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Improving Vendor Relations through Optimized Tradeflow
Dan Ferrara - HBCJack Robinson - SPI
• Retailer -Vendor relationship• Industry pain points• An approach to automation• HBC Vendor Portal initiative• Looking ahead
Improving the various workflows between a retailer and its trading partners results in a more collaborative environment in addition to financial gains.
Agenda
About SPI
The Right Retail Partner 15+ years of demonstrated success with blue chip
retailers: HBC, Macy’s, Ahold, Belk and many more Best of both worlds: Global delivery model offering
the best value for our clients Client-focused approach: Tailored to meet the needs
and culture of each individual client with a 95% client retention rate
Commitment to offering solutions aimed at reducing costs and improving margins
Retailer-Vendor Relationship
Deal/Agreement Mgmt
Claims Management
Vendor Compliance
and more……
New Vendor Sign Up
Allowances Handling
New Item Set Up
AP Inquiry
Vendor Universe
Finance
Merchandising
Vendor Control
Supply Chain
Retailer
and many more……
Other stakeholders….
Industry Pain Points Drivers Impact
Hard copy Agreements/Allowances
Claim communication via Email
New vendor setup via Fax/Email
Manual three way matching
Multiple data storage locations
Manual retrieval of data
Item data communicated via
Email/Fax
Rekeying of hand written information
Hard copy invoices from vendors
Missing/Incorrect/Duplicate Deals
Transactional disputes & Tension
Delays & Lack of visibility
Erroneous Payments, Auditing costs
Hard to access historic information
No reporting capability
Poor quality of data in the system
Low productivity & High admin cost
Missing data handoffs
An approach to automation
Administration Workflow
Core Modules
Client-Specific Modules
Claims Management
Vendor Set Up
Deal Management
Allowance Management
Content Management
A new Module
Data Input /Output Layer
Reporting Layer
Customizable Platform Secure 24x7 Global Access Portal Technology Simple SaaS Pricing Hosted Externally/Internally Integration with ERP systems Data Retention/Retrieval Ability to Add New Functionality Electronic Audit Trail Role-Based Access Business-Specific Reporting
Key Features
About HBC
Canada’s Largest Retailer With over 600 retail locations and over 50,000
associates located in every province in Canada HBC operates the Bay, a major department store,
Zellers, a mass merchandise format, Home Outfitters, a kitchen, bed and bath specialty store, and value-priced Fields stores
Hudson's Bay Company is the Canadian retail entity of Hudson's Bay Trading Company (HBTC)
Where We Started
Vendors
Finance
Buyers
Legal
Vendor Control
Fielding payment inquiry calls Responding to requests on
past transactions
Issues in getting deals and allowances setup
Challenges with timing of recognizing funds
Delays in getting all the approvals during vendor setup
Issues in storing and tracking all the paperwork
Difficulty in ensuring that all the terms and conditions have been agreed and reflected
Felt like they were dealing with a black-hole and complained of lack of attention
Perceived the relationship as stressful and non participatory
HBC Vendor Portal Initiative
Vendor Set Up
Master Vendor Agreement
Special Allowances
AP Inquiry Lookup
Content Management
Key Business Objectives
Enhance visibility and accountability across the procure to pay process
Eliminate leakages in the current manual workflows
Provide self-service features to enhance productivity
Improve the quality of information by storing the right data
Generate meaningful reports that would drive business decisions
Development Details Specifications
Web application built using Java and Oracle
Interfaces real time with the AP Processing application (Oracle)
Hosted within HBC firewalls
Vendor Setup
Agreements
Allowances
AP Inquiry
Content Mgmt
Results/Benefits
11
Vendors•Constructive partnership: Active participant in the procure to pay process•Better relationships: Quick identification/resolution of overpayments •Access to information: 24x7 access to deals, payment status, forms, etc
•eDeals: Eliminating the document retention company•Timely fund recognition: Better planning and better relationships•Increased productivity: Reduction in time taken to set up a new deal
Finance•Call volume reduction: 30% reduction in basic inquiry type calls•Reduced auditing effort: Reduction in certain merchandising claim types•Time value of money: Cash in the current year
Merchandising
Vendor Portal has enabled HBC to put in permanent fixes to issues that cause financial leakages year on year, in addition to fostering a collaborative trading environment
Looking Ahead…
1
2
3
4
5Vendor Set Up
Content ManagementAP Inquiry
AgreementsAllowances
Claims HandlingVendor Statements
Cost Change Notification
Sharing of other types of information
HBC’s vision is to for the vendor portal to serve as a one-stop shop for all stakeholders involved in the procure to pay process.
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