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1 © 2012TOCICO. All rights reserved.
TOCICO 2012 Conference
The path to improve the flow of goods in Retail.
Based on life implementations within 5 FMCG chains
Presented By: Darius Radkevicius Date: 12.05. 2012
2 © 2012 TOCICO. All rights reserved.
TOCICO 2012 Conference
The great minds argue
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TOCICO 2012 Conference
“I am convinced that He (God) does not throw dice” - Albert Einstein
Democritus 460-370 BC Euclid 323 - 283 BC Isaac Newton 1642 – 1727 Albert Einstein 1879 - 1955
Theory of Relativity. Cause – effect. Deterministic philosophy.
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TOCICO 2012 Conference
Really ???
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TOCICO 2012 Conference
“The mechanism of evolution is based on throwing dice” - Stephen Hawking
Quantum physics. Random events. Casino Perpetuum philosophy.
Laozi 5th- 4th BC Niels Bohr 1885 - 1962 Werner Heisenberg 1901 – 1976 Stephen Hawking 1942 -
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TOCICO 2012 Conference
Wise minds know that there is no one truth and both sides are right
QChaos
Fractal
But for the educational goals, new knowledge tends to oppose the old.
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TOCICO 2012 Conference
Insights about Retail
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TOCICO 2012 Conference
First step: Identify The clients who come to buy are the main constraint of the system.
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TOCICO 2012 Conference
Second step: Exploit The right inventory in the right place at the right time.
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TOCICO 2012 Conference
Third step: Subordinate
1.To have the right inventory you need to establish the procedure of getting the data of daily sales from the selling point and replenishing in accordance.
2. DBM will help you to achieve better financial result than forecast.
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TOCICO 2012 Conference
What insights keep silent?
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TOCICO 2012 Conference
Up to Kurt Gödel’s “Incompleteness of logic”
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TOCICO 2012 Conference
All systems depend on something outside the system. K. Gödel
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TOCICO 2012 Conference
Two philosophical view on system improvements
Deterministic or Random
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TOCICO 2012 Conference
“ T h e b u s i n e s s -school gurus tend to underplay the luck, presumably because the power of chance undermines the rules they teach you.”
Richard Branson:
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TOCICO 2012 Conference
Consumer is final or Global constraint. What is Local constraint?
Deterministic: “Shelf space is usually the shop’s constraint for better availability. A significant amount of the constraint is captured by merchandise that were ordered according to an overly optimistic forecast.” (STT 2:1) Random: Local constraint may be the location of the store. (The main rule for Retail: Location! Location! Location!)
17 © 2012 TOCICO. All rights reserved.
TOCICO 2012 Conference II step:
Exploiting the system’s constraint is done by either: 1)Deterministic: having the right inventory in the right place at the right time (Insight). That is, work with specific existing SKU (STT 3.1.3) 2)Random: continuous introduction of new products to meet changing demand over time, preferences, the influence of fashion and advertising. That is, work with an assortment.
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TOCICO 2012 Conference
Shelf space or physical constraint
Deterministic: To establish procedure of getting from sales point the data of its daily sales and replenishing in accordance.
Random: To have proper visual display in quantity and in the right place (merchandising).
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TOCICO 2012 Conference
The possible wise decision: to connect SM (space management) with DBM
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TOCICO 2012 Conference
Logical conclusion after step 3 “subordinate everything else to the above decision” by TOC:
(slide 10)
If you convince the client to provide daily data and configure the
DBM, then you as a consultant will help the client to collect the low
hanging fruits.
Is it really enough?
21 © 2012 TOCICO. All rights reserved.
TOCICO 2012 Conference
Neither in the STT nor in the Insight the DATA was not mentioned, just building DBM!
Perhaps there is a hidden assumption that retailers have good enough data, because without them, at such scale, it is not p o s s i b l e t o c o n t r o l stores. Do you remember K. Gödel?
22 © 2012 TOCICO. All rights reserved.
TOCICO 2012 Conference
Is it possible to operate in Retail without a reliable data?
Deterministic: No, because the data is Necessary condition!
Random: Yes, if Stores do orders on an "As I see it I sing”, and shops located in a prime location.
23 © 2012 TOCICO. All rights reserved.
TOCICO 2012 Conference
Is it possible to achieve in Retail an improvement of financial performance without having reliable
data?
Deterministic: No, because the data is Necessary condition!
Random: Yes, if fortune smiles to stores and they are lucky, and quickly introduce popular new items.
24 © 2012 TOCICO. All rights reserved.
TOCICO 2012 Conference
Determin is t ic : No , because the data is Necessary condition for the correct Buffer calculation.
Random: Yes, if you're lucky - both in data and their exchange the quantity of error is small.
Is it possible to achieve an improvement of financial performance from the implementation of DBM
without having reliable data?
