Retail Perspective & Credentials

Wilson Perumal & Company

Retail: Perspective & Credentials

April 2015

Wilson Perumal & Company at a glance

• A management consultancy with offices in North America and Europe,

combining operations strategy experience with depth in retail

• We have a unique methodology of aligning Strategy, Complexity, and

Operations to optimize results and drive tangible ROI

• Our retail service offering is centered around five key areas. All of which

Wilson Perumal & Company, Inc. 2

• Our retail service offering is centered around five key areas. All of which

are customer focused and viewed through the lens of complexity

• We are thought-leaders and hands-on practitioners: we are aware of the

challenges facing retail, and have a passion for helping retail achieve

results

• We enjoy 100% reference-able clients

Current State of Retail

Major Retail Trends Key Implications

� Technology has empowered the

consumer and disrupted the

industry

� Channels are blurred and customers

shop across all channels

� Brick & mortar remains a key

� Retailers must embrace technology and even

integrate the elements of the digital

marketplace into the store

� A seamless omni-channel strategy flawlessly

executed is critical for survival

� A nimble, efficient, and high-velocity supply


� Brick & mortar remains a key

differentiator although how a store

looks and operates may be radically

different

� Customer loyalty has declined and

expectations have increased

� Shoppers expect an engaged, trained,

and customer-centric workforce

� A nimble, efficient, and high-velocity supply

chain is a requirement for executing your

service and inventory strategy

� Retailers must engage and delight customers

across all touch points

� Retailers must think of their workforce as an

asset and not as an expense

Which of these trends is most imminent

to your business?

Which of these implications may you experience

the most challenge?

Satisfying customer expectations must be at the

forefront of your Strategy and Execution planning

The right product

The right price point

When, where, and

• Relevant assortments

• Pricing optimization

• Engaged workforce

•

•

•

Strategy Execution

CustomersCustomers


When, where, and

how I want it

The right services

Incentive and

reliability that wins

my loyalty

• Engaged workforce

staffed to customer traffic

• Nimble supply chain to

execute fast and efficient

omni-channel operations

• Effective promotion

tailored to individual

•

• .

•

CustomersCustomers

However, the path from Strategy to Execution is often

interrupted by “Complexity”

Strategy Execution

Confused pricing between SKUs and online/offline

Overwhelming selection

Inconsistent selection and policy between channels

Poorly-managed Complexity usually manifests in Customer-facing indications


CustomersCustomersInconsistent selection and policy between channels

Product unavailabilityToo many but irrelevant promotions

Unavailability of workforce

Uncompetitive shipping charge and time

Data/Privacy breaches

Complexity usually builds up over time and is

manifested by multiple symptoms

Silo organizations

Long decision time

Retailers coping with various market forces usually

experience exponential growth of Complexity

Omni-Channels

Impact beyond customer-

facing indications


Negatively impacts your

bottom line

Good strategy but poor

execution

Undifferentiated staff

Cumbersome processes

New Store formats

Ne

w Te

chn

olo

gy

/

Big

Da

ta

Ce

ntr

ali

zati

on

vs.

Lo

cali

zati

on

Our customer-focused offerings are designed to

address complexity to ensure tangible ROI is achieved

WP&C Retail Offerings “Complexity” lens helps

retailers realize better

Strategic and Operational

results Omni-channel

Store Operations

Supply Chain

• We literally wrote the

book on Complexity

• It is in our DNA to identify

and resolve complexity


Store Operations

Workforce Optimization

Inventory Optimization

Supply Chain

CustomersCustomers

and resolve complexity

issues and barriers to

success

• Experience-based insights

• Trained to move swiftly

• Leverage internal cross-

functional teams

• WPC values knowledge

transfer to achieve

sustainable results

Typical ResultsWP&C Focused Solutions

Current Trends and Implications

Customers no longer shop channels, they shop brands. They also expect a seamless and consistent

shopping experience across all channels. This creates great demands as well as a great opportunity

to connect with you shoppers at every touch point of their shopping journey. Your organization as

well as your processes and technology must be aligned and streamlined to deliver on your service

vision while “profitably” managing increased complexity.

WP&C Retail Offerings

Omni-channel

Wilson Perumal & Company, Inc.

