M&S: Achieving 100% Electronic InvoicingM&S: Achieving 100% Electronic InvoicingMelanie Nuce, Retail Industry Marketing Director, GXSMichael Brady, Programme & Change Manager, M&S
Melanie Nuce, Retail Industry Marketing Director, GXSMichael Brady, Programme & Change Manager, M&S
Supplier Integration Case Study
Michael Brady
Agenda
M&S
Overview of the Business Foundation Programme
BFP Supplier Integration Solution
Lessons Learnt
One of the UKs leading retailers with 21 million customers visiting our stores each week
Group turnover £9.7bn, Group pbt £714.3m
Clothing market share of 12.3% (by volume) and 3.9% of UK Food market
Approximately 78000 staff globally
703 stores in the UK
361 stores Internationally, operating in 42 territories
Our core values of Quality, Value, Service, Innovation & Trust are as important to us today as they were when M&S was founded 125 years ago
M&S Overview
All figures relate to 2010 / 2011 fiscal year
Agenda
M&S
Overview of the Business Foundation Programme
BFP Supplier Integration Solution
Lessons Learnt
Background to BFP
Objectives of BFP
“To consistently have the right products, in the right place, at the right price to ensure demand and
supply are successfully met”By:
Getting the basic business processes right
Providing new business capabilities
Standardising core ways of working
Supporting longer term growth plans
Updating current systems infrastructure
Corporate‐wide data definitions
Cheaper and faster to implement change
Single version of the truth
Stability: solid foundation for growth and change
Pricemaintenance
team
GM WIRING DIAGRAM - Aug 2007
MUWS
BPT
DHL systems
inc. VISTA
EXIT
EUROPEANMARGINSIFG, franchises
Hemel, IFG
INTERNATIONALREFERENCEDATABASE
Dublin & IFG
Warehouses &Buying Depts
BuyingDepts.
MERCHANDISEALLOCATION
STOCK SMOOTHINGRING FENCE MNGR.GM INTERFACE HAN.
SPA
SUPPLIERPAYMENTS
INTERNATIONAL
BuyingDepts &
FranchiseGroup
Finance
HISTORICALSALES &STOCK
ICOS1/FIBMTM TRACOS
IRS/ICSS (out)ICSS (in)
MTMISRASR
Furniture Ordering(DEC Microvaxat IS Solutions)
FujistuPOS
UK, Eire, & ch. is. stores
Stores HomeFurn., suppliers, carriers,
M&S Money, HOCSDHL &
Logistics
Suppliers
Suppliers
KEY:M&S UNIXM&S mainframeM&S distributed
Location of usersDirect access
Electronic transmission
EDIGATEWAY
SELLINGPRICE
MAINTNCE
GENERALREFERENCEDATABASE
CMSPO
Buying Depts, suppliers
Joint RetailLogistics
Suppliers
PRODUCTIONSIZE MONITOR
/CDP
MADE TOMEASURESUPVISOR
TRADANET
GENERALSALES DATABASE
SSS
InformationBackbone
PROFIT
GRD supplies reference data to all systems
Allocations & shipments
SAS receipts
Prices from SPM
Finance
Xborderinvoices
Non-UK advicesAdj. to GSD
Invoices tofinance & PROFIT
Receipts
Discrepanciesto suppliers
receipts
Cost pricesfrom CMS
Costprices,VAT rates
RTMs
Cost prices & VAT rates
Country of origin
RTMs fromGSM
Deliveries,despatches &store returns
Stock adjustments, inventory,non-advised deliveries
Sales andstock from
GSD
Inventory
Advised
PSMDespatches& schedulesfrom carriers
Chan.islds.,Dublin,outlets
availabilities
Picking notes,deficiences,
ref.Avail.
picking,def.,ref.
Avail.picking, def.
Picking notes
Sends & availabilitiesadvices
PROFIT and franchises (via PFR)
Ratios, selling & production SPA
T47
Ref toSSI viaICSS
Cost price to SPI,shipping data to IRD,catalogue to SMaRT
Advices, smoothing adj.
UPC allocation
Sales & adj.GRD
SalesPricesfor HHT
Salesfloor
stockcountadj.
