Day in the Life of a Replenishment Analyst
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Presented at the Walmart Supplier Replenishment Summit in Orlando, FL (2008). Discusses supplier-side responsibilities in the Walmart/supplier collaborative relationship.
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Day in the Life of a Replenishment Analyst
- 1. Replenishment: A Day in the LifeA Day in the Life Mandy Hougland ● Replenishment Manager ● Dorel Industries ● 2008 Replenishment Conference ● Orlando, FL
- 2. Mandy Hougland ● Replenishment Manager ● Dorel Industries ● 2008 Replenishment Conference ● Orlando, FL
- 3. Mandy Hougland ● Replenishment Manager ● Dorel Industries ● 2008 Replenishment Conference ● Orlando, FL Supply Chain Fundamentals Collaboration, Forecasting, & Planning Exception Management Inventory Policies Forecasting Event Planning Performance Metrics Lead times Constraints
- 4. We’re on a MissionWe’re on a Mission Understanding Your BusinessUnderstanding Your Business Serving Our CustomerServing Our Customer The Balancing Act Drilling Down Best Practices Collaboration Tying it all TogetherTying it all Together Mandy Hougland ● Replenishment Manager ● Dorel Industries ● 2008 Replenishment Conference ● Orlando, FL
- 5. “Nothing can add more power to your life than concentrating all your energies on a limited set of targets.” -Nido Qubein
- 6. MissionMission I contribute to both my company (Dorel) and the customer (Wal-Mart) by driving salesdriving sales through adequate in-stock levelsin-stock levels, accurate forecastingforecasting, solution of logistics issueslogistics issues and proactive eventevent planningplanning, while continually developingdeveloping my skills, utilizing exceptional communicationcommunication practices and employing corrections of errorcorrections of error to ensure continued improvementimprovement. Mandy Hougland ● Replenishment Manager ● Dorel Industries ● 2008 Replenishment Conference ● Orlando, FL
- 7. Understanding Your BusinessUnderstanding Your Business Requires collaboration with our internal sales team, operations group, demand planners Requires time spent in the stores to grasp how modulars can affect our in-stocks Requires studying sales reports, knowledge of our products and fundamental understanding of cost structures ……..and a whole lot more Mandy Hougland ● Replenishment Manager ● Dorel Industries ● 2008 Replenishment Conference ● Orlando, FL
- 8. Serving Our CustomerServing Our Customer The great balancing act: Higher In-stocks ~ Lower Inventory Levels Mandy Hougland ● Replenishment Manager ● Dorel Industries ● 2008 Replenishment Conference ● Orlando, FL
- 9. Serving Our CustomerServing Our Customer Drilling Down & Managing Exceptions In-stockIn-stock Seasonal ProfilesSeasonal Profiles Fill RateFill Rate MABD ComplianceMABD Compliance DDsDDs Modular LayoutModular Layout Carrier IssuesCarrier Issues Lead TimesLead Times Mandy Hougland ● Replenishment Manager ● Dorel Industries ● 2008 Replenishment Conference ● Orlando, FL
- 10. TroubleshootingTroubleshooting WorksheetWorksheet WORKSHEET Communicate anything that affects your replenishable items to both replenishment and merchandising – as well as within your own company. The success of any item is dependent on many factors. LOGISTICS – consistent lead times, filling orders completely and accurately, shipments arriving on time. Fill rate: __________________ On-time %: __________________ Late PO’s: __________________ Cancellations? _____________ Short shipments? _____________ How much inventory is in the stores compared to the lead time it takes to get it there and how much it sells per week? ____________________________________________________________________ Short shipped or late Purchase Orders (POs) can have a direct effect on the sale of an item – a store cannot sell what it does not have. When the rate of sale drops because of lack of inventory, the new rate of sale is then used to create a new (lower) forecast. On-Time/MABD % If collect, is routing being keyed 2 days before DNSB date? ________ Is there a pattern with a certain DC or a certain geographic location? ________ Are carriers missing appointments? ________ Is lead time correct? ________ Item Number:______________________ Ven Stock: ______________________ Description: ______________________ Fineline: ______________________ Ven Seq: ______________________ In-stock %: ______________________ CPFR Policies Running: ____________ __________________________________ Special Notes:____________________________ ________________________________________ ________________________________________ ________________________________________ ________________________________________ ________________________________________ ________________________________________ Factors that Impact Fill Rate % Plant Closings? ________ Promotions? ________ New mods? ________ Incorrect Forecasting? ________ Chinese New Year?________ Are there any issues with deductions that might be causing a poor fill rate (damages, shortages)? __________________________ PROFILE – a graphic representation of the weekly change in consumer demand for an item or group of items. Does POS follow the profile graph in CPFR?_______ Manually compare the item’s sales to the profile of its fineline by running a RL query in DSS (Seasonal Fineline Profiles) and laying the POS over that in a graph in EXCEL. Pattern peaks and valleys should match.. Is the profile dirty?