supply chain pre- filled unit guide...every pre- filled unit that is sent into store needs to be...

Supply Chain Pre-Filled Unit Guide

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Process Flow – Critical Path (Pre Work -> Post Launch)Updated PFU supplier guide, from Week -16 Pre work through to Post launch review. The summary is split out into key sections for specific use by department (System, Supply Chain, Artwork & Commercial)

Also included is a selection of useful information & documents for key process steps in the development & launch of a PFU ( pre -filled unit)

Pre work: before week -16 System Review performance of current products that can

be nominated for PFU – needs an 80% sell though on 3 week promotion for suggested volume - this may be an internal forecasting tool (Click Here)

An PFU must be set up as a unique product with its own TPNB/TPND

Commercial Take an idea to your buyer: propose a nomination

at any time to start to build potential launch plan (Click Here)

Supply Chain Review types of PFU (Click Here) Review pallet types available (Click Here) Review shipper providers list to determine chosen

supplier for PFU (Click Here) Determine whether the rework of stock onto PFU can be

completed internally or whether a 3rd party facility is required (discuss initially scoping of availability, space, costs etc)

Artwork Create design/ concept to be reviewed as proposal alongside

volumes, which should be submitted as one Page proposal (Click Here)

Artwork could be created internally or using a design agency If it’s the first time you’re raising a pre filled unit and there

are concerns about robustness/weight of the product, send the pre filled details to DSG at Tesco. There is testing done once a month. (N.B. It can be a blank pre filled unit)

Top Tips

Week -16System New product code raised on internal system (My

product Induct – Click Here) BOM (bill of materials) created (supplier) Product code created (TPNB/TPND) Pallet hire – if first time supplying ¼ pallets, an

account will need to be set up for hiring the units (Click Here)

Commercial Pricing set up through my product induct –

commercial contact must sign off (Supplier) Collaborative forecast agreed - Commercial &

Demand planning (using forecasting tool) Trade activation/Trade Planner/Customer

activation Manager (all the same person) confirm stores & space (Click Here)

Supply Chain Forecast input into internal forecasting tool if high

probability of going ahead (Supplier) SKU list for rework sent to 3rd party supplier (if not

inhouse)

Artwork If SLU (PFU layout) is already agreed then artwork

generation can progress with material supplier If SLU is not agreed, work closely with material

supplier to determine optimum pack spec for PFU (samples of the individual product will be required)

Click Here for example of SLU layout

Week -12

Process Flow

Week -12System Revisions to My product induct may be required

due to changes spec/ pack format/ unit volumes therefore this must be completed by week -8

Commercial Look out for differences from the Commercial

nomination and the Trade activation agreement & review in-case its not going ahead

Supply Chain Be aware of the stores allocated to the different

PFU’s – at this stage an estimated list can be requested

Conduct internal transit trials as soon as you can ( structural queries: [email protected] )

Supplier can speak with Tesco Supply Chain contact

Artwork Be aware that an agreement of a PFU design may

take a few weeks Lead time for PFU artwork generation is 10 working

days (Black Dog) [email protected]

Top Tips

mailto:[email protected]


Week -12System Final Submission to my product induct (week -8)

Commercial

Supply Chain Review pallet configuration for transport layout

(Click Here) Determine required pallet label layout and critical

details required for PFU to be received by depot (Click Here)

Send barcode to Tesco Data Ops for final sign off

Artwork Supplier final agreement with artwork for the PFU

(Black Dog)

Week -8

Process Flow

Week -8System Supplier to check that the promo is visible on the

Tesco toolkit Using pallet hire system – arrange for collection

and delivery of required pallet units (please note these must be ordered in multiples of 100 ¼ pallet units)

Commercial Buyer to load deals in NBS (new buying system) –

this will be taken from the one page proposal form

Supply Chain Contact with Tesco Supply Chain (promotions /events

manager) to discuss forecast assumptions and timings Review collaborative forecasts (ongoing until launch) Promotions Manager to finalise Tesco depot splits (this

may change due to updated store service info – this will only be accurate when order is raised)

Artwork Send artwork to printer (week -6) Rework facility received flat pack PFU’s (week -5) Supplier gets delivery of pallet units (week -5)

Week -4

Process Flow

Week 4System Supplier to confirm that the promo is visible on the

Tesco toolkit (week -3) PFU initial orders can start to be raised from the

Tesco Team (from week -3) Supplier to book transport for Depot delivery

(confirm suitable available transport) Stock transferred to depot from Week -3 onwards

