ADvantage Best Practices
Standardized Reporting
Prepared by:
Jenny Foster Jessica Benson Billick Jim Cloutier
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The ADvantage Program – IRi and Power Bi Supported Best Practices
The ADvantage Program Analytics & Capabilities
Reporting & Use Cases
Core Standardized Reporting
Strategic Joint Initiative Reporting
ADvantage Use Cases
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The ADvantage Program – IRi Supported Best Practices
On Shelf Availability Are there items with In-Stock opportunities? Are select stores driving these opportunities?
Item Optimization Does an item maximize sales while utilizing optimal shelf space?
Unsaleables Management What items are at risk of reclaim based on inventory level, item status, and time period?
Seasonal Items Are products selling faster than expected? Are products selling slower than expected? Are items being delivered to stores on time?
The ADvantage Program Collaborate! Communicate! Coordinate!
New Item Launch Are new items planogramed as expected? Are new items selling as expected? Are new items being replenished?
Shipper, Pallet, MOD Review
What stores can, or cannot, support a display pallet? What is the optimal product mix and unit quantity for possible display pallets?
Reset / Rundown Management How much inventory is on hand? How much inventory can we expect to sell? Do we have too much or not enough inventory for an exit strategy?
Post Promotion Analysis Were items In-Stock during a promotion? Was inventory allocated for the promotion? Were stores able to replenish from the DC during the promotion?
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The ADvantage Program – Standardized Reporting and Best Practices
The AD vantage Team will Collaborate , Communicate , and Coordinate by executing strategic activities that will consistently drive value for our vendor partners while enabling Vendors, Category, and AD vantage to work as a unified front contributing to the success of our Great Local Brands. Will Do - The AD vantage Partners will utilize Strategic Joint Initiative Reports. Benefits: • Drive improved performance on mutually agreed upon Supply Chain initiatives Can Do - The AD vantage Partners can utilize a catalog of proven Supply Chain Use Cases Benefits: Must Do - The AD vantage Partners must utilize Standardized IRI Reports every period with the Top 85 Vendors Benefits: • Consistent cadence of reporting
• Ad hoc flexibility based on Vendor or ADUSA needs • Provides the ADvantage Partner steps for quick, easy research and resolution • As the ADvantage Program grows the breadth of use cases will expand
• Tactical or strategic in scope • Short or long term in duration • Easily customized to enable collaboration
• Drive engagement with Vendor and ADvantage • Improve IRI usage with our Vendor Partners
Network Optimization
DC & Retail Business Health
Seasonal/ Holiday YOY Tracking
On Shelf Availability
Collaborative Forecasting
Inventory Management
New Item Launches
Brand & SC Collaboration
40+ ADvantage Use Cases Coordinate!
Strategic Joint Initiative Reporting Communicate!
Standardized IRI Reporting
Collaborate!
Rundown Management
Vendor Inbound Compliance
Unsaleables Management
DC Optimization
Post Promotional Analysis
Communication & Connection Points
Standard Reporting and Best Practices POD will be established that meets quarterly to continuously review, improve, and maintain our core list to ensure that we always have the most relevant reports in use. ADvantage Partners will have opportunities to present new reports to the POD as a way for leadership to seek input and gain buy-in to the process by welcoming new ideas in a continuous improvement process.
The final version of our document will be a “Flipbook” that is Easy and Convenient to use. The Flipbook approach will allow for ease of use and maintenance by the ADvantage Partners along with ease of sharing the document with our Great Local Brand Category Teams, other internal partners, and our ADvantage Vendor Partners.
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Must Do
ADvantage Standardized Reporting
The ADvantage Partners must utilize Standardized IRI Reports every period with the Top 85 Vendors
Definitions:
Benefits: • Consistent cadence of reporting • Drive engagement with Vendor and ADvantage Partner • Improve IRI usage with our Vendor Partners
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POG Tracker Report •
Identify gaps in a vendor’s points of distribution (stores authorized vs. stores scanning); along with, in-stocks and service levels. • Ahold and Delhaize Local Brand specific reports available. • DC and Retails Ops Report • Provide the business health by vendor or item from both a DC and Retail Perspective for both retail service levels and in-stock percentage. • Highlights metrics such as: • Store Scanning activity • DC item level data • Store item level data • Seasonal/Holiday YOY Report • View of a vendor’s seasonal readiness vs. previous year. • Report can be for all items, specific items, or specific majors/categories for the seasonal lift. • Ahold and Delhaize Local Brand specific reports available. • Period Unsaleables Report • View of a vendor’s Unsaleables for each local brand, for all items, all activity, for a given period. • Ahold and Delhaize Local Brand specific reports available. • Period VIC Report • Details of a vendor’s VIC violations for a selected timeframe.
DC & Retail Business Health
Seasonal/ Holiday YOY Tracking
On Shelf Availability
Standardized IRI Reporting Collaborate!
Vendor Inbound Compliance
Unsaleables Management
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Must Do
ADvantage SR - POG Tracker Report
What is the Objective of Report – The POG Tracker Reports primary use is to help identify gaps in a Vendor’s points of distribution (stores authorized vs. stores scanning) along with In- stocks and Service Levels at a quick glance.
