scott craig - delhaize america mark lyktey and jason gintert - pepsico warehouse delivered january...
TRANSCRIPT
![Page 1: Scott Craig - Delhaize America Mark Lyktey and Jason Gintert - PepsiCo Warehouse Delivered January 2012 Improve Store In-Stock Rates Reduce Supply Chain](https://reader035.vdocuments.mx/reader035/viewer/2022062712/56649c775503460f9492cd05/html5/thumbnails/1.jpg)
![Page 2: Scott Craig - Delhaize America Mark Lyktey and Jason Gintert - PepsiCo Warehouse Delivered January 2012 Improve Store In-Stock Rates Reduce Supply Chain](https://reader035.vdocuments.mx/reader035/viewer/2022062712/56649c775503460f9492cd05/html5/thumbnails/2.jpg)
Scott Craig - Delhaize AmericaMark Lyktey and Jason Gintert - PepsiCo Warehouse Delivered
January 2012
Improve Store In-Stock Rates
Reduce Supply Chain Costs
Reduce Overall Inventory
Customer Demand Driven Replenishment
![Page 3: Scott Craig - Delhaize America Mark Lyktey and Jason Gintert - PepsiCo Warehouse Delivered January 2012 Improve Store In-Stock Rates Reduce Supply Chain](https://reader035.vdocuments.mx/reader035/viewer/2022062712/56649c775503460f9492cd05/html5/thumbnails/3.jpg)
Agenda
Supply Chain Big Bets
Case Study Defined
POS Impact
Store Inventory Impact
Customer Demand Driven Replenishment
Q2 Inventory Tracking
Year on Year Inventory Tracking
What’s Next
![Page 4: Scott Craig - Delhaize America Mark Lyktey and Jason Gintert - PepsiCo Warehouse Delivered January 2012 Improve Store In-Stock Rates Reduce Supply Chain](https://reader035.vdocuments.mx/reader035/viewer/2022062712/56649c775503460f9492cd05/html5/thumbnails/4.jpg)
4
Supply Chain Big Bets
Customer Demand Driven Replenishment
Business Benefits (Source: Retail Solutions, Inc)
12% To 27% Lower DC Inventory
21% To 77% Decrease In DC Out Of Stocks
20% Decrease In Store Level Out Of Stocks
Delhaize Piloted Program With Another CPG Vendor
Forecast Accuracy Improved By 30%
Met Or Exceeded All Goals
Estimated Inventory Reduction 30%
Predecessor - Rapid Replenishment
Upside Includes Increases In Stock, Reduces Reclaim, Etc.
![Page 5: Scott Craig - Delhaize America Mark Lyktey and Jason Gintert - PepsiCo Warehouse Delivered January 2012 Improve Store In-Stock Rates Reduce Supply Chain](https://reader035.vdocuments.mx/reader035/viewer/2022062712/56649c775503460f9492cd05/html5/thumbnails/5.jpg)
Agenda
Supply Chain Big Bets
Case Study Defined
POS Impact
Store Inventory Impact
Customer Demand Driven Replenishment
Q2 Inventory Tracking
Year on Year Inventory Tracking
Year on Year Inventory Tracking
![Page 6: Scott Craig - Delhaize America Mark Lyktey and Jason Gintert - PepsiCo Warehouse Delivered January 2012 Improve Store In-Stock Rates Reduce Supply Chain](https://reader035.vdocuments.mx/reader035/viewer/2022062712/56649c775503460f9492cd05/html5/thumbnails/6.jpg)
Case Study Defined
Pepsi Plant Pepsi DC Food LionStore
Vendor Managed Inventory (VMI)
Food Lion Warehouse
What is standard VMI:
Reduce Supply Chain Costs by
0.5%
Increase Store In-
Stock Rates by 0.75%
Decrease Food Lion overall
Inventory by 5%
VMI Pilot Goals - Penetrate to Store
PilotUpstream Supply Chain
![Page 7: Scott Craig - Delhaize America Mark Lyktey and Jason Gintert - PepsiCo Warehouse Delivered January 2012 Improve Store In-Stock Rates Reduce Supply Chain](https://reader035.vdocuments.mx/reader035/viewer/2022062712/56649c775503460f9492cd05/html5/thumbnails/7.jpg)
Agenda
Supply Chain Big Bets
Case Study Defined
POS Impact
Store Inventory Impact
Customer Demand Driven Replenishment
Q2 Inventory Tracking
Year on Year Inventory Tracking
What’s Next
![Page 8: Scott Craig - Delhaize America Mark Lyktey and Jason Gintert - PepsiCo Warehouse Delivered January 2012 Improve Store In-Stock Rates Reduce Supply Chain](https://reader035.vdocuments.mx/reader035/viewer/2022062712/56649c775503460f9492cd05/html5/thumbnails/8.jpg)
