Post on 23-Jul-2018
Town Hall Meeting Agenda
❑ DOLC Leadership Team
❑ State of Business- 2016 and FY2017
❑ JobsOhio Beverage System (JOBS)
❑ LMP Status, Next Steps, and Milestones
❑ Communications and Customer Service Initiative
❑ Warehouse Inventory Reduction
❑ Warehouse/Distribution Center Update
❑ Retail and Wholesale Terminal Solution
❑ Shelf Price Update
❑ Q&A
DOLC Leadership Team
Harry Knight Gerry O’Neil Amanda Boros Jennifer Richardson
Chief Operating
Officer
Director, Agency
Operations
Lead Project
Manager, LMP
Merchandising
Manager, Agency
Operations
JobsOhio Beverage System (JOBS)
JobsOhio is a private, non-profit corporation committed to driving job creation
and new capital investment in Ohio through business attraction, retention and
expansion efforts (learn more at jobs-ohio.com)
JOBSJOBS purchased an exclusive 25-year franchise for the sale of spirituous liquor
in the state of Ohio. Profits earned from that business are used by JobsOhio for
its mission.
Economic Development Success
23,602NEW JOBS
54,233 RETAINED JOBS
$6.7 BILLION CAPITAL INVESTMENT
Source: JobsOhio 2015 Annual Report
Net Sales and Category Growth
Total Bottle
Sales
Total Dollars
Sales
Total Sales
FY2017
59,366,960(+4.7% vs 2015)
$1,051,647,379(+7.06% vs 2015)
$181,467,243(+4.29% vs 2016)
• Tequila in Ohio is outpacing the national average
• Patron and other HE brands show double digit growth
• Small batch whiskey continues to show double digit growth
• Tito’s vodka is outpacing other vodka in Ohio and is experiencing double digit growth
• Cognac (Hennessy and other HE brands) show double digit growth
• Jameson shows double digit growth and is now offering new HE items
LMP Phase 2 Objectives
• Microsoft Dynamics AX “Out of the Box” - Minimum
customization
• Standardized platform supports continuing Enterprise growth
• Near-Real Time Transaction Reporting
• Near-Real Time Inventory Visibility
• Integrated System View
Project Milestones
AnalysisQ1 2016
DevelopmentLate Q2, early Q3
• Design• Q2 2016
1 2 3
4 5 6
TestingBegan October 2016
TrainingQ1 2017
ImplementationTarget to begin April 1, 2017
Agency Readiness
Activities will be tracked to ensure each Agency is prepared for
the deployment of LMP Phase 2.
• Future webinar sessions
• Attendance/feedback from Town Hall and Roadshow events
• Submission of retail sales integration decision
• Completion of Wi-Fi assessment and installation
• Installation of wholesale and retail sales terminal hardware
• Completion of all stakeholder training activities
Upcoming Key LMP Dates and Events
Projected Dates Events
October 20, 2016 Communication to Agencies (Webinar)
October 24, 2016 Technical document published to Agencies
October 25 – November 3, 2016 Town Hall meetings across all four districts
December 1, 2016 Deadline to submit retail sales solution decision to Enterprise
December 2016 Engagement with Agencies. Procurement of Clover devices.
February – March 2017 Installation of Clover retail sales devices in select Agencies &
Training sessions begin
April 1, 2017 Ready date for Agencies integrating via Web API solution &
Warehouse/Bailment Center consolidation complete
April – May 2017 Cutover of Agencies to LMP Phase 2 platform
Liaison Update
Toledo - Ron Kohler
Cleveland – Jenn Tait
Columbus – Luke Paglianete
Cincinnati – Kevin Myers
Agency Visit Updates
• Thank you!
