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OSA Industry Pulse

 

December 2011 

OBSL

   

Background

 

Each quarterly edition of the OSA Industry Pulse tracks performance against one of the key indicators to OSA levels, outbound service level (OBSL). OBSL is the rate at which retailers are able to supply stores against the volumes of cartons of product the stores have requested for delivery.

  • Weekly OBSL data is submitted by Metcash, Woolworths and Coles and consolidated to provide a non-confidential industry summary.
     
  • This summary is presented for: ambient grocery; perishable products; and, total business (a sum of ambient and perishable volumes ordered and delivered).  

 The Results  

OBSLNov11

 Ambient

 

 Perishables

 

Winning in January

 

Since early in 2009 suppliers and retailers have come together under ECRA to understand specific pressure points particular to achieving high levels of on shelf availability in the month of January, considered root causes, established joint improvement opportunities and collectively worked towards improving service levels. Service levels to stores in January 2011 exceeded 2009 performance, but gave up around half of the gains experienced in 2010. ECRA will report 2012 results during February.

 

 WIJGraph

 

Winning at the Shelf

 

Earlier in 2011 the ECRA Board determined that the next stream in the ECRA On-Shelf Availability program would be Winning at the Shelf, focusing on improving the execution of fixture replenishment when stock is available in the store building but not on show to the shopper - ie improving execution of replenishment from storeroom to fixture.

Progress to date:

  • An extensive survey of Store Managers and supplier Merchandisers identified key product categories and classifications as well as key in store replenishment and stock management processes to be investigated further as priorities.
     
  • A research agency has been engaged to undertake a detailed in store study across retailers, focussed on understanding the root causes of the key issues, understanding good versus poor practice from product and process standpoint. Retailer key stakeholders as well as supplier Merchandisers will be interviewed as part of this process.

 

ECR Global OSA Update

 

ECROSA

ECR Europe's OSA Reloaded Project Team have developed a compelling business case plus practical solutions and real-life case studies via a new OSA toolbox showing how the barriers that appear to prevent us from making the required changes to drive higher rates of OSA can be overcome.

 

For more information click on this link:
http://ecr-all.org/bluebooks/bluebook

 

 

Adding Value at Retail Store Level
Michael Bartholomew

CEO
Strikeforce Alliance

 

MichaelBartholomewWhilst Retailers & Suppliers invest heavily in Marketing campaigns in an effort to drive consumers to their products and stores, sales opportunities are often lost due to poor housekeeping standards at point of purchase.

 

To back up this statement the AMC/Strikeforce Merchandising field team identify and rectify an average of 5,800+ store level issues in Coles & Woolworths on an average monthly call cycle. These issues include, out of stocks, missing descriptive tickets, missing promotional tickets, promotional display non-compliance, rectifying incorrect stock on hand levels in auto ordering systems, rotating short coded stock on shelf & fixing graded ranging gaps. These issues if left to compound affect the consumer's ability to make purchase decisions during their shopping excursion.

 

Maintaining regular supplier call visits to stores both metro and regional and focusing on products being correctly ticketed, compliance of graded ranging, promotional compliance and stock on show ensures maximum ease of purchase and complete choice for consumers.

 

New Line speed to market is also a high priority for both retailers and suppliers however inefficiencies in the planning and implementation process at store level and Head Office often slow down the ability to be on shelf and available to consumers within the earliest possible timeframe.

Factors which slow down implementation include,

  • Late notice that planograms have been released to store often after the event, suppliers and third party implementers are unable to book stores in advance which delays the planogram start date by another week.
  • Confirm locked in planogram release date at least 2 weeks prior enabling suppliers to book stores from the date planogram is live.
  • Enabling suppliers to book planogram implementation dates by store electronically would speed up the process by 1-2 weeks.
  • Buyers often give store selection list to major suppliers to pick the stores they wish to implement, which delays and slows down go live dates.
  • Larger stores often clear deleted lines in the first week of advice; however they often wait until the end of the 4 week clearance period before actioning the planogram therefore delaying the possible implementation by 3 - 5 weeks.

From the issues highlighted above it is evident that suppliers and third party merchandising services continue to have a role in adding value at store level and ensuring consumers shopping options are a priority.

 

About AMC/Strikeforce

AMC is one of Australia's leading merchandising service provider's with a field team of 500+ Representatives servicing all retail channels including Supermarkets, Mass merchants, auto, hardware, convenience, liquor, pharmacy and electrical . Nationally 98% store coverage supported by real time web based field reporting system ensures accountability, transparency and driving results.

 

For more information on how AMC/Strikeforce can add value to your store calls visit; www.strikeforcealliance.com.au or email mbartholomew@sfamc.com.au

 

 ECRA Annual Supplier and Retailer Convention 2012

2012Convention

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