Article | October 3, 2007

Retail Continuous Improvement

Source: Compliance Networks
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For retailers, having the right product at the right place and time has never been more important. It often comes down to two simple questions for the retailer: "How do I know if my supply chain is doing what it takes to execute my company's merchandising plan?" and "What can I do to improve supply chain execution of the merchandising plan?"

Best-in-class Vendor Compliance programs enable retailers to:

  • Know when performance does not meet expectations,
  • Recover the cost of correcting performance failures,
  • Communicate supply chain performance information,
  • Anticipate future supply chain performance,
  • Provide stakeholders with complete and accurate performance history for planning and decision-making,
  • Implement ongoing supply chain improvement programs.

Effective vendor compliance programs provide accountability, visibility, and predictability, as indicated in the Vendor Compliance Outcomes Hierarchy diagram (Diagram 1, right). The gray bands indicate three general levels of compliance programs. The blue pyramid on the left, labeled Retailer Community Adoption, indicates the universe of retailers with compliance programs. The relative number of retailers is indicated by the size of each blue section. The upside-down pyramid in the middle, labeled Relative Benefits, indicates the return that retailers gain from compliance programs at each level. The relative benefits are indicated by the size of each blue section. The triangle on the right, labeled Relative Effort, indicates the human resource cost to execute vendor compliance programs at each level. The arrow on the right indicates the collaborative value for supply chain stakeholders that can be realized as more capable and robust compliance programs are implemented.

 Submitted by Compliance Networks