Item Set-up System Cuts Processing Time by 87% for Domestic and Imported Goods
Challenge
A major retail department store chain needed an automated system to manage FOB and direct imports. An import database had been built as a stop-gap measure to house import classification information, but a more robust system was needed. The system had to be implemented before a critical deadline, when database services provided by an outside source would be terminated.
Solution
Hokura designed, developed and implemented an item setup application in just 12 weeks in order to meet the cut-off date. Three weeks into development, the stakeholders expanded the scope to include domestic item setup. Hokura met this challenge and delivered a web-based application that is available 24/7 to national, market and private-brand import and domestic vendors.
Vendors initiate item creation online, enabling buyers, product development managers, brand compliance and customs compliance teams to approve those items. The item creation and approval process is work-flow based and currently handles seven different sourcing tracks. The system integrates with various applications, such as Gerber Technology’s WebPDM, the retailer’s in-house vendor management system, EDI and JDA’s merchandise management system.
Success
The retailer rolled out the item setup application to 1,200 vendors from around the world and 400 internal users. The system has reduced the item creation and approval process time for imports from six weeks to one week and for domestics from three weeks to two days.
The item setup system ensures accurate data transfer to EDI and ERP systems for purchase order generation and delivery. This system enables the retailer to take smooth possession of the goods and maintain a history of goods produced along with relevant documents for U.S. Customs audits.
The retailer has found that the item setup system promotes collaboration among the merchant team, transportation team, customs compliance team and vendors.