More Related Content Similar to Everyone can Influence On-Shelf Availability and Say Goodbye to Lost Sales (20) More from SCL HUB Conference (20) Everyone can Influence On-Shelf Availability and Say Goodbye to Lost Sales1. Confidential & for internal use only© Neogrid Copyright | All rights reserved. Confidential & for internal use only
Everyone can
influence On-Shelf
Availability and say
goodbye to lost sales
Mark McDonnell
EMEA Sales Director
2. Confidential & for internal use only© Neogrid Copyright | All rights reserved. Confidential & for internal use only© Neogrid Copyright | All rights reserved.
• Dominant supply chain
synchronization & demand visibility
provider founded in Brazil (1999)
• Present in North & South America,
Europe and Asia
• Fortune 500 clients across multiple
industries and geographic
locations
• 700 supply chain professionals in 5
continents
• More than 350,00 companies
managed through Neogrid
Who we are
3. Confidential & for internal use only© Neogrid Copyright | All rights reserved.Neogrid Copyright © | All rights reserved. Confidential & for internal use only
We optimize and synchronize
the entire supply chain to
increase profitability through
faster response to consumer
demand
Our Mission
4. Confidential & for internal use only© Neogrid Copyright | All rights reserved.
What we do?
Mnf. HQ Retail Store O-S-A DemandMnf. DC Retail DCManufacturing
Planning
• S&OP support
• Collaboration (CPFR)
VisibilityReplenishment
• Optimization inventory
holdings
• Collaboration with suppliers
to fulfill inventory
requirements (VMI)
• Dynamic inventory
recommendations based on
actual demand
• Recommended orders
• Inventory visibility
• On-Shelf Availability
• New item introductions
• Sales
• Retail execution
• Pricing
Strategic Sourcing
• RFx Functionality
• Multiple auction types
• Collaborative negotiations
• Full event traceability
5. Confidential & for internal use only© Neogrid Copyright | All rights reserved.
Multi-Tier
Visibility
7. Confidential & for internal use only© Neogrid Copyright | All rights reserved.
Automation
10. Dealing with competitive environment
On Shelf
Availability
1st Base
Perceived
97%– 99%
94%– 96%
Actual
Disconnect
Impact per £billion sales
= £10 - £40 Million
15. The right place:
From the consumers
perspective
The right time:
Before they occur
The right process:
Root cause identification
Preventative action
On-Shelf-Availability
16. Confidential & for internal use only© Neogrid Copyright | All rights reserved.
Reactive Process: On-Shelf Availability
Identification
Targeting
and
alerting
Action
Feedback
Fixing today’s problem
• Expensive intervention
• Already lost sales
• Unable to effectively intervene
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Proactive approach to OSA
Through consistent
measurement and
visibility into root cause,
focus is on Prevention
20. Confidential & for internal use only© Neogrid Copyright | All rights reserved.
Distributed Insights
Store / DC
Store
Manager
Adjustment
Routing
Empty shelf
Partial out-of-stock
Adjusts
inventory
Fills shelf
Operations
Communicates
discrepancy
Suggests
order
Issues
order
Virtual
inventory
Total out-
of-stock
Empty shelf
Partial out-of-stock
Supply Chain
Merchandiser
Manufacturer Retailer
Manufacturer
Shelf
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Distributed Reporting
22. Confidential & for internal use only© Neogrid Copyright | All rights reserved.
Impact of out-of-stocks go beyond a few
missed sales opportunities today
Sales 59
Lost Sales 22
Demand 81
? 81
Impact
10
12
10
12
14
3
10 10
Friday Saturday Sunday Monday Tuesday WednesdayThursday
Conditions
23. Confidential & for internal use only© Neogrid Copyright | All rights reserved.
Zero Critically
low
low Ideal High Very
High
DC 1
Zero Critically
low
low Ideal High Very
High
DC 2
Zero Critically
low
low Ideal High Very
High
Store 198
Zero Critically
low
low Ideal High Very
High
Store 633
Inventory
High Stock
Ideal Stock
Critical Stock
Overstock Target
Level
**
**
*
*
25. Confidential & for internal use only© Neogrid Copyright | All rights reserved.
Global Manufacturer Out-of-Stock Trend
0
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
40,000,000
201301
201302
201303
201304
201305
201306
201307
201308
201309
201310
201311
201312
201401
201402
201403
201404
Non-VMI
VMINeoGrid
Before NG
TVD – Throughput Value Day = Amount of Money at risk of Stock-Out
Company Confidential
26. Confidential & for internal use only© Neogrid Copyright | All rights reserved.
Global Manufacturer Overstock Trend
0
20,000,000
40,000,000
60,000,000
80,000,000
100,000,000
120,000,000
140,000,000
201301
201302
201303
201304
201305
201306
201307
201308
201309
201310
201311
201312
201401
201402
201403
201404
Non-VMI
VMINeoGrid
Before NG
IVD – Inventory Value Day = Amount of Money in Overstocks
Company Confidential
27. Confidential & for internal use only© Neogrid Copyright | All rights reserved.
A practical approach to addressing OOS’s
and creating value
1
2
3
5
4
Root Cause First
Root causes need to be addressed
before the symptoms
Start at the
Beginning
Upstream should be fixed before
downstream
Store Goes Last
Fix upstream issues first
Right Person
Alerts have to be sent to
the right person – in the
value chain
Recurring
OOS’s
Recurring OSA issues are
more important than
random ones
6Value & ROI
Customer satisfaction
matters and provides the
ROI
28. Confidential & for internal use only© Neogrid Copyright | All rights reserved.
Neogrid can provide the tools you need to
address OSA
Collaboration
Retailer Collaborative Business Processes
Consulting
Process Flows, Ways of Working
Drive Action across the enterprise
Integration
Metrics , Alerts, KPI’s integrated into current systems
Measurement
OSA – all item, store & day combinations
Store-DC-HQ Alerting
Short term OSA , Long term OSA, Root Cause
HQ Use Cases
DC Alerts, D’Void Pushes
29. Confidential & for internal use only© Neogrid Copyright | All rights reserved.
Thank You