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Mitigating Margin Risk Through Supply Chain - Online Event
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5/29/2013 1 Mitigating Margin Risk Through Supply Chain Performance – Panel Discussion Camille Fratanduono, AVP, Pricing & Replenishment, Pep Boys Greg Holder, CEO, Compliance Networks Rick Schart, VP of Supply Chain, Stein Mart Richard Wilhjelm, VP, Sales & Business Development, Compliance Networks May 19, 2013 Today’s Panel Camille Fratanduono, Asst. VP, Pricing & Replenishment, Pep Boys, Inc. Greg Holder, Former Retailer, CEO, Compliance Networks, Inc. Rick Schart, VP of Supply Chain, Stein Mart, Inc. May 21, 2013 Page 2 Margin Risk -Overview From a retail perspective, defined as the potential permanent loss of margin due to both internal and external performance related events Margin, Like Product has a Shelf Life Seasonal Promotional Competitive Supply Chain Opportunity –Margin Contributor vs. Cost Center May 21, 2013 Page 3 Who is Stein Mart? May 21, 2013 Page 4 Stein Mart is a national retailer offering the fashion merchandise, service and presentation of a better department or specialty store, at prices competitive with off-price retail chains Founded in 1908 as a single store in Greenville, MS 263 stores in 29 states Headquarters -Jacksonville, Florida Sales = $1.2 Billion Stein Mart Supply Chain Transformation Using data and reporting to support the Company by: Providing visibility to PO status from vendor shipment to store delivery including: • Status of vendor POS ticket orders • Special Hot log for tracking advertised goods • Special reports tracking receipts for new stores Tracking timeliness and accuracy of vendor shipments Tracking vendor compliance with EDI and floor ready requirements including: • ASN [856] –utilization and accuracy • GS1-128 Carton Labels • POS ticketing • Hanger requirements This data allows us to insure goods hit our sales floor as planned. May 21, 2013 Page 5 Who is Pep Boys? May 21, 2013 745+ locations located in 35 states and Puerto Rico $2.0+ Billion in Revenues Ecommerce enabled –ship to store & ship to home Online service appointment capable through e-SERVE Leading Automotive aftermarket retail and service chain comprised of 3 major lines of business; Service, Retail and Commercial (B2B) Page 6
Transcript of Mitigating Margin Risk Through Supply Chain - Online Event
5/29/2013
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Mitigating Margin Risk Through Supply Chain
Performance – Panel Discussion
� Camille Fratanduono, AVP, Pricing & Replenishment, Pep Boys� Greg Holder, CEO, Compliance Networks� Rick Schart, VP of Supply Chain, Stein Mart� Richard Wilhjelm, VP, Sales & Business Development, Compliance Networks
May 19, 2013
Today’s Panel
� Camille Fratanduono, Asst. VP, Pricing & Replenishment, Pep
Boys, Inc.
� Greg Holder, Former Retailer, CEO, Compliance Networks, Inc.
� Rick Schart, VP of Supply Chain, Stein Mart, Inc.
May 21, 2013 Page 2
Margin Risk - Overview
� From a retail perspective, defined as the potential permanent
loss of margin due to both internal and external performance
related events
� Margin, Like Product has a Shelf Life
�Seasonal
�Promotional
�Competitive
� Supply Chain Opportunity – Margin Contributor vs. Cost
Center
May 21, 2013 Page 3
Who is Stein Mart?
May 21, 2013 Page 4
Stein Mart is a national retailer offering the fashion merchandise, service and presentation of a better department or specialty store, at prices competitive with off-price retail chains
� Founded in 1908 as a single store in Greenville, MS
� 263 stores in 29 states
� Headquarters - Jacksonville, Florida
� Sales = $1.2 Billion
Stein Mart Supply Chain Transformation
Using data and reporting to support the Company by:
� Providing visibility to PO status from vendor shipment to store delivery including:
• Status of vendor POS ticket orders
• Special Hot log for tracking advertised goods
• Special reports tracking receipts for new stores
� Tracking timeliness and accuracy of vendor shipments
� Tracking vendor compliance with EDI and floor ready requirements including:
• ASN [856] – utilization and accuracy
• GS1-128 Carton Labels
• POS ticketing
• Hanger requirements
This data allows us to insure goods hit our sales floor as planned.
