Introduction

PRCA, as the name suggests it, stands for Proactive Root Cause Analysis. This feature is available in SCOT for you as Admins but you can also enable it for your Suppliers. This way, both Metro and Suppliers can create PRCA rules in SCOT - as long as they inform each other.

Main objective of this feature is that Metro and Supplier actively communicate and inform each other in advance about possible problems which might impact upcoming deliveries. 

In case supplier is aware that they will have a production line issue in the next month and they inform you, then: 1)your stocks will not be affected because you will know to order the goods from other suppliers and 2)supplier's OTIF will not be affected because he prevented you about their situation.

This Proactive approach ensures awareness over possible delivery problems. Information is captured in SCOT well in advance and solutions can be found on time.

PRCA functionality creates a transparent working environment for both Metro team and Supplier, where they work more collaboratively ensuring its a win-win for both parties, with trust being built at the core.

Advantages for Metro team (Proactive vs Reactive) 

You are aware of Supplier's situation in advance, hence you can take measures on proactive note to ensure smooth functioning of Metro business rather than being reactive to circumstances as they happen, disrupting your business and, as end result, generating dissatisfaction of customers at Metro stores due to unavailability of Products. This can be avoided thanks to the proactive approach.

For example, if the supplier has issues with their production line for a specific product and communicates this to Metro team in advance, you can react by ordering the product from another supplier.

Advantages for Supplier (Proactive vs Reactive)

Orders with PRCA rules benefit from exclusion from OTIF calculation, therefore no penalization is applied to that order.

If Suppliers are unable to process the order due to some reasons/uncertainty  (production line issue, temporary stock material out of order, pandemic, strike, etc.), if they communicate this information to Metro team and, with mutual understanding, PRCA is defined in SCOT, suppliers can avoid getting penalized (contractually bound) for not achieving  the OTIF. Such orders will be excluded from the OTIF calculation. Therefore, no penalization.

In opposition, with the reactive approach, the Supplier's OTIF would be affected and penalties might also apply when failed order lines (FOLs) appear in SCOT as per normal process. This will also lead to additional work from both ends to clarify their stands, hence time and effort loss.