Transcript Sourcing Simulator Licenses

Sourcing Simulator Licenses
Liz Claiborne
Woolrich
Glen Oaks
Lebanon Apparel
Val D’Or
Whisper Knits
Brooks Brothers
Tropical Sportswear
Fruit of the Loom
S&S Distribution
Virginia Apparel
Red Well
Dayton Hudson QA
Vertical Threads
Kellwood Company
Ackermans Ltd.
Nike
Nantucket Industries
Private Label Concepts
Federated Merchandise
Levi Strauss
Garan
Edison Brothers
Context Group
Tanner
Cuddle Time
Se
Chic by HIS
Eagles Eye
Claudel Lingerie
Starter Corp
Kikomo
Goldman Sachs
Kmart
Aztec Trading
Charles Gilbert Assoc
GIDC
UNITE
WL Gore & Assoc
Van Huesen
Patagonia
Danube Knitwear
Capital- Mercury Shirt
Lord Olord’s Inc
Nat Inst Fashion Tech
Limited Dist Services
Wolverine Worldwide
Cajah Mountain Hosiery
HED 460
Bain & Co.
Sourcing Simulator Licenses
Texas A&M University
University of Missouri.
Colorado State University
Western Kentucky University
Texas Christian University
Murray State University
Michigan State University
University of Kentucky
Oregon State University
University of Nebraska
Southern Illinois University
Indiana State University
Iowa State University
UNC Chapel Hill
UNC Greensboro
Kansas State University
West Virginia University
Cornell University
Baylor University
University of Hawaii
Texas Tech University
Kent State University
Middle TN State University
Stephens College
California State University
University of Rhode Island
Se Sam Houston University
Ohio State University
Southwest Texas State University
U of Massachusetts
N Illinois University
HED 460
U of California - Irvine
Sourcing Simulator Licenses
Auburn University
Ball State University
Clemson App. Res.
Delta State University
Oklahoma State U.
East Carolina U
Tampere University
North Carolina State U
Integrated Consulting
Stonefield Josephson
Prime Tanning Co
Bayer Clothing Group
May Merchandising
Logistics Training Int’l
Exterior Wood, Inc.
Firmin House
Glen Oaks Industries
American Identity
Andersen Consulting
Adexa
Burlington Industries
Cone Mills
Dillards
DuPont Nylon
EDS
Galey & Lord
Glen Raven Mills
Hologix Inc
Se
IBM
Milliken & Co.
Russell-Cross Creek
Sara Lee Casualwear
VF Corp
Wellman Inc.
Bios Group
Burlington Chemical Co
CFT Consulting
PricewaterhouseCoopers
T-MNA Inc.
Timberland
NHK International
Twin Star Int’l
Nordstrom
Bergdorf Goodman
LL Bean
Wal-Mart
Lands End
The Gap
Wigwam Mills
JBA International
Bradley Perspectives
HED 460
Efficient Consumer Response
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Efficient replenishment
Systems, EDI
 Fewer stockouts
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Efficient promotion
Promotions based on consumer demand
 Lean inventory to support promotions
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HED 460
Efficient Consumer Response
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Efficient assortment
Turnover
 Profit
 Enhances brand and retailer perceptions
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Efficient product introduction
Pull strategy for new products
 Based on unmet needs
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HED 460
Category Management
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Technique used by retailers
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Product is sub-divided into categories that
 Reflect purchasing behavior of target
customers
 Are managed as separate business units
Supermarkets and mass
merchandisers
HED 460
Categories as SBU’s
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Department is too broad and less
strategic
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150-300 categories vs. 15-20 departments
Product/brand is too narrow to approach
strategically
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15-20,000 skus in a store and 16,000 new
products/year
HED 460
Category Management
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Integration of Buying and Merchandising
responsibilities
 Management of price, shelf space,
merchandising assortment strategy,
promo efforts, replenishment
Affects manuf. sales and marketing
Team approach between channel
members
HED 460
Category Plans
Jointly developed by retailers and
suppliers
 Define strategies and financial
objectives
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GM
 Sales/cu ft.
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HED 460
Buying/Merchandising Decisions
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Responsibilities must be
integrated
Inventory allocation
 Space allocation/analysis
 Customer demand
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HED 460
Category Management
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Goal - Retailer
Optimize each part of the store
 Allocate space that maximizes Gross
Margin/unit of space
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Goal – Supplier
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To become the lead supplier or channel
captain for that category
HED 460
Benefits
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Increased category sales (5-15%)
Increased category margins
Assists in creating optimal assortments
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Reduction of SKU’s in most cases
For Mfct., move from trade allowances
(push) to trade promotions (pull)
HED 460
Manco example
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Merchandising of tape products was
difficult
Different buyers bought tape
Solution = tape center
Later mailing center
Prevented other vendors’ access
 19 SKUs to up to 32 feet in office
superstores
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HED 460
Direct Profit Profitability (DPP)
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Profit associated with each category
Per unit Gross Margin minus all variable
costs
Procurement
 Distribution
 Sales
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HED 460
Defining Categories
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Consider end uses (frozen, chilled, deli
fresh)
Consider substitutablity (fresh/frozen)
Consider complimentary purchase
decisions (pasta + sauce)
Base decision on how customer buys
Same “real estate”
HED 460
HED 460
Dairy category
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Displayed by brand name
Customers shop by type (low fat, full
fat, no fat, fruit)
Then individual flavors
HED 460
Ready to eat meals category
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Type – Chinese, Italian, meat/two
vegetables
Cooking method – oven, micro, stove
Low calorie or regular
HED 460
Defining Categories
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What products should be included?
Beer Category- decisions
Shelf beer and cold beer part of total
 Shelf beer = 1 category and cooler = 2nd
 Sub category of beer/wine/alcohol
 Beer as a solution (picnic, party, meal)
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HED 460
Roles/Implied Strategies
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Destination
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Traffic building
Turf protecting
Transaction building
Excitement creation
Cash generating
Image creator
HED 460
Pasta Category
Strategy
Examples
Traffic builder
Std. Packs of dried spaghetti
Transaction builder
Parmesan, fresh herbs, pasta sauces
Cash generator
Lge. economy packs of dried pasta
Image creator
Filled pastas: ravioli, tortellini….
Excitement creator
Fresh, less well-known: stelline….
HED 460
Roles/Implied Strategies
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Routine/
preferred
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Transaction building
Profit generating
Turf protection
HED 460
Roles/Implied Strategies
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Convenience
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Transaction building
Profit generating
Image enhancing
HED 460
Roles/Implied Strategies
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Occasional/
seasonal
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Traffic building
Excitement creation
Profit generating
HED 460
Tactics – Traffic building
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Aggressive pricing on loyalty
products/low margins
Media on frequently purchased items
Prominent space
HED 460
Case Study - Toothpaste
Results
Previous
Current
% Diff.
Sales
12.3m
12.64m
2.8%
Gross Profit
1.66m
1.52m
(8.4%)
GP Margin
13.5%
12%
(11%)
Turns
12.2
14.5
19%
Days supply 30
25.2
(16%)
GMROI
1.98
4.2%
1.9
HED 460
Leading Manufacturers – CM
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P&G
Kraft
General Mills
Unilever…Ralston Purina…Pillsbury
Quaker…Kellogg’s…Coke
HED 460
Leading Retailers – CM
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HEB
Safeway
Wal-mart
Ahold
Kroger
Wegman’s
HED 460