QLogitek Quarterly

Jan 2010 Newsletter

 
Inside This Issue

QLogitek is a Microsoft 2009 IMPACT Awards Finalist | Read more
   

How To Ensure Superior In-Store Customer Experience?| Read more
   

Retail Executive Supply Chain Q & A | Read more
   

Why Should You Care About Bill C-6 or CPSIA?| Read more
   

QLogitek is a Microsoft 2009 IMPACT Awards Finalist

QLogitek’s Supplier Order Management System (SOMS) and Hosted EDI platform implemented in conjunction with Microsoft’s BizTalk Server is a 2009 MS IMPACT Awards finalist. “IMPACT Awards celebrates top technology partners who have demonstrated their leadership and shown true dedication through their tremendous support and service to customers,” said Corinne Sharp, National Director, Microsoft Canada.

QLogitek and Microsoft are deploying best-in-class retail application infrastructure to streamline and enhance supply chains for Canada’s large and mid-sized retailers. Microsoft’s BizTalk Server is a world-class integration platform that works in conjunction with QLogitek’s supply chain products for B2B integration with suppliers and customers.

Organizations like HDS RNA have deployed this solution to transform their retail supply chain operations. HDS RNA is a North American culture and entertainment retailer with 350 stores that include prominent retail banners like RELAY, USA TODAY, and Virgin Books & Entertainment. The award recognizes QLogitek’s supply chain integration solutions for its positive business impact in the Canadian landscape.

As noted in a recent Microsoft case study, this solution provided HDS RNA with the following business benefits: 1- reduced supply chain complexity and increased visibility, 2- automated 90% of supplier transaction data, 3- increased operating margin by eliminating standard margin in favor of actual margin, 4- minimized errors caused by manual processing of data, and 5- improved supplier relations thru faster invoice processing.

VP Finance at HDS RNA, Jose Stein said, "QLogitek has helped us achieve measurable benefits in the productivity and visibility of our supply chain and we expect this trend to continue in the future." QLogitek’s COO, Isa Qureshi said, “we would like to thank HDS RNA for supporting us through the award nomination process and look forward to our continued relationship."   

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How To Ensure Superior In-Store Customer Experience?

Demand-Driven Supply Networks (DDSN)

The holy grail of retail operations is to deliver a world-class in-store and on-line shopping experience. Customers expect to find the right products on store shelves at the right price, every time they enter the store. Achieving this requires astute strategic and operational decision-making capability based on a steady flow of clean and harmonized data connecting demand and supply side processes. Demand Driven Supply Networks (DDSN) is a framework to achieve this retail excellence, according to AMR Research, Aberdeen and Gartner. Although there are several approaches, we posit that a good starting point to build your DDSN is from the supply side.

Like other IT frameworks, DDSN's follow the GIGO rule - "Garbage in, Garbage out." Therefore, it is vital to ensure flow of clean and comprehensive data thru the DDSN. QLogitek has been successfully helping large and mid-sized retailers across Canada over the last 10 years to deploy DDSN frameworks to improve and enhance supply chain operations. DDSNs can be extremely complex to design, develop, and maintain without the right approach, tools, and experience. Successful retail leaders like The Bay, Zellers, HDS RNA, Sears, LCBO, and Best Buy have all relied on QLogitek to integrate their supply side data with their best-of-breed and legacy ERP systems and enterprise data warehouses.

Using a combination of deep domain expertise in retail B2B supply chain integration and Microsoft application server technologies, QLogitek connects retailers with their trading partner communities with cost-efficacy and speed.

Take the recent case of Best Buy, which has connected 250 global suppliers to its retail ERP system using QLogitek's Software-as-a-Service (SaaS) based Inbound Management System. QLogitek has successfully deployed supplier order management solutions to integrate hundreds of suppliers in months as opposed to years. Our experience indicates the following: retailers can embark on and/or accelerate their journey towards a consumer-driven retail operation by building a Demand Driven Supply Network, beginning with its supply-side processes.