Keys to this report: Do any items have -
• Poor service level? • Low in-stock rate? • No scanned movement in POG authorized stores? Review frequency: Monthly Typical process owner:
• In Stock Analyst • Category Team
Click Here! Go To IRI
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ADvantage SR – DC and Retail Ops Report What is the Objective of Report – The DC and Retail Ops Report provides the Vendor a view by Item or overall business health from both a DC and Retail Perspective. The highlights metrics such as Store Scanning activity, DC item level data, store item level data, as well as both Store Service and In Stock %. Report is by RCH Vendor, by Brand, by DC, Total Store, and by UPC. Must Do
Keys to this report: Do any items have - • No scan movement? • No store receipts? • No POG authorized stores? Review frequency: Monthly
Typical process owner: • In Stock Analyst • Forecast Analyst
Click Here! Go To IRI
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ADvantage SR - Seasonal Report What is the Objective of Report – The Seasonal report can be ran for all items, specific items, or specific majors/categories that are relevant for the seasonal lift. The report can be used 6-8 weeks prior to the holiday, sales event and review every other week. Conclude with a review one week after the event to not only understand holiday/seasonal preparation before and during the event, but how well did we recover or sustain service post event. The Vendor's Seasonal readiness vs. YOY report highlights metrics such as Sales, Item Movement, Sale Units, Store Service Level, and In-Stocks Must Do
Keys to this report: • How are we trending for a major holiday sales event vs. same time Last Year? • Review SC Metrics before, during, and after the event (pre and post review) Review frequency: Monthly, Bi-Weekly and/or Weekly Typical process owner:
• In Stock Analyst • Forecast Analyst
Click Here! Go To IRI
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Must Do
ADvantage SR – Unsaleables
What is the Objective of Report – The Vendor's Unsaleables for each Great Local Brand, for all items, all activity, for a given period. The highlights metrics such as Item Movement, Sale Unit % Change, Reclaim Units Reclaim $'s, and Reclaim as a % of Sales.
Keys to this report: • Overview of a Vendor's
Unsaleables for each Great Local Brand
Review frequency: Monthly
Typical process owner: • Unsaleables Analyst • In Stock Analyst
Click Here! Go To IRI
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Must Do
ADvantage SR - VIC Report
What is the Objective of Report – The VIC Reports provides details of a Vendor’s VIC violations for a selected timeframe. Vendor Scorecard, Vendor cuts, and All Data Reports should be shared each period.
Keys to this report: • Overview of a Vendor’s VIC violations for a given period
Review frequency: Monthly Typical process owner: • VIC Analyst • ADvantage Partner
Click Here! Go To Power Bi
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Will Do
ADvantage Strategic Joint Initiative Reporting
The AD vantage Team will utilize Strategic Joint Initiative Reports .
Benefits: • Drive improved performance on mutually agreed upon Supply Chain initiatives
Definitions:
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Collaborative Forecasting •
• Tactical or strategic in scope • Short or long term in duration • Easily customized to enable collaboration
Provide vendor partners the visibility to anticipated demand on a vendor’s items for our self- distributed facilities. Provides visibility and determines if we over or under performed based on Out of Stocks/Excess inventory after promotion
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Post Promotional Analysis •
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New Item Launch •
NIL Summary Report •
Collaborative Forecasting
New Item Launches
Provides a tracking visual for each innovation item by Brand and how speed to shelf is trending. Provides a granular view to each innovation item by Brand and can be utilized to identify opportunity sku’s at the time of item launch.
Strategic Joint Initiative Reporting Communicate!
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NIL In Stock % Report •
•
Rundown Management •
Provides visibility to remaining manufacturer and brand discontinuation inventory • Helps reduce KLT/Unsaleable opportunities
Post Promotional Analysis
Rundown Management
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Will Do
ADvantage JIR - RELEX Forecast Files (Optional)
What is the Objective of Report – Provides vendor partners the visibility to anticipated demand on a vendor’s items for our self-distributed facilities. The data becomes more and more accurate each week and is the most accurate within the 4-week window of the sales week.
Keys to this report: • Provides visibility to a vendor partner on the demand of their items that can be used to help with production planning and is distributed via e-mail weekly (Monday’s) Review frequency:
Monthly or as needed Typical process owner: • In Stock Analyst • Forecast Analyst • Category Analyst
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ADvantage JIR - New Item Launch - Summary Report - Ahold What is the Objective of Report – The New Item Launch Summary Report provides visibility for each innovation item by Brand and how speed to shelf is trending. It can be utilized directionally to identify opportunity sku’s at the time of launch. Tracking metrics are as follows: Total Units Received, Scanned Units, On-Hand Total Units, Shelf Capacity Units, Service Level & In Stock %, and POG Authorized Unique Stores Scanning/Not Scanning. Will Do
Keys to this report: • Do any items have no scan movement? • Are there Item/POG Authorized Stores not scanning? Review frequency: As needed
Typical process owner: • In Stock Analyst • Forecast Analyst • Category Analyst
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ADvantage JIR - New Item Launch – In Stock % Report - Ahold What is the Objective of Report – The New Item Launch In Stock % Report provides visibility to each innovation item by Brand. In conversations with suppliers, it can be utilized to identify opportunity sku’s at the time of launch. Tracking metrics are as follows: Scanned Units, On-Hand Total Units, Days of Supply AVG, Days of Supply Ending, In-Stock POG Authorized %, Number of Store POG Authorized and Service Level %. Will Do
Keys to this report: Are there items with - • Low In Stock %? • Poor Service Level? • Zero BOH and/or scanned units? Review frequency: As needed
Typical process owner: • In Stock Analyst • Forecast Analyst
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ADvantage JIR - New Item Launch - Summary Report - Delhaize What is the Objective of Report – The New Item Launch Summary Report provides visibility for each innovation item by Brand and how speed to shelf is trending. It can be utilized directionally to identify opportunity sku’s at the time of launch. Tracking metrics are as follows: Total Units Received, Scanned Units, On-Hand Total Units, Shelf Capacity Units, Service Level & In Stock %, and POG Authorized Unique Stores Scanning/Not Scanning. Will Do
Keys to this report: • Do any items have no scan movement? • Are there Item/POG Authorized Stores not scanning? Review frequency: As needed
Typical process owner: • In Stock Analyst • Forecast Analyst • Category Analyst
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ADvantage JIR - New Item Launch – In Stock % Report - Delhaize What is the Objective of Report – The New Item Launch In Stock % Report provides visibility to each innovation item by Brand. In conversations with suppliers, it can be utilized to identify opportunity sku’s at the time of launch. Tracking metrics are as follows: Scanned Units, On-Hand Total Units, Days of Supply AVG, Days of Supply Ending, In-Stock POG Authorized %, Number of Store POG Authorized and Service Level %. Will Do
Keys to this report: Are there items with - • Low In Stock %? • Poor Service Level? • Zero BOH and/or scanned units? Review frequency: As needed
Typical process owner: • In Stock Analyst • Forecast Analyst
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Will Do
ADvantage JIR – Item Run Down Reporting
What is the Objective of Report – The Item Run Down Report will help identify remaining inventory levels at the end of life of an item and monitor/tracking depletion of remaining inventory prior to reset activity.
