Retail Scorecards Study 2014 - Summary Charts

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Supply Chain Insights LLC Copyright © 2014, Retail Scorecards Study Summary Charts January – June 2014

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Executive Overview Retail scorecards are now more than a decade old. The companies in this study had an average of more than five years of experience using retail scorecards. Buyers and suppliers now manage multiple scorecards simultaneously (in the same relationship) in trading partner communications. The most common scorecards are focused in the areas of supply chain. As with any relationship, there is always a carrot and a stick. A carrot, or an incentive to do better, is a positive reward system given to affirm good behavior; while a stick is a punitive action for an unwanted behavior. Today, in the administration of retail scorecards, they are more focused on deductions and the withholding of payment. The primary value of the retail scorecard is the improvement of on-time and in-full shipments. Both parties have the opportunity to use the scorecard to improve assortment and reduce total costs. Today, these opportunities are aspirational. Here we share the insights from the study and end with recommendations for both trading partners.

Transcript of Retail Scorecards Study 2014 - Summary Charts

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Retail Scorecards Study

Summary ChartsJanuary – June 2014

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Agenda

Study Overview

Retail Scorecard Overview

Primary Scorecard Relationship

Suppliers/Manufacturers

Retailers

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Study Overview

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Definition Given to Respondents

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Even Representation of Retailers and Suppliers

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All Use Retail Scorecards – Suppliers Have Used Them Longer

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One-Third in Supply Chain Role

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Agenda

Study Overview

Retail Scorecard Overview

Primary Scorecard Relationship

Suppliers/Manufacturers

Retailers

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Supply Chain Scorecards Are Most Common TypeWorked With

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Suppliers More Likely than Retailersto Work with CSR Scorecards

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Supply Chain Scorecards AreMost Common Type Used by Retailers

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Review Scorecards Face-to-Face with an Average of 25% of Suppliers / Retailers

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Suppliers and Retailers Equally Likely to Review Performance Face-To-Face

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Most Common Criteria for Meeting Face-To-Face Are Volume and Impact on Business

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Agenda

Study Overview

Retail Scorecard Overview

Primary Scorecard Relationship

Suppliers/Manufacturers

Retailers

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Most Respondents’ Primary Relationship Is with a Discrete Product

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For Both Suppliers and Retailers, Most Respondents’ Primary Relationship Is with a Discrete Product

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High in Importance and Performance:On-Time, Accurate Shipments, Properly Labeled Cases

& High Product Quality

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Top in Importance, Performance & Impact:On-Time and Accurate Shipments

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High in Importance and Performance:On-Time, Accurate Shipments, Properly Labeled Cases

& High Product Quality

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Greatest Gap in Importance and Performance:Lowest Total Cost and On-Time

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Suppliers See Most Elements as More Important Than do Retailers – Except Assortment Excitement

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Suppliers Care More About Billing and Compliance;Retailers Care More about Assortment Excitement

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Suppliers Rate Most Elements as Higher PerformingThan do Retailers – Except Assortment and ASNs

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Scorecards Have Had the Greatest Impact on On-Time Performance and Accurate Shipments

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For Both Suppliers and Retailers, Most Impactful Elements Are On-Time Performance and Accurate Shipments

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Most Common Definitions for “On-Time Order:”Received on Same Day or Within Week

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Most Common Definitions for “On-Time Order:”Received on Same Day or Within Week

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Most Common Definitions for “Accurate Shipment:”Fill Rate or On-Time

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Retailers More Likely Than Suppliers to Consider “Accurate Shipment” to be “Accurate and Scan-able Labeling”

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In the Primary Relationship, Scorecards Are Updated 37 Times per Year on Average

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On Average, the Primary Relationship Scorecard Is Redefined 1.6 Times per Year

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Agenda

Study Overview

Retail Scorecard Overview

Primary Scorecard Relationship

Suppliers/Manufacturers

Retailers

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Most Believe Doing a Good Job of Using Scorecards to Improve Performance

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Most Suppliers Share Scorecards Internally, with Five Groups on Average

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Most Suppliers Get Data from Retailers andFour Types on Average

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Over Half Receive Data for Retail Sales/Order Forecasts, Forecasts and/or Store point of sale

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Most Types of Data Are Typically Shared via Portal

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High in Alignment Importance and Performance:Sales & Marketing and Operations & Compliance

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Greatest Gaps in Supplier Alignment:Sales & IT, Sales & Operations and Operations & IT

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Agenda

Study Overview

Retail Scorecard Overview

Primary Scorecard Relationship

Suppliers/Manufacturers

Retailers

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Monetary Penalties Are Most Common for Retailers

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Over Half of Retailers Are Using e-Commerce

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For Nearly Half of Retailers, House Brands Are 26% of Volume

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Over Half of Retailers Have Perpetual Inventory Signals for Warehouses

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One-Third of Retailers Book Chargeback Deductions into Cost of Goods;

One-Third Budget for Chargebacks

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High in Retailer Alignment Importance and Performance:Supply Chain & Operations and Merchants & Inventory

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Greatest Gaps in Retailer Alignment:Merchants & Operations, Inventory & Advertising and

Merchants & Finance