DSD – The Challenges and Benefits of DSD Delivery for Retailers and Suppliers

Moderator, Marc Hubbard, VP US Client Services, Advantage Group International, mhubbard@adavntagegroup.com

Today’s Objectives

• Learn what retailers say their highest priorities are.

• What some of the best in class behaviors and traits of DSD suppliers are.

• The panel of experts will discuss the opportunities and challenges in managing a successful DSD business.

Your Panel

• Moderator: Marc Hubbard – US Country Manager, The Advantage Group International, mhubbard@advantagegroup.com

• Panelist: Paul Avampato – VP Operations and Supply Chain, Mondelēz International

• Panelist: Sanjeev Gokhale – Group Director, Customer Supply Chain, The Coca-Cola Co

• Panelist: Brian Sikkema – Divisional Vice President, Merchandise Planning/Inventory Management, Meijer, Inc.

Retailers Top DSD Priorities

• Effectively communicates with key store personnel and lives up to commitments

• Links programs to reinforce important store themes and holiday events

• Meets needs for space management through plan-o-grams, shelf analysis

• Makes selling recommendations that benefit total store sales

• Manages inventory levels for minimal out-of-stocks

• Provides timely peak period replenishment

Source 2016 Advantage Report™ USA

Retailers Top DSD Priorities

50 55 60 65 70 75 80 85

Links programs to reinforce important store themes andholiday events

Makes selling recommendations that benefit total storesales

Meets needs for space management through plan-o-grams, shelf analysis

Effectively communicates with key store personnel andlives up to commitments

Provides timely peak period replenishment

Manages inventory levels for minimal out-of-stocks

Importance to the Retailer

Importance to the Retailer

Source 2016 Advantage Report™ USA

0 = unimportant, 100 = Critical

Retailers Top DSD Priorities

50 55 60 65 70 75 80 85

Provides timely peak period replenishment

Manages inventory levels for minimal out-of-stocks

2016 2015 2014

Source 2014 - 2016 Advantage Report™ USA

0 = unimportant, 100 = Critical

What does Best-in-Class look like? Manages inventory levels for minimal out-of-stocks

• “…they have still done a good job of ensuring in-

stock conditions, especially during an extreme sales week, such as holidays”

• “…they will come back in to ensure we are serviced later in the day if it is going to be a high-volume category. They treat us very well and the benefit is customer satisfaction and greater sales.”

Source 2014 - 2016 Advantage Report™ USA

What does Best-in-Class look like?

Provides timely peak period replenishment

• “On a big weekend, we can call merchandising about getting some extra displays in and Supplier X is always willing and available to help us position for incremental sales.”

Source 2014 - 2016 Advantage Report™ USA

Brian Sikkema - Meijer

What is the biggest challenge you face with DSD suppliers?

Paul Avampato – Mondelez, Sanjeev Gokale – Coca-Cola

What is your biggest challenge in servicing a Retailer?

All

What do you see as the benefits of a DSD model vs. warehouse?

All

Please share an example of how you worked with your trading partner to improve the business which others should replicate?

Paul Avampato – Mondelez, Sanjeev Gokale – Coca-Cola

What is the one thing you would like Retailers to do more of that you believe would help you and the retailer grow the business faster?

Brian Sikkema - Meijer

What is the one thing you would like suppliers to do more of that you believe would help you and the supplier grow the business faster?

All

Audience Questions

Your Panel

• Moderator: Marc Hubbard – US Country Manager, The Advantage Group International, mhubbard@advantagegroup.com

• Panelist: Paul Avampato – VP Operations and Supply Chain, Mondelēz International

• Panelist: Sanjeev Gokhale – Group Director, Customer Supply Chain, The Coca-Cola Co

• Panelist: Brian Sikkema – Divisional Vice President, Merchandise Planning/Inventory Management, Meijer, Inc.

DSD – The Challenges and Benefits of DSD Delivery

for Retailers and Suppliers