Keys to this report: Are there any items - • At risk of having excess inventory at reset timing? • Removed from POG prematurely? Review frequency: As needed
Typical process owner: • In Stock Analyst • Forecast Analyst
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Will Do
ADvantage JIR – Post Promotion Item Analysis
What is the Objective of Report – This report is used to help determine what the Service Level and In Stock % was after a promotion has ended
Keys to this report: Did items underperform forecast? • Poor sell-through of allocations resulting in excess inventory at retail Did items overperform forecast? • Are there opportunities to send additional allocations to support promotion? Review frequency: As needed Typical process owner:
• In Stock Analyst • Forecast Analyst
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ADvantage Best Practices
Standardized Reporting - Internal
Prepared by:
Jenny Foster Jessica Benson Billick Jim Cloutier
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Can Do
ADvantage Critical Use Cases
The AD vantage Team can utilize a catalog of proven Supply Chain Use Cases
Themes: • Supply Chain Use Cases
Benefits: • Ad hoc flexibility based on Vendor or ADUSA needs • Provides the ADvantage Partner steps for quick, easy research and resolution • As the ADvantage Program grows the breadth of use cases will expand
• Network Optimization • Inventory Management • Communication & Connection Points • DC Optimization • Unsaleables Reduction
• Cross-Functional Use Cases • Capacity Analysis • Promotions • New Item Launches • OSA and On Shelf Mgt.
Network Optimization
Inventory Management
Brand & SC Collaboration
• General Scorecarding/KPI’s • Collaborative Forecasting • Education & Training • Seasonal Planning • Brand & SC Collaboration • Account Support
40+ AD vantage Use Cases Coordinate!
Communication & Connection Points
DC Optimization
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ADvantage – Supply Chain & Cross-Functional Use Case Contents
Cross-Functional Use Cases
Supply Chain Use Cases
Supply Chain Use Cases
Cross-Functional Use Cases
Vendor Specific Reviews: • Capacity Analysis • Case Pack Analysis Promotions as it relates to: • Post-Event Analysis / Sell - Through • Custom Display Vehicles
Network Optimization as it relates to: • Efficient Product Flow - Flow Path • Net Landed Cost Reductions • DSD vs. Warehouse • Direct Plant Ship • Lane Analysis (e.g., CPU vs. Vendor Ship) • Break-Pack/Slow Mover Analysis • Drop Trailer • Cross-Dock Analysis • Mixing Center Utilization Inventory Management as it relates to:
Communication & Connection Points: • Setting up Meetings with other SC areas like Replenishment, Forecasting, Unsaleables, Logistics • Setting up Meetings with DC operations DC Optimization as it relates to: • On Time % Improvements • DC Tours - watch PO’s come in real time • VIC Analysis / Reductions Unsaleables Reduction as it relates to: • End of Life impact mitigation • Run Down Opportunity • Swell Gap/Reclaim Reduction • Return to Vendor
Collaborative Forecasting as it relates to: • Driving Baseline & Promotional Sales • C&S DC Transitions to self-distributed Education & Training as it relates to: • Education – Polices & Process • Education- IRi Training • IRi Collaboration • ADUSA Best Practices Seasonal Planning as it relates to: • Emergency pallets • Forget me not assistance Brand & SC Collaboration as it relates to: • Brand and Supply Chain Collaboration • Vendor Pilot Programs / Tests Accounting Support as it relates to: • Past-Due Payment Reconciliation
New Item Launches as it relates to: • New Item Launch / Speed to Shelf OSA and On Shelf Mgt. as it relates to: • Distribution Voids/Gaps (on POG, not on shelf) • Chronic Out of Stocks Management General Scorecarding/KPI’s relating to: • Overall Business Health Goals/Targets/Expectation Alignment
• EOQ/Full Pallet Utilization • Supplier Shipping Capacity • Supplier Lead Time Analysis • Blended Pricing Analysis • Fill Rate Improvements • Pallet Mis-Shipments • Data Sync
Helpful hint: Hold control and click for hyperlinks for easy access to specific use case.
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Supply Chain Use Cases: Network Optimization
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Supply Chain Use Case: Flow Path/ Net-Landed Cost Reductions/ DSD vs. WHSE
Use Case Objective:
Optimize product flow path for opportunity items in collaboration with the Network Optimization Team. Product flow path could refer to deciding if an item should be in the warehouse vs. DSD or if an item should be each pick vs. full case. It can also refer to the path the product takes through the network to arrive at the store.
Use Case Benefits: Addressing opportunities to optimize product flow path can lead to improved net landed cost to retail, increased freshness, and a reduction in working capital.
