#2 ARC Supplier Portal and Analytics Case Study March, 2011
#3 Customer Profile Sales close to USD 1.5 Billion 488 Stores 8 retail formats 6000 employees
#4 Scenario @ Robinsons Ineffective communication with suppliers: –Ineffective legacy application in use did not allow a two-way communication –Information distribution was one-sided making it impossible for suppliers to take active part in the process of product procurement –Complicated process for their merchandising team with no clear picture of suppliers’ response/feedback Limited visibility in supply chain: –Limited visibility in every aspect of its supply chain including merchandise procurement, supplier performance, inventory management and effectiveness of delivery
#5 Scenario @ Robinsons Insufficient and high cost of collaboration: –Faced problems conducting negotiations with suppliers –Developing periodic promotions, schemes and offers on products –Inefficient management of a huge number of vendors. –Affecting timelines. High cost of supplier collaboration: –The legacy application included an additional fee for every new supplier license procured. –With the number of suppliers increasing every day, this system was proving to be expensive as well as ineffective.
#6 Scenario @ Robinsons Difficulty in meeting customer demands: –Cumbersome to compare purchase orders to inventory levels on a near real-time basis –Difficult to compare POs to sales order data –Could not optimize inventory levels which resulted in inadequate supply to meet customer demand.
#7 Business Need 1.Our trade partners need to have visibility on highly essential information such as the performance and stock levels of their products in our stores at any given time. 2.They need to have an ease of tracking their payment details online. 3.Need a tool for them to make proactive business decisions, thereby improving their overall business performance. Mr. Jody Gadia, General Manager of Robinsons Supermarket
#8 ARC SPA Solution ARC SPA was proposed to Robinsons as a single interactive platform with a comprehensive view of the entire supplier portfolio by integrating the key supplier reliability data with financial viability metrics.
#9 ARC SPA Solution Addressing Collaboration and Communication Effective communication with suppliers –Easy access, user-friendly portal –Support for two-way communication –Exchange information about sales, inventory, purchase orders, goods receipts and payments along with relevant KPIs to outright and concessionaire business model suppliers. –Suppliers now in a position to provide feedback Enhanced visibility in supply chain –Suppliers can now propose new products online in collaboration with the. merchandizing team –Team can then approve the proposals using tiered approval approach based on SPA’s analytical data. –Web-based new product introduction form along with SPA’s ability to track requests and their status helps the managers plan new products quickly and more efficiently. –New store delivery calendar in SPA gives both parties a clear visibility into the timelines and delivery patterns of new stores.
#10 ARC SPA Solution Addressing Procure to Pay Cycle Issues Through its configurable workflows, SPA has addressed Robinson Supermarket’s major pain points in the ‘procure to pay’ (P2P) cycle: the request to address the person in the right role at the suppliers’ end Purchase order (PO) approver being out of office was one of the concerns of Robinsons’ suppliers before deploying SPA. This was affecting the suppliers especially in cases when the receipt of purchase orders was closer to cancel date. SPA provides functionality to automatically assign POs to alternate approvers when original approvers are out of office and revert to the original approver after his/her return. This helps Robinsons to approve the purchase orders in time and the suppliers have lead time to process purchase orders.
#11 ARC SPA Solution enables Collaborative efforts and business reviews Suppliers are able to be proactive and contribute to a joint business goal. Propose product promotions, store promotions, volume discounts and also book campaigns View the list of gondola available for hire in various Robinsons stores and propose to hire gondola in selected set of stores. Facilitates the supplier to create and upload planograms and planogram data for a review. In Built workflow allows modifications to be made to the planograms and approve/reject the same. Approved planograms can be sent to the selected Robinsons Supermarket stores for a review. Involvement of suppliers in setting of business goals and periodic business reviews using ARC analytics.
#12 Role based analytics Analyse data across the enterprise, suppliers, vendors and its trading partners. Role-based dashboard view and analytics provides various staff members on suppliers’ end as well as at Robinsons a clear visibility, actionable data and insight required for every specific role. Supply chain executives at Robinsons are able to take quick and informed actions, evaluate space productivity, conduct better negotiation, manage vendors effectively, and approve/reject various proposals from suppliers.
#13 Alerts and announcements Aligning the delivery schedule of the suppliers to new stores to ensure that the stores open with full stock. Provides visibility of fill rates. Supports email-based alerts, reminders and escalations that are automatically sent to appropriate roles on the suppliers’ side regarding NSO fill rates, fill rate discrepancies and other incongruent data/information and delays.
#14 Benefits ( Within 3 months of deployment) Improved performance: –Complete visibility into purchase order tracking by supplier and buyer has improved the in-stock percentage at the stores by 2%. –Helped the procurement staff to obtain exact knowledge about the quality of produce available. This has resulted in an increase in the sales of fresh produce at many stores –Visibility has helped store operations, replenishment department, buyers and suppliers in planning and has improved the vendor fill rates by over 5%. Efficient promotion planning: – Intense collaboration and two-way communication between the company and its suppliers has led to efficient promotion planning, thereby reducing the gap between projected and actual sales significantly. Clearer product visibility: –Streamlining New Product introduction process has resulted in timely introduction with visibility to all stakeholders.
#15 Benefits Reduced transactional costs: –Reduced transaction costs due to extensive use of a Distributed Portal-Based Platform. –Easy access to information has reduced the cost of sourcing, warehousing and transporting of merchandise. Cost savings and speedy financial return: –Licensing independent of usage and can be rolled out to any number of suppliers and users without incremental costs –The subscription-based investment model with key suppliers brought supplier subscription revenues and helped Robinsons achieve a quick ROI. Increased customer loyalty: –The analytical capabilities of SPA have helped Robinsons achieve an accurate SKU rationalization analysis. –Provides a better picture of destination items thus improving the company’s customer loyalty index. Clearer identification of areas for enhancement: –Complete transparency in all interactions between supplier and retailer has helped Robinsons identify areas to reduce cost and risk, and also find new opportunities to improve its operations.
#16 Key Information Deployed ARC product : SPA Ver 6.0 Size : 16 Man Months Total no. of Users : 100 Total no. of SKU’s : 1 million Source System : JDA No. of CPU’s : 8 RAM : 32 OS Platform : Windows DB Platform : Oracle 10G DW Size : 2 TB
#17 Final Word “Among several characteristics of the ARC, we found its data model driven retail-centricity to be a key differentiator and of significant value to our retail businesses. ARC’s scalability and its ability to be deployed rapidly have proved to be major advantages that align with our IT strategy goals.” “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, Vice-President and Chief Information Officer, Robinsons Supermarket Corporation