EXIT adj.Sales
Debit sales to banks via CATS
Tracking
Reference, orders
To mainframe MTM
Stock &advised
Orders
Orders
GRD
Sales,adj.counts
HONG KONG + 11 Franchises:BAHRAIN, CZECH/POLAND, DUBAI/UAE, GIBRALTAR, KUWAIT, MALAYSIA, MALTA, PHILIPPINES, SAUDI, SINGAPORE,THAILAND, TAIWAN
Invoices from EXIT,advices, builds from MAS
Sales & adj
Delivered furniture orders
furnitureorders
ETOS(InVehicles/URNs)
ETOX (OutVehicle/URNs)
Sales 20 Franchises not on PROFIT:BERMUDA, CANARIES1 &2,CROATIA, CYPRUS1&2, GREECE, GUERNSEY, HUNGARY, INDIA, INDONESIA, JERSEY, KOREA, OMAN, QATAR, TURKEY, ROMANIA, RUSSIA, SLOVENIA, SWITZERLAND.
Stock
Kewill orown system
Advices and store
catalogue,smoothing adj.
C. J. Slinn 09/08/07
HFIS
UK & Eire
SALES &STOCK
Sales &stock
Producthierarchy
REPORTWRITER
CZECH,HK,THAILAND
GSM
Adj.
FURNI-TURE
GRD
Referencechart
SterlingFOB prices
Reference data,cost price,prod plans
Advices & builds
Inventory, receipts, RTMs
GSMadj.
SSI
New strokes
Ratio changes
HOPPA
Prices,ref.
Promotions
SAS
production, availability
TDS/SSD
SpecialistTechnology
orders fromHFIS
LABREQUESTS
Globalstore
GIFTREGISTRYWeb access
Outlet storeshave pricesfrom SPM
ESRSSM Salesfloorstock
Buildadj.
GTI activity
DCs
GREEN DOT(Excel)
Food sales
Levy data GM sales
Food sales for Green Dot
MERCATUS DSLPLAN & MONITOR
Per UnaPer Una, Elite
Deliveries & adj
Sales & adj Ref. data
Sales, stock
MSO - OUTLETDISTRIBUTION
Outlet teamReserve &
call-off
Despatchescost prices
LAUNCHER
PRICECHANGER
NDC MUWS
Picking Notes
Avail
EDI
Launcher advicesmerged with MAS advices
PHOTOIMAGES
web
CordvaleIFG
COLLABORATOR
Buying Depts& suppliers.
Sales, stock, prod.
CISINTAKEPLANS
Sales andstock fromGSD
e.g. mappings
UTILITIES
EDITRACKFreight tracking
shipmentsreceipts
APL & Maersk
Series & currency from Finance (AP)
Systems not shown: ECES, SPEX, IFG MIS.
Product, sales,restructures
eAPOL
IFGPORTAL
ABC
TAKINGS
Amazon
Internetselling
Estimates
Buying Depts,stores.
Shipping datafrom CMS
HHTs for countingand build maintenance
Orders
Sales, stock etc.
DASHBOARD
KUEHNE & NAGEL(HAYS) FURNITURE
CARRIER (IPDSS)
Furniture supplierFurniture order
Not ITG Supported
Ecommerceteam
Tunbridge DC
Pricemaintenance
team
Furnituredept.
IFOSQUOTEMODEL
Contractquantities
Prodplans
(flows)
BUYINGDASHBOARD
Flows viaProd Plans
DD attributes
INTEGRATIONSERVICES
(NDT)
Promo-tions
Realtime
sales
Discounttransactions
Sales Layout Guide
CIU, e-planning
CMScatalogue
FABRIC
ref
PO info
Compensationtimeliness
Logistics MIS
DC movements,stock.
Accuracy file
4 P BlackNDCs
Purchase Orders
OpenAccounts
FDCSPA
financial data
deliverydata
DCs
Prod plan
s
QUALITYSTANDARDS
suppliers
DUTY "A
SSM
UK & Eirestores
Store stock
RTWs
deliveries
RFIDStore counts
Store count
s
Tag associations
StockLocator
M&SXS
Outlets
IMAGEBANK
DirectDepts
CMS
FinanceBuying Dashboard
Store stock
images
SMaRTcat
BPT
OpenAccounts
CMS, EDITRACK,PBL, EXIT
Lingerie
WSSISales, stock, prod.