Process/Analytical Steps:
Metrics to Review:
1. Determine if the item has any legal, safety, damageability, size-constraints, or other restrictions which pre-determine its flow path 2. Determine which path to evaluate: DSD vs. Warehouse, Each pick vs. Full Case, or alternate means for the product to be transported. 3. Review product attributes and movement. There are existing standards that the team uses for full case determination: if item cube is >1.7, if item weight is >35 lbs., if sales/store/week are >.25 4. Work with the Network Optimization team to review all variables relevant to the flow path in question: • Transportation: FOB, Freight charges, Backhaul allowances, Rail, UPS, DSD, DSD Stop Charges, Pallets, RPC’s, X-Dock Costs, Transit Time, Fuel • COGS: Packaging, labels, pack size, pallet modules, weight, cube, warehouse handling costs, storage handling, up-charges, receiving put away/let down/picking costs, price brackets • Working Capital: Inventory levels at DC and store, forecasts, turn, swell allowances, payment terms, marketing funds, NPI discounts, efficiency program allowances • Sources: Direct to store, Direct plant ship to DC, X-dock, mixing center, consolidate store drop, vendor’s ability to ship via another channel
• Item velocity • Item dimensions/attributes • Net landed cost • Metrics to left in step #4
Teams to Involve/Collaborate:
• Network Optimization Team - to validate opportunity and analysis • Demand (Forecasting, In-Stock, Item Integrity) - for any proposed changes • Category Management - for any proposed changes
Return to Use Case List
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Supply Chain Use Case: Direct Plant Ship
Use Case Objective:
Determine if Direct Plant Ship has a positive effect on COGS reduction and/or service level improvements.
Use Case Benefits: COGS can be reduced if product is procured from the vendors manufacturing facility vs vendor’s mixing center or forwarding warehouse. Potential reduction in lead time and/or improvement in service level with full pallets/full trucks coming from the DPS plant.
Process/Analytical Steps:
Metrics to Review:
1. Collect vendor data: Shipping locations, COGs, allowance and potential ADUSA warehouse locations. 2. Collect product data: Ti Hi, brackets, forecast (potential leave behind items/volume) 3. Determine if opportunity is year-round or seasonal. 4. Reach out to the efficiency team about potential DPS opportunity to tie them into the conversation. 5. Work with the ISA team to have them evaluate the DPS items and any leave behind items and volume. Tie in the control tower to ensure full pallet/full truck ordering does not overload the warehouse capacities. 6. Work category team on new vendor number setup for DPS opportunity. Vendor sends over necessary paperwork to category. 7. Monitor service levels for improvement.
• Verify Capacity from Control Tower/ISA team • Monitor service level after DPS implemented • Partner with efficiency team to provide DPS savings.
Teams to Involve/Collaborate:
• Network Optimization/Control Tower • Efficiency team • In-stock team • Vendor • Category team
Return to Use Case List
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Supply Chain Use Case: CPU Lane Analysis
Use Case Objective:
Determine if CPU/Backhaul opportunity would have a positive impact on COGs, service level and on-time%.
Use Case Benefits: COGS could be reduced if product is picked up with fleet trucks or third-party carriers. Potential shorter lead time and faster turnaround time for orders could lead to improved service level, fill rates and on-time %.
Process/Analytical Steps:
Metrics to Review:
1. Collect vendor data: Shipping locations, COGs, CPU allowance 2. Collect warehouse location and items/vendor numbers included 3. Work with inbound logistics to have them review the opportunity and capacity 4. Once complete, notify vendor of decision and make sure ISA teams are aligned on start date 5. Monitor on-time %
• Vendor warehouse pickup address • Vendor allowance for CPU pickup • Lead time • On-time % improvement
Teams to Involve/Collaborate:
• Inbound Trans • In-stock Team • Vendor • Category
Return to Use Case List
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Supply Chain Use Case: Break Pack / Slow Mover Analysis
Use Case Objective:
Quantify if the vendor should be sending product to a break pack facility or optimum path (slow mover vs. regular) in a full case facility
Use Case Benefits: Increase turns and lower Net Landed Cost to Retail
Process/Analytical Steps:
Metrics to Review:
1. Collect Data 2. Run Break Pack model
• Inventory Turns • Net Landed Cost to Retail
3. Prepare report 4. Share findings
Teams to Involve/Collaborate:
• Vendor • Network Optimization • In Stock • Category
Return to Use Case List
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Supply Chain Use Case: Drop Trailer Program
Use Case Objective:
CPU carriers drop trailers program at supplier shipping facility that will streamline on time shipping and receiving
Use Case Benefits: CPU carriers ship and deliver to DC’s On-Time and In-Full to identified DC's
Process/Analytical Steps:
Metrics to Review:
1. Vendor requests for ADUSA to participate Drop Trailer Program at their facilities 2. Scheduled meeting with ADUSA Logistics to discuss the ask 3. Logistics works with Carrier partners to: a) Identify carrier(s) b) Negotiates CPU rates c) Confirmed carrier identified d) Validates a drop trailer is possible at vendor e) Gather hours of operation for Vendor to share with Carrier 4. Scheduled meeting with Supplier Sales, SC, and Customer Service, ADUSA Logistics, In Stock, ADvantage Partner, and 3 rd Party Carrier to discuss program
• Load delay communication • On Time % • Fill Rate %
Teams to Involve/Collaborate:
• Vendor Supplier Sales/Customer Service/SC Managers • ADUSA Logistics Manager and/or Analyst • 3 rd Party Carrier Mgmt. • ADvantage Partner
Return to Use Case List
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Supply Chain Use Case: Cross-Dock Analysis
Use Case Objective:
Provide Cost, Capacity, and feasibility of implementing cross dock options: Pick to Zero, Sort and Stage, True Cross Dock
Use Case Benefits: Lower Net Landed Cost to Retail via a reduction in warehouse and transportation cost
Process/Analytical Steps:
Metrics to Review:
1. Collect Data: Product specs and Cost 2. Vendors alternative options for delivery DSD, Direct etc.. 3. Run EOQ and In/out Models
• Net Landed Cost to Retail • Service Level DC to Store • Vendor’s Alternative
Teams to Involve/Collaborate:
• Vendor • In-Stock • Logistics • Warehouse Operations • Category
Return to Use Case List
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Supply Chain Use Case: Mixing Center Utilization
Use Case Objective:
Quantify if the Net Landed Cost to Retail is lower if buying is consolidated to a single DC
Use Case Benefits: Lower COGS, Increase inventory turns, improved utilization of warehouse space (Trade off is extra DC to DC transfer and extra handling)
Process/Analytical Steps:
Metrics to Review:
1. Collect data : Product cost and specs, trans costs 2. Run Mixing Center Model 3. Create findings report 4. Review with affected parties
• Net Landed Cost to retail comparison
Teams to Involve/Collaborate:
• Channel Optimization • Vendor • In-Stock • Category • Warehouse Operations
Return to Use Case List
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Supply Chain Use Cases: Inventory Management
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Supply Chain Use Case: EOQ / Full Pallet Utilization / Optimal Buying Use Case Objective:
Identify the Optimum Order Quantity (Buying in layers vs. Full pallet) with a target of 14 days (please note: targets are subject to change according to the Supply Chain inventory strategies being implemented).
