An example of a tailor-made supplier compliance initiative is the Vendor Consequence Management (VCM) module that Century developed in VMS? for one of our largest retail accounts. We took our customer’s goals and vision and built a system-solution to fit.
VCM uses extensive shipping data and customized programming to automatically determine if vendors are meeting their deadlines. It provides the ability to measure, monitor and report on vendor performance against key performance indicators (KPIs) established by you. VCM enables you to authorize, modify or waive fines for vendor non-compliance.
Though VCM creates vendor accountability, the objective is not so much punitive as it is constructive. The overriding goal of tracking service deficiencies is to improve vendor performance. The module gives you and your vendors the necessary information to identify and repair supply chain glitches. For example, in our first year of service, Century billed the JoAnn Stores vendors in excess of $50,000 in fines. That amount decreased by half to $25,000 in year two of the program. On-time shipment percentages for JoAnn Stores went from 56% in year one to 95% in year two. VCM brings about measurable improvements.
Examples of vendor milestones tracked by VMS? are as follows:
- PO fulfillment
- Visibility/transparency to all manufacturers utilized by vendor
- Booking timeliness
- Delivery timeliness
- Document timeliness
- Container utilization