Ecr malaysia i get what i want

Driving Mutual Profitable Growth through Partnership

Colgate-Palmolive Company



"I Get What I Want" "I Get What I Want" ––Collaboration Towards Efficient OnCollaboration Towards Efficient On--Shelf Shelf Availability To Drive Shopper Loyalty Availability To Drive Shopper Loyalty



Participants DetailsParticipants Details

Mr Tim Edwards

Ordering Director

Tesco Stores (Malaysia) Sdn Bhd

Mr Nakulan T

Customer Service & Logistics Director

Colgate-Palmolive Marketing Sdn Bhd

Mr Ivan Chong

Customer Development Manager


Ms Tan Seow Wei

Customer Service Manager




ContentsContents

• Why we needed to do this

• What we set out to do

• How we did it

• Our results so far

• The conclusions we reached

• What next



Colgate Palmolive Brief IntroductionColgate Palmolive Brief Introduction

Colgate is a $15.3 billion consumer products company

Truly global in scope, Colgate sells its

products in over 200 countries and territories.

Approximately 75% of sales come from

international operations.

Colgate enhances consumers’ lives through

it’s quality products in Oral Care, Personal Care, Home Care and Pet Nutrition.



Tesco Brief IntroductionTesco Brief Introduction

Staff 472,000

Stores 4,811

Markets 14

Profit £3,176m

Sales ex.UK

£19.4bn



ContentsContents

• Why we needed to do this



Shopper Smart : “50% of the shopper’s final choiseis made in front of SHELF!!!”



Importance of ON SHELF AVAILABILITYImportance of ON SHELF AVAILABILITY



Optimize SupplyImprove service level – Target 95% (Shipment CP Warehouse – Tesco DC)

Improve On-Shelf Availability – Prevent Loss Sales Opportunity(Tesco Backroom (Tesco Backroom (Tesco Backroom (Tesco Backroom –––– Selling Floor 50m distance)Selling Floor 50m distance)Selling Floor 50m distance)Selling Floor 50m distance)

OOS? Identify root causes and jointly formulate improvement plans.

50m

Opportunities Along The Value ChainOpportunities Along The Value Chain……



Colgate Customer ServiceColgate Customer ServiceColgate Customer ServiceColgate Customer Service

Tesco Supply ChainTesco Supply ChainTesco Supply ChainTesco Supply Chain

Tesco Store PersonnelTesco Store PersonnelTesco Store PersonnelTesco Store Personnel

OSA Resource/OSA Resource/OSA Resource/OSA Resource/Customer DevelopmentCustomer DevelopmentCustomer DevelopmentCustomer Development

Cross Functional Team ie CDT Supply Chain, Customer Development Manager & The Field Sales Team working together driving the on-going supply chain collaboration initiatives in building engagement.

Supply Chain Collaboration for OSASupply Chain Collaboration for OSA



Colgate Supply Chain Engagement Colgate Supply Chain Engagement

SchematicSchematic……



ContentsContents

• What we set out to do



Objective : Strategic AlignmentObjective : Strategic Alignment

Mutual goals of Tesco & Colgate in driving shopper loyalty to

Colgate brands in Tesco stores

Focus on end to end supply chain to improve in-stock position with

optimum inventory coverage



ContentsContents

• How we did it



How we did itHow we did it

Understand the processes involved

Define what is an out of stock

Select trial stores

Resource the project

Run the trial

Collect the data and root cause analysis



1. Understand the Processes1. Understand the Processes

Step 5 -Forward Actions

Step 3 - OSA Trending

Step 1- CP Physical On

Shelf Tracking in the

Store

Step 2 - Tesco Store Data

(SOH, Order)

Step 4 -Root Cause Analysis

Step 6 -Renewal



2. Define What Is An Out Of Stock2. Define What Is An Out Of Stock

OSA Definition :

"At least one unit of undamaged stock has to be visibly accessible on shelf by consumers and acceptable for purchase. Otherwise it is counted as an OOS."



3. Select Trial Stores3. Select Trial Stores

Pilot/Selected stores :

Stores was selected based on different format, performance and proximity to facilitate effective coverage

Pilot stores : • Tesco Mutiara

• Tesco Puchong

• Tesco Hyper Shah Alam

• Tesco Extra Shah Alam

Product List :

Tracked both Home shelf Active and 2nd Site Promo SKU’s



4. Resource The Project4. Resource The Project

People resource

Dedicated OSA project resource

Actions at store :� Check and record stock on-shelf, shelf tag info

� Cross checking Store Inventory movement report

� Discussion with Store Replenishment Personnel

� Taking photograph for reporting

Back in Colgate office :

� Data entry and Root Cause Analysis for Reporting



5. Run The Trial5. Run The TrialProject Time Frame

6 Months

Tracking Schedule

Daily Tracking including weekends

Root cause Analysis and Reporting

Weekly results sharing

Monthly summary

Review at Monthly SCE meeting



ContentsContents

• Our Results So Far



Store Replenishment Team – Does not place an order. Why? Book stock accuracy?