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TOCICO 2012 Conference
Our conclusion
Very often for getting
effectiveness from the
implementation of TOC projects for Retail, the constraint is
Information flow.
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TOCICO 2012 Conference
Funnel of constraints
Globally: on the market level - Consumer
Locally: on the Store level - Shelf space
On project: for receiving a prize from DBM implementation (improving bottom-line) - Flow of information
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TOCICO 2012 Conference
Flow of information is possible to divide in two groups
D e t e r m i n i s t i c : T h e process of exchanging data and accuracy of the data (a reflection of the internal environment).
Random: Information on new products and offers f r o m s u p p l i e r s ( a reflection of the external environment).
28 © 2012 TOCICO. All rights reserved.
TOCICO 2012 Conference
1. Flow of information. In a business company, this is akin to the human nervous system. It relays market needs and the success achieved in serving clients. 2. Flow of goods and services. In a company, this is akin to the circulatory system. Flowing blood, satiated with nutrients, covers the entire supply and production process, from the acquisition of raw materials to the delivery of production. 3. Flow of money. This is akin to the respiratory system. It supplies the entire organism with oxygen. If there is no money in a company, there won’t be anything else either.
Meanwhile every business organization has the following three main flows
29 © 2012 TOCICO. All rights reserved.
TOCICO 2012 Conference
1. Goods are stolen; 2. Employees make mistakes
when entering data; 3. Suppliers are changing the
minimum package. Note: The correct order should be rounded up to min packing (do not confuse with MOQ, or EOQ)
30 © 2012 TOCICO. All rights reserved.
TOCICO 2012 Conference
Daily symptoms
1. Employees do not trust the data or order formula;
2. Automatic order are often corrected manually;
3. Data have negative balances (where the system allows).
31 © 2012 TOCICO. All rights reserved.
TOCICO 2012 Conference
Symptoms from H. Baptista presentation - TOCICO 2010
32 © 2012 TOCICO. All rights reserved.
TOCICO 2012 Conference
Conclusion: The daily data in IT system and the real data in the store do not match each other to a greater or lesser
degree.
1. If erroneous information flow, then flow of goods can not be correct. 2. In the Retail every day you need to take decisions on thousands of SKU, therefore to adjust the flow of information for effective ordering, the automated order management - Necessary condition.
33 © 2012 TOCICO. All rights reserved.
TOCICO 2012 Conference
How to calculate the correct order, if the data are not reliable?
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TOCICO 2012 Conference
To implement TOC in Retail, i.e. cause–effect approach and to centralize the decision-making process, like ordering, you must to make data reliable. If not, you’re allowing to run the Random Chaos mechanism in the very roots of the system.
Chaos theory says that behavior of complex dynamical systems are highly sensitive to initial conditions. Small differences in initial conditions yield widely d i v e r g i n g o u t c o m e s . T h e deterministic nature of these systems does not make them predictable.
35 © 2012 TOCICO. All rights reserved.
TOCICO 2012 Conference First solution
The system must check the quality of the data exchange process: 1. Whether the data exchanged on time? 2. Exchanged in whole scope? 3. Is there double lines? (Failure in IT systems integration?) 4. Is there are no errors in completing the required parameters in
the product card? (if the all required fields are filled (especially important for new products))
For these purposes, in the system has been introduced systematic operational reports.
1 solutionЕксплоатировать,
значит, чтобы не ходили не нужные данные. Т.к. обработка данных требует времени
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2Expediting
9:1121111:1Set up quality control of data
exchangeThe system must check the quality of the data exchange process:
1. whether the data exchanged during the time?
2. exchanged in whole?
3. Is there double line?
4. there are no errors in completing the required parameters in the commercial card?• For these purposes, the system was introduced systematic operational reports.
36Monday, April 30, 12
36 © 2012 TOCICO. All rights reserved.
TOCICO 2012 Conference
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2Expediting
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2Expediting
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2Expediting
5:112:1
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2Expediting9:1121111:1
Set up quality control of data
exchange
Monday, May 7, 12
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2Expediting
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2Expediting
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2Expediting
5:112:1
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2Expediting9:1121111:1
Set up quality control of data
exchange
Monday, May 7, 12
37 © 2012 TOCICO. All rights reserved.
