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Wednesday 2d of June 2010 On-Shelf Availability Eva ALCAIDE,  B2B Manager, AUCHAN International (Group), Co-chair of the French OSA working group ,[object Object],[object Object],[object Object],© ECR France 2010 /23
[object Object],[object Object],[object Object],[object Object],© ECR France 2010 /23
The 3 mains principles of OSA Working Group in ECR France ,[object Object],[object Object],[object Object],© ECR France 2010 /23
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 ,[object Object],[object Object],© ECR France 2010 /23
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
Measurement ,[object Object],[object Object],[object Object],[object Object],© ECR France 2010 /23
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
On the largest perimeter ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],© ECR France 2010 /23
To provide a tool that we can share between Retailers & Manufacturers © ECR France 2010 /23 Tool characteristics Specifications Undisputable ,[object Object],[object Object],[object Object],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
[object Object],© ECR France 2010 /23 Examples of Dashboard (1/6) Global Stakes in € % stakes in complete OOS % stakes in partial OOS
[object Object],© 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 ,[object Object]
Examples of Dashboard (4/6)   Global stakes in € by Category © ECR France 2010 /23 ,[object Object],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%
© ECR France 2010 /23 Examples of Dashboard (5/6) Complete & Partial OOS by Category ,[object Object],60 categories Salty grocery Sweet Grocery Soft drinks & water Spirit Beer Body Care Detergent Dairies Fresh products  without milk Frozen & ice cream
© ECR France 2010 /23 Examples of Dashboard (6/6) Dispersion by Category
Actions to improve the Shelf Availability ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],© ECR France 2010 /23
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 ,[object Object],[object Object],[object Object],[object Object],[object Object],Failing PCB …
What has been achieved:    People involved in OOS © ECR France 2010 /23 ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Head office Distribution center POS
Learning ,[object Object],[object Object],[object Object],[object Object],© ECR France 2010 /23 ,[object Object]
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 ,[object Object],[object Object],[object Object],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
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 ,[object Object],[object Object]

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Eva alcaide. auchan

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  • 4. Why is it an ECR Working Group ? The Shoppers behavior when meeting an OOS © ECR France 2010 /23
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  • 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
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  • 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
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  • 16. © ECR France 2010 /23 Examples of Dashboard (6/6) Dispersion by Category
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  • 22. Next steps: An “OOS one page document” for everyone © ECR France 2010 /23 In progress in the ECR France Working Group
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Editor's Notes

  1. 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).
  2. Enjeu de ne pas être au rdv des consommateurs – donc du CA
  3. 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
  4. On prend les produits don’t la vente moyenne sur la période est > ou = à 3 unités par jour. (statistic)
  5. 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
  6. Lorsque l’on mesure, on voit ! – plus l’instrument de mesure est puissant, plus on trouve
  7. Chaque enseigne, si elle le souhaite, sait quel est son n°, mais l’information n’est pas partagée entre les enseignes
  8. 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.
  9. Lorsque l’on travaille ensembles, les résultats sont cachés dans les moyennes
  10. Work on the main sources instead of all the 42 root causes
  11. Give to each actor a road map / one page document, to solve OOS in his own perimeter