Backroom congested – Stock On Hand positive, cannot locate stocks

Stocks are not reachable – stack to high, too deep inside, in the yard

Stock take, store personnel not allowed merchandiser to take stock

Many more……still yet to identify

Different stores have different issuesDifferent stores have different issues

We need to be flexible and customize We need to be flexible and customize

our solutions and tacticour solutions and tactic

There are lots of reason for Out Of StocksThere are lots of reason for Out Of Stocks



Some Root Causes We FoundSome Root Causes We Found

Root Cause Description

Shelf Replenishment Discipline

Positive SOH. Can’t locate stock in back room.

Stocks is available again 1 or 2 days later and the

shelf is filled again.

Master Data (SPI, pricing)

Discrepancy or dispute in pricing causing no

shipment

Book Stock Accuracy Shelf normally empty for a prolonged period before

inventory is zerorised and replenishment order

placed

Supplier OOS Supplier OOS because of manufacturing capability

or demand error.

Shelf space/Replenishment frequency

Constantly OOS as not sufficient shelf space to cater

for product off take. Shelf filled in the morning but

empty in the evening

Stock in transit Shelf is empty before replenishment could arrive



Systematical approach in WHY diagnosisSystematical approach in WHY diagnosis

Low Lines

Supplier OOS.

System Inventory Accuracy

1

2



1. CDC RED 175G FCM.� Long period of OOS.� Order was placed on 25th Jan 2010.

2, Colgate Triple Action.� SOH=0.� Delivery on 7th 8th 9th and 12th was not fulfilled.



Root Cause AnalysisRoot Cause Analysis-- ResultsResults

Different stores have different issuesDifferent stores have different issues

We need to be flexible and customize our solutions and tacticWe need to be flexible and customize our solutions and tactic

0%

10%

20%

30%

40%

50%

60%

Sh

elf

Rep

len

ish

men

t

Dis

cip

lin

e

Maste

r D

ata

Syste

m In

ven

tory

Accu

racy

Su

pp

lier

OO

S

Sh

elf

Sp

ace/R

ep

len

ish

men

t

Fre

qu

en

cy

Sto

ck in

Tra

nsit

Reasons Code

Root Causes Contribution to Non-OSA

Store A

Store B

Store C

Store D

Average



OSA Results by CategoryOSA Results by Category

Fabric Care

80%

85%

90%

95%

100%

Oct'09

Nov'09

Dec'09

Jan'10

Feb'10

Mac'10

Apr'10

Month

OS

A %

Home Care

80%

85%

90%

95%

100%

Oct'09

Nov'09

Dec'09

Jan'10

Feb'10

Mac'10

Apr'10

Month

OS

A %

Oral Care

80%

85%

90%

95%

100%

Oct'09

Nov'09

Dec'09

Jan'10

Feb'10

Mac'10

Apr'10

Month

OO

S %

Personal Care

80%

85%

90%

95%

100%

Oct'09

Nov'09

Dec'09

Jan'10

Feb'10

Mac'10

Apr'10

Month

OO

S %



3 Major 3 Major KPIKPI‘‘ss

Tesco inventory optimization has taken place and seen vast improvement from 21days to 14 days.

86

90

70

80

90

100

KPI's Pre-OSA

Case Fill %

OSA %96

94

70

80

90

100

KPI's Post-OSA

Case Fill %

OSA %



Steps TakenSteps TakenPlanogram change for Fabric Care

Delivery from 3x to 4x per week

Tesco Reviewing push factor for Promo Planning

Tesco SC sharing findings with Store operation

Sharing of insights from Dunhumby to improve promo forecasting

Convert Fast Moving SKU’s from cross-docking to DC



ContentsContents

• The conclusions we reached



Effective OSA ManagementEffective OSA Management

Involves many processes :

1. Understanding On Shelf Availability

2. Replenishment and Ordering Processes

3. Inventory Management Processes

4. Merchandising Standards and Processes

5. Back of Store Processes

Last 50m Backroom to Shelf replenishment efficiency=



OSA tracking project alone will not improve OSAOSA tracking project alone will not improve OSA

Dropped Orders Root

Cause Analysis

Merchandisers feedback on

store execution gap

On Shelf AvailabilityMonthly SCE

Meeting

Joint Promo Planning

OSA Tracking

Master Data

Alignment

High Service Level

Efficient Store Replenishment



ContentsContents

• What Next



Key Success FactorsKey Success FactorsSenior management involvement – Joint Business Planning

Dedicated resource availability

Cross Functional Team involvement

Insights – Root Cause was supported by multi source information to provide confidence in action

Good working relationship with store, timely in addressing non-OSA vs other priorities

Managing conflicting KPIStore Book Stock accuracy vs Daily Write-off value

Regular performance review

Transparent, Honest and Non-defensive



What NextWhat NextContinue regular OSA Review meeting

Fortnightly

Involvement from SC, Merchandizing & Store Manager level

Encourage greater participation on OSA Issues & Corrective actions with Store involvement

CP Implant in Tesco

Joint Promo Planning



THANK YOUTHANK YOU

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Ecr malaysia i get what i want