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 • • • • • 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 • • • • • 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 • • • • • 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: • • • • • • • • • 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?