TOCICO 2012 Conference
Our Example: Data availability on time
warehous code
12
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(S
at)
12
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at)
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un
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un
)
1.3
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(M
on
)
1.4
.20
11
(T
ue
)
Data not come
Data on time
Data comes with delay the
same day
Data delay 1 day
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laikuDuomenys gauti kitą dienąDuomenys gauti pavėluotai tą pačią dienąDuomenys negautiDuomenys gauti pavėluotai tą pačią dienąDuomenys negautiDuomenys negauti5 22 7 1209 Duomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys negautiDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys negautiDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti laikuDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti laikuDuomenys gauti laikuDuomenys negautiDuomenys negautiDuomenys gauti laikuDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti laikuDuomenys gauti kitą dienąDuomenys gauti pavėluotai tą pačią dienąDuomenys negautiDuomenys negautiDuomenys negautiDuomenys negauti8 21 5 1222 Duomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti laikuDuomenys gauti laikuDuomenys negautiDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti laikuDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti laikuDuomenys gauti kitą dienąDuomenys gauti pavėluotai tą pačią dienąDuomenys negautiDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti pavėluotai tą pačią dienąDuomenys negauti3 24 7 1
99999 Duomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys negautiDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti laikuDuomenys gauti laikuDuomenys negautiDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti laikuDuomenys gauti kitą dienąDuomenys gauti pavėluotai tą pačią dienąDuomenys negautiDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti laikuDuomenys negauti4 26 4 1351 Duomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys negautiDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti laikuDuomenys negautiDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti laikuDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti laikuDuomenys gauti laikuDuomenys negautiDuomenys negautiDuomenys gauti laikuDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti laikuDuomenys gauti kitą dienąDuomenys gauti pavėluotai tą pačią dienąDuomenys negautiDuomenys negautiDuomenys negautiDuomenys negauti8 19 7 1489 Duomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti laikuDuomenys gauti laikuDuomenys negautiDuomenys negautiDuomenys negautiDuomenys gauti kitą dienąDuomenys gauti laikuDuomenys negautiDuomenys negautiDuomenys negautiDuomenys gauti pavėluotai tą pačią dienąDuomenys negautiDuomenys negauti8 22 4 1229 Duomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys negautiDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti laikuDuomenys gauti kitą dienąDuomenys negautiDuomenys gauti pavėluotai tą pačią dienąDuomenys negautiDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti pavėluotai tą pačią dienąDuomenys negautiDuomenys negautiDuomenys negautiDuomenys gauti pavėluotai tą pačią dienąDuomenys negautiDuomenys negauti8 20 6 1302 Duomenys gauti laikuDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti laikuDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti laikuDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti laikuDuomenys gauti laikuDuomenys negautiDuomenys negautiDuomenys negautiDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti laikuDuomenys negautiDuomenys negautiDuomenys negautiDuomenys gauti pavėluotai tą pačią dienąDuomenys negautiDuomenys negauti8 20 7 0110 Duomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti laikuDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti laikuDuomenys gauti laikuDuomenys negautiDuomenys gauti pavėluotai tą pačią dienąDuomenys negautiDuomenys negautiDuomenys gauti laikuDuomenys negautiDuomenys negautiDuomenys negautiDuomenys gauti pavėluotai tą pačią dienąDuomenys negautiDuomenys negauti8 21 6 0140 Duomenys gauti laikuDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti laikuDuomenys gauti laikuDuomenys negautiDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys negautiDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti laikuDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti laikuDuomenys gauti laikuDuomenys negautiDuomenys negautiDuomenys negautiDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti laikuDuomenys negautiDuomenys negautiDuomenys negautiDuomenys negautiDuomenys negautiDuomenys negauti11 19 5 0358 Duomenys gauti laikuDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti laikuDuomenys gauti laikuDuomenys negautiDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti laikuDuomenys negautiDuomenys negautiDuomenys gauti laikuDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti laikuDuomenys gauti laikuDuomenys negautiDuomenys negautiDuomenys negautiDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti laikuDuomenys negautiDuomenys negautiDuomenys negautiDuomenys negautiDuomenys negautiDuomenys negauti12 18 5 0405 Duomenys gauti pavėluotai tą pačią dienąDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti laikuDuomenys gauti laikuDuomenys negautiDuomenys gauti pavėluotai tą pačią dienąDuomenys negautiDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti laikuDuomenys negautiDuomenys negautiDuomenys negautiDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti laikuDuomenys negauti6 22 7 0401 Duomenys gauti laikuDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti laikuDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti laikuDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti laikuDuomenys gauti laikuDuomenys negautiDuomenys gauti laikuDuomenys negautiDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti pavėluotai tą pačią dienąDuomenys negautiDuomenys negautiDuomenys negautiDuomenys gauti pavėluotai tą pačią dienąDuomenys negautiDuomenys