CONFORAMA, number two worldwide and number one in France for household appliances and furnishings, has chosen DDS Shipper’s sourcing and costing modules for the entirety of its sourcing (IHTM) and commercial subsidiaries. DDS Shipper will be integrated into CONFORAMA’s IT system.
CONFORAMA wanted to implement a management tool for the entirety of its sourcing activities worldwide.
Group together the demands of all of its subsidiaries. CONFORAMA’s subsidiaries are independent; each one takes its own purchasing decisions. Thus purchasing conditions vary for the same product. The deployment of DDS Shipper for the entire group makes it possible to obtain the same purchasing conditions for each subsidiary and to negotiate the best prices for orders, using fewer suppliers. The “unification” of purchasing and the “concentration” of supply sources means it will be possible to harmonize the product range across the stores, and generate significant savings.
Improve the reliability of sourcing. DDS Shipper will make it possible to improve the reliability of cost calculations and the repositories used. The product profiles will also be handled by DDS Shipper.• Increase productivity by improving sourcing.DDS Shipper will optimize in-store re-stocking, by reducing product shipping times to an average of 15 days, and by reducing the number of people involved.
Standardize the computer systems used by the subsidiaries. The subsidiaries do not use the same computer systems, some of which are not compatible meaning data has to be reentered. The visibility and management of sourcing activities are thus reinforced.CONFORAMA will involve the suppliers in this project, either by directly including them in the DDS SHIPPER Sourcing system, or by communicating with their own computer systems via an interface. The deployment of the project
The project will be deployed in France and Portugal from November 2007. The objective being that all 7 subsidiaries will be equipped by late March 2008.
“It is known fact that, in the context of trade globalization, sourcing has become a major stake for major distributors and industry”, points out Jérôme Bour, Chairman of DDS Logistics. “Being able to identify the best supply sources is essential for remaining competitive, and an element that makes companies stand out from their competitors. The possibility of automatically orienting calls for tender to the most relevant geographic zones and of automating the calculation of customs charges and logistics generates significant savings.”
DDS Shipper’s sourcing and costing functions
DDS Shipper’s Sourcing module handles all of the exchanges between the purchasers and potential suppliers: communication of calls for tender to the suppliers, automatic orientation to sourcing zones, submission of proposals by suppliers via the web, rating of proposals, etc.
It automates the purchasing procedures, identifies the best countries and the best suppliers. It is a veritable collaborative gateway, which enables all of the players on the circuit to communicate via a single unique platform.
DDS Shipper’s costing function makes it possible to calculate costs and prices using different commercial scenarios, based on the logistical and customs characteristics of each product. It takes account of variations in the exchange rate and gives an alert in the event of sales at a loss.
“In comparison with standard international sourcing products, our added value resides in two modules that are complementary to the purchasing procedure, which makes it possible to simulate logistical protocols, and perform a price simulation. With DDS Shipper Sourcing, we calculate the “delivered” cost of the product, which includes the purchase price, the transport cost, customs and excise duty, and other logistical services. This makes it possible to compare different suppliers from different companies, and so select products based on a detailed calculation of the complete “delivered to destination” costs. The combination of the on-line purchasing procedure and the logistical approach speeds up and automatizes the sourcing process, resulting in a decrease in the product purchase price”, adds Jérôme Bour.