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Supplier summer school session 2

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  • Suzanne does intro
  • To become the best in class the Action Plan is a big part of the process. All of this information is simple to do and is proven way to get results. It is all good stuff to add into your Smart Folder. An action plan is a strategy that involves carefully deciding what steps are going to be made ahead of time. It is an organized way of approaching and working through something’ A good action plan simply states specific tasks or assignments to fix a compliance offsets, who will complete the task, when the task will be completed, follow up. Before you put a meeting together make sure you have the right people invited to the meeting and know all of the details of the expense offsets. Set up the meeting and let them know what you are meeting for. Example; high offset for contents does not match back to what the ASN said would be in the carton. We will need to figure out what is causing this problem and what we can do to fix the problems. Ask your Retailer for help to resolve the offset problem. Use Retailer for input for your meeting. Before the meeting is dismissed make sure everyone is clear as to his or her assignment. After the meeting follow up with an email to the action plan to participants as a friendly reminder of what is expected. Get back together and build action plan of what is going to be done and when. Send a copy of your action to your Retailer and ask them for their input. Execution of the plan is the key to reducing offsets and being able to ask the retailer for offsets reductions.
  • A good action plan simply states specific tasks or assignments to fix a compliance offsets, who will complete the task, when the task will be completed, and follow up. Before you put a meeting together make sure you have the right people invited to the meeting and know all of the details of the expense offsets. Set up the meeting and let them know what you are meeting for. Example; high offset for carton contents does not match back to what the ASN said would be in the carton. We will need to figure out what is causing this problem and what we can do to fix the problems. Ask your Retailer for help in what is causing problem. Use Retailer for input for your meeting. Before the meeting is dismissed make sure everyone is clear as to his or her assignment. After the meeting follow up with an email to the action plan to participants as a friendly reminder of what is expected. Get back together and build action plan of what is going to be done and when. Send a copy of your action to your Retailer and ask them for their input. Excision of the plan is the key to reducing offsets and being able to ask the retailer for offsets reductions.
  • What the problem What is causing the problem What actions plans do you need to put in place that will stop the problem. Who needs to be involved and what resources do you need?
  • This is a good starting point: You know that you are getting offsets, but you also need to know that you are causing a big problem at the other end in receiving. What is happening there.
  • This would be a good starting point and good information to put into your smart folder.
  • Before you ever ask the Retailer you need to make sure that you are building a process to ask them. Your first contact with the retailer is to ask them for help in getting a better understanding of what went wrong. Asking the retailer for there input for your action plan. Setting up weekly or bi-weekly reviews with retailer until the problem has been fixed. By doing all of this you have built a good working relationship. Remember by working with the retailer to get the problem fixed, you have started to build trust with the retailer. Remember that retailers get asked for adjustment everyday, So do a good job of telling them you story and what process’s that you have put into place to get the problems fixed. Then ask them for an adjustment. Keep asking, be persistent. Ask them for partial adjustments.
  • Steve , I agree with you, persistence definitely pays off , also staying positive and providing aN ACTION plan to improve current performance. THIS Will show the Retailer that you are truly working with them to build a strong and valuable partnership. My goal today is to help you avoid or reduce chargebacks, I have prepared a simple guide that will help you enjoy the benefits of transmitting data correctly. The key is to it  simple so that you can make it a part of your routine. Please key in mind that the only way to benefit from this guide is if you use it.     Do it NOW and you will reduce errors and cut down on charge backs The first step in to getting it right is to populate the 856 with the 850 Than make sure that the carton numbers on the Asn are match the carton numbers on the labels on shipment to retailer A very simple action to take is to maintain your label printer on a monthly basis and have an assigned person to be responsible for this task. A few weeks ago I received a call from a vendor that had just received a sizable charge back because he had 1000 labels that had a white line through the SSC barcode on the labels. All 1000 labels had the identical WHITE line. This huge chargeback could have been avoided by simply by maintaining his label printer, it is the little things that help you become the very best and save you money. And lastly and most important transmit your Asn on time
  • The Retailer expects you to transmit on the Asn the items that are in the carton and that they ordered. Secondly invoice only for the items that were ordered by retailer and were in the cartons shipped to retailer The best method to get the Asn to retailer on time is to transmit the Asn when the trailer door closes and merchandise is on its way to the Retailer
  • We are all very aware of the importance of EDI requirements. But we do not hear much in about the Non EDI requirements that have to be met to help you BECOME best in class. Recently I was at a warehouse for a fortune 100 Retailer and saw what non Edi compliance does to organizations productivity. The first stop on my warehouse tour,  I saw  hundreds of items that were on hangars that were being removed from the original hangar and  rehung on the correct VICs  hangar. Second stop there were cartons that had hangars thrown in the bottom and the items thrown on top of them, the warehouse staff was busy placing these items on hangars.  We walked to the back of the warehouse where several tables were setup to tag merchandise that was send without price tags. There were also items that were not packed correctly, they did not have polybags or items that were not to be polybag were in bags.  All of these infractions will cost the retailer time and money , thus you can see why it is important to measure these non EDI requirements.
