Post on 21-Feb-2020
ECR IRELAND SUPPLY CHAIN & OSA WORKGROUP
27 JULY 2018
Attendees
1. Stephen Harding –
Fujitsu
2. Mike Byrne - GS1
Ireland
3. Sean Nolan – Tesco
4. Paudie Howard,
Boyne Valley
5. Mark Woods –
Maxol
6. Owen McFeeley –
PwC
7. Kavita Shial – PwC
8. Debbie Gorman –
Unilever
9. Louisa Brooks – Mars
10.Douglas Faughnan –
Kantar
11.Chris Busby - Britvic
12.Declan Carolan –
ECR Ireland
13.Martina Coppinger –
ECR Ireland
14.Eileen Cahill - ECR
Community
Via Webinar
1. Simon Marriott –
BWG Foods
2. Peter Mulvihill –
Nielsen
3. Marie Buckley -
Nielsen
4. James Marshall –
Nestle
5. Kim McCoy – GSK
6. Emma-Jane McKee -
Coca Cola
ECR ANTI-TRUST CAUTION
ECR Ireland will not enter into any discussion, activity or conduct that may infringe, on its part or on the part of its members and participants, any applicable competition laws. By way of example, members and participants shall not discuss, communicate or exchange any commercially sensitive information, including non-public information relating to prices, marketing and advertisement strategy, costs and revenues, trading terms and conditions with third parties, including purchasing strategy, terms of supply, trade programmes or distribution strategy.
This applies not only to discussion in formal meetings but also to informal discussions before, during or after meetings.
AGENDA
Brexit Update - Owen McFeely, PwC
Research on Online Product Availability
Supply Chain & OSA Challenges in Ireland
ECR Ireland Supply Chain Summit
AGENDA – PRIMARY ACTIONS
1. What are supply chain & OSA challenges & opportunities of Brexit?
2. How do we monitor & improve Online Product Availability in Ireland?
3. What are the major supply chain & OSA challenges in Ireland – Can ECR assist?
4. ECR Supply Chain Summit – Themes & presenters
5. Dates & themes of next Workshops
DISCUSSION
1. What is your company’s view on Brexit?
2. What are the major challenges predicted?
3. What preparation is being put in place?
4. Will Brexit lead to
Higher OOS
Increased stockholding
Increased product cost
5. Will increased lead-times and customs delays occur and remain?
6. Will Brexit present any opportunities?
ONLINE AVAILABILITYProduct availability is the precondition for selling brands at online and offline retail.
It is a perennial problem and battleground in retail.
GMA US looks at online availability of • baby care, fabric care, hair care, oral care, skin care, and
shave care products
• at retailers in China, France, Germany, Japan, United Kingdom and the United States.
“Greater on-shelf availability of products is already a top priority for our industry, and this report shows the critical importance of reducing out-of-stocks for online sales as well”
“The findings should encourage retailers and brands to collaborate and enhance online availability in the fast-growing area of online retail.”
GMA companies are working to cut out-of-stocks through the GMA Supply Chain Committee
RETAILERS BY COUNTRY
US Amazon
AmazonPrimePantry
BJs
CVS
Freshamazon
Jet
Peapod
SamsClub
Soap
Target
Walgreens
Walmart
ChinaAmazon
Beibei
JD
Jumei
Suning
Tmall
Yihaodian
JapanAmazon
Lohaco
Rakuten Edion
Rakuten Kenkocom
Rakuten Soukai
Rakuten 24
Germany Amazon
MediaMarkt
Otto
Saturn
Windeln
UKAmazon
AmazonPrime
Argos
Asda
Boots
Ocado
Sainsburys
Superdrug
Tesco
FranceAmazon
AuchanDrive
Carrefour
Cdiscount
Chronodrive
Intermarche
Leclercdrive
EXECUTIVE SUMMARY
The number of items that are available online (OLA) is 80 percent worldwide and 85 percent in the U.S.
The 15 percent out-of-stock rate online in the U.S. is nearly double the out-of-stock rate of 8.3 percent for physical stores.
Consumer reaction to out-of-stocks are quite different in the online sales compared to stores. U.S. consumers are more likely to remain on the E-commerce site and switch a brand or substitute an item within the brand, which the researchers dubbed “the Amazon effect”. However, if a physical store is out of a product, the consumers are more likely to switch to another store to find the product.
Worldwide, brands and retailers both suffer the adverse consequences equally when consumers do not find products available online. The report found that worldwide, 31 percent of the total loss is to retailers and 33 percent is to brands.
EXTENT OF OLA
Voids occur when the online retailer does not present the product page with the item to the shopper due to the item not being physically available, or due to some error with the information regarding the item. The extent of items that are void (i.e. have digitally inaccessible product pages) is 11.8 percent
Generally, voids occur more frequently than OOS with a global ratio of voids to OOS at 1.5 to 1
We also compared the OLA across categories but differences were minor with the exception of shave where availability was somewhat higher than average
HOW SHOPPERS ENCOUNTER NOLA
ULTIMATE RESPONSE IN PURCHASE BEHAVIOUR TO NOLA
We asked the shoppers to indicate their initial search reaction and final behavioural reaction when they encounter a desired product that was not available.