May 21, 2013 Page 5
Who is Pep Boys?
May 21, 2013
�745+ locations located in 35 states and Puerto Rico
�$2.0+ Billion in Revenues
�Ecommerce enabled – ship to store & ship to home
�Online service appointment capable through e-SERVE
Leading Automotive aftermarket retail and service chain comprised of 3 major lines of business; Service, Retail and Commercial (B2B)
Page 6
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Industry Perspective – What Retailers are saying…
May 21, 2013
�Concerned about margin risk they can control both directly and indirectly
�Want the Right Product, the Right Quantity at the Right Time.
�Most Vendor Requirements Documents Include:
� Statements and Rules addressing On-Time and Complete
� Focus on eliminating or reducing problem shipments
� Importance of accurate ASNs and Invoices
� Reducing value-added tasks in the DC
�Perfecting Omni-Channel Initiatives
�Concerned about Out of Stocks situations
The Perfect Order Index – Good place to start�On-Time
�Complete
�Damage Free
�Accurate Documentation
�Received On-Time at DC
�Unit Fill Rate
�Trouble Free
�Accurate ASN
Perfect Order Index Study – 2008 Whitepaper
May 21, 2013 Page 8
%
Damage
Free*
% Correct Docs
(ASN)POI
Units Lines Orders Units Lines Orders Unit Order
Average of Sample 60.7% 41.7% 51.1% 90.5% 76.2% 59.9% 100.0% 88.8% 27.2%
Best Practice Average for Sample
(Avg of the top 20%)79.2% 71.3% 76.7% 96.2% 80.6% 87.5% 100.0% 99.4% 66.8%
Best Vendor Results 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Best Retailer Results 64.1% 58.4% 62.3% 87.6% 46.5% 58.6% 100.0% 100.0% 36.5%
Best overall Retailer Results 64.1% 65.6% 62.3% 96.9% 89.3% 63.4% 100.0% 100.0% 36.5%
Perfect Vendors in each category 260 80 490 1,247 229 513 511 149
% On Time Delivery % Complete
* Data for damage f ree orders w as not readiy avaiable so everyone w as credited w ith 100% compliance.
Data in table basd on study and w hitepaper: Benchmarking the Perfect Order
Sample Calculation % On Time
Delivery
% Complete % Damage
Free
% Correct
Docs
POI %
Performance 95% 95% 95% 95% 81%
May 21, 2013 Page 9
ASN Accuracy Study - 2012
May 21, 2013 Page 10
Credit for Benchmarking the Perfect Order:
RVCF
Supply Chain Visions
Georgia Southern University
Compliance Networks
http://www.compliancenetworks.com/jdownloads/2008_perfect_order_index_study.pdf
Credit for Facilitating Supply Chain Visibility & Accuracy:
RVCF
University of Auburn
Compliance Networks
http://www.compliancenetworks.com/jdownloads/Downloads/asn_study_final_report_2011.pdf
Question # 1
How Do You Share Supply Chain Data with your Merchandising
Teams and what are the results?
May 21, 2013 Page 11
Question # 2
Do You Manage Promotional Orders Differently than Regular
Orders? What are the opportunities
May 21, 2013 Page 12
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Question # 3
How do Supply Chain Challenges put Margin at Risk and how do
you Utilize Information to Measure the Impact?
May 21, 2013 Page 13
Audience Questions
May 21, 2013 Page 14
Summary – Key Takeaways
� Camille Fratanduono – “In Stock is no longer a Nice to Have,
it’s a Must Have. Supply Chain Visibility is Critical!”
� Greg Holder – “Merchants don’t need to understand
Logistics, they do need to understand the impact of their
supply chain failures to sales and margins.”
� Rick Schart – “Velocity of Data is as Important as the Velocity
of Merchandise.”
� Richard Wilhjelm – “Irrespective of industry, the party who
brings the best information to the table, wins.”
May 21, 2013 Page 15
Contact Information
� Camille Fratanduono – [email protected]
� Greg Holder – [email protected]
� Rick Schart – [email protected]
� Richard Wilhjelm – [email protected]
May 21, 2013 Page 16
