2. 2 Shelf availability project in P&G. Project Kick-off – Aug’07 Data validation and methodology clarification – Oct’07-Mar’08 Training and deployment to organization – Apr’08 In store root causing – as of Jun’08 Collaboration with retailers – as of Jul’09 Shelf Out of Stock project included in Joint Business Plan with several retailers – Jan’09 Target < 5%
3. 3 5-steps joint process for Shelf Out of stock elimination 1. Supplier: Measures availability 4. Joint efforts: Execute action plan 3. Joint efforts: Develop join plan to eliminate losses 2. Retailer: Provides help needed for root cause 2. Supplier: Does root cause for losses 4.aSupplier: Improve service to customer DC 4.b. Retailer: Improve in store operations, store replenishment 5. Supplier: Analysis of the progress/plan effectiveness
10. 6 BABY DIAPERS:Category with Highest Loyalty in P&G portfolio Baby Diapers OOS Implications: Loss for retailer= 60%(36%+5%+19%) Loss for supplier = 46%(22%+5%+19%) Источник информации: Исследование поведения покупателей в категории подгузников (Shopper II),
12. 8 Step 2: Root cause analysis: Key reasons for SOOS on Baby Care: #1 - 36% of SOOS - shelf filling issue (product in store, but not on shelf) #2 - 24% of SOOS - insufficient store replenishment #3 - 23% - inventory records inaccuracy Key challenges for shelf filling: 1. Large size of the packs – limited stock on the shelf 2. Insufficient diapers category size vs. # of SKU’s 3. Unbalanced space allocation between variants/brands
13. 9 Step 3-4: Joint Action Plan Key Actions to address SOOS issues: Improving case fill rate ex-P&G via by-customer volume forecasting Align assortment matrix/clean-up non-active EAN codes in Retailer/P&G database Joint work with retailers to improve category planograms based on SKU turnover Test Category Space Extension
14. 10 Step 5 – Analysis of current results Target < 5% First results: More than 2x times Baby Diapers OOS reduction within 1 year Need another 2x reduction to reach 5% target
15. 11 P&G learning on Shelf Availability Project: Win/win opportunity between retailers and suppliers Needs to be a joint effort supported by Top Management of both companies Now is the best time to start the project to drive like-for-like sales Need to focus on Categories with highest growth potential for Retailer and Supplier