Driving Mutual Profitable Growth through Partnership
                           Colgate-Palmolive Company




         "I ...
Participants Details
    Mr Tim Edwards
    Ordering Director
    Tesco Stores (Malaysia) Sdn Bhd

    Mr Nakulan T
    Cu...
Colgate Palmolive Brief Introduction


 Colgate is a $15.3 billion consumer
 products company

 Truly global in scope, Col...
Contents
•   Why we needed to do this




                Driving Mutual Profitable Growth through Partnership
           ...
Importance of ON SHELF AVAILABILITY




                      Driving Mutual Profitable Growth through Partnership
       ...
Supply Chain Collaboration for OSA
                   Tesco Supply Chain
                                                 ...
Contents


•     What we set out to do




                    Driving Mutual Profitable Growth through Partnership
      ...
Contents




•   How we did it




                    Driving Mutual Profitable Growth through Partnership
              ...
1. Understand the Processes
                Step 1- CP                                Step 2 - Tesco
               Physic...
3. Select Trial Stores
 Pilot/Selected stores :

    Stores was selected based on different format,
    performance and pr...
5. Run The Trial
       Project Time Frame

          6 Months

       Tracking Schedule

          Daily Tracking includi...
There are lots of reason for Out Of Stocks
    Store Replenishment Team – Does not place an order. Why? Book
    stock acc...
Systematical approach in WHY diagnosis



                                                  1




                       2...
Root Cause Analysis- Results
                                           Root Causes Contribution to Non-OSA
              ...
3 Major KPI‘s
                                 KPI‘
           KPI's Pre-OSA                                      KPI's Po...
Contents




 •    The conclusions we reached




                   Driving Mutual Profitable Growth through Partnership
...
OSA tracking project alone will not improve OSA

              OSA                   Dropped
                             ...
Key Success Factors
Senior management involvement – Joint Business Planning

Dedicated resource availability

Cross Functi...
THANK YOU




Driving Mutual Profitable Growth through Partnership
                 Colgate-Palmolive Company
Upcoming SlideShare
Loading in...5
×

Ecr malaysia i get what i want

771

Published on

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
771
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
17
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Ecr malaysia i get what i want

