Vendor Performance Program FAQs

Vendor Performance Program Frequently Asked Questions

 

Printable Version of FAQs:

VENDOR PERFORMANCE PROGRAM

1.       What is LCBO’s Vendor Performance Program? 

The program involves two key performance indicators (KPIs):

• Order Confirmation KPI: Vendors must confirm receipt of a PO through the LCBO WebPO System within two (2) Business Days of LCBO’s issuance of the PO. Effective April 1, 2023, failure to meet this requirement will incur a $50 charge for each Purchase Order.
• On-Time and In-full (OTIF) KPI: The OTIF calculation combines 3 measures (Ready to Ship Confirmation, Ready to Ship and Fill Rate) into a single KPI to determine if the order was on time and in full. A late or not in full order will negatively impact the overall result. This component of the program is under development and will be communicated at a later date. 

 

Vendor performance programs align with retail best practices and are proven to build resilient supply chains, mitigate supply chain disruption and ease costs.  The program also supports LCBO’s corporate strategy to provide excellence in the customer experience.

 

ORDER CONFIRMATION

2. What is the requirement for Order Confirmation?  

Vendors must confirm receipt of a PO through the LCBO WebPO System within two (2) Business Days of LCBO’s issuance of the PO. Effective April 1, 2023, failure to meet this requirement will incur a $50 charge for each Purchase Order.

“Business Day” means any working day, Monday to Friday inclusive, excluding statutory and other Ontario provincial government holidays, namely: New Year's Day; Family Day; Good Friday; Easter Monday; Victoria Day; Canada Day; Civic Holiday; Labour Day; Thanksgiving Day; Remembrance Day; Christmas Day; and Boxing Day, and any other day which the LCBO has elected to be closed for business.

 

3. Is this requirement for both domestic and international Vendors?

·          Yes.    

 

4.   Why am I getting an email from WebPO saying I am non-compliant?

·         WebPO issues an email noting non-compliance after 2 Business Days -- WebPO does not factor in any holidays when issuing these non-compliance emails.

·         LCBO performs our own calculations based on the requirements for Order Confirmation and the definition of Business Day.

     *If you are non-compliant, you will be charged at the time of period billing

     *If you are compliant, you can disregard the system message, you will NOT be charged at the time of period billing. 

 

5.       How do I confirm a PO?

Refer to the Web PO User Guide for details, available on Doing Business with LCBO.

There are 2 ways to do this:

o   Confirm from Purchase Order List screen: Click Confirm button on the PO line entry.

o   Confirm from PO Details screen: Click Confirm button.

Keep in mind that receipt of all POs must be confirmed in Web PO within two (2) Business Days of LCBO’s issuance of the PO.

 

6.       If I have already confirmed a PO and it gets revised, do I need to confirm it again?

No. You only need to confirm receipt of the PO once, within two (2) Business Days of LCBO’s issuance of the PO.

 

7.       What is the fee for not confirming a PO?

$50 charge for each Purchase Order. Fees are set out in the LCBO Fee Schedule for Non-Compliance to Purchase Order Terms and Conditions available on Doing Business with LCBO.

 

8.       How do Holidays/Extended Shutdowns impact Order Confirmation?

The only exclusion from the requirement is statutory and other Ontario provincial government holidays, namely: New Year's Day; Family Day; Good Friday; Easter Monday; Victoria Day; Canada Day; Civic Holiday; Labour Day; Thanksgiving Day; Remembrance Day; Christmas Day; and Boxing Day, and any other day which the LCBO has elected to be closed for business.

 

9. When does the confirmation window start/stop? 

As examples:

If the LCBO issues the PO on a Wednesday, you have 2 Business Days to confirm - All day Thursday and all day Friday. 

If the LCBO issues the PO on a Thursday, you have 2 Business Days to confirm - All day Friday and all day Monday. 

If the LCBO issues the PO on a Thursday and Monday is a holiday as defined in the requirements, you have 2 Business Days to confirm, excluding the holiday - All day Friday and all day Tuesday. 

 

10.       Is the fee $50 per day or per PO?

Fines are at the PO level.

 

11.       Who pays the Order Compliance fees - Vendor or Agent?

Fees are charged to the Vendor. 

 

12.       How am I notified of the Order Compliance fees?  How do I pay the fees?

Agents will receive Vendor Performance Email Notifications after each period closes. 

Vendors will receive debit/credit notices after the period closes.  Debit/credit notices are also visible in iSupplier. Vendors debit/credit notices are applied to the next order.

 

13.   How can Order Compliance fees be disputed?

Keep in mind that there are no exceptions to the requirement -- If you think there is an error in the calculation, agents can contact vendorperformancesupport@lcbo.com Include the following in the email:   

• *Agent Name:
• *Agent Number: 
• *Vendor Code: 
• *Vendor Name: 
• *Applicable PO#: 
• *Date PO was issued by the LCBO: 
• *Date you confirmed the PO on WebPO:
• *Reason for Dispute:

 

Agents must inform the LCBO of any disputes within thirty (30) days after receiving the applicable period Vendor Performance Email Notification.

 

14.   Do I confirm order volumes at the same time as confirming purchase order receipt?

No. Vendors do not need to confirm order volumes at the same time as confirming PO receipt. Always confirm receipt of the PO first.

 

15.   How do changes to the PO impact Order Confirmation?

Subsequent changes to PO don’t impact Order Confirmation, as long as receipt of the purchase order was confirmed within 2 Business Days of the LCBO’s issuance of the order.

 

OTHER

 

1.   Can agents request access to Web PO?

Only a Vendor Administrator can add new users. In Web PO, click the User List screen. Click NEW USER at the bottom of the screen. The User Profile screen appears. Enter new user’s information. Select desired Group from the drop-down menu on the screen (Vendor Admin, Vendor R/W User, or Vendor R/O User). If the new user is to receive alerts, check the box. Click SAVE. A pop-up screen appears informing the Administrator that the new user account was created, and that an email has been sent to the new user. Click OK.

There is no requirement for a vendor to set up their Ontario Agent as a user. It is up to the vendor if they wish to grant Read Only access to their Agents.

 

2.   How can I update agent contact information?

Email lcboorders@lcbo.com with any changes to agent contact information. Be sure to include the following:

• *Agent Name:
• *Agent Number: 
• *Agent Email address:
• *Indicate what category (if applicable):
• *If they are replacing someone, name of old contact:

We recommend you include a single email that you can use internally to distribute the results and advise you to use a generic email so that you don’t need to update the email address as personnel change.

 

HELP

1.   Where can I get help?

More information is available on the Doing Business with LCBO website: Vendor Performance Program. Additional information at Web PO or iSupplier.

 

For any questions regarding the launch of the program please email:  vendorperformancesupport@lcbo.com