1) The document discusses optimizing supply chain synchronization and visibility to increase profitability through faster response to consumer demand. It describes Neogrid as a supply chain management company that provides these services. 2) It outlines Neogrid's services including demand planning, replenishment, strategic sourcing, and multi-tier visibility tools. It also discusses challenges in today's retail landscape like omni-channel and increasing item proliferation. 3) A major focus is on proactively addressing on-shelf availability through consistent measurement, root cause analysis of issues, and prevention rather than reactive fixing of problems. Metrics, alerts, and recommendations are provided to various parties to take appropriate actions.

1. 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

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Multi-Tier
Visibility

6. Advanced
Algorithms

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Automation

8. Accelerating on-line pressure:
Convenience
Assortment
Customer specific customization
$222,000 Sales / Minute
368 Million Items
Today’s landscape

9. Retail response
Omni-Channel
Customer engagement
Item proliferation
Store specific assortment

10. Dealing with competitive environment
On Shelf
Availability
1st Base
Perceived
97%– 99%
94%– 96%
Actual
Disconnect
Impact per £billion sales
= £10 - £40 Million

11. Wrong Place

12. Inaccurate Data

13. Wrong Time

14. Wrong time
& Place

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

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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

18. 18
Actual SalesInventory Expected Sales Out-Of-StockProbability Gap
KPI
Rt. CauseAlerting
Measurement

19. Phantom stock
Negative
stock
Order not placed
Order not
received
Stock not on-shelf
Shrink
Partial OOS
Root Cause

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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

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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

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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
**
**
*
*

24. __Inventory __Norm __Critical Inventory
IVD
TVD
Inventory Excess
Risk / Out of Stock
Prioritising actions based on risk

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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

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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

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Thank You