What is the value of a retail scorecard

RVCF Spring Conference May 5-7, 2014 Sanibel Harbour Marriott Resort & Spa

What is the Value of a Retail Scorecard?


Supply Chain Insights is focused on delivering independent, actionable and objective advice for

supply chain leaders.

A company dedicated to research, turn to us when you want the latest insights

on supply chain trends, technologies to know and metrics that matter.

About Us

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Growth has Slowed


1990-1994

1995-1999

2000-2004

2005 2006 2007 2008 2009 2010 2011 2012

eCommerce

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7

758.40384928385

3

848.30227661132

6

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9

998.48733520507

7

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Grocery

197.66727663333

3

182.42270665714

3

424.51644165604

2

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8

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519.72557456152

9

612.0607266696

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572.42064453125

518.07959238688

3

503.89105224609

3

Mass

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143.587382

4

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2

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378.84717362577

3

616.60869811562

9

486.97209019814

8

474.46172598636

5

533.31497862844

8

463.61525573730

5

348.44249979655

Specialty

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3

534.01690254211

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282.31685002644

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Revenue per Employee

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Retail: Revenue Per Employee

Source: Supply Chain Index Analysis from Annual Reports 1990-2012Mean values utilized excluding outlier data

Can you update this slide?


Revenue Per StoreCan you update this

slide?


A Supply Chain is a Complex System

with Complex Processes with Increasing

Complexity

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Resilient and predictable Balanced across the set of metrics to

maximize value Showing year-over-year strength against

peer group

Desired Corporate Performance

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The Supply Chain Effective Frontier

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In most supply chains, complexity has risen throwing the supply chain out of balance. We find that nine out of ten companies are stuck at the intersection of inventory turns and operating margin.


The Efficient Supply Chain is not Effective


Mining 20 Years of Financial Data


How to Read an Orbit Chart

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Corporate Summary


Cash-to-Cash Cycle vs. Inventory Turns (2000-2012)


Inventory Turns vs. Operating Margin (2000-2012)


Company (2000-2003) Days of Inventory Days of Payables Days of Receivables

BASF SE 82 50 72

E. I. du Pont de Nemours and Co. 95 51 44


BASF SE 66 38 61



BASF SE 64 30 54


Company (2012) Days of Inventory Days of Payables Days of Receivables

BASF SE 64 30 50


Source: Supply Chain Insights LLC, Corporate Annual Reports 2000-2012

Can you put a cash to cash slide in this deck for Wal-Mart versus Target?


Retail Resiliency

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Company Wal-Mart Target

Resiliency Ranking 1.00 1.33


Vendor Managed Inventory


Definition


Suppliers


VMI is Stalled


VMI Performance


Shorter Order Cycle Times


Suppliers Alignment


Study Overview



Use of Scorecards


Multiple Scorecards


Reviews


Review Frequency


Redefined


Face-to-Face Meetings


Benefit


Impact


What is the Value of a Retail Scorecard?

• Resiliency• On-time performance and in-stock

improvements• Reduction of shipping and receiving issues


About Lora Cecere

• Founder of Supply Chain Insights• “LinkedIn Influencer”

• Guest blogger for Forbes

• Author of 2 books: Bricks Matter (2012) and Metrics That Matter (to publish Fall of 2014)

• Partner at Altimeter Group (leader in open research)

• 7 years of Management Experience leading Analyst Teams at Gartner and AMR Research

• 8 years Experience in Marketing and Selling Supply Chain Software at Descartes Systems Group and Manugistics (now JDA)

• 15 Years Leading teams in Manufacturing and Distribution operations for Clorox, Kraft/General Foods, Nestle/Dreyers Grand Ice Cream and Procter & Gamble.

Contact Information: • Email: [email protected]• Blog: www.supplychainshaman.com (6000 pageviews/month)• Forbes: http://www.forbes.com/search/?q=lora+cecere• Twitter: lcecere (4800 followers)• LinkedIn: linkedin.com/pub/lora-cecere/0/196/573 (7000 in the network)

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What’s Happening at Supply Chain Insights?

www.supplychaininsights.com

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What is the value of a retail scorecard

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