Brad Shelton, President, Collaborative Gateway Solutions
Scott Love, Senior Vice President, Retail Client Solutions
April 1, 2020
USING SUPPLY CHAIN GATEWAYS TO NAVIGATE COVID-19
Power Better & Faster Supply Chain Decisions
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Today’s Discussion
− Welcome
− Supply Chain Landscape Overview
− Navigating the New Normal
− IRI Resources Available
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Supply Chain is Experiencing Spikes:
Manufacturer Facility
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Supply Chain is Experiencing Spikes:
Multiple Retailer Facilities
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Key Focus Areas – North American Retailers
Virus Expands
(NOW)
PO Projections
Demand Planning
Allocation Management
Carrier Performance /
Lead Time Management
Virus
Recedes
Out-of-Stock Analysis
Allocation Management
Inventory Accuracy
Management
Lead Time Review
New
Normal
Planogram Reviews
Retailer DOS Review
New Consumer
Demand Baseline
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Friday, March 13 – the Day Grocery Consumer Spending Spiked Across the U.S.
Average Sales
Source: IRI proprietary models
March 11President Trump
prime time speech, COVID-19 a global
pandemic
March 12Dow Jones drops
over 10%; significant travel restrictions
implemented
March 13Largest shopping day of the year
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Deep Dive into Inventory and Sales to Help Predict Future Purchase Orders
Sales and Inventory
0
0.01
0.02
0.03
0.04
0.05
0.06
0.07
0.027
0.029
0.031
0.033
0.035
0.037
0.039
DC Inventory Average Sales
Source: IRI proprietary models
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Average Store Inventory
Source: IRI proprietary models
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Retailer Inventory Drained Throughout the Supply Chain
Average Distribution Center Inventory Average Store Inventory
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Monday, March 16 – Retailers Respond with High Purchase Orders
Purchase Orders
WEEKEND SATURDAY
Source: IRI proprietary models
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55,216
133,367
173,411
213,455
On Hand Inventory Avg Inventory April2019
Estimated need ifsales trends are cut
in half
Inventory Needed toMeet Demand ifCurrent Sales
Trends Continue
-78,151
-118,195
-158,239
Inventory Shortfalls and DC Shorts to Store in this Illustrative
Case Had a $1.6MM Lost Revenue Impact on a Supplier
Combing Inventory and Sales Can Help Determine Future Actions to Manage Risk or Capture Opportunity
Sales Performance
Unit Sales Per Store Chg vs YA +60.1%
Items Selling per Store Chg vs YA -190
Service Level to Store
Current Service Level 81.65%
Service Level YA 97.69%
DC Shorts to Store- Cases
DC Shorts to Store 72,666
DC Shorts to Store % Chg vs YA +1,149.6%
SUPPLIER TOTAL INVENTORY # OF CASES
Gap to Meet Demand
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Manufacturers That Stay Tightly Aligned
with Their Retailers and the Data Will Win
Evolving Demand and Sales Spikes
Need More Inventory to Manage Demand
Store Out of Stocks Improve
Need More Inventory to Fill Shelves
Store Service Level will Improve
Need More Inventory to Fill Distribution Center
PO Fill Rate will Improve, Carrier Constraints
Reduced
Retailers May Keep Higher Days of Supply
on Some Items
Demand will Decrease, but There May Be
a New Forecast Baseline
New Normal Inventory
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Looking to Navigating the New Normal:
Demand Will Normalize and Shelfs Will be Restocked
• Planogram Review and a Deep Dive into
Distribution Voids
• Out of Stock Management
• Management of High Days of Supply
• Compliance Tracking and Exemption Requests
• Inventory Review for Accuracy
• Understanding When Demand Returns
to Baseline
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Top Focus Areas by Situation
Virus Expands
(NOW)
