The client is a manufacturer and distributor of home appliances, operating in a competitive market. With a large and complex supply chain established for them, it includes parts suppliers, contract manufacturers, logistics providers, shipping carriers and others. The vendor and buyer has to be connected on a supportive platform (i.e, vendor management automation system) to ensure seamless working of the supply chain and profitability.
The client faced the challenge of connecting and tracking the entire supply chain of all activities, which is a complicated process. The objective of this solution is to provide the vital information needed to support decision-making in the buying process of the company through a multi-tier forecasting system. They wanted to get their vendor portal customized for the Vendor and buyer, by creating transparency and a communication link. It was clear that forecasting was needed to solve the issues arising from the gaps in supply and demand of the supply chain.
The client wanted to offset the delay in delivery due to unplanned purchase leads and subsequently the delay in delivery. They wanted to avoid the problems arising out of the quality of the product not being as per expectation which also meant an unsatisfied relationship with suppliers. All this has a critical cost implication that needed to be resolved.
The Vendora team set about to resolve the challenges raised by the client. As forecasts are actually predictions of future requirements, the uncertainty in supply has to be addressed by this software to satisfy customers. The software provides all the information to vendor and customer. To remain competitive, vendors must be helped to supply products without compromising quality with the help of the software. Here, proper forecasting can help buyers to get enough supply to satisfy demand. A competitive cost and on time delivery to customers is important to bag orders.
You will be able to share such forecasts with your vendors, so as to help them decide to offset the delay in delivery. By bridging this gap, it will in turn produce better service and/or better prices and better quality of products. Customization of the vendor portal with Forecasting help the business to be proactive rather than being reactive. Supply chain visibility got improved and potential bottlenecks were overcome. Using the Vendor Management Automation System, the future requirement of materials can be forecasted to various suppliers. Based on the confirmation or rejection from the supplier, the buyer can re-plan and order.
Administrative efficiency: With orders accurately scheduled at the outset, the vendor’s contract number and the documentation, invoice matching the query, will help reduce discrepancies drastically and reduces paperwork and time.
Transparency: Both buyers and suppliers know the status of requirement on a single platform. No need to calls all vendors to check the availability of materials.
Increasing Customer Satisfaction: To keep customers satisfied the company needs to provide them with the product they need and when they want it. The advantage of forecasting here helps predict the demand so that supply is made available on-time to satisfy customer orders even on short lead times
Cost Saving, Time Saving, Resource Saving: Vendora matched or exceeded all the requirements and offered a lower cost and simpler system that transparently connected stakeholders. Cost saving is achieved by making a proper forecast plan and executing it. When a buyer foresees required items and order quantity into the coming 3 to 6 months, the buyer can order consequently. A bulk order when placed, will help the supplier to come up with reduced price
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Having Vendora software in place, we are able to cater to deadlines and expectations, identify the demand and estimate time to deliver. We made the most out of the features of this vendor management automation system to be able to resolve quality issues, improve response times, reactions to order revisions and improve customer satisfaction.
——— Head of Vendor Management, Appliances Manufacturing Division