sainsbury’s argos
TRANSCRIPT
AIP and Argos
• The Argos business model
• Transforming to be a ‘Leading Digital Retailer’
• AIP Upgrade
AIP V11
3
AIP first implemented in 2006 to replenish “stocked in” skus and stores as part of the
award winning project RACO
.
Plan our stores and warehouses
Create the stock targets sent to transactional
systems for store and between tier picks
Create and release supplier purchase orders
Argos has adapted the usage of AIP as the business required
Key tool to our stock
processes
Used to provide data for
upstream planning &
reporting systems
Tool used to support
our stocking policies
Argos F & R Systems Overview
4
Reporting
RMS
AIP
MF
DP
FDT
Whse
Supplier
Planning ExecutionForecast by Sku/DC/Week
Forecast by Sku/Store/Day
Master data and inventory
RUTLS
Purchase
Orders
Purchase
Orders
Store
OrdersAssortment
Extending role of AIP to support Business Transformation
Leverage AIP abilities to support this transformation
Website
Mobile
Website
Apps
(Android,
iphone, ipad)
What did we do…
supply chain revolution.
8
New processes & systems introduced
• dynamic route scheduling,
• single stock visibility & customer order management
• adaptations to in-store voice picking systems
• Adaptations to AIP
How does AIP contribute?
9
AIP performs its traditional role
around stock levels and orders
AIP is now our assortment and replenishment tool
Determines unique spoke stock assortment
Stock investment, product margin and customer immediacy at store level help to determine
whether to stock. Store level demand forecasts + settings in AIP parameters enable this.
Outcomes ….
Our new
customer
proposition
is setting a
new
benchmark
07:00-10:00
10:00-13:00
14:00-16:00
17:00-22:00
£3.95
• Home Delivery sales are close
to doubling year on year
• Inventory reductions &
improving customer
availability by c 2-3%
AND
• New formats introduced
• Dark Hub
• Cannon Street Station
• Concessions
• Collection points
• Pop ups
New revenue opportunities utilising Hub delivery & Spoke assortment capability.
Argos F & R Systems Overview
13
Reporting
RMS
AIP
MF
DP
FDT
Whse
Supplier
Planning ExecutionForecast by Sku/DC/Week
Forecast by Sku/Store/Day
Master data and inventory
RUTLS
Purchase
Orders
Purchase
Orders
Store
OrdersAssortment
The Background
14
Business growth since 2006, resulted in
overnight batch run pressure
High level of
customisation
makes upgrade
more difficult
Support
future
growth
plans
Aug 2015 - Start
Sept 2016 – Go Live
May 2017 - Finish
The Challenge
15
Summer 2015 Challenge
• Tactical fixes on v11 to sustain Peak 2015
• Migrate to AIP v14 by the quickest and most low risk means possible
• Complete 1st phase in readiness for Peak 2016
• Focus on a ‘lift and shift’.
AIP v14 – The Case to Upgrade
16
No application limits on sku/store volumes
Larger domains, low variability measures and
improved UI – an easier application to use
Improved application performance
Improved planning functionality
New functionality
Revisit best practice within Supply
AIP v14 – Project Team
Argos brought the
business knowledge
and functional SME’s,
delivering the change
and training
Oracle Retail Consulting
provided functional and
technical QA capacity and
a link with Development
when needed GO LIVESEPT’ 16
Accenture were our
implementation partner
delivering the technical
solution and supporting
training
AIP v14 – Solution
GO LIVESEPT’ 16
Training and Change
Revised 40+ L4 Processes
Over 100 colleagues were
trained
Regular comms
Design
Lift and shift focus
Less core customisation
New functionality – as long as
no timeline impact!
Technology
“Automate everything” approach
Rapid deployments, minimal downtime
Build/Test loop accelerated
19
AIP v14 – Outcome
Delivery We wanted to rollout 3 categories by Peak 2016 – we rolled out 4, 44%
of our sku count
Target completion was May 2017 – we should complete rollout this week
New functionality being exploited
Evaluating move to v15
August 2015 May 2017
• Phased v Big Bang?
Risk dictated a phased rollout
Rigorous and engaging process to determine the sequence
Deployment
GO LIVESEPT’ 16