Mitchells & Butlers improves stock visibility and efficiency with electronic despatch advices
Mitchells & Butlers is the UK’s leading pub and pub restaurant operator with over 2,000 businesses in prime locations around the country. For the operator, visibility of stock across the business and good quality data is vital.
To serve its customers better and improve supply chain efficiency, the company decided to replace its old and disparate systems with a centralised order and receipt system. The new system uses GS1 standards and EDI for its purchase orders and despatch advices or ASNs. The solution allows pub managers to raise their orders electronically with the company’s food and drink suppliers. Within half an hour of the order being made, an acknowledgement note is sent to the ordering system electronically. The supplier will then send Mitchells & Butlers an ASN (Advanced Shipping Notice) with the delivery details including the product codes or GTINs (Global Trade Item Numbers) before the delivery is made.
When the goods arrive at the pub, the manager will compare the ASN with the delivery note and confirm receipt of the goods on the system. The goods are accepted and the stock levels are adjusted on the centralised system automatically. The new system provides full visibility of all orders and receipts. When an invoice is received, it is linked to the ASN and matched before any payment is processed. If they don’t match, the system will produce an alert to check for any errors by linking the user with a scanned copy of the delivery note from the supplier. If the supplier is at fault, they are issued with a request for credit within five days almost immediately.
Mitchells & Butlers’ EDI based order and receipt system has produced tremendous value, including improved visibility of stock, better reallocation of stock, reduced stock waste, more accurate forecasting, less administration and a reduction in invoicing and delivery errors. The company has achieved its aim of improving supply chain efficiency and ultimately providing better customer service.