Transcript AC Nielsen OSA ECR

ECR Iniciative Presidium
Nielsen On Shelf Availability Solution
(OSA)
Prague
October 12th , 2012
1
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2011 TheCompany.
Nielsen Company.
Confidential
proprietary.
Copyright © 2011
The©Nielsen
Confidential
andand
proprietary.
Agenda
#
Topic
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Nielsen approach to OSA
-
Methodology
-
Solution & Process
-
Sample Outputs
Possible Next Steps
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Copyright
2011 TheCompany.
Nielsen Company.
Confidential
proprietary.
Copyright © 2011
The©Nielsen
Confidential
andand
proprietary.
What data is required to manage OSA?
DATA needed for On Shelf Availability
• Granularity: Store By Store
• EAN level information
• Volume & Value Sales
• Stock Positions  Allow Root Cause Analysis
- Store stock
- Orders
- Receipts
• Frequency: Daily Data available Daily
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2011 TheCompany.
Nielsen Company.
Confidential
proprietary.
Copyright © 2011
The©Nielsen
Confidential
andand
proprietary.
Nielsen OSA methodology
There are a 4 main steps in understanding availability using daily data.
1. Understand what’s Normal, or how much should I be selling
based on past sales information – Base Line (Demand)
• for single SKU, in single store, in particular day
2. Determine Lost Sales in volume, value, as well as the availability rate
(OSA Rate)
3. Detect in each store Products with Availability problem
4. Out of Stock root cause analysis
5. Alerts sent to stakeholders to take market action. Fix the issue.
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OSA Rate %
OSA RATE PERCENTAGE:
The percentage difference between the Demand and the Lost Opportunity Units.
Used as a directional consistent On Shelf Availability trend allowing to track improvement.
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Root causes identification
Stock in Transit
DC Orders
Store Stock
DC Receipts
Store Orders
DC Stock
Store Receipts
DC Store Orders
Unit Sales
ROOT CAUSE IDENTIFICATION
Stock not
available
on Shelf
False
Stock
Partial
OOS
Order not
placed
Order not
delivered
Value Sales
Negative
Stock
Unidentified
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Copyright
2011 TheCompany.
Nielsen Company.
Confidential
proprietary.
Copyright © 2011
The©Nielsen
Confidential
andand
proprietary.
Solution
Related Process & Services
8
Copyright
2011 TheCompany.
Nielsen Company.
Confidential
proprietary.
Copyright © 2011
The©Nielsen
Confidential
andand
proprietary.
How does the process work?
•
Through alerts, each player internal and potentially external is aware of
dedicated corrective actions that have to be implemented in order to smooth
current difficulties and anticipate the coming days and weeks
STORES
RETAILER
Reports/Charts
Buyers /Cat Man
Reports/Charts
Sales /Cat Man
Reports 
Supply Chain
Reports 
Supply Chain
OOS Alerts 
Stores
OOS Alerts 
Field Rep
Top / Bottom 
Top Management
SQL
Suppliers
Top / Bottom 
Top Management
Web Server
7:30 AM
Daily Data Delivery
Projet OSA9
1:30 PM
Copyright © 2011 The Nielsen Company. Confidential and proprietary.
Sample output by function
Supply Chain
m
OSA Root Causes
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Copyright
2011 TheCompany.
Nielsen Company.
Confidential
proprietary.
Copyright © 2011
The©Nielsen
Confidential
andand
proprietary.
Petr Kriklan
Retailer Services Director
Email: [email protected]
Mobile: +420 773 781 593
Jaroslaw Bogusz
Global Account Manager
Email: [email protected]
Tel: +39 342 713 6966
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Copyright © 2011 The Nielsen Company. Confidential and proprietary.