negauti7 19 9 0425 Duomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys negautiDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys negautiDuomenys negautiDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti laikuDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti laikuDuomenys gauti laikuDuomenys negautiDuomenys gauti laikuDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti laikuDuomenys gauti laikuDuomenys negautiDuomenys negautiDuomenys negautiDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti laikuDuomenys negautiDuomenys negautiDuomenys negautiDuomenys negautiDuomenys negautiDuomenys negauti13 17 5 0441 Duomenys gauti laikuDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti laikuDuomenys gauti laikuDuomenys negautiDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti laikuDuomenys negautiDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti laikuDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti laikuDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti laikuDuomenys gauti laikuDuomenys negautiDuomenys negautiDuomenys negautiDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti laikuDuomenys negautiDuomenys negautiDuomenys negautiDuomenys negautiDuomenys negautiDuomenys negauti11 17 7 0442 Duomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti laikuDuomenys gauti laikuDuomenys negautiDuomenys gauti pavėluotai tą pačią dienąDuomenys negautiDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti laikuDuomenys gauti kitą dienąDuomenys gauti pavėluotai tą pačią dienąDuomenys negautiDuomenys gauti pavėluotai tą pačią dienąDuomenys negautiDuomenys negauti5 22 7 1443 Duomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti laikuDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti laikuDuomenys gauti laikuDuomenys negautiDuomenys negautiDuomenys negautiDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti laikuDuomenys negautiDuomenys negautiDuomenys negautiDuomenys negautiDuomenys negautiDuomenys negauti9 21 5 0444 Duomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys negautiDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys negautiDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti laikuDuomenys gauti laikuDuomenys negautiDuomenys negautiDuomenys negautiDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti laikuDuomenys gauti kitą dienąDuomenys gauti pavėluotai tą pačią dienąDuomenys negautiDuomenys negautiDuomenys negautiDuomenys negauti9 20 5 1449 Duomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys negautiDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti laikuDuomenys negautiDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti laikuDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti laikuDuomenys gauti laikuDuomenys negautiDuomenys negautiDuomenys gauti laikuDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti laikuDuomenys negautiDuomenys gauti kitą dienąDuomenys negautiDuomenys negautiDuomenys gauti laikuDuomenys negauti8 21 5 1456 Duomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti laikuDuomenys gauti laikuDuomenys negautiDuomenys negautiDuomenys gauti laikuDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti laikuDuomenys negautiDuomenys negautiDuomenys negautiDuomenys negautiDuomenys negautiDuomenys negauti8 21 6 0461 Duomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys negautiDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys negautiDuomenys negautiDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti laikuDuomenys gauti laikuDuomenys negautiDuomenys negautiDuomenys negautiDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti laikuDuomenys gauti kitą dienąDuomenys gauti pavėluotai tą pačią dienąDuomenys negautiDuomenys negautiDuomenys negautiDuomenys negauti10 19 5 1485 Duomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti laikuDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti laikuDuomenys gauti laikuDuomenys negautiDuomenys negautiDuomenys negautiDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti laikuDuomenys gauti kitą dienąDuomenys gauti pavėluotai tą pačią dienąDuomenys negautiDuomenys gauti pavėluotai tą pačią dienąDuomenys negautiDuomenys negauti6 21 7 1491 Duomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti laikuDuomenys gauti laikuDuomenys negautiDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti laikuDuomenys gauti laikuDuomenys negautiDuomenys gauti laikuDuomenys negautiDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti laikuDuomenys negautiDuomenys negautiDuomenys negautiDuomenys gauti pavėluotai tą pačią dienąDuomenys negautiDuomenys negauti8 23 4 0493 Duomenys gauti laikuDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti laikuDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti laikuDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti laikuDuomenys gauti laikuDuomenys negautiDuomenys gauti laikuDuomenys negautiDuomenys gauti pavėluotai tą pačią dienąDuomenys gauti laikuDuomenys negautiDuomenys negautiDuomenys negautiDuomenys gauti pavėluotai tą pačią dienąDuomenys negautiDuomenys negauti7 21 7 0
38 © 2012 TOCICO. All rights reserved.
TOCICO 2012 Conference
Our Example: are there double lines?
39 © 2012 TOCICO. All rights reserved.
TOCICO 2012 Conference
Our Example: are there errors in completing the required parameters ?
40 © 2012 TOCICO. All rights reserved.
TOCICO 2012 Conference
The paradox is that while the firm does not upload the data to a third party, such as us, to find an internal programming error is almost impossible.
Next, we must do Sifting Information Out of the Data Ocean, which is often at that age, as the company itself,
and contains all the vestiges of the past.
41 © 2012 TOCICO. All rights reserved.
TOCICO 2012 Conference 2 solution
The system should check the quality of data: 1. Is there a negative balance? 2. The discrepancy between the daily and weekly data? 3. Does it happen so that a regularly selling product is no longer sold? 4. Does it happens so that the level of sold product is always the same? 5. Late posting - does it happen so that employees enter data of today tomorrow?
