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ARC Supplier Portal and Analytics
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Agenda
• Challenges in supplier collaboration• Opportunities in supplier collaboration• Value proposition• Architecture• SPA benefits• Case study
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Challenges of Retailer-Supplier collaborationD
OM
ES
TIC
DO
ME
ST
IC
IMP
OR
TS
IMP
OR
TS
Grocery, perishables, apparel, footwear, lifestyle, white goods, electronics
ERP
Orders
Finance
WarehouseManagement
Master DataManagement
TradePromotions
MerchandiseManagement
Point of sales
Finance
WarehouseManagement
SpaceManagement
Promotions
Retailer SystemsRetailer SystemsSupplier SystemsSupplier Systems
BuyersBuyersKeyAccount Manager
KeyAccount Manager
PhoneEmailFax
PhoneEmailFax
Effective Management of Suppliers & their needs Real time visibility, complex pricing, promo decisions
Global CPG Majors
Private Label Suppliers
Small & Medium Suppliers
Outright
Vendor Managed Inventory
Outright
Vendor Managed Inventory
OutrightOutright Outright
Scan Based Training
Concessionaire
Outright
Scan Based Training
Concessionaire
VisibilityInformation Exchange
Collaboration
Orders, Status
tracking
Payments,Adjustments
Orders, Status
tracking
Payments,Adjustments
Sales, Demand forecasts
Inventory
Sales, Demand forecasts
Inventory
New product introductions
Pricing, Promotions, POG, NSO
Joint business plan,Review
New product introductions
Pricing, Promotions, POG, NSO
Joint business plan,Review
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• 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
Opportunities in Supplier Collaboration
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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 PERFORMANCEbetween retailer & supplier
Supplier Portal & Analytics promises to
OPTIMIZE PROCESSES
&
ENHANCE PERFORMANCEbetween retailer & supplier
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SPA - Solution Capabilities
Ex. PO Approval to stock delivery to paymentsEx. PO Approval to stock delivery to payments
Ex. Supplier stock visibility and sales info sharingEx. Supplier stock visibility and sales info sharing
Ex. Supplier performance scorecards; SKU performanceEx. Supplier performance scorecards; SKU performance
Ex. Promotion plans, Price negotiations, New product introductionsEx. Promotion plans, Price negotiations, New product introductions
Ex. Vendor sign-up, delisting, article updatesEx. Vendor sign-up, delisting, article updates
Ex. Joint Business Plan, OTB PlanEx. Joint Business Plan, OTB Plan
Automation of Business Process improving accuracy and visibility
Automation of Business Process improving accuracy and visibility
Sharing of critical information for timely actions
Sharing of critical information for timely actions
Analytics for Better Negotiation and better business decisions
Analytics for Better Negotiation and better business decisions
Collaborative Planning for Price, Promotion, Inventory
Collaborative Planning for Price, Promotion, Inventory
Vendor Management,Contract and Master Data
Vendor Management,Contract and Master Data
Strategic Planning with SuppliersStrategic Planning with Suppliers
SPASPA
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A complete Retail Supplier Portal & Analytics Platform
ORDERSPAYMENTS
ORDERSPAYMENTS
