Clicks and JustEnough Seminar

Realises Healthy Performance
Results with JustEnough
Speakers
Simon Wills
Roger Koch
Greg Manson
SUPPLY CHAIN BUSINESS
PROCESS MANAGER,
CLICKS GROUP
SUPPLY CHAIN AND
REPLENISHMENT PLANNING
EXECUTIVE, CLICKS GROUP
SALES DIRECTOR, AFRICA
AND ASIA PACIFIC,
JUSTENOUGH
Simon has been a member of the
Clicks team since 1999 when he
joined the store manager training.
He has been an area manager,
worked in a McKinsey Lean retailing
programme, lead a team that built
the Clicks Service Excellence
programme, worked with
Merchandising on a number of
projects and most recently has
been involved in two
replenishment system
implementations managing the
change and business process
improvements.
Roger has been a member of the
Clicks Group team since 2011
advancing from IT Demand
Manager to his current position in
which he is responsible for supplier
performance, forecasting,
replenishment and distribution to
stores. His primary objective is to
control costs and working capital
while ensuring product availability
in stores.
He brings over 15 years of supply
chain experience to Clicks Group.
Prior to Clicks Group, Roger held a
number of positions including head
of professional services Europe for
Barloworld Supply Chain Software.
In his role as Sales Director for
Africa and Asia Pacific, Greg is
responsible for driving new
business in these regions, as well as
the account management of
current customers. Greg is based in
the JustEnough office in
Johannesburg, South Africa and has
been with JustEnough for 9 years.
Prior to joining JustEnough, Greg
worked for software and IT-related
companies for 16 years and brings a
thorough understanding of the
demand planning challenges
retailers and distributors face and
the strategies they can leverage to
drive business results.
•
•
•
•
South Africa’s leading pharmacy, health and beauty retailer
Over 460 stores and 330 in-store dispensaries
ClubCard loyalty program has over 4.7 million active members
Offers customers exceptional value for money in convenient and
appealing formats
• Our vision is to be the first choice for pharmacy, health and beauty
retail
Where We Began
• Utilising two different replenishment systems
• Promotional forecasting and replenishment completely manual
• The systems were not integrated
One within the warehouse
management system to
replenish stock from
vendors to DCs
X
One within the
merchandising system to
replenish stock from the
DCs to the stores
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The Challenges We Faced
• Lacked an end-to-end forecasting and replenishment system
• Both systems were backward looking and not demand driven
• A lot of manual user intervention taking place to try to overcome
shortcomings in the systems
• Effectively maintaining service and stock levels was difficult
• Highly promotional-driven business model made it difficult to
ensure availability during demand increases caused by
promotions
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What We Did Next
• Decided to revamp our business processes and systems
• Evaluated vendors in the marketplace
 Large vendors for the most part were expensive and difficult to
implement and use
 Selected JustEnough based on best functional fit, ease of use and
value
• Licensed JustEnough Demand Forecasting and Replenishment
solutions
 Modules within the JustEnough end-to-end retail planning suite
 Potential to quickly add additional functionality at any time
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Implementation Approach
• Three-phased, well-planned approach:
1
Proof-of-concept –
focused on volume
testing for StoreSKU combinations
2
JustEnough
implemented for
replenishment
from vendors to
DCs
3
JustEnough
implemented for
integrated
replenishment
including DCs to
stores
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Implementation Success
Estimated two years to complete
• Delivered within three
months of the original
deadline
Delivered on Budget
• We budgeted for software
and implementation
• And for an internal team to
manage the significant
organisational change
What led to this success
• We didn’t rush the project
• Used a phased approach
• Covered all the right areas –
systems construction, project
management and change
management – with the right
people and expertise
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Project Results
Modern, automated, accurate,
demand-driven planning system
Improved forecast accuracy
•
Much improved store availability
reducing store out-of-stocks by 40%
Forecasting predicts seasonal
variations, erratic products and
promotional list
Days stock down by 4 to 5 days
Stockroom stock reduced from
23% to 18%
Enhanced user experience
and efficiency
Reduced lost sales, overstocks
and understocks
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Positive Impact on People and Process
• The system is easy to use and administer
• Planners are able to forecast sales and understand the impact
on stock
• Reduced administration and non-value adding activities
 Daily DC Orders take less than an hour (used to take 6 hours)
 Manual distributions down by 75%
• Allowed for a more effective structure to be adopted
 Policy, ordering, supply managed centrally
 Focus in the category on forecasting and planning
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Lessons Learned
Focus and budget for business
project and change management
Phased implementation
with long pilots
Active risk management
High level of management
and executive involvement
Redeveloped all training and
process material to be Clicks
specific
Dedicated delivery team
and venue (business and IT)
Center of expertise to manage
the complex replenishment levers
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Serving the
Planning Needs of
Today’s Retailers
Proudly Serving The World’s Leading Brands
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JustEnough Solution Breadth
Merchandise
Financial
Planning
Assortment
& Space
Planning
Clustering
& Profiling
Allocation
Demand
Forecasting
Inventory
Planning &
Replenishment
Promotion
Management
Social &
Mobile
Marketing
Price &
Markdown
Planning
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