Commercial

Supply Chain Trunking station set up completed (Click Here) Rework supplier packs PFU's and move into

supplier storage (from week -4) Alignment of depot delivery dates

Artwork Print pallet label stickers (week -4)

Week 1

Process Flow

LaunchSystem De-Hire pallets on pallet hire system & arrange for

collection from rework facility

Commercial Review non-compliance for stores from activation

(this should be confirmed from the launch date in store)

If product performance is below expectation on day 1 and day 5 sales reviews – confirm exit plan between buyer & commercial

Supply Chain Check all the deliveries have gone into depot as

planned for full volume Check all units have cleared from depot & sent to

store Review day 1 and day 5 sales with promotions

manager

Artwork Examples of the units in store – review for any

issues that can help with next PFU project

Post Launch Review

Process Flow

FAQ’s, Top Tips, Glossary & Depot Details

Frequently Asked Questions

Page 1: Click Here

Page 2: Click Here

Top Tips from Promo Managers

Click Here

Glossary of Useful Terms & Definitions

Page 1: Click Here

Page 2: Click Here

Depot Details & Addresses

Page 1: Click Here

Page 2: Click Here

Process Flow

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Useful Information And Documents The following documents can be used in line with the critical path to help execute the PFU (pre-filled unit) activity

We have put them in order of the activity in the critical path to help you through the process

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Basic information required for a Commercial Nomination

TPNB Case size product descriptionOffer

mechanic

Offer description( save, 3 for 2

etc.)trigger (

eg 1)

Original selling

price per unit

Event selling

price per unit

Offer price

% discount £ saving

Promotion period (days)

Incremental sales % uplift

Unit sales in promotion

period

System for Commercial Nomination (My Product Deals)

Please use the above format to plan any commercial nominations, and use the online portal, suppliers can find further information on the supplier toolkit.

(Back to Process Flow)

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My Product Induct – Ratio Packs PFU requires a new specification completed on My Product Induct referred to as a “Ratio Pack”. A new TPNB & TPND will be set up for the PFU. Also a new ITF14 barcode will be required for the unit of delivery (e.g. Bound pair of Quarter pallets).


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PFU Layout (SLU)Material supplier for the cardboard wrap will need to create a PFU layout (SLU) from the individual products to ensure compatible with capacity requirements of the base unit and align measurements. Also, it is during this process that the optimum fill capacity can be determined and the need for fillers can be checked.

Fillers: Cardboard inserts that ensure stability within the interior of the carboard surround to fill out entire base unit.

This build may go through several versions with supplier in order to work out optimum configurations with fillers.


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PFU Artwork for Review *Product Name**Project Description & Deal – Tesco Week Number– Activation Date in Store (Promo)• Top-line summary of what it is

Brief Description for the offer on the promotion (e.g. buy 2 & get X/ promo price point)

• What is the OFD communicating?

Offer & full entry mechanic

• Exclusive to Tesco?

Will offer be available to any other customers or only in Tesco. Fully branded needs to be exclusive to Tesco

• Is the OFD part of a wider activation (Dunnhumby, national campaign etc)?

Confirm detail of additional activity (e.g. aisle fins, tear offs etc).

• What’s the investment and projected sales figures?

As above

How many stores is this planned for? Above check details of store distribution (review rules for Scotland) – e.g. multibuy etc

• What space is it planned in? above Feature (e.g. Grocery End 1 etc)

• What’s the dimensions of the unit? (HxWxD)

As above

• Has this unit been through/approved in the SPAG forum?

• Any other important info

• Reminder – Please ensure this unit is signed off by DSG (if applicable) and the Retail team.


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Recommended shipper producers and third party co-packers & email contacts

Shipper producers

• DS Smiths• Smurfitt Kappa• Simpson group• Mail way• In-contrast

Third party packers

• Wincanton• Smurfitt Kappa• Kammac• DHL• In-contrast

[email protected]@[email protected]@uk.tesco.com






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Types of Pre-Filled Units

Off Fixture Display (OFD)Under 23KgsStore: Express and Main EstateNetwork: Ambient2-3 days to get to storePallet type – OFD’s on CHEP pallet

Quarter Pallet (QP)Over 23Kgs to150kg( ¼ pallet is classed as a BOUND PAIR ONLY)Store: Main EstateNetwork: Trunking1-2 days to get to store Pallet type: Tesco ¼ pallet

Merchandised Unit (MU)Over 23KgsStore: Main EstateNetwork: Trunking1-2 days to get to storePallet type: wheels

GKN Pallet (Full Pallet)Over 23KgStore: Main Estate Network: Ambient2-3 days to get to storePallet type : CHEP

PFU (Pre-Filled Unit) is an umbrella term for all units pre filled delivered into Tesco


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Type of Equipment Bases Available

Tesco Quarter Pallet Tesco Wheeled Pallet GKN/ Chep Pallet


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Pallet Hire – XPO Logistics Comet Portal -https://remote.xpo.com/realm/webportalPFU’s require specific types of pallet in order to deliver into the Tesco supply chain. If first time supplying ¼ pallets, an account will need to be set up before using the online portal to enable these units to be hired and de-hired. The account will need to be set up via email to the following address ([email protected]) and provide login in details for the portal.