� Sales increase of 2 – 3%

� Increased in customer

satisfaction scores of 15 –

20%

� Increase of fulfillment rates

of 10 – 15%

• Development and a validation of your omni-channel

strategy and operating model

• Organizational, process and product alignment

• Supply chain assessment to identify gaps and design

solutions

• Store operations process definition to enable store

fulfillment and in-store pick-up

• Technology review to identify barrier for inventory

visibility across channels

8


Store Operations



Despite the emergence of ecommerce, your stores, now more than ever, represent a unique

opportunity to personally connect with your customer. The human interaction that your stores

provide is a unique differentiator that an online transaction cannot duplicate. We are experts in all

activities taking place within the four-walls of your stores and the enabling technologies to deliver

a great customer experience while increasing productivity and reducing non-value added costs.


� 15 - 30% improvement in

process productivity

� Unlock 4 – 7% of stores

payroll for redeployment

� Reduced stores’ G&A

expense by 3 – 6%

� Conversion increase of 2-3%

• Process reengineering

• Organizational alignment

• Standard operating procedures

• Customer engagement

• Conversion measurement and impacts

• Sales-floor leadership training

• Optimal field structure

• Operationalizing emerging technologies

• Performance management



Having an engaged, well-trained, and customer-centric workforce is now, more than ever, a

requirement to survive and thrive in the new retail environment. Shoppers are no longer satisfied

with a “transactional” experience and now desire “inspirational” service, the demand on your

workforce is at an all time high. Our professionals are trained on best practices and technology to

optimize your workforce to drive financial and service objectives.


Workforce Optimization


� Payroll reduction of 2 – 3%


� Increase sales per hour

productivity

� Increase customer

satisfactions scores 10 – 15%

• Labor scheduling / time and attendance / task

management best practice review

• Activity dictionary creation

• Baseline current schedule effectiveness and adherence

• Work as a liaison with technology providers and your

business owners to drive ROI and user-adoption

• Review forecasting accuracy



As retailers embrace omni-channel and smaller store format strategies, the criticality to optimize

inventory is at an all time high. Retailers must create relevant, localized assortments while

mitigating the risks and costs of SKU proliferation. At the same time out-of-stocks are a drain on

profitability and negatively impact the shopping experience. Our professional are experienced in

inventory portfolio optimization while utilizing proprietary Six-facet approach to ensure results.


Inventory Optimization


� Improvement in inventory

turns of 5 – 10%

� Reduction in inventory

carrying costs of 7 – 10%

� Decrease in out of stocks by

10 -12%

� Gross Margin improvements

of 3 – 5%

• SKU rationalization and stratification

• Store clustering

• Store localization strategy

• Aged inventory analysis and disposition

recommendations

• Promotional effectiveness

• Overstock, out of stock, and waste reduction

• Vendor matrix streamlining



With the evolution of an omni-channel retail environment, your supply chain is now at the forefront

of delivering your service strategy to your customers. Inventory visibility across the entire supply

chain and directly to the customer is now the norm. Our team will review your supply chain

operations to ensure it is flexible and scalable to ensure velocity and accuracy of moving

merchandise in the most optimal manner to your stores and directly to your customers.


Supply Chain


� Reduction in distribution

and transportation costs of

5 – 7%

� Increase of web order

fulfillment of 10 – 15%


• Supply chain assessment to identify gaps and design

solutions

• Supply chain & sourcing optimization

• Cross-channel fulfillment

• Distribution model analysis

• Network optimization

• Sourcing strategy

Retailers our professionals have served


“This was a quick and painless way

to understand our true product

“WPC’s approach to complexity is

the most direct route to an

efficient, profitable enterprise.”

—Ed Lonergan

CEO of Diversey Inc.

“You are analytical and smart, but you

also get things done!”

—Head of Commercial Development

Leading European Retailer

“Best work I have seen in Operations

Development. A case study for us as a

business”

Our clients attest to our ability to impact their

bottom line


to understand our true product

profitability, and it challenges how

we think about our business. I am

extremely pleased with the results.”

—Fernando Palacios

EVP and Chief Integrated Supply Chain Officer

MillerCoors LLC

“WP&C is helping us transform our

business. Their insights are

phenomenal!”

