Eva alcaide. auchan
23
© ECR France 2010 /23 Wednesday 2d of June 2010 On-Shelf Availability Eva ALCAIDE, B2B Manager, AUCHAN International (Group), Co-chair of the French OSA working group The concept of OSA has been introduced through Europe by ECR France. Listen to the OSA insights from the Global Leaders. On-Shelf Availability in Russia is the lowest in Europe. Some say this is a problem - we say it's an opportunity. 20% Out-of-stocks = additional 6% to annual sales! During the session we will share the best practices on OOS reduction and cases with leading retailers
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Transcript of Eva alcaide. auchan
© ECR France 2010
/23
Wednesday 2d of June 2010
On-Shelf AvailabilityEva ALCAIDE,
B2B Manager, AUCHAN International (Group),Co-chair of the French OSA working group
The concept of OSA has been introduced through Europe by ECR France.
Listen to the OSA insights from the Global Leaders. On-Shelf Availability in Russia is the lowest in Europe. Some say this is a problem - we say it's an opportunity.
20% Out-of-stocks = additional 6% to annual sales! During the session we will share the best practices on OOS reduction and cases with leading retailers
© ECR France 2010
/23
Sharing ECR France experience on OSA
The 3 mains principles of OSA Working Group in ECR France?
Measurement Actions to improve Shelf
Availability
© ECR France 2010
/23 The 3 mains principles of OSA Working Group in ECR
France Why is it an ECR Working
Group ?
What do we need to work on OSA in ECR ?
A joint continuous improvement process work on OSA ?
© 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
« A product is considered as out of stock in one store when a consumer cannot buy it because it is not there, although the product is usually available on the shelves of this store »
Not included : theoretical assortments / negotiated , non availability of a (new) product at a POS despite having been advertised. …
© ECR France 2010
/23A joint continuous improvement
process to work on OSA ?
Alert
Stakes evaluation
Ranking
Root causes investigation
Corrective actions identification
Implementation
ResultsResults
Measurement
Action
© ECR France 2010
/23
Measurement
Detailed sales information to build the measurement tool
On the largest perimeter
To provide a tool that we can share between Retailers & Manufacturers
Examples of Dashboard
© ECR France 2010
/23Detailed sales to build the
measurement tool
Daily rate complete stock-outs (DRCS) : 1/ 6 = 17%
Daily rate partial stock-outs (DRPS) : 2/ 6 = 33%
Mon. Tues. Wed. Thurs. Fri. Saturday
Zero sales
Abnormally low sales for a Tuesday
Abnormally low sales for a Saturday
Lost sales: usual sales (€) - real sales (€)
© ECR France 2010
/23
On the largest perimeter
Based on daily POS data automatically collected by IRI France
All the French hypermarkets (1 692 stores) members of ECR France– Auchan, Carrefour, Carrefour Market, Cora, Géant,
Intermarché, Leclerc, Système U, Monoprix, …
61 categories in 10 departments
Number of products followed: the 20/80 of each category with minimum rotation level 3 887 consumer references
Frequency of deliveries
– summer (June - August)– fall (September – November)– winter (December - February)– spring (March – May)
© ECR France 2010
/23 To provide a tool that we can share between Retailers &
ManufacturersTool characteristicsSpecifications
Undisputable
• No human intervention• No interpretation• Based on store data
Continuous Based on daily data : consumer point of view
Shared Use by retailer and manufacturerRun by a third party, neutrality
Bottom-up Everything aggregated from store data
Exhaustive Every store, every item
© ECR France 2010
/23
Examples of Dashboard (1/6)Global Stakes in €
December-February 2010
% stakes in complete OOS % stakes in partial OOS
© ECR France 2010
/23
December-February 2010
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 December-February 2010
© ECR France 2010
/23Examples of Dashboard (4/6) Global stakes in € by Category
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%
December-February 2010
© ECR France 2010
/23
Examples of Dashboard (5/6)Complete & Partial OOS by Category
December-February 2010
60 cate
gories
Salty g
roce
ry
Sweet Gro
cery
Soft drin
ks &
waterSpiri
tBeer
Body Care
Deterg
ent
Dairies
Fresh
pro
ducts
without m
ilk
Froze
n & ic
e cream
© ECR France 2010
/23
Examples of Dashboard (6/6)Dispersion by Category
© ECR France 2010
/23 Actions to improve the Shelf Availability
What has been achieved: – Root Causes & Decision Tree have been
identified – People involved in OOS
Learning Next steps:
– Main sources of Out-Of-Stock in the Supply Chain
– An “OOS one page document” for everyone
© ECR France 2010
/23 What has been achieved:Root Causes & Decision Tree have
been identified
(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
•No
• No
•Yes
•Yes
•Yes
Failing PCB …
© ECR France 2010
/23
What has been achieved: People involved in OOS
RETAILER side
Marketing / Category manager• Marketing data, panels’ information
Buyer• RDC / suppliers service level
Consumer service • Customer complains / mail
RDC manager• RDC inventory cover• POS service level vs. POS orders
POS Manager• Turnover / department / month
Department manager• Shelf store checks• Defects in the supply automatic system• POS inventory cover• POS data / turnover analysis• Shopper complains
MANUFACTURER side
Marketing • Weekly average sales, panels’ information
Key Account• Service level analysis• Exception analysis / sales forecasts
Supply Chain• OOS analysis via CMI• Service level to RDC
Customer service• Variance delivered / ordered• Variance ordered / forecasted• Commercial disputes analysis• Production information• Outside events analysis
Sales reps• Store checks
Head office
Distribution center
POS
•PANELISTS / THIRD PARTIES• POS data analysis WAS per reference on sample• Store Checks, …
© ECR France 2010
/23
Learning
The measurement tool is a solid basis
Retailer – Manufacturer couples: it works but needs to be maintained
No impact on the global result: roll-out
Complexity to involve everybody Need to build a “toolkit” with simple
and easy to use “tools”
© ECR France 2010
/23
POINT OF SALE RESOURCES- Human resources planning - Management tools
PROMOTIONS - Forecasting and commitments- Switch standard / promotions
MERCHANDISING- Sales / shelf capacity / Packaging- Shelf replenishment frequency- Back room
Downstream Transport
RDC
Upstream Transport
MDC
MDC picking
PRODUCTS AVAILABILITY- Sales forecast accuracy- Quality- Production- Raw materials and packaging
Production
Next steps: Main sources of Out-of-Stocks in the
supply chain
RDC picking Store
© ECR France 2010
/23 Next steps: An “OOS one page document” for
everyone
In progress in the ECR France
Working Group
© ECR France 2010
/23
Thank you for your attention
www.ecr-france.org
www.ecr-all.org