If orders aren’t collected on the day of booking then the order will automatically be cancelled and a new order will need to be raised. Standard lead times for these bookings are between 3-5 working days.

1. Welcome Page

2. Order Entry

3. De-Hire

4. Balances


https://remote.xpo.com/realm/webportal


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How many Pre-filled Units to produce - Tesco Supply Chain Every pre- filled unit that is sent into store needs to be signed off by Tesco Supply Chain. Please do not start production until

you have had confirmation of the number of units from the Promotion and Events manager

Once commercial/ trade planning have confirmed the space in store the Promotion and Events manager will review sales at store level to determine how many stores that have the space can receive a unit or multiple units

Approval will only be given if the Pre-Filled Unit stock quantity is sensible, a store will only receive a unit if they can sellthrough 80% of the volume for every product on the unit

New Product Development (NPD) sales should be estimated by using a similar product’s history

The template on the next page will need to be completed by the supplier and sent across to the Promotion and Events manager

Bounded Pairs These are sent to stores in pairs for stability Tesco will order 1 Bounded pair and the supplier will deliver 2

quarter pallets bounded together When discussing the number of cases in a unit make sure this

is the total number in both quarter pallets


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Pre-filled unit - labelling

(Description of overall product) – could use activity description

Product 1:

(TBNB) – (Description of individual products)

(Units) x (format) – (No of Units)

Product 2:

As Above

(BARCODE) – this barcode is a new code created specific to the PFU not the individual sales unit

barcode

Please see below examples of how to label a PFU to ensure correctly received by Depot:


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How many Pre-filled Units to produce- Tesco supply chain Pre-Filled Unit Proposal

No. of

StoresStack Space Start Date End Date PFU TPN Case TPNB

Case Unit

sizeProduct Description

Offer

Description

Launch

week

Promo

PeriodType of unit

Cases per

unit

Singles per

unit

• Fill in the below template and send across to your Promotion and Events Manager to review

Number of store the product has feature space in e.g. Foyer Slot 1- 800 stores

Start and End date of the promotion

Add here the TPNB, case size and product description of the lines that are in the unit

Add the Tesco week the promotion will launch in what promotion period this will fall into e.g. P3 or Drink Festival Event

Enter ‘0’ if TPNB for the Pre-Filled Unit is not known

The name of the feature space in store e.g. Grocery stack or Foyer

Enter the offer the product/ products will be in during the promotional period

Confirm which type of unit you are producing e.g. Bound Pair, OFD, full pallet etc

Refers to quantity of cases in the pre-filled unitREMEMBER: insert total number of cases per bound pair E.g. if 1 quarter pallet is 32 cases then the bound pair would be 64 cases

This should equal:

Case unit size x Cases per bound

pair

Tip: to be ahead of the game in terms of expected

volumes, review the next slide for tips on pre-work

that can help understand how many to produce


231789_Temporary Display Units Specification_Performance Criteria_Rev C14/01/2019

PFU’s sales projections – running your own dataBelow are some suggestions for data to run/review that will support conversations with Tesco. Doing some of this pre-work will help you understand early on how many Tesco may take for a specific promotion space and may help you understand how many to produce. You will need to decide how you extract and present this data. The majority of this is available on Tesco Link & your normal Tesco contact can support with store lists or promotion store list data if required.

