GROCERYSHOP 2018 PERSONA SUPPLY CHAIN NAVIGATOR

Transcription

1 GROCERYSHOP 2018 PERSONA As the Supply Chain Navigator, you want to optimize inventory supply levels to meet customer demands and achieve sales, margin, and inventory goals. You need to have the right inventory at the right quantity, in the right place, at the right time, and have it at the right price. This means minimizing in-stock product shortages and spoilage, increasing inventory turns and keeping costs down, while making recommendations to improve productivity, food quality and safety, and operational efficiencies. YOU REALIZE: ROADBLOCKS TO TACKLE: Out-of-stock (OOS) is costly on multiple fronts missed sales opportunities and loss of once-loyal shoppers. Managing appropriate in-stock inventory service levels for tens of thousands of SKUs is challenging for grocers. Finding the right balance: keeping shelves full to meet customer demands and optimize service levels and inventory turns, while minimizing spoilage and cost. The shift to source food products locally and regionally is becoming more evident; therefore, retailers need to consider the desirability and how to support small and medium-sized producers. Sustainability, food quality, and food safety are growing concerns for grocers, distributors and growers. More retailers are using order-to-shelf systems that have the potential to reduce store labor and inventories. The shift to source local/regional products will mean product ranges are more frequently rotated to reflect seasonal and inventory availability. This will require greater efficiencies, collaboration, communication, and traceability from small and medium-sized producers, which may be challenging. Lack of communication and coordination to-shelf System: Distributor/supplier may accustomed to this kind of close coordination breakdown in communication can lead to shortages and empty shelves. NEED HELP? STOP BY THE CONCIERGE BOOTH #501 Ordernot be and any product

2 RELATED SESSIONS Date Time Location Type title 8:30-9:10AM Technologies Creating Operational Efficiencies 10:00-10:40AM Keynote Technologies Transforming Food Sourcing and Production 3:30-4:10PM Innovations in Sourcing: New Ways to Discover and Access Products 4:15-4:55PM Food Safety & Supply Chain Transparency: Blockchain, IOT, and Beyond Oct 30 8:30-9:10AM Presentation New Insights on Supply Chain Evolution From Consulting Firms and Industry Analysts Oct 30 9:15-9:55AM Using New Technologies to Streamline Operations Oct 30 10:00-10:40AM VC Perspectives on Technologies to Improve Speed and Visibility in the Supply Chain Oct 31 9:00-10:00AM Workshop Prioritizing Supply Chain Investments to Lower Costs and Shorten Lead Times Oct 31 10:10-11:10AM Workshop Managing and Reducing Waste in Grocery RELATED RESOURCES IN THIS PACKET To help you navigate the expo hall, check out the category map for some of the solutions and technologies that you will want to explore. FitForCommerce has also developed Best Practices Checklist and Key Questions to Ask Providers designed to help you prepare and make the most out of your time at Groceryshop. NEED HELP? STOP BY THE CONCIERGE BOOTH #501

3 Order Management System: Best Practices Look for Order Management Systems (OMS) that can help you address key improvement areas. OMS generally refers to the entire cycle, from taking the initial order, collecting payment for delivery of the product, order exceptions, customer management, inventory management, and reverse logistics. Solutions may address some or all of this process. Reduce costs by reducing errors; improve cash flow by speeding up the entire process; and increase customer satisfaction by improving communication. 2. Involve your entire organization when selecting and implementing. Any department can sabotage the effort if they re not on board. Get the team together early and align their objectives. 3. Identify and analyze the key bottlenecks in your order management process before implementation. Spend time focusing on these high-impact areas. A successful implementation encourages automation and successful process reengineering. Make your compromises in other areas, if you must, but get this right. 4. A single database is the key to an effective order management process. If you re going to the trouble of changing your systems and processes, ensure that this results in a single database structure. Minimize the amount of redundancy in data set-up. This can eliminate potential problems and improve efficiencies. 5. Continually look for ways to improve and optimize your use of your OMS. Following implementation, companies typically utilize only 25-35% of a system s functionality. Proper training is the key to improving your adoption rates. Review performance with the OMS team and the selected provider days after implementation to find other ways to improve performance. 6. Quantify benchmarks early in the process. If you can t measure it, you can t manage it. Develop key performance indicators (KPIs) and create a corporate dashboard for effective reporting of each function or department. Understand what kinds of analytics are offered to you out of the box versus ones you need to write yourselves. Keeping visibility on these metrics will ensure they get attention. 7. Manage the labor force. Labor is probably the largest controllable expense item on your income statement. Successful implementation of an OMS should free up labor for other uses. If it doesn t do that, the ROI will likely not be achieved. 8. Minimize the number of times orders are touched by your team. The fewer touches of the order and the product itself (no matter how inconsequential the touch), the less the total cost of order processing and fulfillment. A good OMS manages exceptions and pushes those exceptions to the right person for proper handling. Errors and delays happen where there are too many touches. Minimize them. 9. Think hard before you customize software and make sure it s worth the effort. Customization, while an attractive option, introduces new costs and uncertainties to a project. While changing a department s ways is also risky, that can often be more easily and visibly managed than customization. Think about how to change your processes before you look to customizations. 10. Customer management is as much a part of order management as any back-office logistics component. Customer follow-ups, including order changes, tracking inquiries, cancellations and returns are costly, and even more so if the CSR is looking into multiple systems with inconsistent dat