Use Case Benefits:
Improved ordering performance, lower handling cost (Vendor and ADUSA), potential lower Cost of Goods
Process/Analytical Steps:
Metrics to Review:
1. Data collection: Product Specs, Cost, and Deals 2. EOQ model used to review buying logic or what if scenarios 3. Prepare report
• Net Landed Cost to Retail • DC Inventory Turns • DC Days on Hand
Teams to Involve/Collaborate:
• Supply Chain Channel Optimization • In Stock Analyst & In-Stock Manager • Vendor Contact • Category (as needed)
Return to Use Case List
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Supply Chain Use Case: Supplier Shipping Capacity
Use Case Objective:
Connecting Vendors with Logistics and In Stock to provide visibility to a Vendor's Weekly Shipping Capacity
Use Case Benefits: Reduce carrier shipping delays, improved appointment utilization, and improve on-time percent
Process/Analytical Steps:
Metrics to Review:
1. In-Stock, supplier and/or Logistics brings issue to ADvantage team. This issue could also surface as low on-time delivery or a high count of vendor no shows (through VIC violations) in the ADvantage Scorecard 2. ADvantage team to facilitate a meeting with In-Stock Analyst, Logistics (if CPU) and the Vendor Partner to discuss shipping delays and the root cause of the issue 3. Topics to explore in this discussion include: 1. Availability: Is the product available when it needs to be loaded at the vendor's facility? 2. Vendor Constraints: Is there a better day for us to pick up (CPU) or ship orders based on the vendor's facility capacity constraints? 3. Ordering: Can ordering patterns be adjusted so our pickup falls on a day where the supplier's facility has more available capacity? Can orders be smoothed out among several days? If vendor confirms these changes would help, the ISA is the point person for these type of changes 4. Communication: Are there any flaws in our appointment scheduling? Can timing, communication or processes be improved? (if CPU) 4. System or process changes (if applicable) are made. Vendor partner provides weekly updates on their facility's shipping capacities and on-time delivery is tracked for improvements
• On-time Percent • Count of VIC Violations • DC to Store Fill Rate (if late DC deliveries have created out of stocks to retail) • Open and Late POs via Demand Data App
Teams to Involve/Collaborate:
• ISA/ISM • ADvantage Partner • Logistics Manager and/or Analyst (if vendor is CPU) • Vendor's ADvantage Program Support, Logistics team and Customer Service • Control Tower (if any changes will have a large impact on ADUSA DC receiving patterns)
Return to Use Case List
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Supply Chain Use Case: Supplier Lead Time Analysis
Use Case Objective:
Collaborate with the vendor partner to determine if there is an opportunity to reduce the Vendor’s lead time
Use Case Benefits: Reduction in lead time can increase forecast accuracy, improve orders, improve freshness, improve product availability, and potentially reduce shrink by ordering more just-in-time.
Process/Analytical Steps:
Metrics to Review:
1. Review vendor PO lead time across all DCs to ensure there are no discrepancies 2. Identify if there is an opportunity for improvement (e.g., 21-day lead time for this vendor when the rest of category is 10 days) a) Discuss lead time constraints with the vendor - a) Is it based on production? b) Is it a forecasting opportunity, etc..? 1. Determine ways to collaborate with the vendor by connecting with Forecasting and In-Stock teams to share needed information to help the Supplier speed up order to delivery.