Thurrock,Swindon,
Thorncliffe,DHL Leic.PBL Leic.
SAPsupplierVAT codes
DFMS
PackingHardwick,Thorncliffe
Orders to MAS
Avail. Pilot stores
EDITRACKSupplier penalties
NDCreceipts
EDITRACKRO Critical Path
Regional Offices
EDITRACKQA
Offshore warehouse
RangePlanning
Historical data
Productdetails
Pilot Depts
Pricemaintenance
team
GM WIRING DIAGRAM - Aug 2007
MUWS
BPT
DHL systems
inc. VISTA
EXIT
EUROPEANMARGINSIFG, franchises
Hemel, IFG
INTERNATIONALREFERENCEDATABASE
Dublin & IFG
Warehouses &Buying Depts
BuyingDepts.
MERCHANDISEALLOCATION
STOCK SMOOTHINGRING FENCE MNGR.GM INTERFACE HAN.
SPA
SUPPLIERPAYMENTS
INTERNATIONAL
BuyingDepts &
FranchiseGroup
Finance
HISTORICALSALES &STOCK
ICOS1/FIBMTM TRACOS
IRS/ICSS (out)ICSS (in)
MTMISRASR
Furniture Ordering(DEC Microvaxat IS Solutions)
FujistuPOS
UK, Eire, & ch. is. stores
Stores HomeFurn., suppliers, carriers,
M&S Money, HOCSDHL &
Logistics
Suppliers
Suppliers
KEY:M&S UNIXM&S mainframeM&S distributed
Location of usersDirect access
Electronic transmission
EDIGATEWAY
SELLINGPRICE
MAINTNCE
GENERALREFERENCEDATABASE
CMSPO
Buying Depts, suppliers
Joint RetailLogistics
Joint RetailLogistics
Suppliers
PRODUCTIONSIZE MONITOR
/CDP
MADE TOMEASURESUPVISOR
TRADANET
GENERALSALES DATABASE
SSS
InformationBackbone
PROFIT
GRD supplies reference data to all systems
Allocations & shipments
SAS receipts
Prices from SPM
Finance
Xborderinvoices
Non-UK advicesAdj. to GSD
Invoices tofinance & PROFIT
Receipts
Discrepanciesto suppliers
receipts
Cost pricesfrom CMS
Costprices,VAT rates
RTMs
Cost prices & VAT rates
Country of origin
RTMs fromGSM
Deliveries,despatches &store returns
Stock adjustments, inventory,non-advised deliveries
Sales andstock from
GSD
Inventory
Advised
PSMDespatches& schedulesfrom carriers
Chan.islds.,Dublin,outlets
availabilities
Picking notes,deficiences,
ref.Avail.
picking,def.,ref.
Avail.picking, def.
Picking notes
Sends & availabilitiesadvices
PROFIT and franchises (via PFR)
Ratios, selling & production SPA
T47
Ref toSSI viaICSS
Cost price to SPI,shipping data to IRD,catalogue to SMaRT
Advices, smoothing adj.
UPC allocation
Sales & adj.GRD
SalesPricesfor HHT
Salesfloor
stockcountadj.
EXIT adj.Sales
Debit sales to banks via CATS
Tracking
Reference, orders
To mainframe MTM
Stock &advised
Orders
Orders
GRD
Sales,adj.counts
HONG KONG + 11 Franchises:BAHRAIN, CZECH/POLAND, DUBAI/UAE, GIBRALTAR, KUWAIT, MALAYSIA, MALTA, PHILIPPINES, SAUDI, SINGAPORE,THAILAND, TAIWAN
Invoices from EXIT,advices, builds from MAS
Sales & adj
Delivered furniture orders
furnitureorders
ETOS(InVehicles/URNs)
ETOX (OutVehicle/URNs)
Sales 20 Franchises not on PROFIT:BERMUDA, CANARIES1 &2,CROATIA, CYPRUS1&2, GREECE, GUERNSEY, HUNGARY, INDIA, INDONESIA, JERSEY, KOREA, OMAN, QATAR, TURKEY, ROMANIA, RUSSIA, SLOVENIA, SWITZERLAND.