4 Order Management System: Key Questions to Ask Providers Company Features How long have you been in this business? 2. How many clients have you sold? How many have you lost, and why? 3. What clients fall into your sweet spot? 4. What peripheral or support services do you offer (e.g., ecommerce, custom development, logistics)? What key features are included in your solution? What features are currently missing, on your roadmap, does management love? Shoppers? b. Can your solution support clienteling? 2. What is your product s competitive advantage over other packages? Why? 5. What do you offer out of the box? Order entry? Customer management? Inventory? A particular vertical? 3. How comprehensive and flexible is your management dashboard? Products / Services Is your solution offered as perpetual licensed software or on-demand multi-tenant solution? If perpetual license: What are the hosting requirements? b. What should I expect regarding upgrades (timing, pain and support)? c. Do you provide customization/implementation services? d. What are your after-launch support services? e. 4. Is your OMS independent of my selected ecommerce platform? 5. Do you require use of your selected payment processing system or can I choose (or continue to use) the methods I prefer? How much more difficult would it be to use my choice? 6. Does your platform include robust integrated systems, such as logistics, returns management, accounting, marketing, merchandising, analytics, call center and customer management? Can a third party provide customization/implementation? Do all tiers include maintenance and support? b. How often are new features introduced? What can I do if I need a feature you don t have? c. i. If I use third-party systems, does the performance degrade? ii. Which applications do you already have standard or custom integrations built? What level of online security do you provide? 2. Does your product work with a single database for all the company s back-office functions or will I need to synchronize with several others? 7. Do you have a management console? 3. How long will a simple installation take? A sophisticated one? What can I manage with it? b. Does it include reporting and a dashboard? 4. Do you offer a free trial? What s it missing? i. Please describe your reporting capabilities (batch vs. real-time, ad hoc, etc.). 5. What technical support services are available? Can I integrate your OMS with other, more robust versions of these systems? b. How does your platform integrate with other systems - ecommerce, CMS, analytics and back-office (logistics, returns management, call center and customer management)? If SAAS/ASP: Can I pull in statistics that come from other, contiguous systems? ii. Is your support team located in the US or abroad? Please provide a list of standard reports. b. What is your SLA for support issues? 6. Do you have a support knowledge base, community forum, or applications that are shared by customers? 7. How can I export data if I change platforms? 8. Do I own and control my data? Pricing Do you price by the user, concurrent user, server, site, or other? 2. Why do I want to pay to upgrade to the next level? 3. How do you charge for annual support? What about maintenance? 9. How do I import data to get started? 10. Do you provide operational audits? 4. Are there any hidden fees (e.g., implementation, transaction costs, revenue sharing)?