• Completed first round of
Agency visits week of Oct. 10
• Next round of Agency visits
will begin early November
Agency Representative Committee• Committee Purpose
o Operations focus driven
o Product sales and selection insight
o Development and execution of responsible growth initiatives
o DOLC / Agency relationship building
• Benefits
o Increase open dialogue opportunities
o Sharing of best practices between agencies
o Outreach Programs execution
o Product/category trends
• Member Structure
o Statewide District Representatives
o Cross section of agency size and complexity
o Members selected by Liquor Enterprise COO
Customer Service / Call Center Operations
• A new customer service center is now in operation
o Same phone number you use today: 877-812-0013
o New email: liquoragencyhelp@com.state.oh.us
• Representatives available 24x7x365
• Calls will be assigned priority based on content and will be
responded to within a designated timeframe
Warehouse Inventory Reduction
Background● Liquor Enterprise has over 3,000 SKUs in present portfolio
● Product listings added 800+ new products over past 3 years
● No products have been delisted during this time
● High congestion in bailment centers and backrooms of Agencies
● Avg days of AGENCY inventory for WIR products 250-300 days
● LMP Phase 2 requirement to reduce warehouse inventory levels to support
system implementation
Actions● Comprehensive review of all products by SIP Team and brokers/suppliers
● 700 SKUs are being removed from warehouses
● Agency needs will be met via Agency to Agency transfers or special orders
● If state sales dictate, we will review and work to provide access
● New product listing suspended until Qtr. 1 2017
● Listing/Delisting Process improvement (best practices) in process
● National Alcohol Beverage Control Association (NABCA) sales data
Warehouse/Distribution Center Operations
● Warehouse Consolidation – moving from 4 to 2
● Cleveland and Columbus locations
● Efficiency improvements through establishing rigorous KPIs
● Improve inventory availability
● Streamline the Enterprise warehouse business processes
● Target start up/cutover April 2017
All terminals (registers, point-of-sale) must integrate with
Microsoft Dynamics AX system when Phase 2 launches.
● Increased inventory accuracy
● Offers transaction-level detail
● Improvements to current business processes
● Upgraded technology for some
Retail Terminal Strategy
1. Integrate your existing retail terminals (this will require your existing provider’s support for the integration)
2. Use a new Clover terminal configured and provided
by the liquor enterprise
Integration Options
How to Make Your ChoiceOption 1:
Integrate your
Existing Retail Terminals
Option 2:
Use New Clover Terminal Configured
by Enterprise
Benefits
• Continue to use your current retail
terminals
• Continue to use your current support/IT
vendor
• No set up is needed for integration to Microsoft
Dynamics AX system - configured out of the box
and installed by a vendor
• Terminal can read chip cards
• Terminal can be used for non-liquor items
• Apps to help you run your business
• Reduced merchant services fees available
Conside-
rations
• There will be IT costs to integrate • Set up required to add non-liquor items – the
process is easy and tutorials are available
Costs
• IT costs to integrate will vary based on
your level of technology
• Ongoing support costs
• No cost for terminals or installation
• The liquor enterprise pays monthly support fees the
first two years – after that, based on the number of
terminals (approx. $50-$80/month)
Clover
Terminal
• Height: 11.0” x 7.5” Base
• Weight: 5 lbs.
• Hardware:
• Encrypted card reader
• Scanning camera
• Reporting
• Transaction reports
• Modify inventory
• Off-line capability
Retail Terminal Solutions
● Clover terminals provided for retail sales
● Enterprise will provide number of terminals based on most
recent terminal audit numbers
● Enterprise will pay for the Clover units
● Ownership - Agencies will own the units
● Monthly Service Fees - Enterprise will pay for first 2 years
Key Milestone Dates
Integrate Existing Retail
Terminals
• Oct. 24: Technical
requirements document sent
• Dec. 1: Decision due to DOLC
• Q1 2017: Testing of integration
(part of full system testing)
• April 1: All changes complete
and tested, integration ready to
go live
Receive
New Clover Terminals
• Dec. 1: Decision due to DOLC
• Q1 2017: Terminal installation
begins
We will provide a vendor, at no
cost, to work with you to set up
the fully configured terminals in
your Agency.
Wholesale Terminal Solution
● Agency will be provided a separate wholesale terminal that
directly interfaces with the AX platform
● Wholesale order processing only
● Configured hardware provided
● Transaction-level data
● Increased efficiency in system response time
Price Without Tax-Single Shelf Price
● Currently, tax and rounding are included in shelf price
● Moving forward, tax will be calculated at the time of sale
● Creates consistency and reduces confusion
● Removing prohibitive rounding requirements (aka nickel round)
● Using a phased-in approach
Price Without Tax/Single Shelf PriceCurrent State Transition State
(Feb. 1 through LMP rollout)
Future State(Phase 2 Rollout Complete)
System Changes
No changes No changesPrice file format, update process
change
Price File Changes
No changes No changes; nickel round removed Price file reflects price without tax
Shelf Tag
Final price only is listed Pre-tax price, final price listed Pre-tax price only is listed
Where Tax is Calculated
Sales, other applicable taxes included in the bottle price
Sales, other applicable taxes included in the bottle price
Sales, other applicable taxes calculated at the register
What’s on the Receipt
Customers see only final price w tax included
Customers see only final price w tax included
Customers see subtotal, taxes, final price
What the
Customer Pays
$16.95 $16.91 $16.91
New LMP Website: liqagency.com.ohio.gov/LMP2
Weekly Activity Report Email – delivered every Monday afternoon
Enhanced Help Desk:
Resources
Phone
877-812-0013
liquoragencyhelp@com.state.oh.us