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2Expediting8:1121111:1Set up quality control of data
2 solution
The system should be checkedquality of data:
1. Is there a negative balance?2. The discrepancy between the daily weekly data
3. Не остановилась ли продажа регулярно продоваемого товара?
4. Не продается ли товар всегда до того же уровня?
40Monday, April 30, 12
42 © 2012 TOCICO. All rights reserved.
TOCICO 2012 Conference
Example: The discrepancy between the daily and weekly data
43 © 2012 TOCICO. All rights reserved.
TOCICO 2012 Conference
Report on negative balance:
44 © 2012 TOCICO. All rights reserved.
TOCICO 2012 Conference
The first task – it’s necessary to establish reliable internal info flow from every point of sale / storage 1. Sales (define what goes into
the sales data, and that there are no such as refunds or displacements);
2. Inventory (in the remnants there should be no "unconditional products”);
3. Arrival (in arrivals make sure they are real arrivals not "an order”);
4. etc.
45 © 2012 TOCICO. All rights reserved.
TOCICO 2012 Conference
In the clients IT system, often there are no data a v a i l a b l e o n s u c h product characteristics as: 1. Min sales quantity; 2. Min quantity in the package; 3. Min transportation quantity; 4. Shelf life; 5. etc.
46 © 2012 TOCICO. All rights reserved.
TOCICO 2012 Conference
Third task - to fill the information system with data describing the product at a particular point of
sales / storage
1. SKU activity (activity in a particular point of sales);
2. Orders scheduling; 3. A visual representation
(layout); 4. Supplier (one or more who
supply goods to a certain point);
5. Type of product ordering – replenishment (MTS) or order one time (MTO);
6. Etc.
47 © 2012 TOCICO. All rights reserved.
TOCICO 2012 Conference
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2Expediting
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2Expediting
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2Expediting
5:112:1
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2Expediting9:1121111:1
Set up quality control of data
exchange
Monday, May 7, 12
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2Expediting
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2Expediting
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2Expediting
5:112:1
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2Expediting9:1121111:1
Set up quality control of data
exchange
Monday, May 7, 12
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2Expediting8:1121111:1Set up quality control of data
2 solution
The system should be checkedquality of data:
1. Is there a negative balance?2. The discrepancy between the daily weekly data
3. Не остановилась ли продажа регулярно продоваемого товара?
4. Не продается ли товар всегда до того же уровня?
40Monday, April 30, 12
48 © 2012 TOCICO. All rights reserved.
TOCICO 2012 Conference
Method
1. Every morning spot stocktaking (for the elimination of the "minus" residues, residues of stolen goods, etc.)
2. Introducing the motivation for the shops staff for the timely posting and reporting for process control.
3. Introducing of procedures for "closing" the trading day (to prevent retroactive change of the data correction in the system).
49 © 2012 TOCICO. All rights reserved.
TOCICO 2012 Conference
As soon as the right data exchange being established, it may seem that the work is almost
done? It remains to set up DBM :)
50 © 2012 TOCICO. All rights reserved.
TOCICO 2012 Conference
1. Yes, if you are focused on IT consulting how to program DBM within the client system. An IT systems for different
clients are different.
2. No, if you counsel on system management solutions and you are targeting to improve overall financial performance
of the firm.
51 © 2012 TOCICO. All rights reserved.
TOCICO 2012 Conference
Good systematic solution built for "Buy in" should give the three winnings
1. To remove the work from a specialist at a technical level so that he/she would not resist to changes;
2. To improve the process, so it should be easier to manage;
3. To provide financial benefits.
52 © 2012 TOCICO. All rights reserved.
TOCICO 2012 Conference
3 solution Part 1 To remove the technical work:
Set up an automated ordering application
53 © 2012 TOCICO. All rights reserved.
TOCICO 2012 Conference
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2Expediting
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2Expediting
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2Expediting
5:112:1
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2Expediting9:1121111:1
Set up quality control of data
exchange
Monday, May 7, 12
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2Expediting
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2Expediting
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2Expediting
5:112:1
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2Expediting9:1121111:1
Set up quality control of data
exchange
Monday, May 7, 12
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2Expediting8:1121111:1Set up quality control of data
2 solution
The system should be checkedquality of data:
1. Is there a negative balance?2. The discrepancy between the daily weekly data
3. Не остановилась ли продажа регулярно продоваемого товара?
4. Не продается ли товар всегда до того же уровня?
40Monday, April 30, 12
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2ExpeditingSet up an
automated ordering
application
7:11211:1
3 solution To remove the technical work:
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2ExpeditingSet up quality
control of data exchange
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2ExpeditingSet up quality control of data
8:112111:1
9:1121111:1
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2Expediting7:1121111:1
Set up an automated ordering
application
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2Expediting
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2Expediting
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2Expediting?
