Success Stories
Integration of Vendors in Supply Chain for a Indian Retail Giant
The customer is a dynamic Indian retail giant.
Area of Engagement
Sourcing system to integrate vendors in the supply chain for better visibility.
Customer Need
The customer was facing the following problems:
- Current system was not able to track, identify, and retrieve POs by vendors
- Status of an order could not be assessed
- Delivery date slippage leading to stocks-outs or over stocking
- Sourcing problems also impacted quality team's checking routine during manufacturing cycle
- No access to stock volumes leading to wrong sourcing decisions
Solution
HCL's solution covered the following:
- Identification of all entities involved in the supply chain
- Differentiating the key business from the moderate (revenue basis) to prioritize sourcing
- Integrating vendors into customer's sourcing process
- Re-engineering processes to shorten PO life cycle
- Establishing vendor collaboration
- Establishing visibility in the PLC
- PO processing cycle time reduced from three days to one
- Vendor response time on order acknowledgment reduced from seven days to two
- Online vendor request for change in delivery date reduced from seven days to two
- Vendor rationalization resulted in on-time, and on-order delivery