________ Or is there a close match? ________ FINELINE – a group of like items with similar selling seasonality. Is the item in the correct fineline? ________ Would it fit better in another fineline? Replenishment Managers @ Wal-Mart own the profiles. DD – DESEASONALIZED DEMAND - rate of sale, calculated for each item at each individual store in which that item is carried. Run a Detailed Replenishment Analysis Report. Goal is to find stores with DD issues. Bentonville Software Associates also has a DD Analyzer tool you can download. FORECAST – what is expected to sell in eaches for a 52 week period; initially comes from new item form/new item online entry. Per store/Per Wk: ________ On hand: ________ FCST accuracy %: ________ WOS at store: ________ On order: ________ Store cnt changes?_______ . Summary of Analysis: ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ Corrective Action: ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ Result: ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ Are there things going on with competing items that might affect the sales and forecast on my item? Competitor promotions? __________________Competitor recalls?_______________________
- 11. Serving Our CustomerServing Our Customer Best Practices Item AuditsItem Audits Lead Time AuditsLead Time Audits Order TrackingOrder Tracking PO Clean-UpPO Clean-Up Mandy Hougland ● Replenishment Manager ● Dorel Industries ● 2008 Replenishment Conference ● Orlando, FL
- 12. Path: Retail Link Get Support & Training Supplier Replenishment Information Replenishment Collaboration Tools Lead Time and Audit Spreadsheet & Instructions Item Audits
- 13. Lead Time Audits Path: Retail Link Get Support & Training Supplier Replenishment Information Replenishment Collaboration Tools Lead Time and Audit Spreadsheet & Instructions
- 14. Serving Our CustomerServing Our Customer Collaboration Quarterly MeetingsQuarterly Meetings Communication via CPFRCommunication via CPFR Plan Actionable COEsPlan Actionable COEs Mandy Hougland ● Replenishment Manager ● Dorel Industries ● 2008 Replenishment Conference ● Orlando, FL
- 15. Quarterly Meetings Path: Retail Link Get Support & Training Supplier Replenishment Information Replenishment Collaboration Tools 30/60/90 Days Planning and Tracking & Measuring
- 16. CPFR Path: Retail Link From My Favorites in Your Dashboard CPFR Item Selection Item # Collaboration Screen – Message Center
- 17. COEs Path: Retail Link From My Favorites in Your Dashboard CPFR Item Selection Item # Create an Event Event Category ~ Monthly COE
- 18. Tying It All TogetherTying It All Together Define your missionDefine your mission Understand your businessUnderstand your business Serve the customerServe the customer CollaborateCollaborate Commit to continued developmentCommit to continued development Mandy Hougland ● Replenishment Manager ● Dorel Industries ● 2008 Replenishment Conference ● Orlando, FL
- 19. Questions for the panel?Questions for the panel? Mandy Hougland ● Replenishment Manager ● Dorel Industries ● 2008 Replenishment Conference ● Orlando, FL
Editor's Notes
- When I was first asked to speak about a day in the life of a replenishment liaison, I panicked. I thought, “how in the world can I capture everything we might encounter in a day’s work and cram it into a 15-minute presentation?” We replenishment folks are pretty thorough, right? We focus on details. The thought of presenting an all-inclusive picture of our world was pretty overwhelming. For starters, one day is almost never the same as the next. And also, the scope of MY day might be very different than the scope of YOURS.
- First of all, we go by different titles (you might be a Replenishment Analyst, a Customer Service Specialist, a CPFR Analyst or a Supply Chain Manager). Our day’s work depends on what season we’re in, the day of the week, the month of the year, where we are in our modular update, promotional activities in the stores…. And I think it’s safe to say that we all wear several hats. We have a lot of different things coming at us. Some days we’re writing orders and researching DC outs. Other days we’re auditing lead times and making DD adjustments. Sometimes you might find us locked in a room with our sales managers nailing down promotional plans. We’re on the phone with our demand planners, shipping facilities, carriers, wal-mart replenishment managers and sometimes our buyers. We deal with supply chain emergencies ~ like when a store suddenly needs a thousand extra units of a product because of something that’s happening in their town; or a case where a competitor’s item was recalled and demand for our like item suddenly shoots through the roof…..
- Just like this slide is busy, a day in the life is also busy. We might not all be assigned to the same tasks, but there are similarities in our roles.
- For instance, we’re all measured by our success in maintaining acceptable must arrive by dates and fill rates, adequate in-stock and acceptable inventory levels. We have to keep our eye on the ball without losing sight of the big picture. So since I can’t possibly present to you a definitive picture of what everyone in this room does on a daily basis, I’ve narrowed it down to these points. Each and every one of us is on a mission with at least one common goal of servicing Wal-Mart, our customer. In order to accomplish that goal, we have to understand our business; we have to dive into data; and we have to collaborate.