—David Hoogmoed

President, Land O’Lakes Purina Feed

business”- CEO, European Electronics Retailer

“Very insightful work…it was a

pleasure working with you and your

team.”-Senior Operations Director, Global 100 Retailer

14

“I truly believe you got to some of the

key issues at [Retail Co.]”-Director of Supply Chain, Grocery Chain

“I truly believe you got to some of the

key issues at [Retail Co.]”-Director of Supply Chain, Grocery Chain

Jim Malafronte• Over 10 years retail industry and 20 years retail consulting experience in retail strategy, retail analytics,

workforce management, store operations and business transformation; unlocking value from their

Retail Focused Professionals (I)Stephen Wilson• Managing Partner and co-founder of Wilson Perumal & Company

• More than 15 years of experience advising senior clients on critical strategy and operations issues

• Co-author of Waging War on Complexity Costs and Growth in the Age of Complexity (McGraw-Hill 2015)

• Retail experience in a broad set of functional areas, including Enterprise performance; Range & Promotions;

Customer & Channel; Supply Chain & Sourcing, and Operations Excellence

• Formerly Partner, Accenture (following Accenture’s acquisition of George Group Consulting)

• MBA from Wharton; frequent contributor to the FT (Agenda), Investors Business Daily


workforce management, store operations and business transformation; unlocking value from their

operations and delivering tangible ROI

• Extensive list of retail clients served covering all major formats (luxury, dollar stores, big box, specialty,

hardlines / softlines, chain drug, wireless, etc.)

• Former Vice President for Verint Systems (a $1B actionable intelligence organization) in their Video Business

Analytics division

• BS and MBA from the University of Kentucky

15

Ann Bryan• Seasoned strategy manager with over 15 years of experience in strategy & consulting

• Retail experience includes strategy and operating model design of several retail formats (supermarket, hypermarket, convenience store, gas station store) for global retail chains, ecommerce strategy and technology design, customer loyalty program design, store clustering and portfolio optimization

• Former Project Leader with BCG; Former Director of Corporate Strategy, Applied Materials Inc.

• Hand-on operational experience through two successful retail entrepreneurial ventures

• MBA from Kellogg (Fulbright scholar); MS Operations Research from UC Berkeley

Retail Focused Professionals (II)

• Over 20 years of experience in Supply Chain and Logistics via consulting and industry operations roles

• Specific experience in inventory management, distribution operations, transportation management

(incl. fleet), reverse logistics and logistics network planning & design across multiple industries

• Specific retail experience from Lowes, Michaels, and Kmart with projects from enterprise

transformation programs to distribution center slotting improvements

• Former director of global logistics with responsibility for NA and European transportation and

distribution including international ocean and air from Asia

• BSIE and MSIE from Purdue University

David Toth

Jacob Carr


Steve Liguori• Expertise in business simplification, operating model design, process optimization, and growth strategy

• Significant retail and consumer goods experience, including projects in portfolio optimization, process

design, promotional effectiveness, out-of-stock reduction, and distribution effectiveness

• Worked with retail clients from a $1B grocery retailer to an £8B European electronics retailer

• Former Manager, Analytical Research & Development, Pfizer

• MBA from Emory University; BA in Physics from College of the Holy Cross (National Physics Honor Society)

• In-depth experience in growth strategy, operational improvement, and M&A/due-diligence projects

• Led numerous retail projects such as a turnaround initiative for a $10B retail services firm as well as

developing a new growth strategy for a $1B retail chain

• Previously, Jacob was head of strategy and M&A for a $1 billion division of Thermo Fisher Scientific,

and Director of Strategic Development at DaVita

• MBA from Harvard Business School and a BS in Economics and Poli Sci from the US Air Force Academy

North America Europe

One Galleria Tower

13355 Noel Road, Suite 1100

Dallas, TX 75240

Longcroft House

2/8 Victoria Avenue

London, EC2M 4NS

Contact Us:


+1 972-716-3930 +44 (0)203 206 1496

www.wilsonperumal.com

Retail Leads

Jim Malafronte

+1 404-216-2205

[email protected]

Ann Bryan

+1 650- 862-1896

[email protected]