Elder-Beerman (EB) recognized that efforts to proactively manage its vendor compliance process were incomplete, and were adding costs to the bottom line. Supply chain challenges included multiple shipments per purchase order, which resulted in unacceptably high freight costs, excessive manpower requirements to run audits and process trouble shipments, as well as low fill rates and overall distribution center inefficiency. In addition, EB lacked the visibility and reporting capabilities to determine which vendors were doing a good job and which ones were impeding flow within its supply chain.
The company sensed that if it could optimize the flow of merchandise through its supply chain operations, overall profitability and customer satisfaction would increase. A strategic plan was established to improve the vendor compliance process through the use of technology.
After an extensive buy versus build analysis, Elder-Beerman elected to deploy Compliance Networks' vendor compliance management solution. "We initially considered writing our own system, but seeing the rCMS solution spelled a quick end to that alternative," says Jim Rawlins, senior vice president of distribution for Elder-Beerman. "We knew a proprietary system would take some time to write internally; and balanced against our other projects, it just didn't seem to make sense. Compliance Networks' gain sharing model made it an easy decision."
The Retail Compliance Management Solution (rCMS) promised a rapid implementation and almost immediate results. With the increased visibility provided by rCMS, Elder-Beerman was able to detect disruptions to its supply chain flow, hold trading partners accountable, and take corrective action before problems reached the store floors. The results were rapi
Submitted by Compliance Networks