• Supplier lead time • In stock rate • Unsaleables • Sales • Service Level
Teams to Involve/Collaborate:
• Vendor • In-Stock • Forecasting • Category
Return to Use Case List
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Supply Chain Use Case: Blended Cost
Use Case Objective:
Quantify if the overall cost is lower. Does the vendor charge a unique delivered cost per each DC versus a single cost which applies to all DCs
Use Case Benefits: The overall COGS may be reduced. CPU can also be included in scope
Process/Analytical Steps:
Metrics to Review:
1. Collect Vendor’s Blended delivered cost and shipping locations 2. Collect average Vendor location to DC lane cost from DAT board 3. Collect volume/forecast data and shipment frequency 4. Perform analysis to determine if the overall net cost is lower using a by-DC distributed cost or a unified blended cost 5. Report out
• Blended vs Non-blended vs CPU
Teams to Involve/Collaborate:
• Inbound Trans • Category • In-Stock
Return to Use Case List
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Supply Chain Use Case: Fill Rate % Improvements
Use Case Objective:
Improve Fill Rate % to be at or above In-Stock guidelines
Use Case Benefits: Fill Rate improvement benefits: • Increased ability to service stores to demand • Increased on-shelf and sales
Process/Analytical Steps:
Metrics to Review:
1. Review of monthly ADvantage scorecard, weekly Power BI reporting to understand issues. VIC Cut reporting can assist in understanding scope. 2. Reach out to In stock teams to understand potential ordering issues / concerns 3. Understand vendor allocation issues and quantities if applicable 4. Collaborate with vendor / ISA / ISM to work through issues and move towards improvement. 5. Monitor monthly
• ADvantage monthly scorecard Fill Rate % • Power BI Fill Rate % • Monthly VIC Reports
• IRI In Stock % • IRI Service Level %
Teams to Involve/Collaborate: • In Stock Analyst, In Stock Manager
• Vendor
Return to Use Case List
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Supply Chain Use Case: Pallet Mis-Shipments
Use Case Objective:
Leverage IRI to track shipper/Mod receipt and shipments to retail and major sales events or product launches
Use Case Benefits: Ensure timely shipments to retail in support of merchandising activity and events
Process/Analytical Steps:
Metrics to Review:
1. Supplier notifies ADvantage partner of potential issue with a pallet 2. Review Pallet orders, receipts, and shipments 3. Quickly able to identify any gaps and take action to resolve and ship to retail in a timely manner
Teams to Involve/Collaborate: • ADvantage Partner • Supplier Supply Chain and Sales • IRI Order Quantity • IRI Warehouse Receipts • IRI Retail Qty Ordered • IRI Retail Qty Received • BICEPS/SEGA Inventory Screens
• Category • In-Stock • Merchandising
Return to Use Case List
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Supply Chain Use Case: Data Sync Use Case Objective:
Facilitate periodic data sync with vendor and Delhaize
Use Case Benefits: I mprove ordering performance at both item and purchase order level. The Supplier should review the BSAM data to ensure item constraints are accurate along with the correct Ti x Hi information. This will allow for accurate truck building. The Suppliers should also review the entire list of items for each of the Vendor ID's. If any item is no longer produced by the Vendor, then communicate those to the Category Teams. The Category Teams will then review the inactive items and submit to the Item Deletions Team. It is import to have clean master data as RELEX depends on the accuracy of each item set up to create good order proposals.
Process/Analytical Steps:
Metrics to Review:
1. Run BSAM •
• Are order days and order mins set properly in the ERP? • Ensure order increments requirements and min order quantities are set properly at item/vendor number level.
BSAM can be accessed in RELEX under the BSAM view. Any Super User can pull and export the data 2. Send to vendor for verification 3. If inactive items can be deleted from the ERP, the Supplier should work directly with the Category Team 4. Run updates through Macros or manually key in the changes on the correct SEGA/BICEPS screens. These updates should be completed by the In-Stock Analyst. • Ti x Hi, weight, length, height updates are updated on SEGA 9<2<3 using the correct vendor ID. BICEPS is the function 1 screen. • To ensure proper order days and mins/max are set, view on FCST 8<2<3. BICEPS is function 62 screen. • If ISA is not ordering at the Vendors desired order increment, confirm what is set on the 'order increment' in SEGA 9<2<4<16. BICEPS is the function 1 screen. • If any other attribute is incorrect, work directly with the Category Team to fix.
Teams to Involve/Collaborate:
• Vendor • In-Stock • Category
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Supply Chain Use Cases: Communication & Connection Points
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Supply Chain Use Case: Connection Points/Communication
Use Case Objective:
Connecting vendors to the business and facilitating meetings/cadence
Use Case Benefits: Improved Communication: Connecting suppliers with internal ADUSA business segments. Priority areas include but not limited to the following areas: Unsaleables, Logistics, in-Stock, Forecasting, Finance Team, Customer Solution Center, VIC, Brand Category
Process/Analytical Steps:
Metrics to Review:
1. Identify a gap in communication between internal business segment and supplier 2. Discuss the gap with internal business segment and align on opportunity to improve 3. Discuss the gap with supplier and align on opportunity to improve 4. Once alignment is established that a gap exist, schedule a meeting and determine the frequency (weekly, bi-weekly, or monthly) 5. Once the meeting has taken place and if the meeting should re-occur, ask the subject matter expert of the internal business segment to own the meeting and agenda content moving forward... this statement doesn't quite make sense to me, sorry. I would put something like... If a reoccurring meeting is needed, ask the subject matter expert of the internal business segment to own the meeting and agenda content moving forward.
• DC to Retail Service Level % • DC to Store In Stock % • On Time % (if an opportunity) • Fill Rate % (if an opportunity) • VIC results
• Monthly Unsaleables Scorecard and/or IRI KLT/Reclaim data
Teams to Involve/Collaborate:
• ADUSA Business Segment Manager and/or Analyst • Various Supplier Business Segment Managers or Analyst • ADvantage Partner
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Supply Chain Use Case: DC Operations Connection
Use Case Objective:
Connecting vendors with DC Operations that provides a platform so that communication can be quick and fluid as issues arise
Use Case Benefits: Partnership established with DC Managers allowing immediate details on any issues (with pictures) to share back with suppliers on opportunities to improve product selecting, shipping, and receiving.