POS Impact
Pepsi DC Food Lion Store
Customer Replenishment Planning
Food Lion Warehouse
POS identifies trends 3 days faster
Pilot
• POS accelerates customer demand visibility to the manufacturer• Able to react within the promotional period • Provides a better more accurate demand signal that can be leveraged through the Supply
Chain
Store to DC every 2 to 4 days
DC to DC 1 day
Headlines:
![Page 9: Scott Craig - Delhaize America Mark Lyktey and Jason Gintert - PepsiCo Warehouse Delivered January 2012 Improve Store In-Stock Rates Reduce Supply Chain](https://reader035.vdocuments.mx/reader035/viewer/2022062712/56649c775503460f9492cd05/html5/thumbnails/9.jpg)
POS Promotional Sales Growth
Day 1
50%
50%
Day:
Planned Deliver
y
Actual Deliver
y
Day 4 Day 7 Day 10 Day 13 Day 16 Day 19 Total
30%
30%
20%
20%In S
tock
Effi
ciency
Event POS
Overselling
Headlines:
• Sales Growth through higher in-stock• Customer Demand Driven Replenishment based of POS• POS data yields information to support decisions
100%
110%
111%
+10%
Net Gain: Promotional Event Oversell
![Page 10: Scott Craig - Delhaize America Mark Lyktey and Jason Gintert - PepsiCo Warehouse Delivered January 2012 Improve Store In-Stock Rates Reduce Supply Chain](https://reader035.vdocuments.mx/reader035/viewer/2022062712/56649c775503460f9492cd05/html5/thumbnails/10.jpg)
POS Inventory EfficiencyIn
vento
ry E
ffici
ency
Promotional Event Undersell
Headlines:
• POS data yields information to support decisions
• Inventory Efficiency• Fewer Returns/Expired
Day 1
50%
50%
Day:
Planned Deliver
y
Actual Deliver
y
Day 4 Day 7 Day 10 Day 13 Day 16 Day 19 Total
30% 20%
15%
Event POS
Undersell
100%
70%
57%
5%
![Page 11: Scott Craig - Delhaize America Mark Lyktey and Jason Gintert - PepsiCo Warehouse Delivered January 2012 Improve Store In-Stock Rates Reduce Supply Chain](https://reader035.vdocuments.mx/reader035/viewer/2022062712/56649c775503460f9492cd05/html5/thumbnails/11.jpg)
Agenda
Supply Chain Big Bets
Case Study Defined
POS Impact
Store Inventory Impact
Customer Demand Driven Replenishment
Q2 Inventory Tracking
Year on Year Inventory Tracking
What’s Next
![Page 12: Scott Craig - Delhaize America Mark Lyktey and Jason Gintert - PepsiCo Warehouse Delivered January 2012 Improve Store In-Stock Rates Reduce Supply Chain](https://reader035.vdocuments.mx/reader035/viewer/2022062712/56649c775503460f9492cd05/html5/thumbnails/12.jpg)
Store Inventory Effect
Pepsi DC Food Lion Store
Customer Replenishment Planning
Food Lion Warehouse
Pilot
X Days total network
Y Days WarehouseG
oal
X - 2 days Y - 2 daysVM
I
Traditional VMI shipped promo + 2
Sh
ip
X + 2 days Y - 2 days Z + 4 days
Pilo
t
![Page 13: Scott Craig - Delhaize America Mark Lyktey and Jason Gintert - PepsiCo Warehouse Delivered January 2012 Improve Store In-Stock Rates Reduce Supply Chain](https://reader035.vdocuments.mx/reader035/viewer/2022062712/56649c775503460f9492cd05/html5/thumbnails/13.jpg)
Agenda
Supply Chain Big Bets
Case Study Defined
POS Impact
Store Inventory Impact
Customer Demand Driven Replenishment
Q2 Inventory Tracking
Year on Year Inventory Tracking
What’s Next
![Page 14: Scott Craig - Delhaize America Mark Lyktey and Jason Gintert - PepsiCo Warehouse Delivered January 2012 Improve Store In-Stock Rates Reduce Supply Chain](https://reader035.vdocuments.mx/reader035/viewer/2022062712/56649c775503460f9492cd05/html5/thumbnails/14.jpg)
Customer Demand Driven Replenishment
Pre-Pilot Conventional VMI
Pilot DataEnhanced VMI
DC Inventor
y
Forecast
Safety Stock
Headlines:
DC Inventor
y
Forecast
Safety StockPOS
Store Inventor
y
DC Warehouse Withdrawals
DC Warehouse Withdrawals
Customer Demand Driven
Replenishment (CDDR)
DC Customer
Replenishment
Return/Expired2nd Quarter Total POS Store In Stock DC On Hand Store On Hand Total On Hand Reclaim