5:112:15:112:1
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2ExpeditingBuffer
management system
5:112:1
Monday, May 7, 12
3 solution Part 1 To remove the technical work
54 © 2012 TOCICO. All rights reserved.
TOCICO 2012 Conference
Assumption: DBM formula is enough to pick the low hanging fruits that are in the hands of employees. 1. Yes, if we are focused on IT consulting how to program the DBM within client
system. However all different clients have different systems!
2. No, if we are building an auto ordering system, to remove all the technical work on ordering from office staff. Why?
а) Retailers need a systematic solution for all products, not only for the trolley.
b) DBM works only with 10-15% of SKU, but must be ordered everything.
с) DBM itself does not work with a particular product, but with the goods having specific properties. And those properties are varying with time.
55 © 2012 TOCICO. All rights reserved.
TOCICO 2012 Conference
Specific properties that needed for DBM:
1. Delivery at least once in 2 weeks;
2. Consumption at least once in 2 weeks;
3. No short term promo activities;
4. The life cycle of the product more than 21 days (or at least 5 periods of replenishment);
5. ?
56 © 2012 TOCICO. All rights reserved.
TOCICO 2012 Conference
56
To build a system solution for auto ordering you need to have up to ten formulas, depending on the
specialization of the Retail
1. Replenishment up to requirement of merchandising; 2. Long term of supply (delivery less than once in 2 weeks) 3. Consumption less than once in 2 weeks 4. Fresh products (Life cycle up to 21 days) 5. Super Fresh products (Life cycle up to 7 days) 6. Promo actions on item 7. Seasonal products 8. Weekend products
57 © 2012 TOCICO. All rights reserved.
TOCICO 2012 Conference
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2Expediting
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2Expediting
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2Expediting
5:112:1
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2Expediting9:1121111:1
Set up quality control of data
exchange
Monday, May 7, 12
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2Expediting
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2Expediting
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2Expediting
5:112:1
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2Expediting9:1121111:1
Set up quality control of data
exchange
Monday, May 7, 12
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2Expediting8:1121111:1Set up quality control of data
2 solution
The system should be checkedquality of data:
1. Is there a negative balance?2. The discrepancy between the daily weekly data
3. Не остановилась ли продажа регулярно продоваемого товара?
4. Не продается ли товар всегда до того же уровня?
40Monday, April 30, 12
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2ExpeditingSet up an
automated ordering
application
7:11211:1
3 solution To remove the technical work:
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2ExpeditingSet up quality
control of data exchange
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2ExpeditingSet up quality control of data
8:112111:1
9:1121111:1
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2Expediting7:1121111:1
Set up an automated ordering
application
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2Expediting
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2Expediting
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2Expediting?
5:112:15:112:1
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2ExpeditingBuffer
management system
5:112:1
Monday, May 7, 12
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2Expediting
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2Expediting
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2Expediting
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2Expediting
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2Expediting
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2Expediting
9:15:1Set up quality
control of data exchange
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2ExpeditingSet up quality control of data
8:14:1
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2ExpeditingTo implement auto ordering
application
7:13:1
4 solution
To remove the technical work:
Set up an automated ordering
application
Adjusting formulas for
different types of product families
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2ExpeditingReplenishment up to requirement of
merchandising
6:1123:1
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2Expediting
Promo action on item
6:1123:7
Long term supply(delivery less than once in 2 weeks)
6:1123:2
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2Expediting6:1123:3
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2ExpeditingFresh products
(Life cycle up to 21 days)
6:1123:4 6:1123:6 Consumption less
than once in 2 weeks
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2ExpeditingSuper Fresh products (Life
cycle up to 7 days)
6:1123:5
Seasonal product
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2Expediting6:1123:8
Weekend product
5:112:1 5:112:3
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2ExpeditingSet up an
automated ordering
application
7:11211:1
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2ExpeditingSet up quality
control of data exchange
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2ExpeditingSet up quality control of data
8:112111:1
9:1121111:1
5:112:2
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2ExpeditingAdjusting formulas for
different types of product families
5:112:3
Monday, May 7, 12
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2Expediting
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2Expediting
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2Expediting
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2Expediting
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2Expediting
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2Expediting
9:15:1Set up quality
control of data exchange
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2ExpeditingSet up quality control of data
8:14:1
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2ExpeditingTo implement auto ordering
application
7:13:1
4 solution
To remove the technical work:
Set up an automated ordering
application
Adjusting formulas for
different types of product families
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2ExpeditingReplenishment up to requirement of
merchandising
6:1123:1
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2Expediting
Promo action on item
6:1123:7
Long term supply(delivery less than once in 2 weeks)
6:1123:2
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2Expediting6:1123:3
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2ExpeditingFresh products
(Life cycle up to 21 days)
6:1123:4 6:1123:6 Consumption less
than once in 2 weeks
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2ExpeditingSuper Fresh products (Life
cycle up to 7 days)
6:1123:5
Seasonal product
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2Expediting6:1123:8
Weekend product
5:112:1 5:112:3
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2ExpeditingSet up an
automated ordering
application
7:11211:1
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2ExpeditingSet up quality
control of data exchange
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2ExpeditingSet up quality control of data
8:112111:1
9:1121111:1
5:112:2
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2ExpeditingAdjusting formulas for
different types of product families
5:112:3
Monday, May 7, 12
3 solution Part 2 To remove the technical work
58 © 2012 TOCICO. All rights reserved.
