Marketplace and Quality Assurance Presentation - Vincent Chirchir
Optimizing Replenishment
1. Optimizing and Automating Rapid Replenishment 3/27/2008 Eric Winn Director Demand Planning, ES3 Supply Chain/Rapid Replenishment Procurement, & Procurement Analytics C&S Wholesale Grocers
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5. What have we accomplished? Organization: People and Productivity Target: Maximize Efficiency in Core Activities to Help Build a Premier Supply Chain Organization Process: Rationalization and Standardization Technology: Automation and Accuracy In 2006-2007, C&S was focused internally on reducing cost while improving the quality of its supply chain and procurement operations… Drive organizational changes… … and process changes… … and “change the game” with technology enablement in the form of demand management with Oracle-Demantra
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10. Multiple Tier Forecasting Approach 20-WEEK FORECAST TWO YEARS HISTORY 8-week Demand Expectation Collaboration w/Vendors at Brand Group Level 30-day Annualized EOQ Forecast by Sku Daily Forecast Re-Alignment Causal(s): Very Recent Demand vs. Original “Curve” 20-week Forecast by Sku Causal(s): 2 Years of Baseline (5) and Promotional (7) Factors The multiple tier approach leverages sophisticated multiple variable/causal-based forecasting with an overlaid simplified re-alignment process by sku, along with a dynamic 30-day EOQ and brand group collaboration with manufacturers
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12. Current State Benefits and Future State Vision Enterprise-level collaboration with manufacturers Forecast-driven EOQ Daily forecast re-alignment and dynamic forward-looking safety stock Vendors on program have improved fill-rates by up to 700 basis pts Significant reductions in supply chain costs Stable inventories with improved in-stock levels Expand program to all rapid replenishment vendors and drive lead time reductions to enable greater participation Drive other supply chain improvements via the forecast-driven process (i.e. slotting, transportation planning, etc.) Strike balance between re-alignment-driven order point and forecast-driven safety stock and order quantities TODAY NEXT PHASE PLAN
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