Transcript HEALTH & BEAUTY CARE Commissary Council Initiatives

RENO DeCA 2000
ALA
Vendor Stocking Committees
What is Vendor Stocking
Retail
(Outside Gate)
DSD
Commissary
DSD
Vendor
Stocked
Store
Stocked
Contract
Stocking
Answer: Product Which Vendor’s Pay to Stock in
Commissaries, Which the Store Stocks Outside Gate.
How Did Vendor Stocking Get
Started?
• Industry Started to Stock
Categories Which Were Not
Adequately Stocked by
Commissaries in the Late
1960’s and Early 1970’s
• New Categories Authorized for
Sale in Commissaries Required
Vendor Stocking
– Light Bulbs
– Batteries
– Gourmet
Scanned Package Volume
% Sales By Subgroup (CONUS)
DSD
10.12%
Vendor Stocked
42.77%
Non Vendor
Stocked
47.11%
*Empower IT 12 months Ending February 1999 CONUS
Vendor Stocked Categories
General Merchanise
Grocery Non Edible
2%
2%
Health & Beauty care
9%
Refrigerated Dairy
(Other)
1%
Grocery Edible
32%
Stocked in Some Stores
9%
Frozen
21%
Refrigerated Dairy
24%
Vendor Stocking Has Served the
Commissary System Well Over
the Years But Times Have
Changed!
Store Sales
(7 Day a Week Operation)
45% to 50%
of Weekly Sales
(45% of ACV)
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
Mon
Tue
Wed
Thur
Fri
Sat
Sun
% Sales by Day
Vendor Stockers Do Not Like to Work Seven Days a Week.
Economic Trends
Low Unemployment Has
Created a Competitive Job
Environment
$10.00 Per Hour
$9.00 Per Hour
$8.00 Per Hour
Significant Bonus
$8.00 Per Hour
Many Stockers are Saying “No!”
to Working in Commissaries
Defining The Vendor Stocking
Problem
ALA Report 1999
Don Goetz
Richard Walker
Setting The Sample Base
• Region Directors Supplied Commissaries
With Vendor Stocking Concerns
– Determined random sampling of stores to visit
and evaluate during April
• Created MBU/ALA Joint Evaluation
Worksheets
– Obtained CSO Input to Analyze FDS/DSD
Categories, FDS Distributors and Vendor
Stocker Issues
– Obtained input from Vendor Stockers
ALA 1999 Vendor Stocking Report
• Opportunities
– Identify Reasons for Inadequate Vendor Shelf
Stocking
• Inadequate Weekend Vendor Stocking
• Top 25 Locations Where Problems Exist
• Determine Reasons for Turnover of Vendor
Stockers
– Interview Stockers
– Interview Sales Representatives
ALA 1999 Vendor
Stocking Report
Findings
Vendor Stocking Analysis
Store Classification
1=POOR 2=BELOW AVERAGE
Category
3=AVERAGE
4=ABOVE AVERAGE
5=EXCELLENT
R1 Average
R2 Average
R3 Average
DeCA Total
FDS Without HBC
3.20
3.19
3.81
3.40
HBC Average Rating
Subtotal
2.56
2.46
3.51
2.84
Refrigerated Overall
3.20
3.25
3.91
3.45
DSD Average Rating
Subtotal
3.21
3.38
4.15
3.58
CATEGORY RATING
TOTAL
3.09
3.12
3.85
3.35
Vendor Stocking Category
Regional Analysis
Vendor Stocking Category
Regional Analysis Continue
Vendor Stocking Category
Regional Analysis Continue
Vendor Stocking Category
Regional Analysis Continue
Vendor Stocker Evaluation
DeCA Concerns
•
•
•
•
•
Consistency
Reliability
Weekend Performance
Turnover
Responsibilities
– Store Requirements
– Accountability
• Training
Shelf Stocking Issues Industry/
Independent Contractor Concerns
• Store Ordering Quantities
– Ordering Enough Cases to Fill Displays to Capacity
– Ordering Extra Cases of Proven Seller
• Store Job Expectations
–
–
–
–
Cleaning
Ordering
Warehouse Maintenance
Display Removal
• Access to Product
• Seven Day Work Week
Vendor Stockers Hourly Rate
Components
I. # of Hours in Commissary
II. # of Cases Stocked
III. Rate Per Case
Vendor Stocking Compensation
Package
Waiting (Hours)
Finding Product
(Hours)
# of Hours to
Stock
Total Hours
CS Stocked
CS Rate
Total Dollars
Earned
Hourly Rate
EXAMPLE I
1
$
EXAMPLE II
0
3/4
1/4
2
3 3/4
70
0.36
2
2 1/4
70
0.36
25.20
6.72 $
