Wednesday 2d of June 2010 On-Shelf Availability Eva ALCAIDE,  B2B Manager, AUCHAN International (Group), Co-chair of the F...
<ul><li>Sharing ECR France experience on OSA </li></ul><ul><li>The 3 mains principles of OSA Working Group in ECR France? ...
The 3 mains principles of OSA Working Group in ECR France <ul><li>Why is it an ECR Working Group ? </li></ul><ul><li>What ...
Why is it an ECR Working Group ?  The Shoppers behavior when meeting an OOS © ECR France 2010 /23
What do we need to work on OSA in ECR ?   A common definition of OOS <ul><li>«  A product is considered as out of stock in...
A joint continuous improvement  process to work on OSA ? © ECR France 2010 /23 Measurement Action Alert Stakes  evaluation...
Measurement <ul><li>Detailed sales information to build the measurement tool </li></ul><ul><li>On the largest perimeter </...
Detailed sales to build the measurement tool © ECR France 2010 /23 Daily rate complete stock-outs (DRCS) : 1/ 6 = 17% Dail...
On the largest perimeter <ul><li>Based on daily POS data automatically collected by IRI France  </li></ul><ul><li>All the ...
To provide a tool that we can share between Retailers & Manufacturers © ECR France 2010 /23 Tool characteristics Specifica...
<ul><li>December-February 2010 </li></ul>© ECR France 2010 /23 Examples of Dashboard (1/6) Global Stakes in € % stakes in ...
<ul><li>December-February 2010 </li></ul>© ECR France 2010 /23 Examples of Dashboard (2/6) Global stakes in € by retailer
© ECR France 2010 /23 Examples of Dashboard (3/6) Global stakes in € by retailer and Department <ul><li>December-February ...
Examples of Dashboard (4/6)   Global stakes in € by Category © ECR France 2010 /23 <ul><li>December-February 2010 </li></u...
© ECR France 2010 /23 Examples of Dashboard (5/6) Complete & Partial OOS by Category <ul><li>December-February 2010 </li><...
© ECR France 2010 /23 Examples of Dashboard (6/6) Dispersion by Category
Actions to improve the Shelf Availability <ul><li>What has been achieved:  </li></ul><ul><ul><li>Root Causes & Decision Tr...
What has been achieved: Root Causes & Decision Tree have been identified © ECR France 2010 /23 (Assortment choice) Communi...
What has been achieved:    People involved in OOS © ECR France 2010 /23 <ul><li>PANELISTS / THIRD PARTIES </li></ul><ul><l...
Learning <ul><li>The measurement tool is a solid basis </li></ul><ul><li>Retailer – Manufacturer couples: it works but nee...
Next steps:  Main sources of Out-of-Stocks in the supply chain © ECR France 2010 /23 RDC MDC PRODUCTS AVAILABILITY - Sales...
Next steps:  An “OOS one page document” for everyone © ECR France 2010 /23 In progress in the ECR France Working Group
Thank you for your attention © ECR France 2010 /23 <ul><li>www.ecr-france.org  </li></ul><ul><li>www.ecr-all.org </li></ul>
Upcoming SlideShare
Loading in …5
×

Eva alcaide. auchan

1,224 views

Published on

Published in: Business, Technology
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
1,224
On SlideShare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
9
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide
  • Montrer pourquoi et comment le pays qui a lancer le concept en Europe (repris par ECR Russie) travaille, les difficultés rencontrées et les enseignements à partager avec ECR Russie. Ces enseignements concernent la gestion d’un projet et l’outil de mesure (ECR Russie a développé un outil de mesure).
  • Enjeu de ne pas être au rdv des consommateurs – donc du CA
  • Measurement : Do we really need to work on OOS and where ? Action : What can we do to improve OSA ? If it was so simple, we would have done that before “ Retail is detail”… and always a roll-out question
  • On prend les produits don’t la vente moyenne sur la période est &gt; ou = à 3 unités par jour. (statistic)
  • Exhaustif : on mesure dondc plus que tout autre outil de mesure manuel Les résultats ne sont plus cachés dans les moyennes pusque l’on descend au niveau du détail
  • Lorsque l’on mesure, on voit ! – plus l’instrument de mesure est puissant, plus on trouve
  • Chaque enseigne, si elle le souhaite, sait quel est son n°, mais l’information n’est pas partagée entre les enseignes
  • You can earn more than 13 millions euros working on the frozen and ice cream department OOS or 13,6% of the turnover. These are numbers before substitution and report. 6% of the turnover in France is lost because of OOS, almost 200 millions euros every 3 months.
  • Lorsque l’on travaille ensembles, les résultats sont cachés dans les moyennes
  • Work on the main sources instead of all the 42 root causes
  • Give to each actor a road map / one page document, to solve OOS in his own perimeter
  • Eva alcaide. auchan

