Vendor Audit and Compliance
Digital marketing has made a big impact on the overall marketing strategy of an organization. Today, organizations are investing heavily in digital technology to strengthen their digital presence and explore new ways of doing business. One of the major challenges they face while setting up web channels is achieving synergy with digital agencies and technology service providers.
The Situation Today
As retailers start reaching out to different consumer segments, they need to supply different goods suiting different consumer interests. To ensure that all segments are catered to and product as well as service quality is not compromised it is essential to have a robust and controlled supply chain.
To ensure effective supply chain management it is important to have quality checks and compliance processes in place. Many retailers oversee the fact that a proper vendor compliance program established in the organization helps them to identify and eliminate poorly performing vendors.
Vendor Audit and Compliance (VACE) will help the retailer document exceptions, report failures to trading partners and improve supply chain efficiency. HCL VACE is a comprehensive vendor compliance engine and incorporates features and functionalities missing in popular ERP systems. VACE helps retailers to gain better visibility of its vendor performance against supply guidelines and empowers retailers to check the performance of vendors and penalize the supply chain flow impeders. It also serves as a single source of truth for all compliance related information.
Major features in VACE:
- Automated charge back Identification – A flexible process reviews supply chain transactions for consistency with vendor rules and creates offsets for non-compliance.
- Automated vendor scorecard – An automatically created vendor scorecard accurately summarizes and compares individual vendor performance.
- Automated reporting capabilities – A process that enables retailers to schedule reports to be sent as emails to merchants or internal recipients.
- User friendly and configurable rules repository – Helps in calculating chargebacks to the corresponding to Vendor.
VACE aids a retailer in:
- Decision making process: All vendor violations are sent to business intelligence (BI) systems. VACE integrates the statistical performance of the vendors with the retailer decision making process.
- Penalize violators: Chargebacks against violations by vendors are calculated by VACE and sent to finance and control (FI) systems.
- Partner Performance Management: The reports generated by VACE provide Retailers a handle to collaborate and communicate with vendors to improve processes and operations. This in turn leads to improving supply chain performance by removing issues like improper merchandise packing; misprinted packing slips; improper style, color and size substitutions; damaged goods, late shipments and overall DC inefficiency.
- Transparency in operations: Charge back reports are sent to the vendors to provide transparency in retailer operations. Retailers also get advance warning for upcoming supply failures.
- Collaboration: Retailers can communicate chargebacks and other deductions to the vendors in a more predictable way. VACE can be extended to vendors, providing them a unified platform to view and communicate with the retailers.
All these features ultimately result in the following benefits for the retailers:
- Increased product availability, reduce out of stock situation
- Directly reduces manual intervention in the supply chain
- Reducing direct and indirect labor costs hence reducing warehousing costs