Best-in-class retailers know that there are many factors influencing superior in-store customer experience. They recognize that clean and harmonized data from suppliers ensure shelves are stocked with items customers demand on-time. Streamlining third-party procurement & logistics data leads to decreased ordering lead times getting product to store shelves faster. In other words, clean supply side data is a precursor to superior customer experience.

To learn more about Demand-Driven Supply Networks, QLogitek and Microsoft hosted a webinar in December 2009 which is available for on-demand viewing here: http://bit.ly/6X5sNI
 

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Post Holiday Season Retail Supply Chain Chat with
John Bostock
 

1- What are the top strategic retail supply chain initiatives being talked about in the industry for 2010?

Looking ahead into 2010, I think many retailers will be holding off making any significant supply chain commitments until after the holiday sales, year-end inventory accounting and availability of their 2009 financial results. As Q1 2010 unfolds, having an adaptive supply chain network will be of strategic importance and a key enabler to business success.

2- Could you please elaborate on the strategic advantage of an adaptive supply chain network in the current scenario?

Typically retailers would have submitted their purchase orders for spring 2010 merchandise back in the fall of 2009. However, given the current economic uncertainty, buyers will be conservative in placing orders this far in advance and may delay final commitments until the last possible moment. Initial purchase orders (PO) might be changed several times before the merchandise is shipped. Imagine the negative impact if retailer-initiated PO changes can’t be automatically synchronized with suppliers’ systems and the effort involved to reconcile resultant discrepancies, after the fact. An adaptive supply chain between retailer and supplier will efficiently handle purchase order changes, reduce errors and provide better visibility across the supply chain. This results in more effective and timely decision-making in forecasting demand and responding to changes in uncertain market conditions, in as close to real-time as possible.

3- So what are we most likely to see take place within the retail supply chain landscape in 2010?

My sense is that retailers will hedge their bets and focus on short-term, tactical supply chain cost reduction efforts until at least the middle of 2010 when there is likely to be more certainty and stronger indications of an economic recovery.

4- What is the time and cost commitment to developing an adaptive supply chain network?

Supply chain strategies are multi-year programs, traditionally requiring significant capital investments, and may include an ERP implementation. The strategy should best fit the requirements of the organization, however, there are alternatives emerging within the marketplace for retailers who can’t wait and do not have the capital funding available.


5- What are the alternatives?

The emergence of Software-as-a-Service (SaaS) delivery models for EDI/B2B collaboration, as offered by QLogitek, is a viable alternative to transform retail supply chain. I believe more and more retailers will consider this as a viable option as part of their 2010 supply chain strategy.

6- What kind of framework can retailers rely on when developing an adaptive supply chain network?

Retailers are adopting a demand-driven supply chain management strategy including proactive strategic actions such as: increasing collaboration and business process integration with suppliers, improving customer demand sensing and forecasting capabilities, and developing multi-enterprise/multi-site visibility across the entire supply network. For a more comprehensive insight, I suggest referencing the Aberdeen Group benchmark report, sponsored by QLogitek, published in September 2009 entitled: The 21st Century Retail Supply Chain: Three Key Imperatives for Retailers.

John Bostock is a Retail Technology Consultant. John has acquired extensive knowledge of Information Technology and the Retail/Distribution Industry. In senior executive roles including CIO experience, John has been responsible for leading strategic, innovative, business transformational initiatives at some of Canada’s largest retail companies such as Hbc, Canadian Tire and HDS RNA. John is also an Advisory Board member for QLogitek.

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Why Should You Care About Bill C-6 or CPSIA?
Consumer Product Safety & Compliance

 By Bob Milette, Supply Chain Compliance Specialist

Eliminating the rhetoric and the political posturing, Bill C-6 and the Consumer Product Safety Improvement Act (CPSIA) are designed to improve consumer product safety in Canada and the United States. It is difficult to argue with the intent of these pieces of legislation. The CPSIA focuses on products for children and introduces specific standards for lead, cadmium and phthalates while Bill C-6 addresses most consumer products and does not introduce specific standards in any area. Common to both pieces of legislation are punitive penalties for flagrant offending companies and their executives.

