How to Leverage Data to Improve Shelf In-stock Conditions for Consumers

Transcription

1 How to Leverage Data to Improve Shelf In-stock Conditions for Consumers

2 Who Hates Monday Mornings? Reports don t Match Shopper Experience

3 GMA-FMI Supply Chain Ideation May 2013 Data/In-stock Became a Key Theme Tom Gagnon* Delhaize Hannaford Mike Burns* Cap Gemini - Accelerated MOM Brands Solution Lois Fruhwirth P&G Environment (ASE) Ron Ozment HEB Suppliers, Retailers, Service Providers Lisa Malvea Clorox Collaborating and Engaging Together Gene Bodenheimer Genco David Johnston End-Consumer JDA Focused Danny Halim JDA Steve Dollase Inmar

4 What? How? Why? Improve On Shelf Availability for End Consumers/Shoppers Better Leverage Data with a Proactive, Standard Process Improve Profitability & Shopper Loyalty Intended Deliverables: Good Better Best Framework Across End-to-End Supply Chain Best in Class Proactive Review Process Best in Class Metrics, Process & Organization Migration Plan and Capabilities Needed Model for Trading Partner Interaction GMA-FMI Partnership

5 On Shelf Availability: We now know how big the opportunity is Shoppers Mandate Shoppers live in OMNI Channel Era Shopper Studies says Availability is top 3 of where they shop and why Shoppers give Three strikes and you are out to the Retailer Business Environments Changing Technology Explosion & Availability Competition is Advancing Operational Productivity to drive Profitable Sales Progress requires a step-change in working together Why NOW?

6 JBP Collaboration & Execution POS Integrated Forecasting & Replenishment Store Order Forecast POS Sharing Store Replenishment/CAO Quality & Data Accuracy Standards, Metrics/Data & Process/Practice Effectiveness Pyramid for OSA

7 FUTURE BEST BETTER GOOD Fundamental Elements Metrics/Data Process/ Practice Organizational Improvement Approach to Improve On Shelf Availability

8 FUTURE GOOD Case Fill Rate Warehouse Service Zero on Hand BETTER On Time In Full Exception Based Lost Demand BEST Proactive Predictive Visual Merchandising: Shelf Presentation POG Compliance Shopper Availability at Moment of Truth Where in Store Transferable Demand Saleable Metrics/Data to Deliver On-Shelf Availability Perpetual Inventory Integrity Required

9 Poll Question 1 Retailer Your Internal (Metrics/ Data) Need Foundation R_Good R_Better R_Best NA Vendor Your Customers (Metrics/ Data) Need Foundation V_Good V_Better V_Best NA How would you rate your Metrics/Data?

10 FUTURE GOOD Store SOPs Phantom Inventory Store Inventory Handling Practices BETTER Compare CAO vs. Store Overrides vs. Actual Orders BEST POS integrated forecasting & replenishment Joint Use of Real Time Data to drive Action Test or Pilot emerging technology Leverage Consumer & Shopper Insights Exception Based Proactive Alerts on Shelf Conditions Leverage emerging technology - OMNI - Sensor - Consumer & Shopper Insights Action Orientation and Execute with Excellence Process/Practice to Deliver On-Shelf Availability

11 Poll Question 2 Retailer Your Internal (Process/ Practice) Need Foundation R_Good R_Better R_Best NA Vendor Your Customers (Process/ Practice) Need Foundation V_Good V_Better V_Best NA How would you rate your Process/ Practice?

12 FUTURE GOOD Collaborate Internally to break down silos Internal Integrated Business Planning BETTER Learn with Limited Partners Joint Business Planning Benchmarking BEST Scalable Solutions Joint Strategic Business Planning Rewards/Incentives aligned 360 Benchmarking Transparency Execute & Recover on Joint Plans Shared Responsibility & Accountability Discipline to Build Trust (Break down Silos) Organizational Improvement to Deliver On-Shelf Availability

13 Poll Question 3 Retailer Your Internal (Org. Improvements) Need Foundation R_Good R_Better R_Best NA Vendor Your Internal (Org. Improvements) Need Foundation V_Good V_Better V_Best NA How would you rate your Org. Improvements?

14 R&D Manufacturing DC & Warehouse Retailer Store/Shelf Online/Home Raw Materials Production & Safety Stock $$ In Transit $$ DC Inventory $$ In Transit $$ Store Inventory On Shelf Avail POS-Integrated Forecasting & Replenishment

15 Connect the supply chain to the store (POS and inventory) by integrating F&R organizations and systems Determine Inv Requirements Buyer Supplier Forecast & Replenishment Inbound Transportation Retail Support Centers Outbound Forecast SRS/ & Transportation Replenishment CIM Team Store Procurement Supply Chain Retail One Supply Chain one set of numbers

16 Effectiveness Pyramid for OSA Approach to Improve On Shelf Availability Collaboration & Execution JBP POS Integrated Forecasting & Replenishment Store Order Forecast Quality & Data Accuracy GOOD BETTER BEST FUTURE POS Sharing Metrics/Data Store Replenishment/CAO Process/Practice Standards, Metrics/Data & Process/Practice Organizational Improvement Summary Statement..

17 CALL TO ACTION: Technology Understanding Self Assessment/ Poll Results Gap Analysis Engage All Stakeholders across all Silos Engage your Trading Partners Use Reception to Start Respond to our Survey TEAM NEXT STEPS: More Extensive Survey Incorporate Feedback White Paper Propose Standards Recommend Standing OSA Committee sanctioned by FMI/GMA aka TPA Promote sharing of Best in Class Practices under Good Better Best & Future Recommendations to Advance OSA

18 Poll Results

19 Questions?