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FRESH LAB WEBINAR: Making big cuts in seasonal fresh food residual stock
FRESH LAB WEBINAR: Making big cuts in seasonal fresh food residual stock
FRESH LAB WEBINAR: Making big cuts in seasonal fresh food residual stock
FRESH LAB WEBINAR: Making big cuts in seasonal fresh food residual stock
FRESH LAB WEBINAR: Making big cuts in seasonal fresh food residual stock
FRESH LAB WEBINAR: Making big cuts in seasonal fresh food residual stock
FRESH LAB WEBINAR: Making big cuts in seasonal fresh food residual stock
FRESH LAB WEBINAR: Making big cuts in seasonal fresh food residual stock
FRESH LAB WEBINAR: Making big cuts in seasonal fresh food residual stock
FRESH LAB WEBINAR: Making big cuts in seasonal fresh food residual stock
FRESH LAB WEBINAR: Making big cuts in seasonal fresh food residual stock
FRESH LAB WEBINAR: Making big cuts in seasonal fresh food residual stock
FRESH LAB WEBINAR: Making big cuts in seasonal fresh food residual stock
FRESH LAB WEBINAR: Making big cuts in seasonal fresh food residual stock
FRESH LAB WEBINAR: Making big cuts in seasonal fresh food residual stock
FRESH LAB WEBINAR: Making big cuts in seasonal fresh food residual stock
FRESH LAB WEBINAR: Making big cuts in seasonal fresh food residual stock
FRESH LAB WEBINAR: Making big cuts in seasonal fresh food residual stock
FRESH LAB WEBINAR: Making big cuts in seasonal fresh food residual stock
FRESH LAB WEBINAR: Making big cuts in seasonal fresh food residual stock
FRESH LAB WEBINAR: Making big cuts in seasonal fresh food residual stock
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FRESH LAB WEBINAR: Making big cuts in seasonal fresh food residual stock

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Learn how to reduce stocks yet improve availability during seasons and campaigns. …

Learn how to reduce stocks yet improve availability during seasons and campaigns.
This webinar presentation will concentrate on fresh food replenishment and on how to plan your campaigns. It showcases examples of how our customers have managed to cut residual seasonal stock significantly while improving their seasonal sales.

Our aim is to help you automate fresh food replenishment, cut waste, increase availability and offer your customers fresh products that are even fresher. And that in turn makes a big difference to profitability.