Stock
Kewill orown system
Advices and store
catalogue,smoothing adj.
C. J. Slinn 09/08/07
HFIS
UK & Eire
SALES &STOCK
Sales &stock
Producthierarchy
REPORTWRITER
CZECH,HK,THAILAND
GSM
Adj.
FURNI-TURE
GRD
Referencechart
SterlingFOB prices
Reference data,cost price,prod plans
Advices & builds
Inventory, receipts, RTMs
GSMadj.
SSI
New strokes
Ratio changes
HOPPA
Prices,ref.
Promotions
SAS
production, availability
TDS/SSD
SpecialistTechnology
orders fromHFIS
LABREQUESTS
Globalstore
GIFTREGISTRYWeb access
Outlet storeshave pricesfrom SPM
ESRSSM Salesfloorstock
Buildadj.
GTI activity
DCs
GREEN DOT(Excel)
Food sales
Levy data GM sales
Food sales for Green Dot
MERCATUS DSLPLAN & MONITOR
Per UnaPer Una, Elite
Deliveries & adj
Sales & adj Ref. data
Sales, stock
MSO - OUTLETDISTRIBUTION
Outlet teamReserve &
call-off
Despatchescost prices
LAUNCHER
PRICECHANGER
NDC MUWS
Picking Notes
Avail
EDIEDI
Launcher advicesmerged with MAS advices
PHOTOIMAGES
web
CordvaleIFG
COLLABORATOR
Buying Depts& suppliers.
Sales, stock, prod.
CISINTAKEPLANS
Sales andstock fromGSD
e.g. mappings
UTILITIES
EDITRACKFreight tracking
shipmentsreceipts
APL & Maersk
Series & currency from Finance (AP)
Systems not shown: ECES, SPEX, IFG MIS.
Product, sales,restructures
eAPOL
IFGPORTAL
ABC
TAKINGS
Amazon
Internetselling
Estimates
Buying Depts,stores.
Shipping datafrom CMS
HHTs for countingand build maintenance
Orders
Sales, stock etc.
DASHBOARD
KUEHNE & NAGEL(HAYS) FURNITURE
CARRIER (IPDSS)
Furniture supplierFurniture order
Not ITG Supported
Ecommerceteam
Tunbridge DC
Pricemaintenance
team
Furnituredept.
IFOSQUOTEMODEL
Contractquantities
Prodplans
(flows)
BUYINGDASHBOARD
Flows viaProd Plans
DD attributes
INTEGRATIONSERVICES
(NDT)
Promo-tions
Realtime
sales
Discounttransactions
Sales Layout Guide
CIU, e-planning
CMScatalogue
FABRIC
ref
PO info
Compensationtimeliness
Logistics MIS
DC movements,stock.
Accuracy file
4 P BlackNDCs
Purchase Orders
OpenAccounts
FDCSPA
financial data
deliverydata
DCs
Prod plan
s
QUALITYSTANDARDS
suppliers
DUTY "A
SSM
UK & Eirestores
Store stock
RTWs
deliveries
RFIDStore counts
Store count
s
Tag associations
StockLocator
M&SXS
Outlets
IMAGEBANK
DirectDepts
CMS
FinanceBuying Dashboard
Store stock
images
SMaRTcat
BPT
OpenAccounts
CMS, EDITRACK,PBL, EXIT
Lingerie
WSSISales, stock, prod.
Thurrock,Swindon,
Thorncliffe,DHL Leic.PBL Leic.
SAPsupplierVAT codes
DFMS
PackingHardwick,Thorncliffe
Orders to MAS
Avail. Pilot stores
EDITRACKSupplier penalties
NDCreceipts
EDITRACKRO Critical Path
Regional Offices
EDITRACKQA
Offshore warehouse
RangePlanning
Historical data
Productdetails
Pilot Depts
Today
30 years of in-house IT development No single view of stock Difficult to plan stock management effectively Disparate sources of spend information Inconsistent ways of working Major growth restrictions
Past
GM Landscape
Future
Tech
nolo
gyB
usin
ess
proc
esse
s
PlanPlan BuyBuy MoveMove SellSell RespondRespond
Bus
ines
s Fo
unda
tion
Prog
ram
me
Buying
Pricing
Stock
Finance
Data
Intern’lsolution
Finance planng
E-CommSupply chain
Range &Space planng
Product dev’t
Ware house
mgt
IPOS
NewBusiness initiative
Bus
ines
s sy
stem
s Fore casting
Foods Landscape
Background to BFP
What has BFP delivered ?
