PROBLEM
In an effort to reduce inventory stockouts and improve product
freshness, this top tier retailer was using a subjective, manual, time-consuming scorecard that provided limited visibility to only a few of the direct store delivery suppliers.
SOLUTION
ScoreCarding
Using metrics-based sales, delivery, inventory and shrink data collected from both the retailer and the suppliers, we created a collaborative, highly-visible, fact-based scorecard. The easy-to-read dashboard provided an objective view to how the category and each vendor within was performing at various levels including by item-by store, weekly-by store trend, four-week trend by store and by item at all stores. Collaboratively, each vendor and the category manager were armed with actionable evidence on which to make changes. We consulted on root cause analysis and process change management.
RESULTS
- 11% improvement in waste (shrink plus returns)
- 1.6% improvement in product sell thru
- 3% reduction in days of supply