TOCICO 2012 Conference
All done? The earth was created, is it time for spa break?
59 © 2012 TOCICO. All rights reserved.
TOCICO 2012 Conference
59
We are not dealing with a closed system where everything is under our control, but with open system which is in a
continuous whirl of events.
• Every minute different employees and different circumstances across the supply chain affect the flow of products: forgot to order, data are not received, data were not entered in to the system on time, made a mistake when entering data, ordered more than needed, a supplier did mistake in order, the goods are not delivered, delivered less, late delivery, promo campaign announced, someone stole the goods from the shelves, the formula used for calculating the order is not appropriate for specific group of goods, the holidays and etc. That is, each quantum at any moment can affect the flow of products both positively and negatively.
• Employees tend to look for causes for lack of product or its surplus in the formula than in the outside world. There is a prevailing assumption that the formula is easier to correct than to influence the cause.
60 © 2012 TOCICO. All rights reserved.
TOCICO 2012 Conference
4 solution – POOGI Even more important than the formula. For the time being, you can work
with formulas, which already have the client.
1. It is a “mission impossible” to built a measurement system for POOGI in retail without proper IT solutions. This solution must enable automated collection of information about the every single “quanta” of behavior. 2. P O O G I i s m e c h a n i s m t o SUBORDINATE everything else to the above decision. 3. Without POOGI the functional KPI doesn’t allow managers to interpret the same event equally.
5 solutionEven more important than the formula. For the time being, you can work with formulas, which already have the client
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2Expediting6:1121111:1
Set up an automated
POOGI
1.It is a “mission impossible” to built a measurement system POOGI in retail without proper IT solutions those enables automated collection of information about the every single “quanta” behavior.
2.POOGI is mechanism to SUBORDINATE everything else to the above decision on IT level and for restructuring processes.
3.All the more the functional KPI system is not allows managers to interpret the same event equally.
Wednesday, May 2, 12
61 © 2012 TOCICO. All rights reserved.
TOCICO 2012 Conference
4 solution - POOGI Improve the management process, i.e. should be
easier to manage
62 © 2012 TOCICO. All rights reserved.
TOCICO 2012 Conference
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2Expediting
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2Expediting
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2Expediting
5:112:1
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2Expediting9:1121111:1
Set up quality control of data
exchange
Monday, May 7, 12
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2ExpeditingSet up an
automated ordering
application
7:11211:1
3 solution To remove the technical work:
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2ExpeditingSet up quality
control of data exchange
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2ExpeditingSet up quality control of data
8:112111:1
9:1121111:1
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2Expediting7:1121111:1
Set up an automated ordering
application
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2Expediting
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2Expediting
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2Expediting?
5:112:15:112:1
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2ExpeditingBuffer
management system
5:112:1
Monday, May 7, 12
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2Expediting
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2Expediting
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2Expediting
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2Expediting
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2Expediting
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2Expediting
9:15:1Set up quality
control of data exchange
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2ExpeditingSet up quality control of data
8:14:1
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2ExpeditingTo implement auto ordering
application
7:13:1
4 solution
To remove the technical work:
Set up an automated ordering
application
Adjusting formulas for
different types of product families
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2ExpeditingReplenishment up to requirement of
merchandising
6:1123:1
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2Expediting
Promo action on item
6:1123:7
Long term supply(delivery less than once in 2 weeks)
6:1123:2
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2Expediting6:1123:3
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2ExpeditingFresh products
(Life cycle up to 21 days)
6:1123:4 6:1123:6 Consumption less
than once in 2 weeks
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2ExpeditingSuper Fresh products (Life
cycle up to 7 days)
6:1123:5
Seasonal product
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2Expediting6:1123:8
Weekend product
5:112:1 5:112:3
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2ExpeditingSet up an
automated ordering
application
7:11211:1
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2ExpeditingSet up quality
control of data exchange
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2ExpeditingSet up quality control of data
8:112111:1
9:1121111:1
5:112:2
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2ExpeditingAdjusting formulas for
different types of product families
5:112:3
Monday, May 7, 12
5 solutionEven more important than the formula. For the time being, you can work with formulas, which already have the client
1Viable Vision
Retailer S&TRetailer S&T
Viable Vision
2:1Availability Competitive edge
Base Growth
3:1:1Ensure
Build3:1:3
Improve TPS 3:1:2
Protect and
Sustain Build
Existing SKUAvailability
p(Product Portfolio)
Improve Inventory Turns
4:11:3Dealing with
suppliers
4:11:2Keeping correct inventory levels
4:11:1Internal pull distribution
5:12:35:12:1 5:12:2 5:12:3Adjusting for peak demand
5:12:1Buffer
managementsystem
5:12:2Expediting6:1121111:1
Set up an automated
POOGI
1.It is a “mission impossible” to built a measurement system POOGI in retail without proper IT solutions those enables automated collection of information about the every single “quanta” behavior.
