Phase one of a major drive to streamline and extend the supply chain integration capabilities at the retail giant Spar has just been completed, on time and on budget.
The company is working with Gateway Communications - formerly known as FirstNet - on a strategic supply chain automation project, the first phase of which involves improving Spar`s existing electronic document exchange capability such as purchase orders and invoices with Spar`s distribution centre suppliers.
In this first phase of the complex project, 130 suppliers have been converted to the enhanced service - the system will ultimately expand to include about 1 000 Spar suppliers.
Says Mike van den Bergh, managing director of Gateway Communications: "Our solution manages the integration of a complex range of ordering and supply chain processes, across a variety of technology platforms. We have used the latest XML and Web services technologies, to provide a simple Web-based interface for those suppliers which require one, but which also enables direct integration with the more complex systems used by some of Spar`s larger suppliers.
"The entire project is challenging, not just because of its complexity, but because it requires the management of a large number of independent entities, the activities of which have to be coordinated in order to achieve the final goal, against a time-critical deadline. A 'track and trace` facility also had to be provided from the outset, to enable all parties - distribution centres, buyers, store owners and suppliers - to have complete visibility of the entire supply chain process. Fortunately, our long history with the South African retail industry stood us in good stead, and we had the skills and resources needed to deploy exactly what Spar required, under very challenging conditions."
Enno Stelma, IT director of the Spar Group, says that what`s particularly important for Spar is that ultimately all of the company`s suppliers will be able to participate in and benefit from using the system. "Regardless of their size or level of IT sophistication, all our suppliers will be able to participate in a very cost-effective way," he says.
"We have been able to standardise our business processes across all suppliers, knowing that the solution provided by Gateway Communications, which includes a data translation and mapping capability, is flexible enough to accommodate the many different systems used by our supplier group," he adds.
Van den Bergh says the first stages of the initiative are focused on the operational data flow between Spar and its trading partners in the replenishment cycle, bringing on those suppliers which deliver into the Spar distribution centres. Future phases will involve drop shipment suppliers, and will also involve higher levels of tactical collaboration across the supply chain.
"By working as a partner with Spar rather than just as a service provider, we have also been able to gain a good understanding of their business aims. Our solution will help to dramatically improve the efficiency and effectiveness of the ordering and replenishment processes, and reduce costs to the Spar Group significantly."
Stelma concludes: "This highly strategic project is helping us to drive out inefficiencies in our supply chain, and, more importantly, it is also improving the value proposition that our stores can provide to our retail customers. These are exciting times for us, and we look forward to a long and mutually beneficial relationship with Gateway Communications."
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