TPM Case Study - JOC Events · PDF fileTPM Case Study Mr. Adam D. Hall Senior Director,...
Transcript of TPM Case Study - JOC Events · PDF fileTPM Case Study Mr. Adam D. Hall Senior Director,...
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Dollar General at a Glance
Company • Leading small-box, convenient discounter
• Sales of $18.4 billion in LTM Q3 2014
• Over 100,000 full-time & part-time employees
• Ranked #175 on Fortune 500
Stores • Over 11,800 stores in 43 states
• Convenient size in convenient locations
• 98% of same-stores are profitable
Merchandise • National and private brands
• Everyday necessities and compelling buys
• Approximately 10,000 SKUs per store
• Multiple price points; about 25% at $1 or less
Customers • Value-conscious and convenience-seeking
• Broad cross-section of America
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Our Store and Distribution Network
2015 Network with 12
Distribution Centers and 3
Import Centers
33rd Largest Containerized
Importer in the United States
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Dollar General View of the Ports
Critical Infrastructure for Dollar General
•Gateways for globally sourced merchandise
•Key to our growth in the value retail sector
•Expectations to deliver efficiencies and lower costs over time
Dollar General Response to Instability
•Will move away from disruptive and least efficient ports
•Made significant investments to build dynamic capacity
•Store in-stock is primary driver with cost being secondary
We Need Transparent Metrics and Measures
•Standardized across all ports to support decision making
•Customer Centric
• Improvement Oriented - Productivity/Quality/Cost
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A Deeper Look Into 2014 and 2015
• Strategies are continuous and evolving
– 2014-15 was a continuation of the port labor disruptions from 2012 on the USEC
– Made key investments in 2011, 2013, 2014 to build capacity in import centers and surge facilities
– Shifted cargo where appropriate
• Established cross-functional working team that includes Merchant, Demand Chain, Sourcing and Logistics leadership
– Aligned on milestones, decision points and accountable for execution
– Tactical activities focused on routings, demand balancing and prioritization
– Output includes longer-term supply chain changes and cost mitigation/savings opportunities
• Collaborate with carriers and ports to make adjustments
– Long-term planning and forecasting
– Setting realistic expectations and deliver on commitments
Year 2014 2013 2012 2011 2010 2009
USEC 43% 31% 22% 26% 22% 59%
USWC 57% 69% 78% 74% 78% 41%