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September 24, 1998 Presented by: Bill McEwan, President & CMO, The Great Atlantic & PowerPoint Presentation
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September 24, 1998 Presented by: Bill McEwan, President & CMO, The Great Atlantic & Pacific Company of Canada, Limited. Unexplained Deductions. Taking the “Unexplained” Out Of Deductions. Deductions Are Not Necessarily A Problem

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slide1
September 24, 1998

Presented by:

Bill McEwan, President & CMO, The Great Atlantic &

Pacific Company of Canada, Limited

Unexplained Deductions

taking the unexplained out of deductions
Taking the “Unexplained” Out Of Deductions
  • Deductions Are Not Necessarily A Problem
  • This Is A Business Process Issue
  • Result - Costly Non-Productive Activities
deduction descriptions
Deduction Descriptions
  • Unexplained - Inadequate Or No Documentation
  • Unresolved - Valid Deductions, Agreed By Both Trading Partners, But Not Adequately Documented or Communicated
  • Unauthorized
  • - Not Agreed To By Supplier And Distributor

- “Random Act Of Violence”

results of 1996 survey
Results Of 1996 Survey
  • Canadian Grocery Distributors Process 1.4 Million Deductions Annually
  • Represents $1.8 Billion Dollars
  • 90 Percent Of Deductions Are Valid
  • Cost The Industry $30 Million To Resolve Them - $27 Million - Suppliers’ Costs - $ 3 Million - Distributors’ Costs
slide5

Unexplained Deductions

Efficient Deductions Process

Trading Relationship

A

D

Trading Relationship

B

C

Trading Relationship

C

B

A

Trading Relationship

D

deduction responsibility not just
Deduction Responsibility…not just

DistributorSupplier

Accounting 78Accounting

…must include

Merchandising 78 Marketing

Procurement 78 Sales

Warehousing 78 Logistics

Operations 78 Field Sales …and more

the problem can be solved
The Problem Can Be Solved

Implementing The Committee’s Recommendations, including…

  • Detailed Best Practices For Processing Deductions & Reducing Unexplained Deductions
  • Revised Standard Forms
  • Recommendations For The Implementation Of EDI Transaction Sets With Respect To Deductions
  • Revised Deductions Guidelines
three critical imperatives
Three Critical Imperatives
  • Communicate
  • Communicate
  • Communicate
recommended next steps
Recommended Next Steps
  • Attend The ECR Deductions Committee Break Out Session At 2:30 P.M. This Afternoon
  • Buy The New ECR Publication “Taking The Unexplained Out Of Deductions”