  1. 1. Driving Mutual Profitable Growth through Partnership Colgate-Palmolive Company "I Get What I Want" – Collaboration Towards Efficient On-Shelf On- Availability To Drive Shopper Loyalty Driving Mutual Profitable Growth through Partnership Colgate-Palmolive Company
  2. 2. Participants Details Mr Tim Edwards Ordering Director Tesco Stores (Malaysia) Sdn Bhd Mr Nakulan T Customer Service & Logistics Director Colgate-Palmolive Marketing Sdn Bhd Mr Ivan Chong Customer Development Manager Colgate-Palmolive Marketing Sdn Bhd Ms Tan Seow Wei Customer Service Manager Colgate-Palmolive Marketing Sdn Bhd Driving Mutual Profitable Growth through Partnership Colgate-Palmolive Company Contents • Why we needed to do this • What we set out to do • How we did it • Our results so far • The conclusions we reached • What next Driving Mutual Profitable Growth through Partnership Colgate-Palmolive Company
  3. 3. Colgate Palmolive Brief Introduction Colgate is a $15.3 billion consumer products company Truly global in scope, Colgate sells its products in over 200 countries and territories. 75% of sales come Approximately from international operations. Colgate enhances consumers’ lives through it’s quality products in Oral Care, Personal Care, Home Care and Pet Nutrition. Driving Mutual Profitable Growth through Partnership Colgate-Palmolive Company Tesco Brief Introduction Staff 472,000 Stores 4,811 Markets 14 Profit £3,176m Sales ex.UK £19.4bn Driving Mutual Profitable Growth through Partnership Colgate-Palmolive Company
  4. 4. Contents • Why we needed to do this Driving Mutual Profitable Growth through Partnership Colgate-Palmolive Company Shopper Smart : “50% of the shopper’s final choise is made in front of SHELF!!!” Driving Mutual Profitable Growth through Partnership Colgate-Palmolive Company
  5. 5. Importance of ON SHELF AVAILABILITY Driving Mutual Profitable Growth through Partnership Colgate-Palmolive Company Opportunities Along The Value Chain… Chain… Optimize Supply Improve service level – Target 95% (Shipment CP Warehouse – Tesco DC) Improve On-Shelf Availability – Prevent Loss Sales Opportunity (Tesco Backroom – Selling Floor 50m distance) 50m OOS? Identify root causes and jointly formulate improvement plans. Driving Mutual Profitable Growth through Partnership Colgate-Palmolive Company
  6. 6. Supply Chain Collaboration for OSA Tesco Supply Chain Tesco Store Personnel Colgate Customer Service OSA Resource/ Customer Development Cross Functional Team ie CDT Supply Chain, Customer Development Manager & The Field Sales Team working together driving the on-going supply chain collaboration initiatives in building engagement. Driving Mutual Profitable Growth through Partnership Colgate-Palmolive Company Colgate Supply Chain Engagement Schematic… Schematic… Driving Mutual Profitable Growth through Partnership Colgate-Palmolive Company
  7. 7. Contents • What we set out to do Driving Mutual Profitable Growth through Partnership Colgate-Palmolive Company Objective : Strategic Alignment Mutual goals of Tesco & Colgate in driving shopper loyalty to Colgate brands in Tesco stores Focus on end to end supply chain to improve in-stock position with optimum inventory coverage Driving Mutual Profitable Growth through Partnership Colgate-Palmolive Company
  8. 8. Contents • How we did it Driving Mutual Profitable Growth through Partnership Colgate-Palmolive Company How we did it Understand the processes involved Define what is an out of stock Select trial stores Resource the project Run the trial Collect the data and root cause analysis Driving Mutual Profitable Growth through Partnership Colgate-Palmolive Company
  9. 9. 1. Understand the Processes Step 1- CP Step 2 - Tesco Physical On Store Data Shelf (SOH, Order) Tracking in the Store Step 4 - Step 3 - OSA Root Cause Trending Analysis Step 5 - Forward Actions Step 6 - Renewal Driving Mutual Profitable Growth through Partnership Colgate-Palmolive Company 2. Define What Is An Out Of Stock OSA Definition : "At least one unit of undamaged stock has to be visibly accessible on shelf by consumers and acceptable for purchase. Otherwise it is counted as an OOS." Driving Mutual Profitable Growth through Partnership Colgate-Palmolive Company
  10. 10. 3. Select Trial Stores Pilot/Selected stores : Stores was selected based on different format, performance and proximity to facilitate effective coverage Pilot stores : • Tesco Mutiara • Tesco Puchong • Tesco Hyper Shah Alam • Tesco Extra Shah Alam Product List : Tracked both Home shelf Active and 2nd Site Promo SKU’s Driving Mutual Profitable Growth through Partnership Colgate-Palmolive Company 4. Resource The Project People resource Dedicated OSA project resource Actions at store : Check and record stock on-shelf, shelf tag info Cross checking Store Inventory movement report Discussion with Store Replenishment Personnel Taking photograph for reporting Back in Colgate office : Data entry and Root Cause Analysis for Reporting Driving Mutual Profitable Growth through Partnership Colgate-Palmolive Company
  11. 11. 5. Run The Trial Project Time Frame 6 Months Tracking Schedule Daily Tracking including weekends Root cause Analysis and Reporting Weekly results sharing Monthly summary Review at Monthly SCE meeting Driving Mutual Profitable Growth through Partnership Colgate-Palmolive Company Contents • Our Results So Far Driving Mutual Profitable Growth through Partnership Colgate-Palmolive Company