    1. 1. Wednesday 2d of June 2010 On-Shelf Availability Eva ALCAIDE, B2B Manager, AUCHAN International (Group), Co-chair of the French OSA working group <ul><li>The concept of OSA has been introduced through Europe by ECR France. </li></ul><ul><li>Listen to the OSA insights from the Global Leaders. On-Shelf Availability in Russia is the lowest in Europe. Some say this is a problem - we say it's an opportunity. </li></ul><ul><li>20% Out-of-stocks = additional 6% to annual sales! During the session we will share the best practices on OOS reduction and cases with leading retailers </li></ul>© ECR France 2010 /23
    2. 2. <ul><li>Sharing ECR France experience on OSA </li></ul><ul><li>The 3 mains principles of OSA Working Group in ECR France? </li></ul><ul><li>Measurement </li></ul><ul><li>Actions to improve Shelf Availability </li></ul>© ECR France 2010 /23
    3. 3. The 3 mains principles of OSA Working Group in ECR France <ul><li>Why is it an ECR Working Group ? </li></ul><ul><li>What do we need to work on OSA in ECR ? </li></ul><ul><li>A joint continuous improvement process work on OSA ? </li></ul>© ECR France 2010 /23
    4. 4. Why is it an ECR Working Group ? The Shoppers behavior when meeting an OOS © ECR France 2010 /23
    5. 5. What do we need to work on OSA in ECR ? A common definition of OOS <ul><li>« A product is considered as out of stock in one store when a consumer cannot buy it because it is not there, although the product is usually available on the shelves of this store » </li></ul><ul><li>Not included : theoretical assortments / negotiated , non availability of a (new) product at a POS despite having been advertised. … </li></ul>© ECR France 2010 /23
    6. 6. A joint continuous improvement process to work on OSA ? © ECR France 2010 /23 Measurement Action Alert Stakes evaluation Ranking Root causes investigation Corrective actions identification Implementation Results Results
    7. 7. Measurement <ul><li>Detailed sales information to build the measurement tool </li></ul><ul><li>On the largest perimeter </li></ul><ul><li>To provide a tool that we can share between Retailers & Manufacturers </li></ul><ul><li>Examples of Dashboard </li></ul>© ECR France 2010 /23
    8. 8. Detailed sales to build the measurement tool © ECR France 2010 /23 Daily rate complete stock-outs (DRCS) : 1/ 6 = 17% Daily rate partial stock-outs (DRPS) : 2/ 6 = 33% Abnormally low sales for a Saturday Lost sales: usual sales (€) - real sales (€) Mon. Tues. Wed. Thurs. Fri. Saturday Zero sales Abnormally low sales for a Tuesday
    9. 9. On the largest perimeter <ul><li>Based on daily POS data automatically collected by IRI France </li></ul><ul><li>All the French hypermarkets (1 692 stores) members of ECR France </li></ul><ul><ul><li>Auchan, Carrefour, Carrefour Market, Cora, Géant, Intermarché, Leclerc, Système U, Monoprix , … </li></ul></ul><ul><li>61 categories in 10 departments </li></ul><ul><li>Number of products followed: the 20/80 of each category with minimum rotation level  3 887 consumer references </li></ul><ul><li>Frequency of deliveries </li></ul><ul><ul><li>summer (June - August) </li></ul></ul><ul><ul><li>fall (September – November) </li></ul></ul><ul><ul><li>winter (December - February ) </li></ul></ul><ul><ul><li>spring (March – May) </li></ul></ul>© ECR France 2010 /23
    10. 10. To provide a tool that we can share between Retailers & Manufacturers © ECR France 2010 /23 Tool characteristics Specifications Undisputable <ul><li>No human intervention </li></ul><ul><li>No interpretation </li></ul><ul><li>Based on store data </li></ul>Continuous Based on daily data : consumer point of view Shared Use by retailer and manufacturer Run by a third party, neutrality Bottom-up Everything aggregated from store data Exhaustive Every store, every item
    11. 11. <ul><li>December-February 2010 </li></ul>© ECR France 2010 /23 Examples of Dashboard (1/6) Global Stakes in € % stakes in complete OOS % stakes in partial OOS
    12. 12. <ul><li>December-February 2010 </li></ul>© ECR France 2010 /23 Examples of Dashboard (2/6) Global stakes in € by retailer
    13. 13. © ECR France 2010 /23 Examples of Dashboard (3/6) Global stakes in € by retailer and Department <ul><li>December-February 2010 </li></ul>
    14. 14. Examples of Dashboard (4/6) Global stakes in € by Category © ECR France 2010 /23 <ul><li>December-February 2010 </li></ul>Global stake in € % of stake / category Dairies 57 265 262 5,3% Sweet grocery 51 649 765 7,3% Salty grocery 29 590 045 8,2% Soft drinks & water 23 040 575 5,4% Fresh products without milk 21 538 360 6,5% Frozen and ice cream 11 344 341 15,2% Body care 10 915 560 4,8% Detergent 10 751 829 19,0% Beer 4 715 021 8,7% Spirit 2 462 978 3,6% TOTAL 61 categories 223 273 736 6,6%
