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

Transcription

How to Leverage Data to Improve Shelf In-stock Conditions for Consumers
How to Leverage Data to Improve Shelf
In-stock Conditions for Consumers
Who Hates Monday Mornings?
Reports don’t Match Shopper Experience
GMA-FMI Supply Chain Ideation May 2013
“Data/In-stock” Became a Key Theme
Tom Gagnon*
Delhaize Hannaford
Mike Burns*
MOM Brands
Cap Gemini - Accelerated
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
What? Improve On Shelf Availability for End Consumers/Shoppers
How? Better Leverage Data with a Proactive, Standard Process
Why? 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
• 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?
JBP
Collaboration
& Execution
POS Integrated
Forecasting &
Replenishment
Quality & Data
Accuracy
Store Order Forecast
POS Sharing
Store Replenishment/CAO
Standards, Metrics/Data & Process/Practice
Effectiveness Pyramid for OSA
FUTURE
BEST
BETTER
GOOD
Fundamental Elements
Metrics/Data
Process/
Practice
Organizational
Improvement
Approach to Improve On Shelf Availability
FUTURE
BEST
BETTER
GOOD
• Case Fill Rate
• Warehouse Service
• Zero on Hand
• On Time In Full
• Exception Based
• Lost Demand
• Proactive
• Predictive
• Visual
Merchandising:
Shelf Presentation
• POG Compliance
• Shopper Availability
at Moment of Truth
• Where in Store
• Transferable
Demand
• Saleable
Perpetual Inventory Integrity Required
Metrics/Data
to Deliver On-Shelf Availability
Poll Question 1
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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?
FUTURE
BEST
GOOD
• Store SOPs
• Phantom Inventory
• Store Inventory
BETTER
• POS integrated
• Compare CAO vs.
forecasting &
replenishment
Store Overrides vs.
Actual Orders
• Joint Use of Real
Time Data to drive
Action
• Test or Pilot
Handling Practices
emerging technology
• Proactive Alerts on
Shelf Conditions
• Leverage emerging
technology
- OMNI
- Sensor
- Consumer &
Shopper Insights
• Leverage Consumer
& Shopper Insights
• Exception Based
Action Orientation and Execute with Excellence
Process/Practice
to Deliver On-Shelf Availability
Poll Question 2
•
•
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•
•
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?
FUTURE
BEST
BETTER
GOOD
• Collaborate
Internally to break
down silos
• Internal Integrated
• Learn with Limited
Partners
• Joint Business
Planning
• Benchmarking
• Scalable Solutions
• Joint Strategic
Business Planning
• Rewards/Incentives
aligned
• Transparency
• Execute & Recover
on Joint Plans
• Shared
Responsibility &
Accountability
• 360 Benchmarking
Business Planning
Discipline to Build Trust (Break down Silos)
Organizational Improvement
to Deliver On-Shelf Availability
Poll Question 3
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•
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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?
R&D
Manufacturing
DC & Warehouse
Retailer
Raw Materials
Production & Safety
Stock $$
In Transit $$
DC Inventory $$
In Transit $$
POS-Integrated Forecasting
& Replenishment
Store/Shelf
Online/Home
Store Inventory
On Shelf Avail
Connect the supply chain to the store (POS and inventory) by integrating F&R
organizations and systems
Determine Inv Requirements
Buyer
Supplier
Forecast &
Replenishment
Procurement
Inbound
Retail Support
Outbound
Forecast
SRS/ &
Transportation
Centers
Transportation Replenishment
CIM Team
Supply Chain
One Supply Chain
one set of numbers
Store
Retail
Approach to Improve On
Shelf Availability
Effectiveness
Pyramid for OSA
JBP
FUTURE
Collaboration
& Execution
POS Integrated
Forecasting &
Replenishment
BEST
Quality & Data
Accuracy
BETTER
GOOD
Store Order Forecast
POS Sharing
Store Replenishment/CAO
Standards, Metrics/Data &
Process/Practice
Summary Statement…..
Metrics/Data
Process/Practice
Organizational Improvement
CALL TO ACTION:
TEAM NEXT STEPS:
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•
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
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
Poll Results
Questions?