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Introducing the New Lead Time/Inventory Level Calculator!

We all know that lead times and lead time variability have a major impact on inventory levels. Clearly, the more variability in supply, the higher the safety stocks needed to maintain service goals.

But what exactly are the relationships between lead time and inventory levels? If a retailer can reduce vendor lead times - and even more important, variability - by what levels can inventory be safely reduced?

Supply Chain Digest, Compliance Networks and Retalon have been working to answer these questions, and have now done so with a breakthrough new on-line calculator.

In our most recent SCDigest videocast, we introduced the new, free, on-line calculator, which is available here. The case study that demonstrated the massive dollar impact of unnecessary safety stock and was the impetus behind developing the calculator is here.

Uncover dollars wasted on unnecessary inventory now!
Videocast: Introducing the New Lead Time/Inventory Level Calculator!

We all know that lead times and lead time variability have a major impact on inventory levels. Clearly, the more variability in supply, the higher the safety stocks needed to maintain service goals.

But what exactly are the relationships between lead time and inventory levels? If a retailer can reduce vendor lead times - and even more important, variability - by what levels can inventory be safely reduced?

Supply Chain Digest, Compliance Networks and Retalon have been working to answer these questions, and have now done so with a breakthrough new on-line calculator.

In this interesting videocast, we'll connect retail out-of-stocks with vendor performance, go through the math of how lead time variability and inventory are connected, present a real case study of the opportunity for inventory reduction one major retailer has in front of it, discuss a proven approach for reducing vendor lead time variability, and introduce the new, free, on-line calculator.

On-Demand Viewing To Be Available Soon 
Vendor Performance Impact on Safety Stock Videocast

A detailed look at reducing vendor lead time and fill rate variance for lower inventories and improved cash flow.

For all the focus on supply chain management in the consumer goods to retail industry, there is simply not much solid understanding of exactly how vendor performance in such areas as fill rates and lead times – and more importantly the variances seen in those metrics – impacts overall and store inventory levels.

In this videocast, we use vendor performance information from a real retailer to show how reducing lead time and fill rate variance, achieved through targeted programs, can substantially reduce the amount of inventory a retailer needs to carry in its supply chain.

Featuring analysis of actual retailer vendor data, SCDigest editor Dan Gilmore, Mark Krupnik of Retalon, former retail supply chain executive David Schneider, and Richard Wilhjelm of Compliance Networks.

On-Demand Now!
Compliance Networks now offers
WebEDI - Powerful, Reliable, Simple, Affordable  

EDI for Small and Large Trading Partners

WebEDI (powered by DataTrans Solutions) provides customers with a simple and affordable way to  become EDI capable. Whether you are brand new to the EDI world or have years of experience, WebEDI provides an intuitive and powerful solution to address all of your EDI requirements.

More information.

Sign-up now to leverage the immediate EDI trading partner benefits of WebEDI. When prompted for a Trading Partner ID, enter: COMPLIANCE300
The Vendor Compliance Federation
presents their 2014 Annual Fall Conference, 11/2 to 11/5, 2014:  

I.C.E. in the Desert - Innovation. Collaboration. Execution.
JW Marriott Camelback Inn Scottsdale Resort & Spa
Scottsdale, Arizona

Join us for three days in Scottsdale, Arizona at the 2014 Annual Fall Conference! Don't be left in the cold - come to the desert! Register today for the go-to place for real collaboration. In the RVCF spirit of collaboration, retailers are committing to work with their suppliers, strengthening relationships, confronting issues and discussing initiatives.  

More information.

Register now!
Lean Freight Performance Via Timely Freight Post-Audits

Now, more than ever, retailers are facing uncertain profits in a perfect storm of a slow recovering economy combined with rising inbound costs. While all indicators point to an economic recovery, retailers must continue to explore all avenues of expense leverage in order to either grow or maintain profit performance. Specific challenges retailers face with their inbound  supply chain and overall profitability include:

1.       Rising diesel costs ( up $.32 over LY)
2.       Uncertain hour of services ruses, CSA
3.       High fuel and assessorial surcharges
4.       Driver shortages
5.       Board demands to document green initiatives
6.       Uncertain climate regulatory related issues related to the trucking industry ( i.e. weight and size limits)
7.       Tight labor resources related to supply chain activities
8.       Valuable transportation performance related data is buried in freight invoices

Download details here.
And We Can Make You Green, Too

The green benefits of Compliance Networks's solutions include improvements in transportation efficiency, reduction in carbon footprint, reduced fuel use, and improved supply chain compliance with green packaging initiatives, among other things. But, we are so proud of our internal recycling efforts, we just had to share the results.