The acts affect domestic manufacturers and distributors as well as importers. The former group is or at least should be in control of their manufacturing and distribution processes and therefore able to demonstrate compliance. Importers on the other hand, have less control over the manufacturing processes of their suppliers and therefore are at greater risk under the act.

To remain competitive and profitable, consumer product manufacturers, distributors and importers must continually plan beyond the current standards. The recent announcement that toy cookie baking sets have been recalled because paint contains barium (a toxin that does not have any visibility in the CPSIA) that exceeds allowable limits indicates that the standards are moving targets. In Canada, a baby crib manufacturer is struggling with a major recall that highlights that the laws that oversee consumer safety haven't been reviewed in about 40 years (the reality that spawned Bill C-6).

In the United States most retailers are demanding certificates of conformity (and often actual test reports) which is more effective than legislated enforcement. Once the Consumer Product Safety Commission (CPSC) is positioned to enforce the act, import shipments will be delayed and may even be subject to confiscation. Importers who don't have control over their foreign suppliers and manufacturers will have the largest challenges going forward. Canadian exporters to the U.S. face the same challenges and must commit to full compliance with the evolving standards in the CPSIA . The Toy Industry Association (TIA) has introduced a compliance program that is intended to meet all CPSIA standards. It is an ISO 9001 style initiative that requires full participation from the foreign supply chain. It also assumes fairly large production runs to support the test sampling strategy.

In Canada, Bill C-6 is very light on specifics: toxins being tracked, processed, etc. But it is reasonable to assume Bill C-6 will parallel the CPSIA , at least for children’s products.

The consumer product supply chain strategy with respect to CPSIA is simple: products must be compliantly designed and engineered, rigorously tested and the results must be maintained and available for distribution and reporting.

At QLogitek, we have experience and are available to help you develop a system that will be effective for your organization! Please contact us at supplychain@qlogitek.com to learn more.

Bob Milette is an experienced IT and supply chain specialist who helps organizations design and implement compliance systems such as CPSIA.

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QLogitek President's Award presented to Lindsay Reynolds

The President’s Award is given annually to the top performer and contributor at QLogitek. The 2009 winner of this prestigious award is Lindsay Reynolds, Team Leader and Senior Systems Architect.

Lindsay has 28 years of technical and business systems analysis and implementation experience. She has led a variety of large-scale projects in the capacity of either a Technical Project Manager or a Lead Application Architect. Most recently, Lindsay was the team leader for the design and development of the very successful Vintages Shop Online web store for LCBO.

While announcing the award, Latiq Qureshi, QLogitek’s President & CEO said, “we all owe a tremendous gratitude to the ownership, leadership and accountability that Lindsay demonstrates in her work day-in, day-out…Lindsay, you are example to us all.” On behalf of QLogitek please join us in congratulating Lindsay for her efforts and outstanding achievement. As part of her recognition, Lindsay and guest were awarded an all-expense paid trip to a sunny destination. Congratulations Lindsay!
 

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Hain Celestial Group – Winner of the October 2009 QLogitek Newsletter Quiz

Congratulations to Savita Kanwar for having won a $50 Indigo-Chapters gift card by participating in QLogitek’s October 2009 Newsletter Quiz. The Hain Celestial Group, headquartered in Melville, NY, is a leading natural and organic food and personal care products company in North America and Europe. Hain Celestial Canada is a subsidiary of the Hain Celestial Group, with operations in Vancouver, B.C. and Toronto, ON.

The Hain Celestial Group is using QLogitek’s Inbound Management System (IMS) for on-line dock-door scheduling and pick-up & delivery appointment booking.

Featured Products
Inbound Management System


 

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QLogitek Quiz

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QLogitek Updates

QLogitek President’s Award presented to Lindsay Reynolds
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Hain Celestial
Group's Savita Kanwar–
Winner of the October 2009 QLogitek Newsletter Quiz

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