Best-In-Class Vendor Compliance - Burlington Stores
A best‐in‐class Vendor Compliance program enabled Burlington Stores to gain control of their supply chains by providing accountability for vendors and other stakeholders, visibility into internal and external supply chain activities, and predictability into future supply chain performance.
Aggressive store growth and a manual compliance program using an Access database was no longer effective. in 2004 Kohl's approached Compliance Networks (CN) to automate the identification of ASN problems and to standardize detection of vendor compliance failures. In 2010 Compliance Networks automated Kohl's industry-acclaimed vendor scorecard.
Burlington Stores had a routing guide but no formal program to track, report, and create chargebacks for vendor compliance violations. Chargebacks were written manually when a problem was determined to be "really bad." Almost 40% of orders had some type of a problem that slowed down the flow of the order through the distribution center. Within 60 days of implementation of the Compliance Networks Retail Compliance Management Solution (rCMS) in 2001, the problem shipments dropped by 60%.
When Bon-Ton reached out to Compliance Networks in 2000, the retailer was gathering requirements to update an internally-developed mainframe compliance program. Compliance Networks delivered a freight post audit and the Retail Compliance Management Solution within months of the first meeting. Bon-Ton was able to re-assign the IS resources dedicated to it legacy vendor compliance system to other IS projects.
The executive sponsor at Pep Boys, who managed the retailer's partnership with Compliance Networks beginning in 2003, understood the Retail Compliance Management Solution value proposition immediately. Pep Boys leveraged rCMS to aggregate inbound supply chain data from 5 distribution warehouse management systems into a single supply chain data warehouse. rCMS enables Pep Boys to leverage ongoing improvement of inbound supply chain performance, particularly fill-rate, carrier and vendor performance.
Having worked with Compliance Networks at another retailer, in 2009 the executive sponsor at Stein Mart contacted CN to implement rCMS including a glass pipeline solution for discrete visibility into their inbound supply chain. rCMS also enabled Stein Mart to migrate from direct-to-store to consolidators and distribution centers which has saved the company millions of dollars.
In 2009, Tractor Supply Company recognized vendor compliance as a way to streamline and view their inbound supply chain performance. CN helped design a vendor compliance audit program that was deployed to all Tractor Supply's distribution centers a few months after signing their contract with Compliance Networks.