Process/Analytical Steps:
Metrics to Review:
1. Feedback from DC on labor/hours needed to unload trucks vs avg 2. Feedback on reserve slotting needs when receiving loads (down stacking) 3. Determine what full pallet utilization % is with vendor 4. Determine how many items are being received multiple times a week and being ordered in tiers
1. Re-occurring calls to maintain the partnership is recommended as well as DC tour (as needed) to watch a load get received.
Teams to Involve/Collaborate:
• DC Managers • In-Stock
• Vendor SC Managers • ADvantage Partner
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40
Supply Chain Use Cases: DC Optimization
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Supply Chain Use Case: On-Time % Improvements
Use Case Objective:
Improve On-Time % to be at or above In-Stock guidelines
Use Case Benefits: Conversation leads to an understanding of what the expectation is, root cause, and determine action steps to improve
Process/Analytical Steps:
Metrics to Review:
1. In-Stock, Coach, or other internal SC partner meet discuss root causes to identify the opportunities 2. Review In-Stock On-Time Reports 3. Review In-Stock Fill Rate Reports 4. Review VIC reports to identify late trucks, etc.. 5. Set-up call with Vendor SC & Customer Service, In Stock, and Collaboration 6. Develop a plan cross-functionally to address root causes
• Weekly On Time % • Weekly Fill Rate % • Monthly VIC Reports • IRI Service Level% • IRI In Stock %
Teams to Involve/Collaborate:
• ADUSA In Stock Manager and Analyst • ADUSA Logistics Manager and/or Analyst • ADvantage Partner • Vendor SC Managers and Customer Service
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Supply Chain Use Case: Education - DC Tours
Use Case Objective:
Teaching Vendors how we unload, receive, stage and slot product.
Use Case Benefits: Accuracy in ordering just in time inventory so we don't go over capacity. Efficient in ordering (pallets/tiers). Efficient in how they load trucks for our receivers
Process/Analytical Steps:
Metrics to Review:
1. Review service level for Vendors 2. Review order quantities of items
• DSS • Forecasting • SEGA
• IRI • Buying
1. How many times an item is ordered per week 2. Review ordering patterns 3. Determine best order quantity, pallet, tier or by case 3. Identify any damages due to how product is loaded onto trucks
Teams to Involve/Collaborate:
• DC Managers • In-Stock
• SC Collaboration Coach • Vendor SC Managers
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43
Supply Chain Use Case: VIC Improvements
Use Case Objective:
Inform Vendor of VIC (Vendor Inbound Compliance) violations and the expectation to achieve and maintain VIC target of <20% as an ADvantage Vendor Partner
Use Case Benefits: Conversation leads to an understanding of what the expectation is, root cause, and determine action steps to reduce both VIC Billed and Not Billed
Process/Analytical Steps:
Metrics to Review:
1. Provide Vendor Partner an updated copy of the VIC Program Guide (last updated May 2021) 2. ADvantage Partner shall provide and review both ADvantage Scorecard and VIC Scorecards with ADvantage vendor partner each month to discuss opportunities and determine action steps 3. ADvantage Partner and vendor partner work together to identify and prioritize re-occurring VIC billed and not billed opportunities 4. ADvantage Partner and Vendor Partner should understand what the VIC violations are by DC and the Top Violation types
• Vendor to DC On Time % • Vendor to DC In Full % • Monthly VIC Reports • VIC Violations vs. Target
• Retail In Stock %
Teams to Involve/Collaborate:
• In-Stock Manager and/or Analyst • Forecast Manager and/or Analyst • Logistics Manager and/or Analyst • ADvantage Partner • Vendor Sales, SC Managers, and Customer Service • VIC Manager and/or Analyst
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Supply Chain Use Cases: Unsaleables Reduction
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Supply Chain Use Case: End of Life Impact Mitigation
Use Case Objective:
Evaluate and monitor the amount of product in the entire supply chain network to determine if there is an unsaleables risk at end of life. If a risk is found, the next step would be to determine how to mitigate the risk.
Use Case Benefits: Additional attention to ensure excess inventory risks are mitigated can increase sale of full priced product by limiting the amount of product needed in the supply chain during the run- down period and reduce the need for discounted sales. This, in turn, can help mitigate the amount of unsaleable product remaining at the end of a reset. Involving the vendor throughout the process can help identify ways that they can mitigate the risk, either through picking up product, reducing future POs, or through providing additional funding.
Process/Analytical Steps:
Metrics to Review:
1. Know what items are being discontinued when - Discontinued items are available at least ten weeks prior to the cycle start. Review the cycle information and review any discrepancies with the Category. 2. DC Inventory On Hand and On Order - Utilize IRI to understand current on hand and on order to evaluate how many weeks of supply remain and compare to how many weeks are left before the reset. • Mitigation Point - If there are more weeks on hand at the DC than needed, the vendor may be willing to pick up the product 3. Total Inventory on Hand - Combine what is on hand and on order at the DC with what is on hand at the store. Review total weeks of supply in the total chain. Will there be excess at the time of reset? • Mitigation Point - Some vendors, especially reclaim vendors, will provide funding for Temporary Price Reduction which can be used to quickly sell through product if there will be excess inventory at the time of reset. It’s better to sell product at a discount than to lose it to swell/reclaim. 4. Verify future promotional calendar - There may be promotions scheduled to occur during the run- down period which can help sell through product, as well. 5. Monitor and Evaluate the success of your efforts to determine the reduction in waste and increase in sales your efforts caused. Repeat or adjust your actions for future resets.