VENDOR RELATIONSHIPMGMT
VENDOR RELATIONSHIPMGMT PRODUCTPRODUCT PROMOTIONS
MANAGEMENT
PROMOTIONS MANAGEMENT
NEW STOREOPENING
NEW STOREOPENING
PURCHASEORDER
PACKAGINGLIST
SUPPLIERINVOICE
SUBMISSION
ASN/SHIPMENTS
RECEIPTS
RETURN TOVENDOR
LABELPRINTING
REMITTANCEADVICE
DEBITNOTES
CREDITNOTES
STATEMENTOF
ACCOUNTS
NEW VENDORDETAILSUPDATE
VENDORPROFILE
AMENDMENTS
CONTRACTS &DOCUMENTS
SUPPLIERDELIVERYCALENDAR
ASSORTMENTFOR THEVENDOR
MERCHANDISEHIERARCHY
NEWPRODUCT
INTRODUCTION
PRODUCTDETAILS
AMENDMENT
PRICECOST
AMENDMENT
OUT OF STOCKADVISORY BY
VENDOR
OBSOLETESTOCK
ADVISORY
REBATES &DISCOUNTS
SUPPLIERINITIATED
PROMOTION
STOREPROMOTIONS
CAMPAIGNBOOKINGS
PROMOTION AND MARKETINGCALENDAR
DELIVERYSCHEDULE
PROMOTIONS
FILL RATES
FILL RATEDISCREPANCY
TERMS OFTRADE
SALES PLAN
OTB PLAN
BUSINESSREVIEW
VENDOR REVIEW &SCORE CARD
GANDOLAHIRE
VENDORINITIATED
PROMOTION
STORELAYOUTS
ROLE BASEDDASHBOARD
ROLE BASEDDASHBOARD
ADVANCEDANALYTICS
ADVANCEDANALYTICS
PENDINGTASKS
SEARCH& ACT
CHAT BOX MY ALERTSMY
MESSAGESSTORELISTING
USERPROFILES
INFORMATIONCALENDAR
SALESVENDOR
PERFORMANCEINVENTORY PROMOTIONS ASSORTMENT FINANCE
SPACEANALYTICS
PROCESS KPI – PO, PRODUCTPROMOTIONS
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Handles all retail purchasing models
PO GENERATIONIN MMS/ERP
PURCHASEORDER
APPROVAL
POACKNOWLEDG-
EMENT BY SUPPLIER
PACKING SLIP INVOICEADVANCESHIPPING
NOTIFICATION
PHYSICALRECEIPT
RECEIPTCONFIRMATION
GRN
SALESREPORTS TO
VENDOR
STOCKREPORTS TO
VENDOR
VENDORPROPOSE SKU
STOREALLOCATION
VENDORPROPOSE SKU
STOREALLOCATION
ADVANCESHIPPING
NOTIFICATION
PHYSICALRECEIPT
SALESREPORTS TO
VENDORINVOICE GRN
SALESREPORTS TO
VENDORINVOICE GRN
PO GENERATIONIN MMS/ERP
PURCHASEORDER
APPROVALINVOICE
ADVANCESHIPPING
NOTIFICATION
PHYSICALRECEIPT
RECEIPTCONFIRMATION
GRN
PO GENERATIONIN MMS/ERP
PURCHASEORDER
APPROVAL
POACKNOWLEDG-
EMENT BY SUPPLIER
INVOICEADVANCESHIPPING
NOTIFICATION
PHYSICALRECEIPT
RECEIPTCONFIRMATION
GRN
CONCESSIONAIRE
SCAN BASED TRADING/CONSIGNMENT
VENDOR MANAGEMENT INVENTORY
OUTRIGHT DOMESTIC
OUTRIGHT IMPORTS
PURCHASE ORDER FLOW FOR DIFFEENT VENDOR TYPES
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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
• 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
Data Warehouse
MasterCatalogue
POS
Finance WMS RMS
Finance Logistics ERP
Orders WMS Products
Retailer Enterprise Supplier Systems
SPA Applications
Portal based Web InterfaceRole-Based Accessfor Retailers
Role-Based Accessfor Suppliers
Buyer View
Merchant View
Finance View
Product Manager View
Account Manager View
Finance View
Updates transaction &Analytics Information
Collaboration thru XML feeds, EDI
ARC SPA Data warehouseARC SPA Data warehouse
……
…
……
…& more & more
DASHBOARD ORDERS PAYMENTSVENDOR
MGMT
PRODUCT PROMOTIONSNEW STORE
OPENINGQUALITY
ASSURANCE
BUSINESSREVIEW
PLANOGRAMTEMPLATES& MANUALS
ANALYTICS
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ARC SPA benefits
Retailer Benefits• 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
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
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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
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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
SolutionSPA 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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