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full and on time, but if this becomes b-to-b solution, delivered on an SaaS basis, performance data can highlight such issues.
clear only when the wrong product to transmit orders electronically to its B-to-b integration has enabled Screwfi x,
arrives or the shipment fails to hit its suppliers. In turn, the suppliers use the the tools and hardware cataloguer/
slot, then it is too late for you to react, system to respond with acknowledgements retailer, to share a common view of the
and you’re apt to order more safety and invoices. Consequently Jewson knows full purchase-order-to-invoice cycle with
stock in the future. If you know that the status of each order and can tell its suppliers. Visibility across multiple
changes will be communicated in good customers when the materials they are suppliers has helped Screwfi x improve
time, however, your team can take buying will be delivered. The system has product availability, reduce excess
appropriate action to maintain customer resulted in increased sales, better stock inventory, and improve invoice-matching
service levels. turnover, and lower inventory. Jewson rates, thus increasing overall supply chain
now has a complete picture as to how performance and fl exibility.
Similarly, over time, the performance well suppliers are meeting their delivery Finally, if improved visibility increases
of a given supplier, overall or by product, promises, and as a result the company has your confi dence, which in turn allows
by category, or by distribution centre, experienced a 23-percent improvement in reductions in safety stock, increasing
can increase or reduce your confi dence. supplier performance. supplier visibility into downstream demand
Measuring actual supplier delivery Visibility of supplier performance data can also help improve performance. By
performance is not always as easy as it not only increases buyer confi dence but sharing inventory levels, forecasts, and
sounds, and in meetings between retail also makes it easier to improve service. point-of-sale data with your suppliers, you
buyers and supplier salespeople too much Let’s say a supplier delivers fi ve days a week, can help them better manage their own
time is wasted arguing over performance but on Saturdays it is much more likely balance between excess safety stock (raw
data. Readily available, impartial, and to arrive late or with incomplete orders. materials, work in progress, and fi nished
accurate performance data, based on This would show up in the data, of course. goods) and customer service. If order
what actually happened, enable both you But when combined with order lead-time history were also to be included in the same
and your supplier to focus on the issues, analysis, the data may well show that the system, then suppliers would be even better
whether it is future promotions because Friday order is always placed at 4.59pm— equipped to accurately predict future
performance is good or remedial action if within the agreed timeframe but leaving demand.
performance is poor. no margin for error and so preventing the
supplier from consistently delivering on
For example...
Anthony Payne is marketing
time and accurately. A simple fi x that hurts
Jewson, a supplier of building products neither party might be to order by 4pm on
director at supply chain
and materials, moved to an internet-based Fridays. Only detailed visibility into actual integration specialist Wesupply.
ceb175.indd 25 7/11/09 13:10:14
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