New Business Processes– How we buy our merchandise products
– How we price products to our customers
– How we promote and markdown these products
– How we utilise new Profit, Sales and Stock management information
New Policies and Controls– Greater focus on accuracy of information to support better decision-
making
New Systems– Implementation of SAP Retail and changes to many of our core systems
Background to BFP
9
Central SupportGM Central Support TeamGM Central Support Team
Business Service CentreBusiness Service Centre
Foods Central Support TeamFoods Central Support Team
Pricing & Promotions TeamsPricing & Promotions Teams
UK FranchiseUK Franchise DirectDirectOutletsOutlets
Business Areas & Roles Affected
GM• UK Buyers• UK Merchandisers• UK Buying Admin• Technologists • Regional Offices• Sourcing• Per Una
International• Int’l Buyers• Int’l Merchandisers• Int’l Buying Admin• Republic of Ireland• Channel Islands
Third Parties
Finance• Procure to Pay• Record to Report• Master Data• SCM Team• Business Finance • Embedded Finance
Foods• Buyers• Supply Chain Planners• Category Managers• Forecast Planners• Product Developers• Technologists• International Foods
BusinessFoundationProgramme
BusinessFoundationProgramme
LogisticsLogistics
SuppliersSuppliers 3PLs3PLs
RetailRetail
Overview of Programme Phases
2009 2010 2011 2012
Month J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M
R1 Detailed Design
Release 1 Build
Release 1 ITC
R1 Implementation
R1 First Go-Live
R2 & R3 Detailed Design
Release 2 Build
Release 2 ITC
R2 Implementation
R2 First Go Live
Release 3 Build
Release 3 ITC
R3 Implementation
R3 Reporting Go Live
The BFP benefits are required; to enable the following planned initiatives in GM, Foods, Supply Chain and, to support our growth plans
BusinessFoundationProgramme
Range & SpaceManagement Multi‐Channel Growth
Allocation and Replenishment
Better Stock Planning and Management
Single Tier Network International Growth
On‐Shelf availability
Forecasting & Ordering
BFP is an Enabler for Long‐Term Growth
Agenda
M&S
Overview of the Business Foundation Programme
BFP Supplier Integration Solution
Lessons Learnt
All M&S Merchandise suppliers– GM approximately 2000+ suppliers
– Food approximately 500+ suppliers
Worldwide locations– Particularly GM suppliers
– Limited supply base in Americas
Objective– 100% of suppliers on‐board for go‐live
Supplier On‐boarding Scope and Objectives
Achieved
What is EDI?
EDI – Electronic Data Interchange
M&S have been working with GXS for approximately 20 years;– GM advises and call‐off via EDI– Food orders are sent to Food suppliers
We implemented two solutions for EDI;– Business 2 Business (B2B), sometimes called point‐to‐point EDI– Web EDI – We implemented a web solution developed by GXS called Intelligent
Web Forms (IWF).– We developed a decision tree to help define which suppliers will adopt which
solution (appendix A)
We use EDI for the following messages between M&S and our suppliers;– Contracts– Purchase orders & purchase order amendments– Proof of delivery (Food only)– Invoices & invoice acknowledgement– Dr / Cr adjustments– Self‐bill invoices
The two EDI solutions
Web EDI or IWF (Intelligent Web Forms)B2B (Business to business) EDI
Suppliers
IWF
SupplierSystems
EDI Messages
Web connection
Messages are sent directly to and from systems Suppliers log onto a web site to view and submit messages
EDI Messages
EDI Messages
Why did we move to EDI?
