Date post: | 06-Jul-2015 |
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VM I a s t e c h n o lo g y
t o im p r o v e O S A
a n d t o c o n t r ib u t e
g r o w t hBy Olga Khruscheva, SC Business Planning & Customer Integration Director,APICS CSCP
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C o n t e n t
Do you feel the difference?
How we do it…
What’s available to influence?
How it might look like?
OSA as a subject for consideration
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Wh a t is a v a ila b le o n?s h e lf
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C o n s u m e r b e h a v io r if w a n t e d p r o d u c t is n o t
o n s h e lf
36% B u y s o t h e r
b r a n d
19% B u y s in
o t h e rs t o r e20%
B u y s a n o t h e r
f la v o r
17% B u y s
p r o d u c tla t e r
8%’ D o e s n t
b u y a t a l l
+ = Retailer sales loss
+ = Supplier sales loss
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D a n o n e B e lg iu m O S A R e s u lt s
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Ar e o u r p r o d u c t s a lw a y s a v a ila b le t o o u r
?s h o p p e r s
Manufacturer Retailer
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Ve n d o r M a n a g e d In v e n t o r y is v e r y u s e f u l t o im p r o v e
, Av a ila b il i t y lo w e r s t o c k s u p s t r e a m o f t h e f a c t o r ie s
VM I
FMCGPlant
Raw material warehouse
Raw materials
supplies
Supplier’s plant
K e y p r in c ip le s o f VM I
• Supplier’s stock is managed by producer• Open data • Orders made by Supplier
B e n e f it s
• Stock reduction in total SC • Reducing Bullwhip effect• Better service levels
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Wh y n o t a p p ly VM I o n U p s t r e a m p a r t w it h
?s a m e b e n e f it s a s u p s t r e a m
FMCGPlant
WAREHOUSE OF SUPPLIER
STORE
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Im p r o v e m e n t o n t h e t r a d it io n a l P r e s e l le r
m o d e l
Order taking
Stock \ FIFO control
Price
Fridge \ POSM
Promo
Promo materials
?F o c u s
Sales Rep.(50 stores)
F o c u s
Stock takingShelf \ FIFO control
OSA, PPED
Merchandiser(1-3 stores)
F o c u s
PriceFridge \ POSM
Promo Promo materials
4P
KA Executive(20 stores)
F o c u s
Stock controlOrder TakingAssortment
Promo managementOOS
VOLUME CONTROL
OSA, PPED
Order Creator(40 stores)
CONTROL AND FOLLOW UP
CONTROL AND FOLLOW UP
CONTROL AND FOLLOW UP
CONTROL AND FOLLOW UP
SALES SC
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• Development, testing IT ordering tool• Creating Central ordering team • Creating Key Account executive team• Merchandizers team• Start stock counting• After 6 weeks of history – start ordering
M a in c h a n g e s inp r o c e s s
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B illa is c o m p a n y f o rc u s t o m e r s
, O n e o f t h e le a d e r s in E u r o p e R e t a il m a r k e t 1 9 2 4 6 9 f o u n d e r in a n d b e in g p r e s e n t e d b y
3 s u p e rm a r k e t s a n d h y p e rm a r k e t s in R u s s ia
2 0 0 4 s in c e y e a r . M is s io n s t a t e m e n t
•It is all about our customers•Innovations and changes develop our business•Best partner for our suppliers
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• Count sales average [(1+2+1+3)/4=1.75~2)]• Reduce by available stock [2-22=-20<0]• Promo start so
O r d e r c a n b e c r e a t e d lik e
How reliable sales data?
How accurate stock?
If full information used for promo calculation?
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• Stock & Sales integration
• Sales Estimation based on Trends & Future Events (National/Regional)
• Order Validation/Modification based on Store Specificities
D is t r ib u t io n D is t r ib u t io nC e n t r eC e n t r e
Lin e a c o mP r in c ip le s
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O r d e r c r e a t io np r o c e s s
Count stock and lossSend stock and loss
information to OC
Enter order to the customer’s system
Enter stock and loss to the systemCheck stock count accuracy Create order based on history and promo
Order-fax
- Merchandizer
- Order creator (OC)
Order
- SAP
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B a s ic F o r e c a s t in gp r in c ip le s
Based on the cleaned sales history an estimation for the next sales period is made.This estimated sales is influenced by:
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B a s ic O r d e rp r in c ip le s
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B a s ic O r d e rp r in c ip le s
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F o r e c a s t in g
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B a s ic O r d e rp r in c ip le s
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245
-165
-480590
-225
-600725
400
Begi
n St
ock
P1
Del
iver
y P1
Sale
s Fo
reca
stP1
Shor
t She
lflife
Cor
rect
ion
P1
Prop
osed
Del
iver
y P2
Sale
s Fo
reca
stP1
Shor
t She
lflife
Cor
rect
ion
P2
End
Stck
P2
S h o r t S h e lf l if e S t o c k C o r r e c t io n
Sales Order = (Sales Forecast)*(Safety stock Policy) – (Begin Stock + Delivery P1 – Short Shelflife Correction)
Quantity of Products already in Store Stock where Shelflife is too
low to sell in Period
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B a s ic O r d e rp r in c ip le s
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S a f e t y S t o c k
• Defined by Product / Store Combination• Dynamic & Automatic based on Sales Forecast (% of
Period(s) to Cover)• Alignement with Business Strategy• Alignement with Customer Expectations
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• FOCUS on Dairy, No High Performaning Tool available on market.
• IMMEDIATE & FULL listing of INNOVATIONS• TRUST in Quality by working with dedicated and
experienced PEOPLE • HIGHLY REACTIVE in a Fast Moving
Environment
?Wh y VM I b y D a n o n e
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: B illa s o m e t h in g t oc o m p a r e
2. OSA in Billa stores with Central
OrderingOSA 93,0%
OOS 7,0%
1. OSA in Billa stores w/o Central
OrderingOSA 83,3%
OOS 16,7%
OSA83,3%
OSA93,0%
OOS16,7%
OOS7%
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: B illa s o m e t h in g t oc o m p a r e
Vertical Growth in Billa, 2009 vs 2010
1 6 ,7%
8 ,7 %
N o c e n t r a l
o r d e r in g
C e n t r a lo r d e r in g
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O S A is w e ll c o n t r ib u t e d f o r
g r o w t h
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!Th a n k y o u, M o s c o w
2 0 1 0