Headers – Input data under the below headersTPNB & DescriptionIdentify the number of units to a pre- filled unit (can help determine if one product needs to be lower or higher before building)Select a PFU to compare to (if required, e.g. if a NPD)Take into account the sell through % – Normally 80% - this will identify how much of the PFU can sell through within the promotion periodAlso take into account the sell through days – most promotions are three weeks, but this can varySet a pre- filled limiter – how many PFU’s should a store get – in most cases this is 1, but if sales are good, you may send more than 1Compare it to a previous promotion (e.g. front-end power aisle 1 – week 40)Tabs – Run data off the below – Majority of this data can be extracted from Tesco LinkStore matrix – Updated from store list database (may need to request from Tesco)Promotion matrix – what TPNB’s are on what promotion (e.g. P1 - Promotion history)Trading latest week list – is the store trading or not (will be zero sales if not – stock should not be sent to stores with zero sales)Product list – list of TPNBs and descriptionsFeature space per store (updated when applicable when communicated from Tesco)Number of units sold per day, per store extracted from Tesco Link (Also promotion history)Output – collate the above information and this should give you results if a PFU can sell by store within a promotion periodRuns the above dataGives an average file with average sales, per product per store and recommended number of units to send in, as an example below:


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Top Tips From Promotion Managers

Ensure a transit test has been completed for all new units

Always flag if you are using a quarter pallet as this is ordered differently through our fresh network

New product will be run through the tool using a similar product that is ranged alreadyPFUs must be sent pre filled not flat

packed and must NOT be delivered on wooden pallets

Ensure you refer to the ‘Types of Units’ and understand which distribution network your units will stream through, your Promotions Manager can confirm this for you

If there is a failure to arrive, you need to inform the promotion manager on the day or if you know this in advance please flag asap, otherwise this could cause large amounts of work. The store allocation will need to be re-applied.

Ensure the unit is set up at the absolute latest (2 weeks before) otherwise this can affect the launch date and result in loss of sales

Make your Pre-filled unit labels clear and include the promotional period the line is on. Stores receive a high level of units so a clear picture / name on the outer shrink wrap will help the store locate the unit and merchandise

Be aware that we don’t always have an accurate store list for where the unit is going and can’t hurry this information along any more than we already do

Do not order any materials / start repacking until you have confirmed store numbers from your promotions manager. The PFU will need to go through the PFU tool to confirm the sell through and therefore be ordered. Please remember it takes a week for Tesco to run the PFU tool

Think about the load up of the unit and the rate of sale by SKU. All units need to go through the PFU tool which takes into consideration the rate of sale for every SKU on the unit. If you put a slow selling SKU on the unit it will pull down the number of stores you are likely to have the PFU in


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Q: Can I send in flat pack OFDs/Case stock for stores to fillA: No, PFUs must be sent pre filled

Q: What happens if I have new products going on a unit with minimal history?A: Please provide similar products in the PFU for to your Promotions Manager

Q: What if I am unsure what type of PFU I am producing?A: If you are unsure once you have read the PFU guide, please send a picture to your Promotions Manager to help determine the type of PFU

Q: Does it matter if I state a PFU is an OFD when it is actually a Quarter Pallet?A: Yes. Different types of units are sent to different depots. Incorrectly raised units will be rejected at depot as they will not have the correct equipment

Q: What PFU information do I need to communicate to my Promotions manager?A: As soon as you know the makeup of the unit (how many cases of each line are on it) and what promotion period it’s planned to be in, let your promotion manager know and we can see if it is on the plan. If you include the accurate date range too for when it will be in store, that helps us if we need to run sales data quickly.

Frequently Asked Questions


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Frequently Asked Questions Q: When do I need to communicate to the promotions manager about a PFU activation?A: Talk to your Promotion Manager as soon as you are aware of any PFU activation! Share the SKU’s, deal/offer, dates, expected store numbers Your Promotions Manager can support by looking out for the confirmed information

from the Buyers and ensure its on the correct plan

Q: If a pallet weighs 50kg will that be accepted?A: This pack contains this information on slide 10

Q: Can stock come in on Chep pallets?A: Yes Tesco accept Chep pallets

Q: Can stock come in on Euro Pallets?A: Tesco do not accept Euro Pallets

Q: Who do I send a barcode to?A: You can’t send a physical bound pair to Data Ops to scan (as they normally would with a standard case of 6 bottles for example) instead you would send the barcode. Unfortunately a PDF on an email is not acceptable and a hard copy is needed by Data Ops.


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Glossary, Terms And Definitions Ordering ProductTerm Definition Allocation This ‘pulls’ stock into stores from the depots by creating

demand in the stores. Applicable for Off-Fixture Displays and Free Standing Units

Bombing/ exploding

When a Pre-Filled Unit scans onto the stores system and explodes as case stock

Connect Tesco internet site which gives suppliers advanced viewing of demand/ order forecasts

Depot Splits

Quantities of a unit required for each depot

LM Tesco stock management and ordering system

OTM Oracle Transport Management- Screen for viewing order delivery schedules

POVA Tesco system ‘pushes’ stock from DC on the next delivery to stores. Applicable to Merchandisable and Quarter Pallets.

