Hot products-seminar-presentation-as-watson1

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  • 1. Wybren Vlaskamp & Hans-JürgenVision Background, Plans and Koot
  • 2. Reducing Shrink on Hot Products A Shared Responsibility ECR Workshop Brussels, 18th May 2010
  • 3. Table of Contents • Shrink Approach Step by Step • Data Analysis • Hot Products • Supplier Involvement • Win Win • Results 3
  • 4. AS Watson Shrink Reduction Starting point >> ECR Roadmap * All activities cataloged Map * Process planned * One single definition for shrink Measure Analyze * Stores and products identified and prioritized Develop * Short – Mid and Long term Solutions identified Solutions * Exchange of beste practices * Solutions implemented by interdisciplinary teams Implement * All costs and benefits tracked * Results evaluated for succes Evaluation 4
  • 5. Step 1 Management Commitment Step 5 Step 2 Toolkit Supply Chain per Analysis Formula Shrink Reduction Process Step 4 Step 3 Shrink Data Staff Analysis 5
  • 6. Step 2 SUPPLY CHAIN ANALYSIS To reduce shrinkage you need to know what to do and where. Analysis of the Supply Chain is key in this to identify all Shrink Risks from Manufacturer to Customer. To find these RISKS all processes were analysed: - Transport - Logistics - Store Operations - Finance Next we decided what to improve on the short-, mid- and long term with regard to: Staff - Stores - Logistics - Products - Information 6
  • 7. Information Staff Shrink Reduction Process Product Stores Logistics 7
  • 8. Step 3 ANALYSIS of SHRINK DATA This was key in taking the right decisions, prioritising activities and have quick wins which show the effectiveness of all of this. - defining the “Hot Stores” - defining and protecting “Hot Products” - reducing stock - discussions with suppliers - making the right decisions - investing in equipment 8
  • 9. HOT STORES Defining the “HOT STORES” - Loss making - High Shrink - High Stock - Red - Amber - Green criteria - Assortment - Displays / Promotions 9
  • 10. HOT PRODUCTS Defining the “HOT PRODUCTS” - By reason, store, supplier - By category, reporting- and familygroup and by product - High Shrink (not only % but also value) - Reduction per facing / reference - Assortment in Red stores - No Displays with Hot Products in Red stores - Orderpicking in secured area DC - Protected in secured totes - Received and counted in stores - Stored in secured area 10
  • 11. SUPPLIER INVOLVEMENT Discussions with our “hot” suppliers: - Cosmetics - Skin Care - Health Care • Source tagging • Blister pack • Wrap and tag • Reducing stock in presentations • Displays / Promotions • Funding tools • Shrinkage fee 11
  • 12. JOINT RESPONSIBILITY • Patently shrink reduction is only possible by a collective approach (manufacturer/supplier - retailer) and handled as a joint problem. • Patently shrink reduction is only possible by taking more initiatives at the same time (tagging, packaging, training staff, installing CCTV, incentives shop managers, stock reduction (shelves / stockroom), clear shoppolicy, follow up shoplifting, etc.) 12
  • 13. JOINT RESPONSIBILITY • “Map & Measure” to measure results (improvements, succes) • “Map & Measure”. As discussed earlier it is important to know what your “hot products” are. Not always because of price but because of marketability (theft sensability) Detailed analysis is key to avoid focussing on the wrong products. 13
  • 14. L’OREAL / MAYBELLINE Together with L’Oreal we discussed reduction of shrink in our Cosmetics and Skin Care products: - L’Oreal - Maybelline - Garnier - Dermo Expertise • Protection of Mascara’s in blisterpack • Protection of Cosmetics > €. 9,95 • Wrap and tag • Sourcetagging • Limited stock in presentations • Displays / Promotions • Funding tools • Shrinkage fee 14
  • 15. Win Win 15
  • 16. Win Win 16
  • 17. RESULTS Shrink reduction > 45% Cosmetics > 45% Mascara’s > 75% Sales uplift > 25% 17
  • 18. Questions ? 18