• Future Discontinue Indicator (SS/GC/GF) • Run Down Days Remaining • Target Exit Date • Store on Hand Volume Units • Store Days of Supply
• Store Shelf Capacity Volume Units • Sales Volume Units • DC inventory on hand (FL/HRD in IRi, get from C&S for AUSA)
Teams to Involve/Collaborate:
• Category Management - to validate any discrepancies and inform on any supply chain mitigations that may take place • In-Stock - make any necessary mitigation suggestions to In-Stock for execution (e.g., vendor pick-ups, cutting off PO’s early, etc..)
• Vendor - to verify if they have any policies around markdown funding • CAO Team - in the event any changes to CAO ordering are recommended • Unsaleables Team - to collaborate on priority vendors
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Supply Chain Use Case: Run Down Opportunity
Use Case Objective:
Identify items that have been discontinued by Category or Vendor to monitor run down on discontinued items.
Use Case Benefits: Help provide insights to Store and DC level inventory for deleted items to monitor the percent of inventory at risk.
Process/Analytical Steps:
Metrics to Review:
1. Working with Vendor or Category partners to identify discontinued items through cycle resets or as needed. 2. Ensure flags are changed to mark items as discontinued in Biceps/Sega to prevent additional orders being created after the cutoff date. 3. Leverage IRI reports to monitor DC inventory and Store on-hand inventory with % of inventory at risk of not selling through (based on 10-week average movement) at Retail. This will give the vendor's visibility on the inventory at Stores and possibly connect with their Category business partners to create additional plans to move through the product.
• Warehouse On-Hand • Reset Dates • Store On-Hand • Forecast (expected sell through)
• Unsaleables trends • Inventory at risk
Teams to Involve/Collaborate:
• Unsaleables • Vendor • Category • In Stock • Forecasting
• POG Team
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Supply Chain Use Case: Reduction in Reclaim and Swell Gap
Use Case Objective:
Identify root causes of reclamation and swell gap and work collaboratively to mitigate opportunities
Use Case Benefits: Reducing the amount of money tied up in unsaleables will increase overall profitability for both ADUSA and the vendor. Vendors who spend less on reclaim can use that funding to improve the business through reduced COGs, increased promotional funding, etc.. Less unsaleables overall leads to an improvement in store labor efficiencies, reducing the need to process markdowns.
Process/Analytical Steps:
Metrics to Review:
1. Review ordering and forecasting for turn orders and promotional activity 2. Review Unsaleable scorecard with the Analyst on the Unsaleable's Team 3. Review causal data 1. Identify trends, identify top units sent to reclaim, identify top dollar items sent to reclaim 2. Identify top stores 3. DC damages 4. Utilize IRI and DSS to view excessive inventory 5. Were there planogram changes causing unsaleables? 6. Review reset timing to get ahead of excess inventory or look to promote to sell down prior to closeouts
• IRI • DSS • Unsaleable Scorecard • Obsolete Inventory report • 23-week timeline
Teams to Involve/Collaborate:
• Unsaleables Team • DC • Category • ADvantage Team • In-Stock/Forecasting
• Vendor • POG Team • Markdown Team
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48
Supply Chain Use Case: Returns to Vendor
Use Case Objective:
Partner with Supplier to resolve a Product Disposition Plan that is mutually beneficial
Use Case Benefits: Facilitated an agreement to pick-up deleted items from the warehouse, in addition to those items not supported by the Suppliers Pick-up policy
Process/Analytical Steps:
Metrics to Review:
1. In-Stock makes the ADvantage partner aware the supplier isn’t picking up deleted product according to the ADUSA pick-up policy 2. ADvantage partner discusses with SCPP Vendor Partner to understand their position (against their policy) 3. Facilitate a meeting with In-Stock and the SCPP Vendor Partner to discuss the conflict in policies 4. Agree to a mutually agreed upon outcome
• Reset Calendar Awareness • Timely communication of deleted items • Timely and effective Close-out program
• Monthly Unsaleable Scorecards
• Timely Disposition plan • IRI Run Down Reports
Teams to Involve/Collaborate:
• In-Stock Manager and Analyst • SCPP vendor SC Manager/Sales • ADvantage Partner • Category
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49
Cross-Functional Use Cases: Capacity Analysis
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Cross-Functional Use Case: Capacity Analysis / Case Pack Analysis
Use Case Objective:
Address vendor-specific opportunities for adjustments in assortment, facings, capacity, or optimize case pack utilization.
Use Case Benefits: Focusing on vendor-specific opportunities narrows the scope within the vendors’ own space, addressing ways to increase on-shelf availability and in-stock, while potentially reducing unsaleables.
Process/Analytical Steps:
Metrics to Review:
1. Vendor presents an opportunity for review to the ADvantage Partner 2. ADvantage Partner validates the data and analytics pulled by the vendor to aid the discussion and reviews several metrics to determine if the opportunity warrants sharing with category : 1. Items Sales Rank - Rank the items by sales to identify top and bottom performers 2. Product Turns - compare shelf capacity to product unit sales 3. Holding Power - compare shelf capacity to days of supply 4. In-Stock Rate - targeting items with low store in-stock but high DC to store service level 5. Unsaleables - review items by ranking unsaleables against sales 6. Promotional opportunities versus turn opportunities 3. If case pack is excessive or insufficient for the turn movement, inquire with the vendor if they have alternate options that could be shared with category (i.e., different case pack size) 4. Present any validated opportunities to the category team for review
• In-Stock Rate / Minimum Presentation in-stock rates • DC Service Level & Fill Rates • Planogram count
• Sales units and dollars • Product Turns/DOH • Shelf Capacity / Facings • Case pack vs. shelf capacity • Unsaleables
Teams to Involve/Collaborate:
• Category - to present any validated vendor-specific opportunities • Unsaleables Team - to discuss any unsaleables implications • Demand - in the event pack changes or other CAO-related changes are suggested • Shelf Management
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