PO Projections
Demand Planning
Allocation Management
Carrier Performance /
Lead Time Management
Virus
Recedes
Out of Stock Analysis
Allocation Management
Inventory Accuracy
Management
Lead Time Review
New
Normal
Planogram Reviews
Retailer DOS Review
New Consumer
Demand Baseline
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IRI Has a Variety of 90-Day Program Options to
Provide the Visibility You Need, When You Need it
Gateway
# of
Reports
Delivery /
Access
Key Inventory
Metrics in Report,
by Store
Key Inventory
Metrics in Report
by DC Other Key Metrics
Granularity of
Data
Update
Frequency Time Periods
ADUSA 4 Unify
Viewer
License
Inventory Levels, OOS,
Days of Supply (DH
only), Shipments,
Service Levels
Inventory Levels,
OOS, Days of Supply,
Shipments, Service
Levels, Authorized
POG Instances
POS Unit Sales &
Chg, Share,
Authorized POG
Instances
Store Level, DC by
Own Items,
Category,
Competitive Brands
(Sales/Share), Day
Level
SC / Sales
(Daily)
Share / Totals
(Weekly)
Latest 13, 4 and 1
weeks and day
level vs prior
period and last
year
CVS 2 Excel
Reports
Emailed
Weighted In-stock,
OOS, Days of Supply,
Shipments, Service
Levels, Lost Sales
Weighted In-stock,
OOS, Days of Supply,
Shipments, Service
Levels, Lost Sales
POS Unit / Dollar
Sales & Chg, Share,
Lost Sales
Store Level, DC by
Own Item (SC and
Sales), Category
(Sales), Day Level
SC / Sales
(Daily)
Share / Totals
(Weekly)
Latest 1 week and
day
SEG 4 Unify
Viewer
License
Inventory Levels, OOS,
Days of Supply,
Shipments, Service
Levels
n/a POS Unit Sales &
Chg, Share,
Authorized POG
Instances
Store Level,
Category,
Competitive Brands
(Sales/Share), Day
Level
SC / Sales
(Daily)
Share / Totals
(Weekly)
Latest 13, 4 and 1
weeks and day
level vs prior
period and last
year
NOTE: bolded font means that element is available across retailers
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Ahold Delhaize USA Brands Insights Gateway
CVS Collaborative Merchandising Gateway
Southeastern Grocers Gateway
For More Information
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Top COVID-19 Questions Manufacturers Are Asking
How are my brands doing in
this environment? If I am winning new
consumers, how do I retain them
longer term?
How much of the recent growth is pull forward and how much is sustainable,
long-term demand?
How can I read out of stocks
faster and meet consumer demand quicker?
Am I missing an opportunity
if I stop advertising during this
time?
Which retailers should we
prioritize? Is there an
opportunity to reset some trade
spend?
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New IRI Solutions to Help CPG Clients During the Covid-19 Pandemic
Market Tracking / Supply Chain Solutions
1. Daily POS data
2. Weekly IRI Market
Advantage
3. Daily OOS data
4. 90-day Retail Gateway
packages
Consumer & Shopper Behavior Solutions
5. Daily Frequent Shopper
Data
6. Weekly National
Consumer Panel Data
AnalyticSolutions
7. Demand Forecasting
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IRI COVID-19 Thought Leadership:
Helping You Stay Informed
IRI’s Online Insights Offers Real-Time
Updates and Weekly Reports of the
Impact of the Virus on CPG and Retail
The IRI COVID-19 Info Portal
Includes COVID-19 impact analyses, dashboards
and the latest thought leadership on supply chain,
consumer behavior, channel shifts for the U.S.
AND international markets
The COVID-19 Dashboard
Accessible through the insights portal
and tracks the daily impact of COVID-19.
This includes the top categories across
countries, out-of-stocks and consumer
sentiment on social media.
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How Did We Do?
Your Feedback is Important.
Please Complete a Brief Survey
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Confidential and Proprietary. 21
CONTACT US FOR MORE
INFORMATION
IRI Global Headquarters
150 North Clinton Street
Chicago, IL 60661-1416
+1 312.726.1221
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