Our client was Southeast Asia's largest retail chain with over 8000 employees and multiple channels such as supermarkets, pharmaceuticals, speciality stores, and food outlets and is a key contributor to the country's economy.
Playing an important role in the economy, the company wanted to radically increase its domestic purchases from micro vendors and SMEs to facilitate economic stimuli.
They wanted to do this by reducing the time taken to pay vendors and thereby reduce financing costs incurred by the vendors
We proposed a robust vendor management system using SAP. This was configured to reduce the red-tape and human interference in a fairly routine process, and also provide a dashboard for vendors via a mobile app.
Using the vendor-side dashboard, operations between vendors and the company were streamlined. This also gave vendors a view of their current shipments to the company, and were able to monitor current stock levels and payment status.
Eliminate paper trail and use automation for waster and more efficient workflows, that allowed for greater visibility into payments. It also created a treasure trove of data points for the company that allowed for data-driven decision making.
Micro-vendors and SMES were ale to received their dues 4x faster, with the average payment period going down from 13 days to just 3 days. This drastically improved their cashflows and reduced financing costs and encouraged higher business volume with the company.
The company was able to reduce overheads on the particular process by 70%, a massive cost reduction and time savings
The vendor dashboard mobile app allowed vendors to check the status of their current shipments, and stock-replenishment needs across various outlets. This coupled with the faster payment turnaround time, gave vendors a strong incentive to ensure that there are no stock-outs, ensuring continuous supply and profitability for both the company and its vendors.
The company created a far more favorable economic condition for SMEs and Micro Vendors in the country, allowing for increased economic stimuli. The business was able to greatly improve operational effectiveness and set a benchmark for technology-driven business optimization in the fledgling economy.Back to Solutions