Drive efficiency in invoice processing– Invoices were submitted manually (emailed from suppliers)
– Invoices were manually keyed into our payment systems
– Remove possibility of errors in manual keying
SAP works at a more detailed level– Invoices were matched at invoice total level
– SAP invoices are matched at line level (SKU)
– Greater degree of accuracy required
– Would lead to significant increase on headcount to operate at this detailed level without EDI
We now process over 2 million invoices a year at this detailed level
Objective – 1st time pass rate for invoicing of 95%
Achieved >97%
What this meant for our suppliers
We needed to ensure that all suppliers were on the EDI solution prior to go‐live with BFP
For suppliers using B2B solution;– Suppliers extend existing EDI capability to map the new messages, or
– Suppliers may need to develop new EDI capability from scratch
– Comprehensive testing with every supplier
For suppliers using IWF solution;– Training on how to use web solution
– Regular (daily) check on‐line to receive new orders or submit invoices –n.b. suppliers receive an email informing them of new messages
Overview of on‐boarding process
We partnered with GXS to deliver the IWF solution AND to manage all supplier on‐boarding processes.
All vendors were contacted by GXS and a survey conducted on their current EDI capability
GXS guided suppliers through all on‐boarding processes;– For B2B, this includes providing specifications of interfaces required, through to
compliance testing the solution
– For IWF, this includes directing them to on‐line training material
We jointly developed a microsite containing all information
Some suppliers may have objected to paying for or delivering this capability to M&S. We insisted this is a core capability for trading with M&S and escalate any non‐compliance accordingly – Strong sponsorship at the most senior levels is key
Agenda
M&S
Overview of the Business Foundation Programme
BFP Supplier Integration Solution
Lessons Learnt
Ensure sponsorship is in place
Build the right team
Get the process right– On‐boarding
– Business process
Keep communication simple
Make sure enough time and resource is given to testing
Escalate where necessary
Lessons Learnt from on‐boarding
21
Questions?
Appendix A
Slide 23 | © 2012 GXS, Inc.
Typical B2B Adoption Dynamics
Slide 24 | © 2012 GXS, Inc.
As You Approach 100% Participation
• Reduced supply-chain costs • Improved invoicing process• Faster payments• Better cash flow• Improved employee productivity
by avoiding non-value-add (manual) process
• Better customer service by simplifying and streamlining communications
With GXS, 100% participation is possible.
Slide 25 | © 2012 GXS, Inc.
Keys to Successful Customer Implementation Program
Right solution for SMBs:
• Easy-to-use
• Minimal data entry
• Data validation
• No-cost/low-cost
Clearly articulated benefits
Internal buy-in
Well-planned rollout
Slide 26 | © 2012 GXS, Inc.
Full Spectrum of EnablersIntegration Solution Matching Requirements of Each Supplier
Fax MicrosoftOffice
WebForms
IntegrationBroker
EnterpriseResourcePlanning
Small Mid-Size Large
DesktopTranslator
SMBAccounting
Package
SOHO Very Small Small National Global
Size of Supplier
Medium
Complexity of B2B Enabler
MobileDevice*
* Future Release
Slide 27 | © 2012 GXS, Inc.
Expert On-Boarding100% Customer Enablement
Assign Program Manager
Define goal & metrics
Develop project plan
Education & Awareness for your customers (emails, webinars, training, …)
Program Overview for your internal personnel
Send program materials to your customers
Non-EDI enabled customers
EDI customers test with GXS
GXS provides weekly reports
You and GXS conduct regular status meetings
Provide on-going local language support to customers
Define requirements for support of ongoing growth
Transition toMaintenance Mode & Planfor Growth
On-BoardCustomers
Kickoff Program
Develop Program Material
Strategize & Plan
Slide 28 | © 2012 GXS, Inc.
Why GXS for SMB Enablement?
A Complete B2B Solution• Single point of accountability• Machine-to-machine and Web Forms• Easily extensible to fax, Microsoft EXCEL
2007 integration, accounting package integration, or translators
Strong Community Management• Global reach into the Americas, Europe, and
Asia-Pacific• Expert on-boarding methodology• Tens of thousands of small and medium
businesses
Hosted, Service Model• Low-maintenance, hosted service• Ease of upgrading and expanding
functionality• Focus on your business
Slide 29 | © 2012 GXS, Inc.
Thank You for Your Participation!For More Information…
Contact GXS• Web: www.gxs.eu• Email: [email protected]• Phone: +44 (0)1932 776047
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