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Georges Le Nigen, Retail Solutions

Georges Le Nigen, Retail Solutions. Powering Retail Execution Management. Grow sales with ePOS data-powered collaboration. October 12 th , 2012 Praesidium Edition. Agenda. Where to find key opportunities What are the main barriers and how to overcome them

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Georges Le Nigen, Retail Solutions

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  1. Georges Le Nigen, Retail Solutions Powering Retail Execution Management Grow sales with ePOS data-powered collaboration October 12th, 2012 Praesidium Edition

  2. Agenda • Where to find key opportunities • What are the main barriers and how to overcome them • Think Big ! Program vs. Pilot • Next Steps for Success

  3. Observation #1: The End-to-End Supply Chain is Silo’ed and Not Fully Equipped Supplier DC Retailer DC Store Shelf Shopper Consumer DC Production Supply Chain Sales Marketing BlackBox • ENTERPRISE-LEVEL SOLUTIONS • ERP • Supply Chain Management • Supply Chain Execution • Syndicated data • TPM/TPO • Shopper Insights • Predictive analytics • Space planning • Spreadsheets

  4. Observation #2: There is a Huge Value Potential to be Captured at the Store Level 2010-… Focus 1990-2010 Focus 1990-2010 Focus TheBlack Box Shopper Consumer Supplier DC Retailer DC Store Shelf CPG Forecasting Error: 45% Promotion Missing their Targets: 40% Promotion Display Non Compliance: 35% NPI Failure Rate: 70-80% OOS: 8% (Promotions: 16%)

  5. The Key Principles of Value ChainCompetitive Differentiation

  6. A leader in Retail Execution

  7. 500 Customers Some of our Customers

  8. Club Stores Our Retailer Coverage Drug Grocery Europe Home Improvement (France, Int’l) (Belgium) (Italy) (France, Italy,Belgium, Int’l) (UK) Mass Stores (UK) Other (Int’l)

  9. ePOS-based collaboration with EU retailers

  10. A global presence

  11. Translating Epos Data into Value Opportunity Key Levers Solutions • Out-of-Stocks (Phantom, Shelf, D-voids) • Item Distribution • Promotion Effectiveness • Retail Intelligence • Retail Visibility • Intelligent Zero Scans • On-Shelf Management +3.5%per $1bn in revenue Revenue +2-5% - -5% Inventory -5% • Forecasting accuracy (safety stock impact) • POS-Based Forecasting +1.8% Margin • Unsaleables and markdowns • Promotion pricing +1-2% • Retail Intelligence • Retail Visibility

  12. 200+ business cases demonstrating value creation

  13. ROI is proven in Europe

  14. Opportunity is proven… …So why not all retailers are sharing Epos data with all suppliers ?

  15. Whatcould block Czech retailers to sharedata?

  16. Datasharing:The three pillars of success

  17. Barriers to Overcome Complexity of reports Reliability of forecasting models Suppliers vs. Retailers Poor quality Granularity Number of stores covered

  18. The top 5 collaboration roadblocks RETAILERS SUPPLIERS “If suppliers want data, they have to pay for it” “I do not want suppliers to challenge the execution of my stores” “Suppliers will use the data to sell more stocks to me” “ I do not want to be overwhelmed by hundreds of suppliers sending reports and alerts” “My priority is private label” “No resources” “I do not believe in retailer data” “I do not want to pay to measure store execution (I have already a sales force for that)” “This is a supply chain subject” “Even if I send reports/alerts to my customers, nobody will take action- stores don’t care”

  19. Retailer objections : How to overcome them

  20. Supplier objections : How to overcome them

  21. Key factors of success PROGRAM, NOT PILOTS METHODOLOGY Most Successful companies have a full OSA program Identify Opportunity Get commitment from top exec Define Processes Choose Partner Measure and correct GOVERNANCE

  22. POS-based collaboration: Building Process Guidelines Example

  23. OSA 2.0 Retailer specific processes

  24. Today s Best Practice:A Demand-Centric Organization HQSales DemandPlanning/Forecasting FieldSales/OSA Commercial Real-time, GranularCustomerData SC/Ops Marketing Replenishment TradePromotions InventoryManagement CategoryManagement

  25. Organization:Building the Right Sponsorship • Typical functions: • President of sales • SVP, Supply Chain Functional reporting to the sponsor May be a different function per team, depending on priorities

  26. Organization:Key Resource – Program Management Office • Program Management Office • Profile and Experience • Both supply chain and commercial experience • Director- (preferred) or Senior Manager-level • Innovative and strong-minded – natural-born sales person, good communicator • Goals and Objectives • “Sell” the initiative locally • Support on-boarding • Set up and implement training structure – corporate and local • Create best practice identification mechanisms – at the corporate level • Identify and convince new retailers • Communicate results (both upwards and transversally) • Reward Mechanisms • Number of teams rolled out • Process adoption maturity within countries • Project ROI

  27. EPos Data Quality ManagementWhy do businesses need an expert ? • Across over 60 retailers, including 70% of the top US, UK, Europe retailers • Over 600 rules to ensure data integrity • 70 data quality experts 3-year history at the day-store-SKU level, data resets Store- and item-attributes, internaldata series… • Full harmonization across retailers, against supplier calendars, data hierarchies

  28. A single source of data, many applications How would you use datasharing with your customers ?

  29. Examples

  30. How Do We Get There?

  31. OSA 2.0 The RSI 3D Process for Success™

  32. Size of the Prize: Top 10 Key Use Cases that Drive ROI • Promotional Store Allocations(out-of-stocks, revenues) • Intelligent Zero Scans(out-of-stocks, revenues) • New Product Introductions(revenues, ACV%) • Distribution Voids & Gaps(out-of-stocks, revenues) • POS-based Forecasting(inventory, out-of-stocks) • Promotion Design / Selection(revenues, margin) • Run Down Management(markdown $, margin) • Micro-Assortment Planning(revenues) • Expanding Points of Distribution(revenues) • Unsaleables Reduction(reclaim%, margin)

  33. OSA 2.0 New Product Introduction

  34. Retail IntelligencePromotion Analysis: Price Elasticity Analysis

  35. Promotion Analysis – Index Map

  36. Drill down- at postal code level

  37. OSA 2.0 Promotion Analysis

  38. Next Steps • Measure Sales Growth Opportunity • Promo, New Products, Distribution… • Get Commitment from Top management • Define process of collaboration • Choose best partner for data+technology+support • Measure results, fine tune systems and processes

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