    15. 15. © ECR France 2010 /23 Examples of Dashboard (5/6) Complete & Partial OOS by Category <ul><li>December-February 2010 </li></ul>60 categories Salty grocery Sweet Grocery Soft drinks & water Spirit Beer Body Care Detergent Dairies Fresh products without milk Frozen & ice cream
    16. 16. © ECR France 2010 /23 Examples of Dashboard (6/6) Dispersion by Category
    17. 17. Actions to improve the Shelf Availability <ul><li>What has been achieved: </li></ul><ul><ul><li>Root Causes & Decision Tree have been identified </li></ul></ul><ul><ul><li>People involved in OOS </li></ul></ul><ul><li>Learning </li></ul><ul><li>Next steps: </li></ul><ul><ul><li>Main sources of Out-Of-Stock in the Supply Chain </li></ul></ul><ul><ul><li>An “OOS one page document” for everyone </li></ul></ul>© ECR France 2010 /23
    18. 18. What has been achieved: Root Causes & Decision Tree have been identified © ECR France 2010 /23 (Assortment choice) Communication between sales reps’ and department manager Management promotion / standard product and NPI Failing management of backroom or no backroom Frequency and time of shelf replenishment (HR) Is the product still listed and sold in the POS ? Shelf capacity unsuited for product rotation Is it a promotion or a new product? Is the product available in the backroom? The product is not on the shelf <ul><li>No </li></ul><ul><li>No </li></ul><ul><li>Yes </li></ul><ul><li>Yes </li></ul><ul><li>Yes </li></ul>Failing PCB …
    19. 19. What has been achieved: People involved in OOS © ECR France 2010 /23 <ul><li>PANELISTS / THIRD PARTIES </li></ul><ul><li>POS data analysis WAS per reference on sample </li></ul><ul><li>Store Checks, … </li></ul><ul><li>RETAILER side </li></ul><ul><li>Marketing / Category manager </li></ul><ul><li>Marketing data, panels’ information </li></ul><ul><li>Buyer </li></ul><ul><li>RDC / suppliers service level </li></ul><ul><li>Consumer service </li></ul><ul><li>Customer complains / mail </li></ul><ul><li>RDC manager </li></ul><ul><li>RDC inventory cover </li></ul><ul><li>POS service level vs. POS orders </li></ul><ul><li>POS Manager </li></ul><ul><li>Turnover / department / month </li></ul><ul><li>Department manager </li></ul><ul><li>Shelf store checks </li></ul><ul><li>Defects in the supply automatic system </li></ul><ul><li>POS inventory cover </li></ul><ul><li>POS data / turnover analysis </li></ul><ul><li>Shopper complains </li></ul><ul><li>MANUFACTURER side </li></ul><ul><li>Marketing </li></ul><ul><li>Weekly average sales, panels’ information </li></ul><ul><li>Key Account </li></ul><ul><li>Service level analysis </li></ul><ul><li>Exception analysis / sales forecasts </li></ul><ul><li>Supply Chain </li></ul><ul><li>OOS analysis via CMI </li></ul><ul><li>Service level to RDC </li></ul><ul><li>Customer service </li></ul><ul><li>Variance delivered / ordered </li></ul><ul><li>Variance ordered / forecasted </li></ul><ul><li>Commercial disputes analysis </li></ul><ul><li>Production information </li></ul><ul><li>Outside events analysis </li></ul><ul><li>Sales reps </li></ul><ul><li>Store checks </li></ul>Head office Distribution center POS
    20. 20. Learning <ul><li>The measurement tool is a solid basis </li></ul><ul><li>Retailer – Manufacturer couples: it works but needs to be maintained </li></ul><ul><li>No impact on the global result: roll-out </li></ul><ul><li>Complexity to involve everybody </li></ul>© ECR France 2010 /23 <ul><li>Need to build a “toolkit” with simple and easy to use “tools” </li></ul>
    21. 21. Next steps: Main sources of Out-of-Stocks in the supply chain © ECR France 2010 /23 RDC MDC PRODUCTS AVAILABILITY - Sales forecast accuracy - Quality - Production - Raw materials and packaging Production <ul><li>POINT OF SALE RESOURCES </li></ul><ul><li>Human resources planning </li></ul><ul><li>Management tools </li></ul>PROMOTIONS - Forecasting and commitments - Switch standard / promotions MERCHANDISING - Sales / shelf capacity / Packaging - Shelf replenishment frequency - Back room Downstream Transport Upstream Transport MDC picking RDC picking Store
    22. 22. Next steps: An “OOS one page document” for everyone © ECR France 2010 /23 In progress in the ECR France Working Group
    23. 23. Thank you for your attention © ECR France 2010 /23 <ul><li>www.ecr-france.org </li></ul><ul><li>www.ecr-all.org </li></ul>

    ×