Case Study

A Leading American Technology Company Improves Its Pricing & Promotion Strategy

Segment

Supermarket

Objective

Streamline and automate supplier processes and, build data-sharing and collaboration framework

Product Used

Supplier Collaboration Platform

Outcomes

92%

faster supplier onboarding

85%

faster supplier onboarding

81%

of invoice processing automated

30%

reduction in rebate management efforts

The Company

Keells, a subsidiary of John Keells Holdings, is a leading supermarket chain in Sri Lanka renowned for its commitment to offering fresh, high-quality products and exceptional value to its customers. With over 123 outlets and a robust online delivery service, Keells serves a vast clientele daily, relying on a network of more than 700 suppliers to meet consumer demand.

The Challenge

Despite its success, Keells faced several challenges in supplier management, hindering its growth potential.

Manual and error-prone supplier onboarding and product information management, leading to delays.
Frustration among large suppliers due to the management of a high volume of purchase order modifications.
Inefficient resolution of invoice and delivery disputes, resulting in delayed payments and strained supplier relationships.
Rebate calculations was a time consuming affair often requiring extensive data manipulation
Lack of data visibility for Keells and its suppliers, hampering timely insights on sales, inventory, and category performance.

The ROI of Algorithmic Merchandising

As a result of the above, the client achieved significant improvement in its profit margins and was able to optimize its pricing and promotions processes. Revenue leakage was plugged by $5 million with zero instances of accidental double IRs. The client reduced their lead time for instant rebate implementation from 7 days to 4 hours. The client also reduced the planning efforts of category managers, allowing them to focus equally on all categories. The added capability of scenario simulation helped the client bring agility into planning and avoid the disconnect between supply chain and promotions.

“We wanted a unified system with comprehensive tracking and management capabilities for supplier-facing processes for efficient and seamless collaboration. Algonomy's Supplier Collaboration Platform empowered our teams with integrated management capabilities for internal and supplier activities, saving hours, reducing errors, and improving planning. Our supply chain is now resilient, responsive, and cost-effective."

Aravinda Wanniarachchi

CFO - Retail, John Keells Holdings PLC

“The platform's ability to minimize human interventions, enhance collaboration between teams, and deliver actionable insights has been remarkable. Not only has it streamlined our processes, but it has also delivered an attractive ROI that exceeds our expectations.”

Osanda Warnekulasooriya

VP, Head of Business Systems, Retail, John Keells Holdings PLC

Algonomy’s Solution Fosters True Supplier Collaboration

Keells adopted Algonomy’s Supplier Collaboration Platform, a comprehensive web-based solution designed to enhance collaboration between suppliers and retailers. This platform automated and streamlined supplier processes, facilitating seamless data and insights sharing.

Under the Keells Advance Network Exchange (KANE) initiative, the platform facilitated various critical functions, including:

Keells streamlined supplier onboarding via the KANE system, digitizing documentation and employing guided approval workflows.
This reduced paperwork, accelerated onboarding, minimized errors, and ensured transparent status tracking.
Resulted in a remarkable 92% reduction in supplier onboarding time, facilitating quicker access to a broader pool of suppliers.

KANE revolutionized product information management, providing a centralized platform for catalog management.
Category teams could effortlessly modify product attributes, pricing, and delist products, reducing redundant efforts.
Witnessed an 85% reduction in new product onboarding time, enabling swift adaptation to market demands and introducing new products.

Embraced electronic data interchange (EDI) to seamlessly integrate purchase orders (POs) and goods received notes (GRNs) with large manufacturers.
Reduced manual effort, enhanced operational efficiency, and improved supply chain responsiveness.
Mitigated the risk of errors and delays associated with manual data entry.

KANE introduced a sophisticated 3-way invoice matching feature, automating reconciliation for purchase orders, invoices, and goods receipts.
Expedited dispute resolution, minimized erroneous payments, and allowed finance teams to focus on value-added activities.
Saved time and enhanced overall productivity by automating 81% of invoices.

Leveraged KANE's analytical capabilities to enhance collaboration with suppliers by sharing real-time insights into sales, inventory, and category performance.
Empowered suppliers to make informed decisions and optimize operations.
Strengthened partnerships, facilitated joint initiatives, and drove mutual business growth.