According to Southern Shred, a document destruction and recycling firm, Compliance Networks's 2010 recycling efforts producing the following green results:

- 3,750 pounds of paper recycled
- 32 trees saved
- 13,125 gallons of water saved
- 6 cubic yards of landfill space saved 

For more on the green supply chain check out the Supply Chain Digest green newsletter.
A No-Cost Opportunity Assessment from Experienced Supply Chain Practitioners

We can help you handle these common retail challenges:
- Inbound shipments of the wrong items, at the wrong time, in the wrong quantity, and to the wrong location
- Inaccessible or inaccurate supply chain performance data
- Supplier performance not aligned with your retail objectives
- Limited IT resources or capital for addressing current system limitations and shortcomings 

We will benchmark your supply chain's performance:
- Against your competition
- Against your corporate goals and strategies!
- To discover where your supply chain is doing well and where it needs improvement.
- To identify lost opportunity costs!

Download details here.

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The Path To Compliance: Paved With Collaborative Technologies

The Path To Compliance: Paved With Collaborative Technologies

November 2012 Integrated Solutions For Retailers

By Matt Pillar, editor in chief

Philosophies on how to achieve vendor compliance might differ, but communication is the common theme underlying compliance-enabling technologies.

In advance of the VCF Fall Conference, we’ve assembled a roundtable discussion on vendor compliance. Contributing to the conversation are Greg Holder, cofounder, CEO, and chairman at Compliance Networks, and Paul Wagner, senior retail strategist at DiCentral.

What are the leading vendor compliance issues retailers face today and to what cost?

Holder: Cost is a tough question. Without hesitation I will say the leading vendor compliance issues are what retailers have been struggling with for years. Give me what I ordered when I want it and in the quantities requested. This is on-time and complete. Sounds easy, but as manufacturing continues to stay offshore, the problems persist. Beyond on-time and complete, I would say the issue is about inventory accuracy. In real terms, this is measuring the ability for the vendor to tell me what it is sending me. Today they do this with an ASN (advance ship notice) and an invoice. Too many times we see our customers auditing shipments at the carton content level only to find significant numbers of problems. We call these discrepancies ASN inaccuracy, and poor accuracy has a direct impact on inventory accuracy. Imagine retailers who blindly accept an inaccurate ASN as truth and book this inventory as fact. They are creating opportunity for lost sales in a replenishable environment. You can’t put a value on this.

Wagner: One of the key leading vendor compliance issues facing retailers today is the measurement of vendor performance. Summarily, this refers to utilizing effective data collection tools and applying relevant metrics to drive performance improvement. Often, transactional data can be found in the retailer’s back office systems such as an ERP (enterprise resource planning), procurement, inventory management, or warehouse management system. Simple operational metrics such as fill-rate and on-time delivery are relatively straightforward and easy to compile. However, compiling a consolidated view of an individual supplier’s performance that includes the operational delivery performance in addition to other key metrics — such as quality, sales and margin efficacy, inventory liquidation, incident responsiveness, and social compliance metrics — are much more difficult to collate and report. To add to the complexity, it’s not just how to compile these metrics for an individual supplier, but using many of these same metrics to contrast the performance of vendors against one another. There are no standards that define vendor performance; each retailer has to create its own definition of performance and the related expectations.

What is an efficient path to resolve these issues?

Holder: Identify the problem, communicate it, then make both of those operations automatic. But this is the easy part. The next step is to get the responsible party to care about correcting the problem. We believe the way to do this is with a financial penalty for the failure. The industry calls this a chargeback or expense offset. Vendors care when it impacts their profitability, including future business. For vendors with the cost of chargebacks built into their cost of goods, we recommend a tiered penalty structure. For example, the more penalties a vendor has for a particular rule, the more expensive the penalty becomes.

Wagner: One of the keys to solving the challenge of measuring vendor performance is the use of supplier report cards, otherwise termed as “vendor scorecards.” The metrics used in scorecards need to be specific and targeted toward managing supplier behavior, not compiling statistics for the sake of reporting but for the purpose of driving a material change in performance and behavior. The initial effort to define these metrics should be a cross-functional endeavor that includes accounting, distribution/ logistics, merchandising, planning, IT, inventory control, and sales operations. With a requisite deference to the intended audience, consideration should be given to the approach for delivery of the scorecard, both internally and to the supplier, including vendor portals, reporting capabilities, business intelligence solutions, and other delivery mechanisms.

What technology advances are enabling these solutions?

Holder: Adoption of supply chain execution solutions like warehouse and transportation management systems, order management, and even EDI (electronic data interchange) is digitizing much more of the data required to automate problem identification via sophisticated algorithms. However, it is necessary to have people in the DC performing manual audits to collect specific information about physical shipments of orders. The decreasing costs associated with data storage and computer processing power are enabling all of this data to reside in one central location, providing actionable intelligence to a wide range of stakeholders.

Wagner: A number of advances in technology have improved the compilation and delivery of vendor metrics and related performance for retailers. Cloud-based services have evolved in the EDI and B2B (businessto- business) marketplace to enable organizations of all sizes to take advantage of B2B offerings, paying for services based on consumption and eliminating wasted investment in underutilized infrastructure. SaaS enables services that allow for subscriptionbased offerings designed to minimize capital investment while providing best-of-breed B2B functions that integrate with corporate procure-to-pay or orderto- cash system cycles. Managed services that provide supplier enablement, on-boarding services, and incident responsiveness/exception management are part of a number of service provider offerings. Web services for customized integration of purchase orders and PO changes, ASNs, invoices, and catalog/product information can be easily provisioned to minimize the trading partner’s technical support and development investment. Outsourced EDI VAN (value-added network) services can be enabled to ensure that the trading documents are accurately and securely transmitted to the trading partner.

