JCPenney has implemented new changes to their Sales and Inventory reporting.
On July 30, 2017 JCPenney installed a new Enterprise Stock Ledger and Perpetual Inventory System. Data from the new Enterprise System will be reflected in the reports on Aug 7, 2017.
Walmart comes down hard on trading partners for early, late and incomplete deliveries.
Brace yourselves, Walmart suppliers – the leash is about to get much shorter.
Scrapping its previous Supply Chain Reliability Program, the retail giant is increasing pressure on trading partners. Walmart’s new “On Time In Full” (OTIF) program, which goes into effect in August, will automatically fine trading partners that fall outside an even tighter threshold for early, late or incomplete deliveries – no excuses.
Under Walmart’s previous rules, suppliers were expected to achieve a 90-percent fill rate and were held to delivery windows of four days for general items and one day for perishables and other fast-turning items. Furthermore, chargeback disputes often resulted in a waived fine.
Enterprise Ordering Consolidation
JCPenney has released new EDI updates and is consolidating the ordering processes for all of their stores and eCommerce channels. The changes are part of a larger initiative designed to provide a suite of tools and processes that support an Omni Channel business. The planned enhancements will drive and require changes in the systems and processes that JCPenney and its suppliers use to partner in support of the business. These changes do not impact Factory Ship Customer Orders. Here are the specific call outs of this EDI update:
Studies indicate that chargebacks can add up to almost 2 percent of revenue. Ask these three questions to learn whether or not chargebacks are out of control in your organization.
Usually retailers have good reasons for implementing chargebacks. Yes, chargebacks can be painful, but the retailer believes that the momentary financial pain will drive suppliers to better comply with policies and eliminate costly inefficiencies in the overall supply chain.
However, when the supplier lacks visibility into the actual reasons for those chargebacks and are unable to fix the systematic problems, they usually resign to the fact that chargebacks are simply a ‘cost of doing business.’
Many CPG suppliers implement deduction thresholds when applying cash from a retailer. These thresholds are designed to speed the process by allowing minor deductions (i.e. under $75) to be ignored while larger deductions are scrutinized.
We see it almost every day—accounting teams working to streamline operations implement deduction (or chargeback) thresholds to reduce the amount of research time spent on issues that are considered ‘too small to worry about. These thresholds are the result of large retailers issuing chargebacks and fines for a variety of issues.