2010 vs. 2011 +36.11% +0.82% -32.24% +16.66% -14.74% -0.63%
Sales Growth Inventory Efficiency
• Sales Growth• Inventory Efficiency• Enhance replenishment• Enhance promo forecast
Pilot Goals
![Page 15: Scott Craig - Delhaize America Mark Lyktey and Jason Gintert - PepsiCo Warehouse Delivered January 2012 Improve Store In-Stock Rates Reduce Supply Chain](https://reader035.vdocuments.mx/reader035/viewer/2022062712/56649c775503460f9492cd05/html5/thumbnails/15.jpg)
Agenda
Supply Chain Big Bets
Case Study Defined
POS Impact
Store Inventory Impact
Customer Demand Driven Replenishment
Q2 Inventory Tracking
Year on Year Inventory Tracking
What’s Next
![Page 16: Scott Craig - Delhaize America Mark Lyktey and Jason Gintert - PepsiCo Warehouse Delivered January 2012 Improve Store In-Stock Rates Reduce Supply Chain](https://reader035.vdocuments.mx/reader035/viewer/2022062712/56649c775503460f9492cd05/html5/thumbnails/16.jpg)
Q2 Inventory Tracking
Q2 Distribution Center Inventory
Reduction
32.24%
1 2 3 4 5 6 7 8 9 10 11 12 13
Inve
ntor
y C
ases
PepsiCo Week
Food Lion Gatorade Tracker Summary
2010 DC On Hand 2011 DC On Hand
April May June
![Page 17: Scott Craig - Delhaize America Mark Lyktey and Jason Gintert - PepsiCo Warehouse Delivered January 2012 Improve Store In-Stock Rates Reduce Supply Chain](https://reader035.vdocuments.mx/reader035/viewer/2022062712/56649c775503460f9492cd05/html5/thumbnails/17.jpg)
Agenda
Supply Chain Big Bets
Case Study Defined
POS Impact
Store Inventory Impact
Customer Demand Driven Replenishment
Q2 Inventory Tracking
Year on Year Inventory Tracking
What’s Next
![Page 18: Scott Craig - Delhaize America Mark Lyktey and Jason Gintert - PepsiCo Warehouse Delivered January 2012 Improve Store In-Stock Rates Reduce Supply Chain](https://reader035.vdocuments.mx/reader035/viewer/2022062712/56649c775503460f9492cd05/html5/thumbnails/18.jpg)
2010 vs. 2011 Results by Period
Store In Stock
1 2 3 4 5 6 7 8 9 10 11 12 13
1 2 3 4 5 6 7 8 9 10 11 12 13
2010 2011
Point of Sale
2.05%
20.9%
![Page 19: Scott Craig - Delhaize America Mark Lyktey and Jason Gintert - PepsiCo Warehouse Delivered January 2012 Improve Store In-Stock Rates Reduce Supply Chain](https://reader035.vdocuments.mx/reader035/viewer/2022062712/56649c775503460f9492cd05/html5/thumbnails/19.jpg)
2010 vs. 2011 Results by Period
Reclaim
1 2 3 4 5 6 7 8 9 10 11 12 132010 2011
1 2 3 4 5 6 7 8 9 10 11 12 13
DC on Hand
15.5%
0.5%
![Page 20: Scott Craig - Delhaize America Mark Lyktey and Jason Gintert - PepsiCo Warehouse Delivered January 2012 Improve Store In-Stock Rates Reduce Supply Chain](https://reader035.vdocuments.mx/reader035/viewer/2022062712/56649c775503460f9492cd05/html5/thumbnails/20.jpg)
Agenda
Supply Chain Big Bets
Case Study Defined
POS Impact
Store Inventory Impact
Customer Demand Driven Replenishment
Q2 Inventory Tracking
Year on Year Inventory Tracking
What’s Next
![Page 21: Scott Craig - Delhaize America Mark Lyktey and Jason Gintert - PepsiCo Warehouse Delivered January 2012 Improve Store In-Stock Rates Reduce Supply Chain](https://reader035.vdocuments.mx/reader035/viewer/2022062712/56649c775503460f9492cd05/html5/thumbnails/21.jpg)
What’s Next
Colla
bora
tion
Blue Printing
Proof of Concept
Automation
Expansion
• Q1 2011• Brainstorm VMI Enhancements• Manufacturer/Retailer jointly devise strategy
• Q1 2012• Apply automation & enable EDI 830• Enhance Processes• Perfect on Food Lion Gatorade lanes
• Q2, Q3 & Q4 2011• Manually perform Customer Demand Driven Replenishment• Enhance Processes • Measure & Publish Results
• Q2 2012• Expand automated processes• Roll Out to all Delhaize lanes• Measure & Publish Results
Demand Intelligence
• • Jointly Grow Sales• Improve Inventory Utilization • Increase Collaboration• Anticipate Customer Demand• Build Efficiencies
Goals