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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



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 &QUOTA

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



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 &QUOTA

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


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


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



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



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


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.


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


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


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


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


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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