Compliance Best Practices

Supplier Summer School

Instructors

Mary KleespiesDirector of Supply-Chain

Consulting

Steve Babbitt Sr. Supply-Chain

Consultant

Summer School Sessions

1.Build Trust

2.Have a Smart Folder

3.Keep asking questions

Quick Review: Session One Keys Points

The best way to reduce offsets when you receive them.

1. Have an Action Plan developed and in place. Share the results.

2. Ask for an offset Adjustment effectively.

Quick Review: Session Two Key Points

The 3 P’s to becoming Best in Class

Patience 

Partnership

Persistence

Partnership

Keys successful partnership:

Communication

Knowledge

Accuracy

Consistence

Patience

Waiting is Necessary

Make the Changes Required

Do Not Try to Hurry the Process

Persistence

Do Not Give UP

Keep Positive

Persistence Pays Off

EDI Requirements

• Use the EDI 850 (PO) to populate the EDI 856 (ASN)

• Carton numbers on ASN should match the numbers on carton labels on shipment to retailer

• Transmit items that are actually shipped in the carton on the ASN

• Invoice only what is shipped to Retailer

• Transmit ASN when trailer door closes and merchandise is on its way to Retailer

Non EDI/Best-in-Class Requirements• Ship your merchandise in the correct size carton

• Use the correct ticket that meets retailer requirements

• Merchandise that is required to be hung should be shipped on the correct hangers

• Do not reuse cartons that are crushed or torn to ship merchandise

Compliance Best Practices

• Get Management involved from the start.

• Be Proactive and Positive.

• Understand the Compliance Metrics of retailers and each of their

standards.

• Remember that compliance errors cause a domino effect

throughout the Supply Chain.

• Put a team together that learns to understand compliance. One

person is not enough.

• Make sure that everybody is trained.

• Always ask questions, questions and more questions.

1. Put a team together and build an Action Plan on how to resolve the compliance offsets.

2. Identify problem and amount ($) received in offsets.3. Get Management Commitment 4. Take ownership of the problem / Own the process.5. Set up controls to make sure the plan is being followed

and all employees are trained6. Keep track of the results7. Educate when new problems occur8. Set up Bi-weekly conference with the Retailer to let them

know the results

Elements of an Action Plan: Key Points

• After you build your action plan share your action plan. (Always ask for their input and make changes if necessary.)

• Have a positive approach.• Communicate how the problem has been fixed and what you

discovered. • Ask for an adjustment for the offset because you are committed

and have fixed the problem.• Do not be afraid to ask more than one time. Be persistent.• Always ask for an adjustment to the total amount, remember that

a 50% adjustment is a fair adjustment.

How to Ask for an Offset Adjustment

SummaryRemember the 3 Ps Smart Folder

Action Plan  There are EDI and Non Edi Requirements that Impact a Vendor’s Standing

Once you’ve executed your action plan, ask for a reduction!

Questions?

Steve Babbitt

sbabbitt@dicentral.com

281.480.1121

Thank You

Mary Kleespies

askmary@dicentral.com

713.298.3332