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  • 1. Special situations in fresh replenishment RELEX Fresh Lab Webinar 2 30 January 2014
  • 2. Agenda  About fresh webinars and RELEX Special situations in fresh replenishment Case: JJ Foods RELEX agile implementation Q&A
  • 3. Fresh lab webinar themes Webinar 1: Key elements of fresh replenishment 21 January 2014 Webinar 2: Special situations in fresh replenishment 30 January 2014 Reviewing the key elements for automated replenishment • Daily SKU-location level forecasts • Shelf-life management • Optimizations and workflow Leveraging efficient base process and flexible reporting to control special situations: • Seasons • Campaigns
  • 4. RELEX in brief • RELEX offers solutions for demand forecasting, automated replenishment, inventory optimisation, and supply chain analytics – Built especially to the requirements of grocery retail: incorporates short life-cycles, seasonality, campaigns, assortment management and chain structure of delivery networks • RELEX is the fastest growing supplier of SCM solutions in Europe – Highest ranked SCM solutions provider on the Deloitte Technology Fast 500 EMEA list in 2011, 2012 and 2013 – 70 supply chain professionals working at offices in Finland, Sweden, Germany and the UK RELEX solutions are used for managing and controling material flows at 50 customers in 12 European countries. These cover millions of SKUs worth billions of euros
  • 5. RELEX references
  • 6. Agenda About RELEX and Fresh webinars  Special situations in fresh replenishment Case: JJ Foods RELEX agile implementation Q&A
  • 7. The challenge and the potential in a single word – spoilage!
  • 8. Recap from Webinar 1: Harnessing accurate day level calculations and product shelf-life is the key to mastering spoilage automatically! Simulated spoilage Expected shelf-life factor in safety stock Day-level forecasts Day level safety stock parameters FORECAST SAFETY STOCK In order to get the balance right for the fresh replenishment in the first place, one must be clear on availability and service level goals and priorities!
  • 9. Automation of fresh replenishment demands for adequate level of detail and flexibility from the replenishment system! • Forecasts and other data can be viewed and edited at all levels – By product hierarchy level – By region – By time period (day, week, month, quarter, year) – Any combination of above • Easy drill-down from upper categories all the way down to individual product-region level • Possibility to flexibly and easily create new report views whenever needed • Flexible visualization to facilitate examination of any time-series data
  • 10. Basic steps of holiday demand-supply planning process 1. Forecast holiday period’s demand 2. Create a supply plan based on delivery schedules and inventory goals 3. Execute store deliveries based on latest information
  • 11. 1. Forecast holiday period’s demand • Use automatic references – Fore fresh luckily quite often possible! • Calculate weekday profiles automatically or set manually – Note the moving and nonmoving holidays! • Increase the quality of the forecast by adjusting it manually – Levels: • Product - store location type • Product group – store • Product-chain Example of setting up an automatic reference run in RELEX • Experienced forecast analyst can make a significant difference!
  • 12. 2. Create a supply plan i.e. “store delivery forecast” based on delivery schedules and inventory goals Potential stress points: 1. 2. Example of realized and projected balances and delivery rows for one product group in one location in RELEX 3. Receiving capacity at individual stores: Usually the amount of total goods / pallets arriving is key DC picking capacity: Usually the number of picked delivery lines is critical DC warehousing space: The number of pallets forecast to be in stock
  • 13. 3. Execute store deliveries based on latest information available! 1. Order goods based on the SKU-chain level order forecast for the delivery day 2. Allocate the products on stores using the most recent SKU-store level information once the products are in the DC
  • 14. Basic steps in campaign forecasting process 1. Manage campaign information • Use data from earlier campaigns to estimate sales and margin impact in the future • Estimate sales impact of individual campaign variables: discount, shelf location etc 2. Include logistic information • Define how many days before campaign start you want goods to arrive • Define a presentation level (% of forecast) that is used for initial fill 3. Let the system calculate • System calculates an SKU-Store –level sales forecast and delivery plan for the goods on promotion 4. Review and adjust forecasts • Review aggregate level forecasts to check accuracy and ensure capacity • Adjusting can be done also on aggregate level – system cascades changes to lower levels 5. Collaborate with suppliers • Distribute order forecast to guarantee capacity and availability of products in promotion • Collaboration can be extended to actual campaign data Execute and review • Execute replenishment as with normal replenishment • Review campaign success rate with operative and commercial KPIs!
  • 15. 15 Example: Review information on campaigns and drill-down to particular campaigns and products
  • 16. Agenda About RELEX and Fresh webinars Special situations in fresh replenishment  Case: JJ Foods RELEX agile implementation Q&A
  • 17. JJ Food Service is British multi-channel food service wholesaler. The company's’ turnover in 2012 was approx. 180 m£. Case: JJ Food Service • Goals and challenges – Despite add-on functionality developed in-house, the company’s ERP functionality for forecasting and requirements was considered insufficient – JJ Food Service sought to increase the level of automation in purchasing while at the same time attaining higher precision in replenishment – A need for managing campaigns, holidays, seasonal variation, fresh food and customers’ menu-driven demand more efficiently • Results attained by JJ Food Service (reported after three-month pilot phase, during which a full roll-out was completed) – Purchase ordering requires 25 % less time – Inventory levels have decreased by 15 % – 10 percentage points improvement in service level of fresh food, without increased inventory levels – 10 percentage point improvement in service level for slow-movers
  • 18. Agenda About RELEX and Fresh webinars Special situations in fresh replenishment Case: JJ Foods  RELEX agile implementation Q&A
  • 19. RELEX value promise is enabled by big data technology RELEX Big Data Technology • Columnar database • In-memory analytics • SaaS-based RELEX Agile Projects • Easy to integrate • Easy to pilot • Easy to scale RELEX Value Promise • Risk-free: pay as you go • Flexible: Adjust vision • Rapid and reliable: Quick results
  • 20. RELEX Agile project structure Business needs Data model System architecture Configuration of use processes Validation of use processes Business testing in real life First data model build up Data interface finalization Acceptance testing Iterative technical development PROJECT KICKOFF Business process specifications PILOT … Milestone1: System specified Milestone 2: Ready for business validation Milestone 3: Ready for pilot use Milestone 4: Ready for roll out Each milestone cycle typically lasts for 4 weeks – pilot can be started in three months
  • 21. Thank you! Any questions?

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