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Maximizing Shelf Life: Key Strategies to Prevent Product Expiry

Uncover the strategies to extend shelf life, reduce product expiry, and boost sales. Learn from industry experts about the issue's size, complexity, and practical recommendations for success. Presented by GENCO ATC on July 20, 2011.

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Maximizing Shelf Life: Key Strategies to Prevent Product Expiry

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  1. “Winning the Expired Products Battle” Ensuring Adequate Remaining Shelf Life to Maximize Sell Through and Avoid Product Expiry – the Keys to Success Presented by GENCO ATC July 20,2011

  2. Topics for Today’s Discussion • Size of the Issue • Complexity • Recommendations • Panel Discussion

  3. The Issue

  4. The Issue “Outdated items at XXXXXXXX upsets customers” Chicago Tribune “Expired Food—Is It on Your Grocer’s Shelves?” Shelf Life Advice “On Your Side: Expired food for sale” ABC Channel 7 News “Expired groceries sold at Hampton Roads grocery stores” ABC Channel 13 News

  5. The Issue

  6. The Size of the Issue • 2008 FMI/GMA Unsaleables Report – 20% of Total Unsaleables • 2010 Discussions with Retailers – 35% of Total Unsaleables • $3 - $5 Billion

  7. The Complexity of the Issue • 21 Factors Identified that Affect Delivery of Sufficient Shelf Life at Shipment • Collaboration is a Key Element for Success • Ultimate Goal is to Delight the Consumer

  8. The Complexity of the Issue

  9. The Complexity of the Issue

  10. The Manufacturer’s View R&D and Quality Want minimum days Demand Planning / Distribution Sales Want customer requirements Want maximum days Plants Want maximum days

  11. The Retailer/Wholesaler’s View Manufacturer Want minimum guaranteed days Distribution Centers Retail Stores Want maximum days Want maximum days Consumer Want maximum days

  12. Recommendations for Joint Adoption • Understand the Challenges • Collaborate with Trading Partners • Rationalized Stock Assortment • Speak a Common Language • Embrace and Commit to Continuous Improvement • Top Management Sponsorship and Commitment

  13. Recommendations for Joint Adoption • Speak a Common Language MCRSL > [A x (B+C)] + D MCRSL – Minimum Customer Remaining Shelf Life (days) A – Safety Factor (whole number based on category experience) B – Average Retail Sales Velocity (days) C – Warehouse Inventory (days of supply) D – Consumer Pantry Life (days)

  14. Recommendations for Manufacturer Adoption • Create a “Customer Remaining Shelf Life” Internal Team to Manage the Process • Audit Performance • Continually Improve the Process and Adjust Standards • Incorporate Sales Considerations into the Process

  15. Recommendations for Retailer/Wholesaler Adoption • Work with Manufacturers to Establish Achievable Standards and Continually Improve the Process and Adjust Standards • Request Open Lot Codes • Manage Inventory to Consumption • Incorporate ASN Technology for Inbound Shipments • Incorporate the Ability to Capture Expiration Dates into the WMS • Monitor Operations Processes for Improvement Opportunities

  16. Panel Discussion • Oscar Fussenegger, Corporate Reclamation Manager, The Kroger Company • Don LaChance, Senior Director, Inbound Quality Logistics & Reclamation, C&S Wholesale Grocers • Gary Piwko, Director, Remarketing and Returns, The Kellogg Company • JaceSwartzendruber, Unsaleables Manager, Supply Chain, ConAgra Foods • George Thrower, Manager of Unsaleables, Harris Teeter

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