On-Shelf Availability (OSA) Jazz Session

Moderators Your Moderators

• Danny Halim, JDA • Ron Ozment, HEB • Eric Kim, Mondelez • Gene Bodenheimer, Genco • Lisa Malvea, Clorox

8% out-of-stocks 3-strikes-and-you’re out! How can we achieve 98%+ OSA?

OSA Team Charter Approach Whitepaper

Charter, survey and recommendations are outlined in the whitepaper

We welcome collaboration with industry and cross-functional teams

Join our sessions in this conference to review results from joint pilots and discuss OSA approaches in the Jazz session

Passion & Industry Collaboration

Consensus & Theory •Transparency and

alignment •GBB Framework •Action orientation

OSA Survey & Insights •77 responses from

suppliers & retailers • Identified critical

gaps

Industry Whitepaper •Good-Better-Best

Definitions and Recommendations

•Future considerations

Actions •Collaborative Pilots • Ishikawa “Root

Cause” Chart •Phase IV Definitions

2013 2014 2015 2016

Retailers •Delhaize: Brian Wiles •HEB: Ron Ozment •Meijer: Brian Sikkema •Rite Aid: Paul Hanko •Wegmans: Dave Texter

Manufacturers & Distributors •Clorox: Lisa Malvea •KeHE:Jeff Branecki •McCormick : Waddell Daniels •Mondelez: Eric Kim •Nestle: Tom Gagnon •P&G: Lois Fruhwirth

Service Providers •Genco : Gene Bodenheimer •GS1 US: Ryan Richard • Inmar: Steve Dollase • JDA: Danny Halim •GMA/FMI: Daniel Triot

2015 Team Journey

On-Shelf Availability Pillars Our Scope and Recommendations Within the supply chain circle of control and influence

We welcome collaboration with industry and cross-

functional teams

Sales & Merchandising

Supply Chain

Retail and Store Ops

Process/Practice Gap: event synchronization & timing •Remove event ‘lock date’ •Collaborate early and through event execution •Joint contingency (high-low)

Organization Gap: clear ownership on forecast and inventory •Joint business planning leveraging OSA data & metrics •Remove silos, work to common language •Align rewards and incentives

Metrics/Data Gap: data & integration automation •Use one demand signal throughout the value chain •Reduce bullwhip effects •Better use of data to quickly determine root cause and respond to OOS

Framework Good •Based on zero on-

hand (item-store)

Better •Lost Sales •Min Presentation

Qty

Best •DC-to-Store Fcst

Movements •Promoted vs. Non-

Promoted

Future •Proactive Alert •Shopper

Availability at Moment of Truth

Download the whitepaper: http://www.gmaonline.org/file-manager/About/15032FMIN_TPA_OutofStock_v51.pdf

1. Adopt OSA “Zero On Hand” baseline – Your stores – Your brands at shelf

2. Commit to OSA wins with rigor on “working and not working” in your organization

3. Create two collaboration pilots towards “One Supply Chain” goal –

and jointly improve event forecasting and resolve out-of-stocks root causes

CALL TO ACTION: TEAM NEXT STEPS:

1. Step up communication and education: – Practical examples & industry

feedback – Technology landscape – Educational tools

2. Develop CEO-level “OSA Passion” to adopt the OSA charter and commit cross-functional initiatives

3. Explore industry-specific applications (e.g. fresh, omni-channel)

Jazz Session We All Can Take Action!

• Fresh • Integration with Sales & Merchandising • Integration with Retail Ops • Omni-Channel • How To Encourage Industry Adoption

What are your ideas to improve OSA?

Discuss and Report Your Ideas in 30 Minutes

Wrap-Up • We will share the ideas captured in the jazz

session with you via e-mail

• Please send your ideas and feedback to Daniel Triot (TPA) dtriot@gmaonline.org or anyone in the moderator team

Download the whitepaper: http://www.gmaonline.org/file-manager/About/15032FMIN_TPA_OutofStock_v51.pdf