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2010 eoStar User Forum – MillerCoors Update August 12, 2010

2010 eoStar User Forum – MillerCoors Update August 12, 2010. Agenda. Intro to Commercial Connect Distributor/Retailer Team Strategic RAS Vendors and DTSC RIO POSCONNECTION

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2010 eoStar User Forum – MillerCoors Update August 12, 2010

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  1. 2010 eoStar User Forum – MillerCoors UpdateAugust 12, 2010

  2. Agenda • Intro to Commercial Connect Distributor/Retailer Team • Strategic RAS Vendors and DTSC • RIO • POSCONNECTION • For any POSConnection order or invoice related questions, please contact MCX Customer Service (800-313-6834, option 4). • DRIVE • MCDEM - MillerCoors Data Exchange Model • Prescient – Walmart • Wrap Up and Questions

  3. Commercial Connect Distributor/Retailer IT Team

  4. Market Solution Specialist – Region Partnership AK WA ND MT MN OR WI SD MI ID Randy Stanford Market Solution Specialist stanford.randy@MillerCoors.com 414-931-2774 WY IA NE OH IN IL UT NV CO KS MO KY CA HI OK AR AZ MS LA ME VT NH John Shaf Market Solution Specialist shaf.john@MillerCoors.com 414-467-5018 MA NY CT RI PA NJ Metro NY DE MD NM WV VA NC TX TN SC AL GA FL

  5. Strategic RAS • Commercial Connect brings a unique combination of deep business knowledge, project management, leadership and a highly competitive drive to lead the delivery of market driven business solutions and enable execution excellence. • To win/grow in the market place, we focus our partnership efforts and align our goals to the objectives of the MillerCoors Commercial Organization (Sales & Marketing), Distributors and Retailers, designing strategies to improve business processes and deliver sustainable growth. Commercial Connect then leads the development of these strategies.

  6. IT Innovation Innovation of the First Kind Innovation of the Second Kind Innovation of the Third Kind Business People Identify a Business Issue – IT Delivers an Innovative IT Solution IT People Identify an IT Issue – IT Delivers an Innovative IT Solution IT People Identify a Business Issue – IT Delivers an Innovative IT Solution

  7. Strategic RAS • RAS Vendor has the following characteristics: • High level of customer service • Scored high on evaluation • Strong company values • Corporate strategy is visible and viable • Strong support model for distributors • Significant customer base • Ease of integration • Strong support of MillerCoors initiatives • Commitment to Beer Industry • Strong core RAS functions • MillerCoors Commits to the following at this Tier Level: • Shares relevant Distributor IT Strategy with vendor first • Co-development and some funding on joint projects • Distributor customers receive new technology first • Communication of endorsement to MillerCoors Network and on-going commitment to endorsement while vendor remains in good standing • Rutherford(eoStar) • VIP Vermont • Insight • Encompass

  8. MillerCoors Distributor Technology Subcommittee

  9. RIO DTSC Tracker VIP Certification Tracker

  10. DRIVE Overview DRIVE is the new MillerCoors ordering tool that provides Distributors with ONE system for forecasting, ordering beer and managing inventory. DRIVE will simplify the management of complex portfolios. It has been designed for distributor ease-of-use and flexibility in viewing information. NEW CAPABILITIES One Ordering Horizon Management by Exception Forecast Collaboration Inventory Collaboration Suggest, Order, Confirm

  11. DRIVE Pilot • DRIVE Pilot: • Piloting with 14 distributors Q4 2010 • Pilot focused on POINT to DRIVE only

  12. DRIVE RAS Integration • Pilot (Release 1) Capabilities: • Weekly forecast upload • Orders download (suggest/order/confirm) • Shipments download (planned and actual) • Arrivals upload • Functionality: • Manually initiated via DRIVE upload/download link • Future release will include automated exchange via GXS • Status: • File specifications (xml files) developed and sent to major RAS vendors • Received commitment from major vendors to deliver to our specifications • DRIVE file upload/download development complete • Testing underway with first RAS vendor • Eostar interface development to be completed by end of August

