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ARC Supplier Portal and Analytics

Case Study

March, 2011

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Customer Profile

• Sales close to USD 1.5 Billion• 488 Stores• 8 retail formats• 6000 employees

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Scenario @ Robinsons • Ineffective communication with suppliers:

– Ineffective legacy application in use did not allow a two-way communication

– Information distribution was one-sided making it impossible for suppliers to take active part in the process of product procurement

– Complicated process for their merchandising team with no clear picture of suppliers’ response/feedback

• Limited visibility in supply chain:– Limited visibility in every aspect of its supply chain including

merchandise procurement, supplier performance, inventory management and effectiveness of delivery

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Scenario @ Robinsons • Insufficient and high cost of collaboration:

– Faced problems conducting negotiations with suppliers– Developing periodic promotions, schemes and offers on products– Inefficient management of a huge number of vendors. – Affecting timelines.

• High cost of supplier collaboration: – The legacy application included an additional fee for every new

supplier license procured. – With the number of suppliers increasing every day, this system was

proving to be expensive as well as ineffective.

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Scenario @ Robinsons • Difficulty in meeting customer demands:

– Cumbersome to compare purchase orders to inventory levels on a near real-time basis

– Difficult to compare POs to sales order data– Could not optimize inventory levels which resulted in inadequate

supply to meet customer demand.

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Business Need

1. Our trade partners need to have visibility on highly essential information such as the performance and stock levels of their products in our stores at any given time.

2. They need to have an ease of tracking their payment details online.

3. Need a tool for them to make proactive business decisions, thereby improving their overall business performance.

Mr. Jody Gadia, General Manager of Robinsons Supermarket

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ARC SPA Solution

ARC SPA was proposed to Robinsons as a single interactive

platform with a comprehensive view of the entire supplier

portfolio by integrating the key supplier reliability data with

financial viability metrics.

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ARC SPA SolutionAddressing Collaboration and Communication

• Effective communication with suppliers– Easy access, user-friendly portal – Support for two-way communication – Exchange information about sales, inventory, purchase orders, goods receipts and

payments along with relevant KPIs to outright and concessionaire business model suppliers.

– Suppliers now in a position to provide feedback

• Enhanced visibility in supply chain– Suppliers can now propose new products online in collaboration with the .

merchandizing team – Team can then approve the proposals using tiered approval approach based on SPA’s

analytical data. – Web-based new product introduction form along with SPA’s ability to track requests and

their status helps the managers plan new products quickly and more efficiently. – New store delivery calendar in SPA gives both parties a clear visibility into the timelines

and delivery patterns of new stores.

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ARC SPA SolutionAddressing Procure to Pay Cycle Issues

• Through its configurable workflows, SPA has addressed Robinson Supermarket’s major pain points in the ‘procure to pay’ (P2P) cycle: the request to address the person in the right role at the suppliers’ end

• Purchase order (PO) approver being out of office was one of the concerns of Robinsons’ suppliers before deploying SPA. This was affecting the suppliers especially in cases when the receipt of purchase orders was closer to cancel date. SPA provides functionality to automatically assign POs to alternate approvers when original approvers are out of office and revert to the original approver after his/her return. This helps Robinsons to approve the purchase orders in time and the suppliers have lead time to process purchase orders.

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ARC SPA Solution enables Collaborative efforts and business reviews

• Suppliers are able to be proactive and contribute to a joint business goal.• Propose product promotions, store promotions, volume discounts and

also book campaigns• View the list of gondola available for hire in various Robinsons stores and

propose to hire gondola in selected set of stores.• Facilitates the supplier to create and upload planograms and planogram

data for a review.• In Built workflow allows modifications to be made to the planograms and

approve/reject the same. • Approved planograms can be sent to the selected Robinsons

Supermarket stores for a review. • Involvement of suppliers in setting of business goals and periodic

business reviews using ARC analytics.

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Role based analytics• Analyse data across the enterprise, suppliers, vendors and

its trading partners. • Role-based dashboard view and analytics provides various

staff members on suppliers’ end as well as at Robinsons a clear visibility, actionable data and insight required for every specific role.

• Supply chain executives at Robinsons are able to take quick and informed actions, evaluate space productivity, conduct better negotiation, manage vendors effectively, and approve/reject various proposals from suppliers.

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Alerts and announcements• Aligning the delivery schedule of the suppliers to new stores to ensure

that the stores open with full stock. • Provides visibility of fill rates.• Supports email-based alerts, reminders and escalations that are

automatically sent to appropriate roles on the suppliers’ side regarding NSO fill rates, fill rate discrepancies and other incongruent data/information and delays.

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Benefits ( Within 3 months of deployment)

• Improved performance: – Complete visibility into purchase order tracking by supplier and buyer has improved the

in-stock percentage at the stores by 2%. – Helped the procurement staff to obtain exact knowledge about the quality of produce

available. This has resulted in an increase in the sales of fresh produce at many stores– Visibility has helped store operations, replenishment department, buyers and suppliers

in planning and has improved the vendor fill rates by over 5%.

• Efficient promotion planning:– Intense collaboration and two-way communication between the company and its

suppliers has led to efficient promotion planning, thereby reducing the gap between projected and actual sales significantly.

• Clearer product visibility: – Streamlining New Product introduction process has resulted in timely introduction with

visibility to all stakeholders.

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Benefits

• Reduced transactional costs: – Reduced transaction costs due to extensive use of a Distributed Portal-Based Platform.– Easy access to information has reduced the cost of sourcing, warehousing and

transporting of merchandise.

• Cost savings and speedy financial return: – Licensing independent of usage and can be rolled out to any number of suppliers and

users without incremental costs– The subscription-based investment model with key suppliers brought supplier

subscription revenues and helped Robinsons achieve a quick ROI.

• Increased customer loyalty: – The analytical capabilities of SPA have helped Robinsons achieve an accurate SKU

rationalization analysis.– Provides a better picture of destination items thus improving the company’s customer

loyalty index.

• Clearer identification of areas for enhancement: – Complete transparency in all interactions between supplier and retailer has helped

Robinsons identify areas to reduce cost and risk, and also find new opportunities to improve its operations.

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Key Information • Deployed ARC product : SPA Ver 6.0• Size : 16 Man Months• Total no. of Users : 100• Total no. of SKU’s : 1 million• Source System : JDA• No. of CPU’s : 8• RAM : 32• OS Platform : Windows• DB Platform : Oracle 10G• DW Size : 2 TB

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Final Word

“Among several characteristics of the ARC, we found its data

model driven retail-centricity to be a key differentiator and of

significant value to our retail businesses. ARC’s scalability and

its ability to be deployed rapidly have proved to be major advantages that

align with our IT strategy goals.”

“Manthan System’s ARC has brought into our enterprise an extensive

collaboration with suppliers and a clear visibility into various aspects of

merchandising. ARC’s well-thought-out design and effective application are

its biggest strengths.”

- Thelma G. Roxas, Vice-President and Chief Information Officer, Robinsons Supermarket Corporation

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