For their initial search reaction, on average 30 percent indicated that they would switch to another online retailer, while 70 percent indicated they would search for a substitute item in the same online store.
IMPLEMENT OLA MEASURES:
CAPABILITIES, CAUSES, AND
COUNTERMEASURES
To understand the degree to which OLA was being addressed as well as to explore the state-of-the art practice in OLA management, we conducted an industry survey.
These findings show
1. The measurement of OLA is a large and important industry concern but that retailers and brand manufacturers have not yet developed proper accountability for OLA.
2. While both trading partners agree that having a high level of OLA is a strategic priority, retailers have implemented countermeasures more systematically than manufacturers.
3. Neither side thoroughly understands the broad consequences of NOLA.
4. Suppliers find it challenging to estimate online demand and manage inventory accordingly. They are also concerned about the accessibility of their product detail pages.
We conclude that for both retailers and their suppliers, the current state of management practice in OLA is immature. The industry has much work to do to improve practices.
OLA SCORECARD
Our industry survey of causes, countermeasures and capabilities of OLA across food and non-food manufacturers and retailers shows that industry should improve its readiness significantly if it wants to compete in this growing segment of the business.
The OLA Scorecard will help the industry towards this objective. More details on the scorecard can be found at www.availabilitylab.com
OLA SCORECARD
SUPPLY CHAIN & OSA
CHALLENGES
What are the major supply chain & OSA challenges in Ireland?
Can ECR Ireland Supply Chain Workgroup help solve these issues?
• OSA
• Brexit
• Food Waste
• Supply Chain technology & innovation
• Supply Chain collaboration between trading partners
• Supply Chain talent
• Forecasting & Promotions Management
• Product Data accuracy
• Challenges of Omnichannel shopping - eCommerce & Online
• Transportation & distribution
• Competing with new entrants & disruptors
THE FUTURE SUPPLY CHAIN FOR IRELAND’S FMCG SECTOR
Themes
Supply chain & product availability implications of Brexit.
Food Waste Management
Product availability
Routes to market
Workforce challenges - Review of Supply Chain talent & management in Ireland
The role of data and technology in Supply Chain of the future
Expert presenters
Panel discussions
Market Overview
PRESENTATIONS FROM IGD SUPPLY CHAIN SUMMIT 2017LEADING OUR SUPPLY CHAINS INTO THE FUTURE
Empowering Molson Coors’ supply chain to make a difference.
Delivering excellence in an uncertain world - Tony Mitchell, Supply Chain Director, TescoTesco is a business in change, and Tony will outline their supply chain strategy, discussing organisational design, and how future technologies such as AI will revolutionise the business and opportunities for future collaboration.
Retailer Workshops Find out how you can work even more successfully with Sainsbury’s. The Heads of Supply Chains will focus on efficiency within the supply chain and ask for suppliers’ support in generating the next round of opportunities. A chance to speak to Tesco project managers during 4 interactive breakout sessions about their programme of work and case studies of collaboration - making a difference across the end-to-end supply chain. Asda’s new plans for 2018 including a combination of physical logistics within ALS, supply chain collaboration and a view to the future of Asda's end-to-end supply chain strategy.
Hear how technology and data will increasingly be used to transform supply chain capability and business performance
Industry leaders – Achieving more together - Wendy Manning, Vice President Customer Logistics, Coca-Cola European PartnersPaul Dunne, Director of Central Operations and Supply Chain, Boots UK
Wendy and Paul will identify the big industry challenges where we can make a difference together. They will define the collaboration required for this new world. How much can we align horizontally, cut dysfunctional game-playing and springboard industry performance? ECR is helping companies make a start.
Supply Chain Leadership - Wim van Aalst, Supply Chain Director, Waitrose How can suppliers support Waitrose available-to-promise fulfilment and sell more?
SAVE THE DATE
ECR Supply Chain Workgroup
➢Sep 12
➢Nov 29
ECR Supply Chain Summit
➢Aug 23
ECR Ireland Leaders Congress
➢Sep 27
ECR Digital Forum
➢IBM tbc
➢Fujitsu – Oct 19 tbc
ECR Pharma Workgroup
➢ Aug 30
➢Oct 25
FIF 2018 – LIST OF PARTICIPATING COMPANIES
1. ARYZTA Europe
2. Britvic Ireland
3. Coca Cola Hellenic Ireland
4. Dunnhumby
5. Excel Recruitment
6. Gala
7. Goosebump
8. Irish Distillers
9. Keelings
10. Kellogg Ireland
11. Mars Ireland
12. The Maxol Group
13. Nestle Ireland Ltd
14. Nielsen Ireland
15. Primeline Group
16. Shelfstock
17. Wallace Myers Internationals
18. 1Plus Security
19. Market Lane
20. Baptec Training and Education Centre
SHOPPER SYMPOSIUM SERIES BY V360° & ECR IRELAND
Three Symposiums during which delegates can expect to hear insights & case studies from experts & leading practitioners in shopper engagement.