TradeCard, the provider of on-demand financial supply chain products, is automating Rite Aid’s trade transactions with around 200 international suppliers from purchase order delivery through payment.
Rite Aid operates 3,400 drugstores and is ranked number 128 on the Fortune 500. Benefits for the company include streamlined procurement processes, the elimination of costly letters of credit, and improved supplier relations.
According to Jerry Cardinale, Rite Aid’s senior vice-president, category management, “We evaluated a number of solutions from banks and technology vendors, considering both their hard and soft benefits. Our team unanimously preferred TradeCard’s web-based platform, primarily because of the visibility it provides. With minimal capital investment, Rite Aid and its suppliers can see the status of their transactions in real time. We expect our savings to be significant.”
Approximately 85 of Rite Aid’s international suppliers are now on board and able to transact. The remaining suppliers – most of which provide seasonal merchandise – will be connected over the coming weeks, when Rite Aid requires their goods.
Through its web-based platform, TradeCard automatically creates, routes, matches and stores trade documentation – such as electronic purchase orders, supplier invoices, freight receipts, and other information – to facilitate payment and financing.
Each party has appropriate access to view and amend documents as a transaction progresses. Payment decisions are automated based on supplier compliance to purchase order terms and conditions. Discrepancies are systematically flagged and managed online.
