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The Right Tools + The Right Team = Reduced Unsaleables

This presentation by Nestle USA and Rite Aid Corporation discusses the components of collaboration, the importance of remaining shelf life, detailed unsaleables data, SKU rationalization, improved store assortment planning, effective inventory management, item discontinuations, lessons learned, and recommendations. It also covers topics such as detailed data reporting, SKU results, reviewing performance as a team, improved store assortment planning, effective inventory management, dealing with item discontinuations, and quarterly meetings to review standardized reports. Collaboration and data-driven decision making are emphasized.

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The Right Tools + The Right Team = Reduced Unsaleables

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  1. The Right Tools + The Right Team = Reduced Unsaleables Presented by: Rob Shifter, Nestlé USA, Inc. Jessica Bryner, Rite Aid Corporation

  2. Overview • Components of Collaboration • Sufficient remaining shelf life • Detailed unsaleables data • SKU rationalization • Improved store assortment planning • Effective inventory management • Item discontinuations • The Fruit of Our Labor • Lessons Learned & Recommendations

  3. Remaining Shelf Life In most cases, newer is better. • Internal initiative at Nestle

  4. Detailed Data Without a map, you might be running in the wrong direction. • Reporting capabilities • Monthly updates • High level tracking by category • Trend results • Detailed SKU results by a specific retail store

  5. SKU Rationilization Sometimes, things don’t work out like you planned. • Review performance as a team • Determine the underlying issues causing high unsaleables • Take the appropriate actions to remove poor performing items from distribution

  6. Improved Store Assortment Planning Don’t use an axe when a scalpel will do the job. • Some items do not need to be discontinued in ALL stores • Store clusters with the right assortment

  7. Effective Inventory Management We expect people to be productive; inventory should be, too. • Inefficient use of company assets • Rite Aid internal initiatives • Markdown optimization tool • Tighter controls on inventory flows to the stores • Improved visibility to current inventory levels

  8. Dealing with Item Discontinuations No self-respecting product wants to end up a banana box. • Where should saleable items go? • Formal store clearance program & phased markdown guidelines help sell-thru • Helps keep food and packaging out of landfills

  9. How It All Works • Quarterly meetings to review standardized reports • Who attends? • Sales representatives • Category management • Inventory planning • Supply chain • What is discussed? • Product assortment • Promotion schedules • Other areas that impact unsaleables

  10. The Fruit of Our Labor

  11. Lessons Learned and Recommedations • Remaining shelf life • Key metric = # of days remaining at time of delivery • Detailed data • Needed to make the best decisions • Collaboration task force • Will ensure that the best decisions will be implemented • Applicable regardless of returns policy

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