Shefl availability project ecr russia may 2010 eng


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Shefl availability project ecr russia may 2010 eng

  1. 1. Improving Shelf Availability:Win/Win opportunity betweenSuppliers and Retailers<br />
  2. 2. 2<br />Shelf availability project in P&G. <br />Project Kick-off – Aug’07<br />Data validation and methodology clarification – Oct’07-Mar’08<br />Training and deployment to organization – Apr’08<br />In store root causing – as of Jun’08<br />Collaboration with retailers – as of Jul’09<br />Shelf Out of Stock project included in Joint Business Plan with several retailers – Jan’09<br />Target < 5%<br />
  3. 3. 3<br />5-steps joint process for Shelf Out of stock elimination<br />1. Supplier: Measures <br />availability<br />4. Joint efforts: Execute action plan<br />3. Joint efforts: Develop join plan to eliminate losses<br />2. Retailer: Provides help needed for root cause<br />2. Supplier: Does root cause for losses<br />4.aSupplier: Improve service to customer DC<br />4.b. Retailer: Improve in store operations, store replenishment<br />5. Supplier: Analysis of the progress/plan effectiveness<br />
  4. 4. 4<br />Shelf out of stock – root cause<br />Supplier’s opportunity<br /><ul><li> Fill rate (Service level)
  5. 5. On time delivery to customer’s Distribution Center</li></ul>Customer’s opportunity<br /><ul><li> Store replenishment/forecasting
  6. 6. Customer’s DC service
  7. 7. Inventory records accuracy in store
  8. 8. Backroom arrangement
  9. 9. Shelf replenishment</li></ul>Joint opportunity<br /><ul><li> Misalignment on assortment</li></li></ul><li>5<br />How to accelerate the progress - focus on categories with highest opportunity:<br />Highest Shopper Loyalty to the Brand/Size<br />Biggest Potential for Availability Improvement<br />
  10. 10. 6<br />BABY DIAPERS:Category with Highest Loyalty in P&G portfolio<br />Baby Diapers OOS Implications:<br />Loss for retailer= 60%(36%+5%+19%)<br />Loss for supplier = 46%(22%+5%+19%)<br />Источник информации: Исследование поведения покупателей в категории подгузников (Shopper II),<br />
  11. 11. 7<br />Step 1: Measure availability: >20% OOS level on Baby Diapers <br />
  12. 12. 8<br /> Step 2: Root cause analysis:<br />Key reasons for SOOS on Baby Care:<br />#1 - 36% of SOOS - shelf filling issue (product in store, but not on shelf)<br />#2 - 24% of SOOS - insufficient store replenishment <br />#3 - 23% - inventory records inaccuracy<br />Key challenges for shelf filling:<br />1. Large size of the packs – limited stock on the shelf<br />2. Insufficient diapers category size vs. # of SKU’s<br />3. Unbalanced space allocation between variants/brands<br />
  13. 13. 9<br />Step 3-4: Joint Action Plan <br />Key Actions to address SOOS issues:<br />Improving case fill rate ex-P&G via by-customer volume forecasting<br />Align assortment matrix/clean-up non-active EAN codes in Retailer/P&G database<br />Joint work with retailers to improve category planograms based on SKU turnover<br /> Test Category Space Extension<br />
  14. 14. 10<br />Step 5 – Analysis of current results<br />Target < 5%<br />First results:<br /> More than 2x times Baby Diapers OOS reduction within 1 year <br /> Need another 2x reduction to reach 5% target<br />
  15. 15. 11<br />P&G learning on Shelf Availability Project:<br /> Win/win opportunity between retailers and suppliers<br /> Needs to be a joint effort supported by Top Management of both companies<br /> Now is the best time to start the project to drive like-for-like sales<br /> Need to focus on Categories with highest growth potential for Retailer and Supplier<br />
  16. 16. THANK YOU!<br />