5 Supply (Cold) Chain / Fulfilling the Last Mile: Best Practices The Cold Chain Dilemma continues to inhibit online grocery adoption, as the issue revolves around consumer s lack of trust that perishables are not consistently transported and stored in proper temperatures from farm-to-table, therefore, affecting food quality and safety. Below are some best practices you should absolutely consider when addressing the cold chain dilemma and fulfilling the Last Mile. Build a safer, smarter and connected Cold Chain Solution to ensure food integrity and freshness from Farm-to-Table. Leverage available technology to document and store data, digitally monitor and provide on-demand real-time product visibility and movement traceability. 2. Improve Food Transparency & Traceability. For grocers and consumers, it s important to know where the food comes from and to have enough information about what s in the food and its origins. Track product movement through every stage of the supply chain, never losing visibility. 3. Proactively Prevent Waste with 24/7 Monitoring and Real-time Notifications. Leverage monitoring tools that can alert you when product starts to go out of temperature range so you can immediately intervene at any stage of the supply chain. 4. Optimize Routes to Reduce Delivery Time. Delivery is expensive gas, vehicle maintenance, and employee salaries all contribute to delivery overhead. To help keep costs inline, leverage analytics and statistics to optimize routes and reduce delivery time. 5. Develop Standard Operating Procedures (SOP). Temperaturecontrolled shipping necessitates strict standard operating procedures (SOPs). Establish clear processes to further mitigate risks and close any gaps. 6. Achieve End-to-End Collaboration from Key Stakeholders. All key stakeholders should be involved up front to define roles, expectations, and requirements to reduce risk. Collaboration with all key stakeholders is critical for long-term temperature controlled success in the cold chain. Establishing processes and setting expectations is a necessary component, along with sharing of dat Fulfilling the Last Mile Integrate a Perpetual Inventory Solution within your Ecommerce Platform. Enhance the online shopping experience by displaying actual product inventory status in real-time by fulfillment locations. This will minimize product substitutions needed and improve order fulfillment efficiency. 2. Explore Options to Fulfill the Last Mile. Grocers can leverage their physical store locations to fulfill customer orders, and fulfill the last mile with delivery and click-and-collect services. These services are available from 3rd party providers, which allow grocers to quickly test the waters, with minimum upfront investment. 3. Provide Online Order Visibility and Traceability. Online shoppers want full visibility into where their order is at any given point in time, and reassurance that their order is being transported to them safe and sound. They also like to track delivery: when it was packed, when it was shipped and the expected time of delivery. 4. Coverage and Capability Required to Shorten Delivery Times. Shoppers generally want their merchandise as soon as possible. To accomplish a speedy delivery, your provider must have delivery resources strategically placed distribution centers and delivery teams close to where consumers live. 5. Expertise in Home Delivery. Choose a provider with committed individuals that demonstrate high standards for interpersonal communications and etiquette. The right people drive a consistent, quality experience that creates repeat customers.

6 Supply (Cold) Chain / Fulfilling the Last Mile: Key Questions to Ask Providers Company 9. What does your onboarding process look like? How long have you been in this business? 2. Who is on your leadership team, and what are their experiences? Ensure your provider has a plan in place so that you are not left on your own to deal with the transition and adjustment period. A good managed provider will be there to support you and your employees throughout. 3. How many clients have you sold to? What is your churn rate, and why? 10. Who are your current partners? Who have you worked with in the past? 4. What size or types of clients fall into your sweet spot? 1 What client references can you offer? Who are running the same kind of applications I'll be using? 5. What peripheral or support services do you offer (e.g., technology, process analysis and reengineering, 24/7 customer services)? 6. Who are your current partners and why? Who have you worked with in the past? 7. Who are the team members I'll be working with and what is their experience? Features What key features are included in your solution? 2. What features are currently missing? 3. What new features have been added recently? 4. What does the product roadmap look like? Products / Services Do you staff your own in-house help desk onsite or outsource to a third party? If outsource, where is the help desk located? b. The best service providers staff their help desks onsite. 2. What are the terms of your service-level agreement (SLA)? It's important to have a strong SLA with reasonable terms. 3. What is your model for High Availability? You can't afford downtime due to an IT issue. How they'll ensure uninterrupted continuity of operations should a failure occur. 4. Do you provide around-the-clock automatic and remote monitoring? What type of automated remote monitoring and management (RMM) solution do you use? 5. Do you provide Cloud services? Is your cloud services proprietary or are they outsourced to a third party? There are security concerns with any provider that outsources cloud services to a third-party vendor. 6. If you provide fulfillment services, where are your distribution centers? Choose a vendor who is passionate about building rich new features into their technology. 5. What is your product s competitive advantage over other packages? Why? Price? Dashboard? Ease of use? Flexibility? 6. What does your dashboard include? How customizable is it? 7. Will your solution scale with my business? You don t want to find yourself shopping for a new solution 8. How does your platform integrate with other Systems, including back-office systems, other online shopping channels and/or point solutions? Pricing How do you price your services? Do you charge for number of users, assets, etc.? 2. How do you charge for annual support? What about maintenance? 3. Are there any additional fees (e.g., implementation, training)? 7. If you provide fulfillment services, are there any types of products that you can t fulfill? 8. How long will it take to deploy?

7 Groceryshop 2018 Supply Chain. PRODUCT SHOWCASE Shoeshine Lounge Rebook/ Hosted Q&A Podcast Lounge S S S S S S16 TRACK 3 S15 TRACK S S S S S S9 613 S8 611 S7 609 S6 S5 S4 S3 605 S2 S ATTENDEE LOUNGE ENTRANCE Concierge