  13. MCDEM 2010 Scope MillerCoors will continually evaluate business processes between itself and external business partners to reduce the amount of manual steps to complete tasks; electronic data exchange provides opportunities to simplify business processes. MillerCoors will leverage its leadership position to partner with distributors and priority retailers to develop and/or guide their data exchange strategies to employ best practice supply chain and DSD operational activities. Item Data Sync will not be started in 2010. Item Data Sync involves synchronizing MillerCoors item information (UPC, Description, Category, Weight, Dimensions, etc.) with retailers and distributors. Item Data Sync will allow MillerCoors to speed product introductions and maintain consistency of item information throughout the 3-tier network. The first step to successfully synchronize our item information is to have 100% accurate item master data information, which will happen in 2011. Retailer Data Exchange will continue beyond 2010. The project is focused on developing scalability to satisfy BOY 2010 requirements and beyond. The 2011 project will better handle the increased demand in retailer data exchange and have the ability to deliver priority retailer efforts in condensed periods with dedicated resources. Future Chain Price will continue in 2010 as a proof-of-concept. The successful work thus far in 2010 will continue with a focus on verifying the ability of RAS vendors to send distributor pricing information electronically. Retailer Scan Data will develop a data warehouse for retailer point-of-sale (scan) data. The effort started in 2010 with a proof-of-concept, working with HEB. Retailer scan data will be used to improve retail execution through: reducing out-of-stocks, post-event analysis, price elasticity modeling and better alignment between service and consumer demand. This is a critical step to building sustainable growth.

  14. MillerCoors Data Exchange Model – Capability Glide Path 2010 B U S I N E S S C A P A B I L I T I E S Retailer Scan Data Distributor Feeds Systematic Register of Item Information to 1Sync Publish Item Information to Distributors & Retailers Integrate Supply Chain & Billing Data to Distributors Extend Future Chain Price Pull MillerCoors PTRs in New / Extend Retailer EDI Solutions Pilot Future Chain Price Non-EDI Retailer Pilot Retailer Scan Data OOS & Ad-hoc Queries Pilot Future Chain Price EDI Retailer Retailer Scan Data Link to Distributor STRs Enable 100% of Distributor Network 2010 

  15. Current State - Data Exchange with Retailers • ~ 35 retailers are exchanging information with MillerCoors distributors using the MCDEM. • The MillerCoors UFF is a key factor in the success of this program. • The UFF provides: • Standard file format for RAS vendors • Flexibility for retailer map specs • Single map deployment network coverage Many Large & Small Technically Savvy & Not Purchase Orders, EFT remittances Distributors UFF Purchase Orders, EFT remittances Many Large & Small On & Off Premise Retailers Pre-delivery, Invoice, ASN, EDI Price File

  16. Start of 2010 Retailer Data Exchange Solutions 16

  17. Start of 2010 Retailer Data Exchange Solutions 17

  18. Completed New Retailer Data Exchange Solutions (6/30) 18

  19. In-Flight/Planned Retailer Data Exchange Solutions 19

  20. Current eoStar Customer EDI Activity 20

  21. Current eoStar Customer EDI Activity 21

  22. Future Chain Price Accomplishments: • Currently in production with at least one distributor with Kroger, Dollar General, Fast Trip, Darden and Raley’s. Focus Areas: • EDI solution with Winn Dixie • Piloting with Schenck or JJ Taylor by end of August • PPP UFF interface software should support: • Create Looping Structure Scenario 2 or at least 4 • Create Outlet Group Codes • Create a promotion number / deal number and the ability to use those numbers to send through changes and deletions • Distinguish between case and bottle for same product, when both are valid configurations for a retailer (i.e. Split Case) • Send a PPP UFF for all future prices for all products, designating which prices/promotions are: • New, Changed, Deleted, Canceled, Unchanged • Only send prices for those products authorized for that retailer, that store • Calculate “Net Price Without QD Discount”

  23. Walmart Prescient Pricing Solution (Progress YTD) Accomplishments: • Prescient firewall enhancement went live 6/15. • Distributors now have the ability to control the timing of package swaps/substitutions • Replaced the manual process of notifying the MillerCoors Walmart Team • Ability to request the de-authorization of a particular package, pending the approval of the MillerCoors Walmart Team Focus Areas: • Extend the Prescient Walmart pricing solution to remaining distributors (Miller only houses and affiliates) • Currently negotiating a new contract with Park City Group (Prescient) Contacts: • Daryl Andresen, Business Partner, 770 289-2836, Daryl.Andresen@millercoors.com • Chris Shepherd, Pricing Coordinator, 479 657-7461, Chris.Shepherd@millercoors.com

  24. RECAP and Questions Questions ?

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