMPLATES& MANUALS ANALYTICS ……… ……… & more & more ARC SPA Data warehouse Finance View Finance View Updates transaction & Analytics Information Collaboration thru XML feeds, EDI Retailer Enterprise Supplier Systems Data Warehouse MasterCatalogue POS Finance Logistics ERP Finance WMS RMS Orders WMS Products

  10. ARC SPA benefits Retailer Benefits Supplier Benefits On-Shelf availability Lower transaction costs due to extensive use of Portal communication Integrated single point visibility of retailer's IT applications through the Portal Proactive document alerts and notifications Predictable promotional spend management Lower working capital due to Inventory visibility of the Retailer Improved product compliance to global service standards Comprehensive access to relevant retailer document repository Supplier self service for New Product Introduction, Vendor Profile amendments, Price change requests • On Shelf availability • Lower transaction costs due to extensive use of Portal communication • Shorter lead times for Order Management, NPI, Pricing & Promotions, Planogram • Objective and transparent vendor portfolio management • Collaborative pricing & assortment management • On-time new store merchandise visibility • Lower working capital due to Inventory visibility of the Supplier • Improved vendor and product compliance to global service standards • Proactive document alerts and notifications • Supplier Subscription revenues leading to faster Return on Investment (ROI) • Shorter deployment cycle • Customizable user friendly configuration platform • Reduced TCO

  11. Why ARC SPA? • Most comprehensive in solution functionality and features • The only solution that is built specifically for retailers, addressing specific business practices around retailer-supplier collaboration • The only solution to offer a complete range of actionable analytic capabilities that drive true collaboration and better performance • Goes beyond making retailer data available to suppliers; enables bi-directional flow of information • Customers of SPA have deployed it in a subscription based investment model with their key suppliers; offers an extremely fast ROI • The pre-built solution is easy to deploy (in less than 4 months) giving you faster speed-to-benefits compared to other solutions which take a year or more • The solution is easy to use, manage and maintain, making it easy to adopt and minimizing change management • SPA license pricing is not based on usage – Retailers can roll it out to any number of suppliers and users without incremental costs • SPA comes from Manthan – we specialize in retail and offer a complete range of solutions and services to manage the solution and evolving needs of retailers better than any other technology partner

  12. Retail Case Study – Robinsons Supermarket Corp, Philippines • Challenges: • Insufficient capabilities for negotiation, product development and vendor management • Difficulty in optimizing inventory levels resulting in inadequate supply to meet customer demand • Ineffective communication with suppliers • High cost of supplier collaboration • Limited visibility in supply chain • Difficulty in meeting customer demands • Solution SPA is a comprehensive, web-based collaboration platform for retailers, suppliers, vendors and other touch-points in the retail chain to exchange information critical to key processes such as order management, product information management, vendor performance, product development, inventory management, promotions, rebates and customer insight. SPA also provides analytical information and guided analytics with key metrics for informed decision making. • Benefits: • Improved in-stock percentage at the stores by 2% • Increase in the sales of fresh produce due to clearer visibility into quality of produce available • Reduced gap between projected and actual sales with efficient promotion planning • Boost in customer loyalty index with better pricing and assortment strategies • Speedy financial return with supplier subscription revenues • Lowered transaction costs due to extensive use of a Distributed Portal-Based Platform • Ability to identify areas to reduce cost as well as risk and find new opportunities to improve and transform operations Headquartered in Manila with 49 branches and 327 stores in eight retail formats across the Philippines, Robinsons Supermarket Corporation is one of the largest supermarket chains in the country. Robinsons Supermarket needed to infuse strong collaboration into its supplier management system. The merchandizing team was looking for a powerful application with advanced collaborative capabilities. • “Manthan System’s ARC has brought into our enterprise an extensive collaboration with suppliers and a clear visibility into various aspects of merchandising. ARC’s well-thought-out design and effective application are its biggest strengths.” • Thelma G. Roxas, VP & CIO, • Robinsons Supermarket Corporation

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