- A very insightful person once said…. What better way to focus your energies than to create a mission statement? My own mission statement for my role in replenishment helps me when I’m buried in details or struggling to stay afloat in the vast ocean of what we do. Depending on the role you play in your company, yours might be similar. Here’s mine:
- My Mission (read slide). It may be a mouthful, but my mission statement helps me remember that those blinding spreadsheets, mind boggling charts and all that grueling, time intensive analysis really does make a difference. My mission provides me with a clear goal, rolled up in one overall PURPOSE. And purpose is a great motivator.
- As we set each out on our own individual missions, the first thing we have to do is get a fundamental knowledge about our company and our products. There’s tons of ways we can do this – by visiting our factories and watching a truck be loaded, by spending time with account managers, by studying product catalogs, by visiting stores and gaining insight on what the competition is offering, we can even read trade journals…. However you do it, really get to know your products so you can better understand what’s going on with them when it comes to servicing the customer.
- So how do we serve Wal-Mart, our customer? Well, one of our greatest challenges is keeping in-stocks healthy without overloading stores with inventory. Which, with a little hard work and a whole lot of patience, can be done.
- It requires drilling down and managing exceptions ….. - We use the SVIST screen in conjunction with the CPFR collaboration screen to research in-stocks and fill rate - We look at seasonal profiles to make sure the peaks and valleys match sales. - We use DSS queries to research MABD compliance, lead time accuracy and to uncover carrier issues. - We analyze DDs down to store level. - We even think about how shelf capacity impacts in-stock patterns. There’s a lot to look at and a lot of interconnected information that’s easy to get lost in. When I first started really digging into replenishment, I had to come up with some way to keep all my research together through the various stages of root cause analysis – and some way to make sure I wasn’t leaving anything important out.
- So, I came up with this troubleshooting worksheet, and used it whenever I needed to research an issue. Used in conjunction with the Event Tracker required by Wal-Mart, I eventually had quite a library of business cases and solutions at my fingertips. A copy of this worksheet is included in your registration packet.
- We also serve our customer by making use of best practices. Just a few of many are listed here. And I’ll show you a couple of examples of these tools in just a second… Item audits can be run a couple of times a year to make sure weights and measurements are correct, resulting in more efficient freight costs. You can get an item audit spreadsheet from your replenishment manager.(Now, once data sync is up and running, you won’t have to run these.) Lead time audits should be run at least twice a year. You can download a spreadsheet and instructions for this from Retail Link. Order tracking is very important because it can reveal issues with carriers, or even internal problems – for example, is routing isn’t being requested in a timely manner? There are two ways you can run a PO Clean-Up. If you have access to HOST screens (ITPO specifically) you can find orders that were delivered short – especially on warehouse items. If you don’t have access to HOST screens, you can use the same report you us for tracking fill rate and on time deliveries because these list out by PO number what was ordered vs. what was received.
- Here’s an example of what the Item Audit spreadsheet looks like, and the path to find the template is listed to the side.
- Most everyone has seen this form by now, but for those who haven’t, it’s the Lead Time Audit spreadsheet. It comes with very specific instructions and can be downloaded from Retail Link.
- Also, In order to truly service our customer we have to collaborate. If they fit your business needs – and they may not fit everyone’s - Quarterly Meetings can help make sure you’re on the same page with Wal-mart on modular changes, upcoming promotions, seasonal builds, etc. CPFR helps us communicate DC outs, product availability in-stock and fill rate changes….and it actually builds a temporary item history that even our buyers might find useful. Now, your notes don’t stay there forever. They’re purged on a regular basis, and I think it may be quarterly. Some people print out their CPFR screens so they don’t lose item history, but it’s entirely up to you. Planning Corrections of Error with our Wal-Mart counterparts, and holding ourselves accountable to them, helps us be better – together. These don’t have to be hard and fast entries into Retail Link. They can be a simple plan put together at one of your Quarterly Meetings where you agree that a certain strategy didn’t work and you hammer out a new way of doing something for the next season or next promotion right then and there.
- When you go into a Quarterly Meeting with your replenishment manager, you might expect to see this form. You should also be prepared to discuss your in-stocks, fill rates and MABD compliance.
- Here’s a screen shot of the CPFR screen where you enter messages to your WM replenishment managers and buyers. It’s a great communication tool. New messages appear in a list for you to review from the Collaborative Messages screen after they’re entered.
- This screen shot shows the COE screen in Retail Link, and the path to get there is listed on the right.
- To recap, in order to succeed, we have to define our purpose, understand our business, collaborate with and serve the customer, and commit ourselves to improvement. And this is the big picture of what a day in the life of a replenishment liaison on the Wal-Mart account is all about. For those of you new to the field, I hope this was a good overview. And for those veterans in the crowd, I hope it gave you a new way to see your role. I would challenge you to define your own mission statement and apply your energy against the goals you lay out in it. And now, I’m gonna turn this over to our moderator who will help take your questions for the panel.