Good Afternoon, I would like to thank all of you for attending today’s session. Today we will focus on the 3 P’s in becoming first in class. We will also review best compliance practices in Edi and Non Edi requirements. Steve will help us become more efficient using a smart folder and creating an Action plan that really works when it comes to get a reversal on chargebacks. So Let’s get started with a Review of Session 1 Key Points
Keep Your Promises If you can't keep a promise, then don't make it in the first place - it is a big negative emotion being let down in this way. Never Tell Lies Why would you? And if you have to, it's much, much more about you. Your people will really lose faith in you fast. Communicate as Fully as Possible Communicate as openly as possible. Follow Through If you say you are going to do something. Do it! You build trust over time by doing good work and shipping the merchandise on time and what was ordered. Admit Your Mistakes Don’t hide them, admit them and learn from your mistakes. Don't Talk Behind Backs This cause people not to trust you. Building trust is vital for your business to excel. Working on it is a discipline. When a both parties trust each other good things happen. Build yourself a smart folder. The smart folder is where you keep all of the important information that has been communicated to you that you know you will need in the future. It makes you look like genius. It has phone numbers and who to contact and general information about the business rules. Communicate ….. Keeping asking questions.
Share your action plan with retailer. Tell the retailer that you are building an action plan 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
Partnership Years ago I received a call a week before Christmas from a lady that was crying so hard that I could not understand what she was saying. She finally regained her composure and she told me how it was the first time she had shipped and she was not EDI compliant. She sold dolls and doll accessories, Thus the chargeback she received was more than what she was going to make by selling the merchandise. She would lose her business if she did not get her money back. I worked with her for several hours and reviewed all the facts and documentation that showed she clearly had no idea what EDI was, the story has a happy ending because in the spirit of partnership I was able to help her get a sizable reversal on her chargeback. Yes, it is a true story and you too can build a partnership with the retailer and you can both look out for each other.
Partnership Years ago I received a call a week before Christmas from a lady that was crying so hard that I could not understand what she was saying. She finally regained her composure and she told me how it was the first time she had shipped and she was not EDI compliant. She sold dolls and doll accessories, Thus the chargeback she received was more than what she was going to make by selling the merchandise. She would lose her business if she did not get her money back. I worked with her for several hours and reviewed all the facts and documentation that showed she clearly had no idea what EDI was, the story has a happy ending because in the spirit of partnership I was able to help her get a sizable reversal on her chargeback. Yes, it is a true story and you too can build a partnership with the retailer and you can both look out for each other. Communication Developing a partnership with your retailer is necessary to maintain a good working relationship. As in any relationship the key is to communication. Keep in touch with your retailer via email or phone to discuss any immediate issues EDUCATION Become the best you can be by simply going to your Retailers website and study the following items. Study and learn your current specs on EDI documents that you have implemented Make sure you understand what is required on all new documents Know what is expected of you when it comes to shipping and transportation requirements Learn the key data points to help you on avoid chargebacks Check for updates on important changes that the Retailer has provided on their website ACCURACY Do it Right the First Time and Avoid Chargebacks Ship your merchandise as if you were the receiver Ship on Time Ship only what was ordered Pack merchandise to Retailers specifications
Work with your retailer to get a reversal, be patient. You will have to show that you have corrected errors that resulted in chargebacks and that you have a process in place to avoid making the same mistakes. This might take several months to get a track record on your shipping, thus be patient and wait until you can demonstrate with several correct shipments that you can ship correctly with a good ASN Do not Hurry the process
Be persistent but keep it positive, do not give up. show the Retailer you can do it right and you should receive a partial reversal Keep a Positive Attitude, Keep all communications Positive, Do not make accusations that might hurt your chances for a reversal Keep in mind the Action Plan that Steve has provided for you Remember to be persistent , persistent, because persistence pays off.
Our goal today is to help you avoid or reduce chargebacks, we 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.
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.
Here is a list of best practices that will help you to become the best. These are all putty simple to do, but it takes discipline to make sure it happens. Talk about the domino effect and what happens. Always train a back up associate,
Put a team together and build an Action Plan on how to resolve compliance offsets. • Understand problem: cause and effect. The domino 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.
Do.t be afraid to make adjustment to your plan. 99% of the time a good action plan will become a new standard of work. You have built a good working relationship by the time you implement your action, tell your story and ask for an adjustment.
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. Use the 3 P’s to become best in class, Partnership, Patience, Persistance. Be a Good Partner to the Retailer and they will in turn work with you 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.
Supplier summer school session 3
Supplier Summer SchoolCompliance Best Practices
Instructors Mary Kleespies Steve BabbittDirector of Supply-Chain Sr. Supply-Chain Consulting Consultant
Quick Review: Session One Keys Points1.Build Trust2.Have a Smart Folder3.Keep asking questions
Quick Review: Session Two Key Points The best way to reduce offsets when you receive them. 1. Have an Action Plan developed and in place. Share the results. 2. Ask for an offset Adjustment effectively.
The 3 P’s to becoming Best in ClassPartnershipPatience Persistence
PartnershipKeys successful partnership: Communication Knowledge Accuracy Consistence
PatienceWaiting is NecessaryMake the Changes RequiredDo Not Try to Hurry the Process
Persistence Do Not Give UP Keep Positive Persistence Pays Off
EDI Requirements• 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• 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
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
Compliance Best Practices•• Get Management involved from the start. a domino effect Remember that compliance errors cause• Be Proactive and Positive. throughout the Supply Chain.•• Understandtogether that learns to understand compliance. One Put a team the Compliance Metrics of retailers and each of their standards. enough. person is not• Make sure that everybody is trained.• Always ask questions, questions and more questions.
Elements of an Action Plan: Key Points 1. Put a team together and build an Action Plan on how to resolve the compliance offsets. 2. Identify problem and amount ($) received in offsets. 3. Get Management Commitment 4. Take ownership of the problem / Own the process. 5. Set up controls to make sure the plan is being followed and all employees are trained 6. Keep track of the results 7. Educate when new problems occur 8. Set up Bi-weekly conference with the Retailer to let them know the results
How to Ask for an Offset Adjustment • After you build your action plan share your action plan. (Always ask for their input and make changes if necessary.) • Have a positive approach. • Communicate how the problem has been fixed and what you discovered. • Ask for an adjustment for the offset because you are committed and have fixed 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.
SummaryRemember the 3 Ps Smart FolderAction Plan There are EDI and Non Edi Requirements that Impact aVendor’s StandingOnce you’ve executed your action plan, ask for areduction!