Retail Industry's Call to Adapt to Impending 2009 Changes

Vendor Compliance Federation (VCF) and Trade Promotion Management Associates (TPMA) to Launch Programs to Support Industry in Change

• Press Release
• Source: Vendor Compliance Federation
• On Monday January 12, 2009, 8:30 am EST

PARSIPPANY, NJ--(MARKET WIRE)--Jan 12, 2009 -- As retailers and suppliers respond to the economic decline and a changing regulatory landscape, 2009 is expected to bring about more change to strategy and business processes for the retail industry. Technology, distribution, go-to-market strategies, and the approach to retailer-supplier collaboration will all be impacted. In response, VCF and TPMA are launching a series of collaborative initiatives in 2009 to help retailers and their suppliers address this shifting environment.

Change as Opportunity

The continued roll-out of third party testing requirements by the Consumer Product Safety Improvement Act (CPSIA), and impending legislation of the Importer Security Filing (ISF), also known as "10+2," have increased demand for supply chain synchronization and communication. CPSIA has changed the retail landscape by holding retailers and importers now accountable for unsafe products, along with their manufacturer. In addition, the impending "10+2" ruling will mandate increased collaboration within the trading partner network with new data reporting and shortened timeline requirements.

"Though managing change brings new challenges to any business, the current retail landscape and regulations can be a positive catalyst for development," says VCF and TPMA CEO Diane Berry. "Companies will have the opportunity to be more proactive in improving internal processes and overall supply chain performance because the current environment will now mandate them to assess the gaps that make them vulnerable to supply chain disruptions and government fines."

As the current economic state requires a new approach and set of responses, VCF/TPMA is providing a program to address these needs. The State of Retail: A Financial Perspective will bring together experts in finance, the economy, law, retail and manufacturing on February 11, 2009 in Newark, New Jersey. Participants will discuss the current state of retail and strategies to manage through the financial crisis. Speakers include Morgan Stanley and leading law firm Cooley Godward Kronish.

Ineffective planning models must also be addressed in this present environment. "In many cases, the current forecasting models are limited," says TPMA Executive Director Bob Houk. "They're based on consumer behavior during the last several years and cannot account for behavior in the current environment. The consumer goods industry will need to adjust its forecasting processes in order to avoid overstocks. This needs to be balanced, of course, against the usual problems with out-of-stocks. TPMA is in the process of creating a Forecast Accuracy Community of Practice to attack these problems."

VCF and TPMA are also expanding their Trading Partner Communities of Practice to provide opportunities for increased retailer-supplier dialogue and development. These collaborative communities focus on specific areas along the forecasting-to-cash continuum to strategize and design compelling research, gather new ideas and develop innovative strategies. A current community addressing an existing issue is the Import Guidelines Community of Practice, launched November 2008 with founding members JCPenney and Burlington Coat Factory.

To facilitate the development of trust, communication and collaboration among trading partners, VCF is launching TPNexus(TM), a private, secure online peer network for the retail industry. The network will allow participants to: network and share best practices with peers within supplier/retailer communities; find professionals with experience working with the same customers or suppliers; share documents and schedule meetings; and participate in VCF and TPMA Communities of Practice, each of which will host its own, dedicated online community.

TPMA itself is bringing innovation to industry events by hosting the trade promotion's first Brown Bag Virtual Forum in the virtual world of SecondLife on February 3, 2009. Industry experts will participate on three panels to address collaboration, customer-centricity and positioning trade promotion programs for recovery. Panelists will include professionals from Booz & Co., IRI, afterBOT, DemandTec, SAP and Oracle.

To reduce sourcing time for retailers and suppliers, as well as their trading partners, VCF and TPMA have launched the TradingPartners Buyers Guide. This online resource directory lists hundreds of products and services specifically for the retail industry, while also providing a cost-effective method for service providers to the retail industry to reach their target audiences.

About VCF

VCF is the leading organization focused on solutions, services and best practices for supplier-retailer collaboration within consumer durables, ranging from fashion and cosmetics to electronics and home furnishings. VCF is an advocate for retailer-supplier trading synchronization and champions initiatives to increase strategic industry-wide productivity, profitability and growth. VCF serves a multitude of touch points in perfecting retailer-supplier execution to shorten cycle times and drive overall velocity in the supply chain. VCF draws participation from leading retailers and suppliers such as Sears, JCPenney, Nordstrom, Lowe's, Liz Claiborne, Estée Lauder and Kellwood.

About TPMA

TPMA is the leading organization driving best-in-class process for global trade promotion management (TPM) and trade promotion optimization (TPO). TPMA is dedicated to the effective and efficient use of trade promotion dollars and serves as a collaborative resource for research and metrics for companies such as Hormel, Dial, Del Monte, ConAgra Foods, Hewlett-Packard, Nintendo, Land O'Lakes, and Johnson & Johnson.

     Contact:
     Anna Lee
     Manager, Marketing & Alliance Development
     VCF and TPMA
     1055 Parsippany Boulevard, Ste 405
     Parsippany, NJ 07054
     Phone:  646-442-3707
     alee@vcfww.com
     http://www.vcfww.com
     http://www.tpmaww.com