John Lewis Partnership Helps 6,500 Suppliers Cut Trading Costs with Free, Self-Service Portal for Managing Accounts and Tracking Invoices and Payments
 
 

John Lewis Partnership Helps 6,500 Suppliers Cut Trading Costs with Free, Self-Service Portal for Managing Accounts and Tracking Invoices and Payments

  • Oracle Customer:  John Lewis Partnership
    Location:  London, England
    Industry:  Retail
    Employees:  84,700
    Annual Revenue:  Over $5 Billion

John Lewis Partnership, one of the UK’s leading retailers, owns and operates 39 John Lewis department stores, 291 Waitrose supermarkets, an online and catalog business, a production unit, and a farm. All employees are partners and share in the benefits and profits of the business. John Lewis was recognized as the Retailer of the Year at the Oracle Retail Week Awards 2011.

 
 

 
 

Challenges

A word from John Lewis Partnership

  • “Oracle iSupplier Portal delivers simple, transparent, no-cost trading transactions to our suppliers. It extends our partnership approach across the supply chain while providing significant benefit to John Lewis Partnership.” – Chris Darlington, Project Lead, John Lewis Partnership

  • Cut costs to suppliers for trading with John Lewis Partnership by streamlining invoicing, account management, and payment tracking without incurring additional financial overhead for suppliers of goods for resale (GFR) and goods not for resale (GNFR)
  • Avoid potential cash flow problems for suppliers caused by late payments resulting from processing delays, lost invoices, or lack of a purchase order number
  • Improve supplier support by eliminating need for vendors to contact the accounts payable team, buyers, or merchandizers to resolve routine delivery or payment queries
  • Improve environmental citizenship for suppliers and John Lewis Partnership by cutting paper use, reducing postage, and storing invoices and trade-related documents electronically

Solutions

Oracle Product and Services

  • Signed up 6,500 suppliers to Oracle iSupplier Portal in 12 months
  • Gained rapid adoption due to Oracle iSupplier Portal’s free-of-charge availability to suppliers, avoiding the typical annual fee of US$1,130 (£750), plus up to US$1.00 (£0.67) per-transaction, charged by leading competitor commercial portals
  • Gave GNFR suppliers the option to enter invoices electronically, using either Oracle iSupplier Portal or an alternative commercial option
  • Resulted in 92% of GNFR vendors chosing Oracle iSupplier Portal for e-invoicing because there’s no annual fee or per-transaction charge
  • Enabled GNFR suppliers to gain an immediate return on time invested in entering invoices electronically by eliminating mailing costs
  • Saw a significant increase in the percentage of the 450,000 GNFR invoices received each year that were entered via Oracle iSupplier, with one supplier submitting an invoice on average every 70 minutes
  • Reduced number of overdue payments to suppliers by using Oracle iSupplier Portal, as each invoice’s processing begins on invoice submission date, rather than the date of receipt in the mail
  • Used Oracle iSupplier Portal to enforce mandatory use of purchase orders, which ensured touchless invoice entry and cut administration costs for John Lewis Partnership
  • Helped cut carbon footprint of GNFR suppliers and John Lewis Partnership by reducing paper consumption, in support of the Partnership’s commitment to sustainable operating practices
  • Enhanced supplier service and support by enabling GNFR and GFR suppliers to track status of payments, purchase orders, and delivery dates, 24/7, in real time via Oracle iSupplier Portal instead of having to contact the accounts payable team or buyers during normal office hours
  • Improved productivity of the accounts payable team and buyers by enabling suppliers to resolve many inquiries themselves

Why Oracle

John Lewis Partnership chose Oracle iSupplier Portal over competitors’ solutions to help suppliers reduce the burden of managing the trading relationship without having to pay annual fees and transaction charges. The company recognized that offering a free-of-charge solution would encourage widespread adoption of a tool that will evolve into a collaborative platform to further cut costs and increase efficiencies for John Lewis Partnership and its entire supplier base.

“Oracle iSupplier Portal has transformed the way we do business with suppliers,” said Chris Darlington, project lead, John Lewis Partnership. “Suppliers have taken to it very quickly and we’re now sharing the benefits together. Delivering eInvoicing free to our suppliers was a key principle, and one which supports our philosophy that suppliers work with us, not for us.”