2.POOGI is mechanism to SUBORDINATE everything else to the above decision on IT level and for restructuring processes.
3.All the more the functional KPI system is not allows managers to interpret the same event equally.
Wednesday, May 2, 12
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Automatic POOGI algorithm is build through operating measurements of LostSales and
OverStock
• What gives automated POOGI: − Eliminates disputes, where decision has
given effect on the results; − Objectively shows the cases where the
mechanism of formulas can not cope; − Eliminates disputes, when the Retailer is
ready to start negotiation with the supplier about partnership. Otherwise, he need to take time to improve internal processes; − Objectively provides data for the Win-Win
negotiations with suppliers and logistics partners to improve the reliability of their work.
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Automatic POOGI algorithm is build through
operating measurements LS and OS
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But here is a loop .. to have auto POOGI, you need to have formulas (like OverStock)
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Solution N.5 should provide a financial benefits.
Replenishment Priority Iden2fica2on
6:1311:1 Global Fast, Regulars, Slow Movers Iden2fica2ons
5:131:1 Focusing on Customers
6:1311:2 Local Fast, Regulars, Slow Movers Iden2fica2ons
5:131:2 Focusing on a Company
6:1312:1 Throughput Movers Iden2fica2ons
6:1312:2 Top Movers Iden2fica2ons
6:1312:2 Core Movers Iden2fica2ons
6:1311:2 Local/Global NON Movers Iden2fica2ons
Assortment exchange mechanism
NON, OUT movers sales
5:132:1 Exchange rules by Categories
5:132:1 Suppliers Nego2a2ons Process
5:132:1 New movers tes2ng mechanism
N o n m o v e r s ( g l o b a l a n d local) are first candidates for exchange. Local slow movers are under precise view.
Focus only on Frequency (Fast) is not enough, you need also to focus and on Throughput (Thr) & Sales (Top). To have real focus use
CoreMovers = FastM+ThrM +TopM
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Last but not least – solution N.6:
Accurate analytical reports makes possible to consult for any person who has ability of logical thinking.
Goodstream team decided to build services for consultants, because experienced consultants are constraints in projects!
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Example (Reports)
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Sales versus Product groups
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Lost Sales versus Product Groups
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Overstock versus Supplier
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Supply DDP
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Funnel of constraints
Globally: on the market level – Consumer; Locally: on the Store level - Shelf space; Globally in the Retail project: prize for implementing DMB - Flow of information;
Locally in the Retail project: an experienced Consultant.
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Final conclusion - Random side can’t be ignored!
• As well as irrational or alogos. From chaos theory we know that small, random changes in the environment lead to unpredictable consequences.
• The question is on a different plane - how to connect the two sides - rational and irrational, logos and alogos?
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You can’t require that the entire management was focused on your project until you’ll put things in order (from 3 to 6
months), so that the company
1. Does not open new stores; 2. Is not engaged in promotional activity with the products;
3. Does not introduce new products and new suppliers; 4. Does not change layout;
5. Does not change the pricing policy.
It’s dangerous, because until we’ll clean up the data, fortune can turn away from the company. (..small, random changes in the environment can lead to unpredictable consequences..)
At what level of intensity such activities must be conducted? On the same as it was before starting our project.
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Business, as our life, depend on both - deterministic and random sides :)
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GoodStream achievements
Changes during project
Number of shops Increase From 26 to 170% Turnover Increase From 31 to 73% Lost Sales (approximately 15% of Retail turnover for Non food and 7% for Food)
Decrease 40 – 53%
Overstock (approximately 25% of overall Retail inventory for Non food and 18% Food)
Decrease 11 - 35%
Duration of the projects 12 month Time to results From 3 to 7 months
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Consulting projects
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Observer Traveler Author - “God, Quantum physics,
Organizational structure and Management style”
+ 370 698 41 027 (Lithuania)
[email protected] www.god-physics-management.com
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Darius Radkevicius