what is the value of a retail scorecard

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What is the Value of a Retail Scorecard?

RVCF Spring Conference May 5-7, 2014 Sanibel Harbour Marriott Resort & Spa

Supply Chain Insights is focused on delivering independent, actionable and objective advice for

supply chain leaders.

A company dedicated to research, turn to us when you want the latest insights

on supply chain trends, technologies to know and metrics that matter.

About Us

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Growth has Slowed

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1990-1994

1995-1999

2000-2004

2005 2006 2007 2008 2009 2010 2011 2012

eCommerce

NaN NaN 343.09821573893

2

455.82322184244

8

549.35711669921

7

758.40384928385

3

848.30227661132

6

1016.2521057128

9

998.48733520507

7

1073.2823486328

1

NaN

Grocery

197.66727663333

3

182.42270665714

3

424.51644165604

2

478.66342206434

8

475.07786840959

519.72557456152

9

612.0607266696

610.86592366145

2

572.42064453125

518.07959238688

3

503.89105224609

3

Mass

111.531258

6

143.587382

4

252.77049342572

2

348.13922174952

2

378.84717362577

3

616.60869811562

9

486.97209019814

8

474.46172598636

5

533.31497862844

8

463.61525573730

5

348.44249979655

Specialty

NaN NaN 295.67612169279

384.31348812580

2

413.83267235756

458.27304815738

8

478.62063006965

5

527.32440307617

3

534.01690254211

5

282.31685002644

9

312.05143394470

2

100

300

500

700

900

1100

Revenue per Employee

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mp

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Retail: Revenue Per Employee

Source: Supply Chain Index Analysis from Annual Reports 1990-2012Mean values utilized excluding outlier data

Can you update this slide?

RVCF Spring Conference May 5-7, 2014 Sanibel Harbour Marriott Resort & Spa

Revenue Per StoreCan you update this

slide?

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A Supply Chain is a Complex System

with Complex Processes with Increasing

Complexity

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Resilient and predictable Balanced across the set of metrics to

maximize value Showing year-over-year strength against

peer group

Desired Corporate Performance

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The Supply Chain Effective Frontier

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In most supply chains, complexity has risen throwing the supply chain out of balance. We find that nine out of ten companies are stuck at the intersection of inventory turns and operating margin.

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The Efficient Supply Chain is not Effective

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Mining 20 Years of Financial Data

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How to Read an Orbit Chart

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Corporate Summary

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Cash-to-Cash Cycle vs. Inventory Turns (2000-2012)

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Inventory Turns vs. Operating Margin (2000-2012)

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Company (2000-2003) Days of Inventory Days of Payables Days of Receivables

BASF SE 82 50 72

E. I. du Pont de Nemours and Co. 95 51 44

Company (2004-2007) Days of Inventory Days of Payables Days of Receivables

BASF SE 66 38 61

E. I. du Pont de Nemours and Co. 86 49 53

Company (2008-2011) Days of Inventory Days of Payables Days of Receivables

BASF SE 64 30 54

E. I. du Pont de Nemours and Co. 100 66 49

Company (2012) Days of Inventory Days of Payables Days of Receivables

BASF SE 64 30 50

E. I. du Pont de Nemours and Co. 106 69 42

Source: Supply Chain Insights LLC, Corporate Annual Reports 2000-2012

Can you put a cash to cash slide in this deck for Wal-Mart versus Target?

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Retail Resiliency

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Company Wal-Mart Target

Resiliency Ranking 1.00 1.33

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Vendor Managed Inventory

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Definition

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Suppliers

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VMI is Stalled

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VMI Performance

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Shorter Order Cycle Times

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Suppliers Alignment

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Study Overview

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RVCF Spring Conference May 5-7, 2014 Sanibel Harbour Marriott Resort & Spa

Use of Scorecards

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Multiple Scorecards

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Reviews

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Review Frequency

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Redefined

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Face-to-Face Meetings

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Benefit

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Impact

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What is the Value of a Retail Scorecard?

• Resiliency• On-time performance and in-stock

improvements• Reduction of shipping and receiving issues

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About Lora Cecere

• Founder of Supply Chain Insights• “LinkedIn Influencer”

• Guest blogger for Forbes

• Author of 2 books: Bricks Matter (2012) and Metrics That Matter (to publish Fall of 2014)

• Partner at Altimeter Group (leader in open research)

• 7 years of Management Experience leading Analyst Teams at Gartner and AMR Research

• 8 years Experience in Marketing and Selling Supply Chain Software at Descartes Systems Group and Manugistics (now JDA)

• 15 Years Leading teams in Manufacturing and Distribution operations for Clorox, Kraft/General Foods, Nestle/Dreyers Grand Ice Cream and Procter & Gamble.

Contact Information: • Email: lora.cecere@supplychaininsights.com• Blog: www.supplychainshaman.com (6000 pageviews/month)• Forbes: http://www.forbes.com/search/?q=lora+cecere• Twitter: lcecere (4800 followers)• LinkedIn: linkedin.com/pub/lora-cecere/0/196/573 (7000 in the network)

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What’s Happening at Supply Chain Insights?

www.supplychaininsights.com

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