  • GS1-128 Label are essential to receive the Asn at retailers Distribution center, the GS1-128 and Asn work hand in hand. If the GS1-128 does not scan the Asn is worthless, my advice is to make sure your labels are certified by a known expert in the barcode business.  Secondly, make sure that the information on the label is correct and matches the purchase order and the ASN The barcodes on the labels should scan with at least a B rating so they can be scanned with overhead scanner or hand scanner Use the correct label stock so that the labels will not smear / do not use glossy stock Never place the labels on seams of the cartons or to close to the bottom or top edge
  • I spoke to a Senior VP at a fortune 100 Retailer and I asked him what advice he had for vendors that wanted to become first in class. He said, “Please tell them to ship the way they would like to receive merchandise. Vendors should not send merchandise in smashed boxes that look dirty because they have been reused several times to save money, secondly if the carton contains fragile merchandise, make sure that the merchandise is protected with having enough filling to keep it from breaking. Pack your merchandise as if you were the receiver.
  • Please use Steve’s formula to help you build an Action Plan that will help you negotiate a partial reversal. Keep in mind that the action plan works only if you follow it and improve your performance. Secondly, keep a positive attitude and be receptive to the retailers suggestions to improve your performance. And as Steve stated be persistant , persistant, because persistance pays off. Remember to always send an Asn for the items that are contained in the carton that is shipped to the retailer. Invoice only what you shipped to the retailer as long as it was ordered by the retailer. The key is to send the correct merchandise, on time with an Asn to the correct location. Keep in mind that non Edi requirements impact your complaince record. Ship merchandise in the correct size carton with labels that meet the Retailers specifications. Use the correct ticketing and hangars this will help get your merchandise through the supply chain and that is beneficial to you because when your merchandise sells , the retailer will reorder.
  • Transcript

    • 1. Supplier Summer SchoolBecoming a Best in Class Vendor
    • 2. Instructors Mary Kleespies Steve BabbittDirector of Supply-Chain Sr. Supply-Chain Consulting Consultant
    • 3. Summer School Sessions
    • 4. Action Plan for Compliance• Understand problem: cause and effect.• Put a team together to build the plan.• A sequence of steps to discover what is the cause of the problem.• Set up a Strategy to fix the problem.
    • 5. Three Elements to an Action Plan1. Specify Tasks, Strategy & Objectives: what will be done and by whom.2. Time lines: when will it be done.3. Accountability and Follow up: to make sure that the plan is working.
    • 6. Sample Action PlanScenario: ASN does not match what is in the carton,received $10K offset. • What caused the problem? • What you are going to do to fix the problem? • How will you ensure that it doesn’t happen again?
    • 7. Sample Action Plan Strategic Goal Strategy Objective Responsibility Timeline 1. To stop the offsets 1.1 What is causing the 1.1.1 Auditing of all the Warehouse will do Starting at once. All for Carton Contents problem? And how are cartons to see if it is a auditing of cartons and cartons will be audited does not match the we going to fix the packing problem. make sure right label are until we find the problem.ASN. $10,000 in offsets problem? Checking the ASN to being put on the right We also put in a test and occurred on last What process do we make sure it matches to cantons. EDI will check check process to make shipment need to improve to make carton number and that mapping and make sure sure the right labels are sure that we do not have mapping is correct. it is correct. put on the right cartons. the problem in the future, EDI retaining if necessary
    • 8. Building an Effective Action Plan− Identify problem and amount ($) received in offsets− Management Commitment− Take ownership of the problem / Own the process− Set up controls to make sure the plan is being followed and allemployees are trained− Keep track of the results− Educate when new problems occur− Bi-weekly conference with the Retailer to let them know the results− Once the problem is fixed, set review dates to ensure the problemdoes not occur again
    • 9. Effectively Asking for an Offset Adjustment • Share your action plan with retailer • Have a positive approach with the retailer • Communicate how the problem has been fixed • Ask for an adjustment for the offset because you are committed fixing 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.
    • 10. Simple Guide to Vendor Compliance • 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 • Maintain label printer on a monthly basis – to avoid having labels that do not scan • Transmit ASN on time!!
    • 11. Simple Guide to Vendor Compliance • 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
    • 12. Guide to 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
    • 13. Do it Right the First Time and Avoid Chargebacks • The carton or label should have the correct purchase order number • The labels on carton should meet Retailers specifications • Use correct label stock • The labels on carton should be placed correctly
    • 14. Do it Right the First Time and Avoid Chargebacks • Items should be packed according to business requirements • Shipment should follow the routing guide instructions • Pack fragile merchandise according to Retailers specification
    • 15. SummaryAction Plan to help negotiate a partial reversalSimple guide to immediately improve EDI complianceNon EDI requirements that impact a vendor’s standing
    • 16. Questions?
    • 17. Thank YouSteve Babbitt sbabbitt@dicentral.com 281.480.1121Mary Kleespies askmary@dicentral.com 281.984.3332