   

Page 13 of 50

CN on Twitter

Getting Vendor Compliance Right

Supply Chain Digest's Dan Gilmore sits down with Compliance Networks's CEO and Founder, Greg Holder

Mr. Holder provides essential information about bad, good, and great vendor compliance programs. He also explains the Vendor Compliance Maturity Model, available for download.

Click here to view the video interview

 

Featured Customers

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“The Compliance Networks package is an 11 on a scale of 1-10”

Steve Lipton
SVP Finance
Elder-Beerman Stores Corporation
“We have learned a great deal about our vendors’ shipping habits and have used the information to make sound business decisions”

Jim Rawlins
SVP of Logistics
Bon Ton Stores Corporation

"Ahead of their time as far as supply chain management"

Darlene Hokanson
VP/CIO
Oshman's Sporting Goods, Inc.
"We have learned a great deal about our vendors' shipping habits and have used the information to make sound business decisions"

Jim Rawlins
SVP of Logistics
Bon Ton Stores Corporation

“rCMS improved the flow in our distribution centers by 62%”

Dave Sanford
VP of Distribution
Burlington Coat Factory
"They have an impressive ability to execute a solution and a deep knowledge of the retail industry."

Mike Prince
Former CIO
Burlington Coat Factory
"You can talk to these guys because they have lived it - they've been in the trenches. That is what sold us."

Jim Rawlins
SVP of Logistics
BonTon Stores Corporation
"Their reporting system gave us details that even our vendors were shocked we had"

Bruce Berger
Former Controller
Oshman's Sporting Goods
"It will create income for retailers, but more importantly, it will allow them to get the attention of their vendors and force them to deal with the problems non-compliance is causing retailers."

Dave Sanford
VP Distribution
Burlington Coat Factory
"Compliance Networks has proven the ability to completely capture our vendors' performance. They are extremely responsive; we have NEVER been able to get to this valuable information before."

Marc Elmo
Former VP Distribution and Transportation
West Coast Retailer
"Installation was unbelievably easy even though it was completely customized to Elder-Beerman's requirements."

Jim Rawlins
SVP of Logistics
Bon Ton Stores Corporation
"The rCMS is one stop shopping for Actionable Supply Chain Intelligence."

James R. Kelly
Director of Engineering
Dillard's, Inc.
"We were impressed with the competence and speed of completion they brought to the table."

Darlane Hokanson
VP/CIO
Oshman's Sporting Goods, Inc.
“In my 15 years at Burlington Coat Factory, dollar for dollar, rCMS is the best IT investment we have ever made.”

Mike Prince
Former CIO
Burlington Coat Factory
“We have learned a great deal about our vendors’ shipping habits and have used the information to make sound business decisions”

Jim Rawlins
SVP of Logistics
Bon Ton Stores Corporation
"...[CN] has really worked quickly and professionally to meet the project requirements...[they] are to be complemented on their technical expertise, professionalism and dedications to meeting BCF's requirements."

Liz Remine
Director System Implementation
Burlington Coat Factory

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LeadFormix

LeadFormix is a cloud-based B2B marketing automation 2.0 platform that identifies and qualifies sales opportunities by measuring visitor intent. This patent pending solution goes beyond demand generation and workflow automation by delivering a new level of enriched lead data, enabling enterprise sales and marketing teams to uncover hidden opportunities, accurately identify online visitor intent and decision-makers, and deliver powerful, targeted, real-time responses to qualified prospects.
Vendor Compliance Federation

VCF is a leader in Retail and Vendor best practice solutions for supplier-retailer collaboration and is an advocate for retailer-supplier trading synchronization. VCF champions initiatives to increase strategic industry-wide productivity, profitability and growth.
Supply Chain Digest

Supply Chain Digest is the industry's most valuable supply chain management and logistics publication.
National Retail Federation

NRF's mission is to advance and protect the interests of the retail industry and to help retailers achieve excellence in all areas of their business.
Mainstream Technologies

Mainstream Technologies is a technology consulting firm specializing in custom software development, IT planning, service, support, co-location and hosting. We serve all types of organizations. We effectively address our clients' technology problems with world class solutions, regardless of computer language, operating system or brand of hardware.
Retail Industry Leaders Association

The Retail Industry Leaders Association is the trade association of the world’s largest and most successful retail companies, whose executives participate in RILA for its unique educational forums, its effective public policy advocacy, and its advancement of the retail industry.
Marketing Techniques and Innovations

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Joe Lang Travel

Since 1993 Joe Lang Travel has offered "big business" corporate travel benefits and incentives for small to medium-sized business clients. 

Joe Lang Travel also offers its personalized, individualized service to couples, families, groups, honeymoons, destination weddings, and romantic getaways. 314-985-5642
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