  12. 12. There are lots of reason for Out Of Stocks Store Replenishment Team – Does not place an order. Why? Book stock accuracy? Backroom congested – Stock On Hand positive, cannot locate stocks Stocks are not reachable – stack to high, too deep inside, in the yard Stock take, store personnel not allowed merchandiser to take stock Many more……still yet to identify Different stores have different issues We need to be flexible and customize our solutions and tactic Driving Mutual Profitable Growth through Partnership Colgate-Palmolive Company Some Root Causes We Found Root Cause Description Shelf Replenishment Positive SOH. Can’t locate stock in back room. Stocks is available again 1 or 2 days later and the Discipline shelf is filled again. Master Data (SPI, Discrepancy or dispute in pricing causing no shipment pricing) Book Stock Accuracy Shelf normally empty for a prolonged period before inventory is zerorised and replenishment order placed Supplier OOS Supplier OOS because of manufacturing capability or demand error. Shelf Constantly OOS as not sufficient shelf space to cater for product off take. Shelf filled in the morning but space/Replenishment empty in the evening frequency Stock in transit Shelf is empty before replenishment could arrive Driving Mutual Profitable Growth through Partnership Colgate-Palmolive Company
  13. 13. Systematical approach in WHY diagnosis 1 2 Supplier OOS. System Inventory Accuracy Low Lines Driving Mutual Profitable Growth through Partnership Colgate-Palmolive Company 1. CDC RED 175G FCM. Long period of OOS. Order was placed on 25th Jan 2010. 2, Colgate Triple Action. SOH=0. Delivery on 7th 8th 9th and 12th was not fulfilled. Driving Mutual Profitable Growth through Partnership Colgate-Palmolive Company
  14. 14. Root Cause Analysis- Results Root Causes Contribution to Non-OSA 60% 50% 40% 30% 20% 10% 0% Supplier OOS Master Data Stock in Transit System Inventory Shelf Replenishment Space/Replenishment Accuracy Discipline Frequency Shelf Store A Store B Store C Store D Reasons Code Average Different stores have different issues We need to be flexible and customize our solutions and tactic Driving Mutual Profitable Growth through Partnership Colgate-Palmolive Company OSA Results by Category Oral Care Personal Care 100% 100% 95% 95% OOS % OOS % 90% 90% 85% 85% 80% 80% Oct'09 Nov'09 Dec'09 Jan'10 Feb'10 Mac'10 Apr'10 Oct'09 Nov'09 Dec'09 Jan'10 Feb'10 Mac'10 Apr'10 Month Month Fabric Care Home Care 100% 100% 95% 95% OSA % OSA % 90% 90% 85% 85% 80% 80% Oct'09 Nov'09 Dec'09 Jan'10 Feb'10 Mac'10 Apr'10 Oct'09 Nov'09 Dec'09 Jan'10 Feb'10 Mac'10 Apr'10 Month Month Driving Mutual Profitable Growth through Partnership Colgate-Palmolive Company
  15. 15. 3 Major KPI‘s KPI‘ KPI's Pre-OSA KPI's Post-OSA Case Fill % Case Fill % OSA % 100 OSA % 100 96 94 90 90 86 90 80 80 70 70 Tesco inventory optimization has taken place and seen vast improvement from 21days to 14 days. Driving Mutual Profitable Growth through Partnership Colgate-Palmolive Company Steps Taken Planogram change for Fabric Care Delivery from 3x to 4x per week Tesco Reviewing push factor for Promo Planning Tesco SC sharing findings with Store operation Sharing of insights from Dunhumby to improve promo forecasting Convert Fast Moving SKU’s from cross-docking to DC Driving Mutual Profitable Growth through Partnership Colgate-Palmolive Company
  16. 16. Contents • The conclusions we reached Driving Mutual Profitable Growth through Partnership Colgate-Palmolive Company Effective OSA Management Involves many processes : 1. Understanding On Shelf Availability 2. Replenishment and Last 50m Ordering Processes Backroom to Shelf 3. Inventory Management Processes = replenishment efficiency 4. Merchandising Standards and Processes 5. Back of Store Processes Driving Mutual Profitable Growth through Partnership Colgate-Palmolive Company
  17. 17. OSA tracking project alone will not improve OSA OSA Dropped Orders Root Master Tracking Cause Data Analysis Alignment On Shelf Monthly SCE Meeting Availability Efficient Store Replenishment Merchandisers Joint Promo feedback on Planning High Service Level store execution gap Driving Mutual Profitable Growth through Partnership Colgate-Palmolive Company Contents • What Next Driving Mutual Profitable Growth through Partnership Colgate-Palmolive Company
  18. 18. Key Success Factors Senior management involvement – Joint Business Planning Dedicated resource availability Cross Functional Team involvement Insights – Root Cause was supported by multi source information to provide confidence in action Good working relationship with store, timely in addressing non-OSA vs other priorities Managing conflicting KPI Store Book Stock accuracy vs Daily Write-off value Regular performance review Transparent, Honest and Non-defensive Driving Mutual Profitable Growth through Partnership Colgate-Palmolive Company What Next Continue regular OSA Review meeting Fortnightly Involvement from SC, Merchandizing & Store Manager level Encourage greater participation on OSA Issues & Corrective actions with Store involvement CP Implant in Tesco Joint Promo Planning Driving Mutual Profitable Growth through Partnership Colgate-Palmolive Company
  19. 19. THANK YOU Driving Mutual Profitable Growth through Partnership Colgate-Palmolive Company

×