25.20
11.20
Vendor Stocking Problem
Seven Day
Operation
Difficulty
in
Accessing
Product
Inconsistent
Ordering
Inadequate
Training
Same Pay
Inconsistent
Deliveries
2000 ALA Vendor Stocking
Initiatives
Vendor Stocking Task Force
Organizational Chart
ALA Commissary
Council/DeCA
Executive Committee
Vendor Stocking
MOU
HBC Issues
Problems/
Solutions
Financial
Purpose of Executive Vendor
Stocking Committee
• To Provide ALA & DeCA a
Support for Recommendations to
Improve Vendor Stocking
Problems
– Achievability
• Real Solutions
– Financial Impact
•
•
•
•
Broker
Manufacturer
Distributor
DeCA
– Criteria for Membership to Executive
Committee
• Have Financial Responsibility for
Military Within Company
Executive Vendor Stocking
Committee Members
Brokers
Jed Becker, Dunham & Smith
Lauren Elkin, L.J. Elkin
Don Goetz, Highplains
Marv Inman, C. L. Johnson
Frank Hogan, OSC
Joe Olding, Webco
Richard Ray, S&K
Dick Sarvis, Sarvis
Laura Dixon, DMS
Manufacturers
Mike Henties, P&G
Laura Thompson, Kraft
Thomas Woodley, Nestle
Walt Loving, Monarch Crown
Dennis Serratt, Gillette
Distributers
Wayne Duncan, MPV Nash Finch
DeCA
John McGowan
Tom Milks
Richard Walker
Cecil Saunders
Recommended Solutions
Total US Vendor Stocked
12 Pack Cases
CONUS
Alaska &
Hawaii (4.5%)
Total
DSD
STOCKED
18,683,358
VENDOR
STOCKED
78,969,831
STORE
STOCKED
86,971,488
TOTAL
CASES
184,624,677
900,642
19,584,000
3,807,769
82,777,600
4,194,112
91,165,600
8,902,523
193,527,200
DeCA/Vendor Stocking
Estimated Total Expenses US
12-Pack CS.
Avg. Stocking
Cost
Total
*DeCA Average
**Industry Supplied
STORE
STOCKED
91,165,600
VENDOR
STOCKED
82,777,600
.69*
62,904,264
.36*
29,799,936
Vendor Stocking Solutions
(Draft)
DeCA Assumes
Responsibility
for Vendor
Stocked Category
Industry Uses
DeCA Contractors
Draft
Vendor Stocking Solutions
• Currently the Financial
Committee is Evaluating
The Cost of Solutions
– DeCA
– Industry
• Target Date of
Completion - May 30th
May 2000
SUNDAY
MONDAY
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Me moria l D a y
TUESDAY WEDNESDAY THURSDAY
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FRIDAY
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SATURDAY
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Draft
Vendor Stocking Solutions
(None or Limited Cost)
•
•
•
•
More Flexible Authorized Stocking Hours
Training Video (Coordinated With ALA)
Better Working Environment
Improved Ordering of Vendor Stocked
Items
• Improved Accessibility to Vendor Stocked
Inventory
• Better Hiring of Vendor Stockers
– Job Fairs
More Flexible Stocking Hours
• Evaluate Vendor Stocking
Hours
– Needs of Commissary
– Needs of Stocker
– Needs of Patrons
• Create When Possible a
Better Working Environment
Training Video Coordinated
with ALA
•
•
•
•
•
Responsibilities
Policies
Importance of Job
Payment Method
Tools
Improved Ordering of Vendor
Stocked Items
• Problem That Exists
Mostly on Weekends.
• Industry Needs to
Ensure Stockers are
Stocking on
Weekends.
• DeCA Needs to
Ensure Product is
Ordered Properly
Better Hiring of Vendor
Stockers
• Job Fairs
• Career People
• Families
Improved Accessibility to
Vendor Stocked Inventory
• Organize Backroom Freezer
– Shelving on Perimeter
• Separate Area in Backroom for HBC
Inventory. If area secured Need DeCA
Personnel With Key Available.
• Use of Carts When FDS Merchandise
Separated.
Draft
To Summarize
• Vendor Stocking Has Been a Part of The
Commissary System for Over 30 Years.
• The Seven-Day Commissary Operations &
Low Unemployment Necessitates Change.
• DeCA & ALA are Evaluating Several
Solutions.
• Significant Progress in Solving Problems
Can Be Made by DeCA & Industry at
Commissary Level.