So far in this series, we have discussed the need for vendor compliance and the state of the vendor compliance market place. We know that EDI can be very beneficial in helping a retailer organization manage the compliance of its vendors; we know that organizations can gain significant visibility and increase the responsiveness of their supply chain operation through a best-in-class vendor compliance program. What we haven’t discussed so far is how this might look, which brings us to our case study of an Inbound Management System in practice.
CASE STUDY:
The use of EDI continues to be the key ingredient in helping best-in-class organizations streamline their business operations and realize operational and financial benefits. Today we are looking at a tier 1 Canadian General Merchandiser.
This is a retailer who has gained unprecedented visibility into its inbound merchandise and has saved millions while making substantial improvements of speed and accuracy in its entire order-to-cash process.
In the first year of compliance tracking and monitoring, the retailer realized approximately 80 million dollars in compliance fee charge backs to its trading community.
The compliance information was used to fix and improve broken parts of the supply chain process. The compliance fee charge backs were practically eliminated in the 3rd year of the operation. As we can see, EDI can play a vital role in managing vendor compliance, benefiting both retailers and their vendor-partners.
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