Promotions Management Programme

Client:

Asda Wal-Mart, Unilever, Johnson & Johnson and Mars

Brief:

Get cross-functional trading-partner teams to create and roll-out promotions management processes that:

- Improve the way Asda evaluates and selects promotions
- Develop optimal promotional stock flow
- Make it clear and simple for stores to implement promotions

What changed?:

The teams:

•  Improved decision making with data and decision criteria – including supply chain considerations – taken into account from the beginning

• Created and installed a new realistic 12-week critical path specifying who is responsible and accountable at each stage

• Fixed store delivery days and the promotion set-up day

• Changes to the initial allocation rules, reduced stock allocations, reduced congestion and handling

• Introduced visible segregation and protection of promotions stock

• Smoothed the promotion stock order profile and reduced inbound costs

• Communicated to all stores new set-up process ‘checklist’ in every What a Good Job Looks Like booklet

Outcome:

Forecast accuracy was improved. Initial promotions set-up allocations to store were reduced by 40%. Crucial data fields now correctly maintained. Space capture increased from 40% to 90%. Store promotional compliance improved and average on-shelf availability for products on the first day of promotion was increased through 1% point to 99%. Overall availability for products on promotion was increased to 98%. The programme has also:

• Fed into a Wal-Mart global system upgrade

• Led to further collaborative initiatives

Promotions Forecasting Programme

Client:

Tesco Ireland and Glanbia (alongside Nestlé and ECR Ireland)

Brief:

Get a cross-functional trading-partner team to improve promotion forecasting and thereby sell more and waste less

What changed?:

As a result of the programme the team harmonised process design and installed the improved processes across functions.

When promotion forecasting, they can now take into account

• Previous sales volume + lost sales

• Space secured

• Growth – retailer/brand/product

• Media advertising – supplier/retailer

• Type of promotional offer

• Seasonality/weather/bank holidays

When promotion forecasting, they can now take into account

• Get things right first time

• Reduce fire fighting

• Reduce escalation

• Reduce issue resolution costs

Outcome:

The retailer’s inbound service level was increased over 1% point, on-shelf availability was increased over 3% points, waste was reduced over 90% points and the supplier’s dispatch costs were reduced 70% points

On-Shelf Availability Learning Programme 2008

Client:

Bergendahls Group and Löfbergs Lila (alongside Axfood, Coca Cola, Carlsberg, Coop and ECR Sweden)

Brief:

Get a cross-functional trading-partner team to improve on-shelf availability of coffee in the Citygross stores of Bergendahls Group

What changed:

As a result of the programme the team

• Measured on-shelf availability and root causes of out-of-Stocks

• Introduced a new timetable for planogram creation, distribution and implementation in store

• Got sales/merchandising and store personnel to rebuild and replenish shelves to secure correspondence to planogram and increase their awareness

• Introduced planograms that remain on display at the shelf

•  Made sure that the right information is available in store

•  Analysed merchandising frequency and days

•  Clarified store and merchandising personnel responsibility

Outcome:

On-shelf availability was increased which increased sales. Taking into account all extra costs, the total net effect was €410,000/year across all Citygross 30 stores