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Introductions
SPS Commerce Overview
B2C process
B2C electronic trading
Implementing partnerships
AGENDA
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INTRODUCTIONS
Over 25 years of experience with supply chain systems (WMS, ERP, Forecasting, Procurement, Accounting) and EDI
Our Own Hardware (hardware Industry Cooperative/Wholesale/Distributor) 300 suppliers to trade PO, Invoices, Freight Bills
Nash Finch (Grocery Distributor) 200 suppliers to trade Grocery PO and Invoice
Fingerhut /Bluestem Brands(Catalog/Online Retailer) 700 suppliers to trade Warehouse and Direct to Consumer PO, POC, Ship Notices, Invoice, Carrier Shipment Statuses, International Consolidator
Currently the Director of Supply Chain Strategy at SPS Commerce. I have been in this role for over 12 year where I have worked with hundreds of retailers, suppliers, distributors, carriers and Third Party Logistics (3PL) companies to gain new efficiencies in their supply chain
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SPS COMMERCE (NASDAQ: SPSC)
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Founded in Minneapolis – 1998
Global Footprint
54 Consecutive Quarters of Growth
52% of the Market - Market Leader
800 + employees
100% Software as a Service (SaaS) Model
2,700+ Pre-built Integrations
NASDAQ – SPSC
2014 = ARE YOU A RETAILER, A SUPPLIER, OR BOTH?
• 2013 - we saw a continuation of the multichannel transformation as more suppliers are becoming retailers and retailers are becoming suppliers. What once was very defined is now becoming ONE continuum.
• 2014 - Organizations that are nimble and have equally nimble supply chains are capable of creating whole new categories.
RETAIL INDUSTRY TRANSFORMATION
E-Commerce Impact Cloud Computing Adoption
New Distribution Challenges M-Commerce Empowerment
• Ship-to-Consumer
• Ship-to-DC
• Ship-to-Store
• Cross-Dock
• Import
• VMI
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Determining e-commerce requirements
Managing items and reporting inventory
position
Managing e-commerce orders and order
changes
Streamlining drop shipping and
transportation
Simplifying, managing or automating
returns, order tracking and vendor
scorecarding
KEYS TO E-COMMERCE FULFILLMENT SUCCESS
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E-Commerce can improve inventory management
E-Commerce can grow sales without capital expense
E-Commerce can increase customer loyalty
The “threat” . . .
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E-COMMERCE DRIVERS AND TRENDS
Item setup
Inventory visibility
Order visibility and managing orders
Managing logistics spend
Branding
Finding e-commerce capable vendors
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TOP E-COMMERCE CHALLENGES/REQUIREMENTS
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Item management
Inventory management
Order processing
Order confirmation and correction
Change/cancellation
Order tracking
Billing and payment
management
Return management
ROADMAP TO WORLD-CLASS DROP SHIPPING
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Importance of item information
Attributes
Adds/changes/updates/discontinues
Item master cleansing
Images/digital assets
ITEM MANAGEMENT
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Electronic Data Feed
• EDI/XML
• Clearinghouse
Attributes
• Supplier information
• Product information
• Inventory information
INVENTORY MANAGEMENT
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Many smaller orders
Multiple Ship To addresses
Customization
Personalization
Shipping and handling fees
PURCHASE ORDERS
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Receipt of orders
Validation of inventory available
Corrections/error notification
Customer notification
ORDER CONFIRMATION AND CORRECTION
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Purchase Order correction
Purchase Order cancellation
Cancellation confirmation
Customer notification
PO CHANGE/CANCELLATION
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Shipment Confirmation
• Many small packages
• Branding
• Customer notification
Transportation
• Shipment status
• Customer notification
PURCHASE ORDER TRACKING
Marketing
Private Labels, Packing Slips, Holiday Messages, Gift Cards, Related Products Literature (enforces branded customer experience)
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THE BRANDED EXPERIENCE
Invoice
• Many small invoices
Remittance
• Many small invoices/documents reported on the
voucher
Debit/Credit
• Adjustments
• Rebates
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BILLING AND PAYMENT
Physical Returns
• Customer Returns
o Supplier
o Retailer
o 3rd Party Return Center
• Returns from Retailer/3rd Party Return Center to Supplier
Electronic Data Exchange
• Request for a return
• Return Authorization
• Credit for returns
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RETURN PROCESS
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Order performance
• Designed to measure KPIs over time – (on-time
delivery, order changes, fill-rates, EDI data quality, etc.)
• Across dimensions (product, vendor)
• Across levels (SKU, product, category)
Supplier scorecarding
• Timely shipments
• On-time shipments
• Fill rate performance
• Supplier scorecard
SUPPLIER COLLABORATION
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832 Item/Catalog
846 Inventory Availability
850 Purchase Order
855 Purchase Order Acknowledgment
860 Purchase Order Change
865 Purchase Order Change Acknowledgement
856 ASN – Shipment Confirmation
214 Shipment Status Message
810 Invoice
812 Debit/Credit
180 Return Request and Authorization
820 Remittance
TYPES OF EDI TRANSACTIONS
PO Change Acknowledgement (865)
Shipment Confirmation (856)
PO Acknowledgement (855)
Invoice (810)
Vendors
Remittance/Advice (820)
Retailer
PO (850) / PO Change (860)
Inventory (846)
Item Catalog (832)
Shipment Status (214)
Debit/Credit (812)
Return (180)
Carriers
Shipment Status (214)
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TRANSACTION FLOW
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B2C capable partners
Implementing electronic trading
Alternatives to limited electronic
trading capabilities
On-going management of
electronic trading success
IMPLEMENTING PARTNERSHIPS
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Who’s capable of fulfilling orders?
Are they electronically capable?
What are their capabilities?
How do you get these answers?
One-on-one meetings between partners
Conferences
Business social networks
B2C CAPABLE PARTNERS
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The “legwork” of implementing technology with hundreds of individual companies on an initiative that will cost them time and money
Big
EDI
XML
SME
Vendors
DSD
Distributors
Carriers
Int’l
10,000’sItems
1000Items
50Items
DomesticShip to DC
Ship to Local
SpreadSheet
100’s of Vendors
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EDI EDI
EDI EDI
IMPLEMENTING ELECTRONIC TRADING
The real integration challenge….
Implementing your partners
• Steps
o Setup
o Testing
• One – one
• Service providers
Implementing Electronic Trading PartnersIMPLEMENTING ELECTRONIC TRADING
PARTNERS
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What happens if they can’t do it (or all of it)
• Eliminate the partnership
• Create a portal
• Exemptions
• SaaS providers
LIMITED TECHNOLOGY
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How to manage and monitor data success
• Management by fire
• In-house systems
• SaaS providers
o Visibility reporting
o Order performance reporting
ON-GOING DATA MANAGEMENT
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ON-TIME SHIPMENTS
ORDERS NOT SHIP