SPOQ Specified Order Quantity- method of manually allocating stock to specific depots in Tesco’s stock management system

Wave Where a large quantity of Pre- Filled Units need to be delivered, these may be split into ‘waves’ or phased deliveries across different dates.

Term Definition Ambient Products which are not sold at chilled or frozen temperature

and have a longer shelf-life. This usually includes Grocery, Household and Health and Beauty products

NLF New line form- this needs to be completed by supplier and sent into Tesco commercial admin teams before a new product or Pre-Filled Unit can be ranged

NPD New product development

SKU Stock- Keeping Unit. An individual product with a unique code or reference number

TPNB/D Tesco product number- 8 digit number relating to a SKU


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Glossary, Terms And Definitions Types of Pre-Filled Units

Distribution

Term Definition BP Bound pair made of 2 quarter pallets

FSDU, OFD, PFU, TRDU,

Below are all the same just different names: Free-standing Display Unit,Off fixture displayPre-filled unitTray Ready Display Unit

Mode Average

Mode is the value that occurs most often in a set of numbers.Example: store sales=100, 100, 200, 800, 1000, 300- the mode average is 100

MU, Dolly

Merchandised Unit

QP Quarter Pallet- identical quarter pallets which travel bound together throughout the network. By exception where the load is different these units are only suitable for the Extra format

Shroud Protective cover over a Pre-Filled Unit

Term Definition ANA Unique depot code

PBL Pick By Line- a type of stockless/fresh DC

PBS Picked By Store- type of ambient DC

Stocked (Ambient)

Stocked DC’s hold items in stock until they are sent to stores (DC numbers 140/180/……….) See map page 20

Stockless (Trunking)

Stockless DC’s do not hold stock. Items are delivered in by suppliers, then moved across the marshalling area and sent straight out to store

Streaming This is the distribution channel. Please consult your promotions and events manager on which stream you will be using e.g. main, agency, dual and triple

TS Trunking Station (stockless DC)

Distribution


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Grocery network

GOOLE

THURROCK

READING

ANTRIM

DONABATE

MAGOR

LICHFIELD

LIVINGSTON

DAVENTRY GROCERY

MAIN Leadtime to store = 1 day

Depot Name140 Reading180 Magor400 Thurrock501 Livingston530 Goole540 Lichfield851 Antrim

AGENCY Leadtime to store = 1-2 days

Depot Name140 Reading180 Magor400 Thurrock501 Livingston530 Goole540 Lichfield

TRUNKING SITES Leadtime to store = 1 day

Depot Name145 Reading475 Magor405 Thurrock505 Livingston535 Goole545 Lichfield855 Antrim


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Depot Details and Addresses Your Promotions and Events Manager will be able to advise which depot network the Pre-Filled Unit will stream through

Depot Number Depot Name ANA Address

140 READING GROCERY 5000119001405 Imperial Way, Reading RG2 0PN

180 MAGOR GROCERY DEPOT 5000119001801 Europark, Magor NP26 3DF

400 THURROCK GROCERY DEP 5000119004000 Dolphin Way, Essex RM19 1ND

501 LIVINGSTON COMBINED 5000119005014 Carnegie Rd, W. Lothian EH54 8QX

530 GOOLE PICK BY STORE 5000119005304 Rawcliffe Rd, E. Yorks DN14 6XL

540 LICHFIELD PBS 5000119005403 Woodhey Lane, Staffs WS13 8NF

851 ANTRIM Ambient PBS 5000119008510 Kilbegs Rd, Ballymena Rd, BT41 4NN

145 Reading PBL 5000119001450 Imperial Way, Reading RG2 0PN

475 Magor Trunk PBL 5000119004758 Europark, Magor NP26 3TS

405 Thurrock PBL 5000119004055 Dolphin Way, Essex RM19 1ND

505 Livingston PBL 5000119005052 Carnegie Rd, W. Lothian EH54 8QX

535 Goole PBL 5000119005359 Rawcliffe Rd, E. Yorks DN14 6XL

545 Lichfield PBL 5000119005458 Woodhey Lane, Staffs WS13 8NF

855 Antrim PBL 5000119008558 Kilbegs Rd, Ballymena Rd, BT41 4NN


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WuthWith thanks to everyone involved in the project

Emma Barry

Charlotte Fine

Chris Goodman

Kieran Harding

Samantha John

Phill Knight

Amy Morrison

David Pickett

Scott Speirs

Mark Utley

Michelle Wall

1789_Temporary Display Units Specification_Performance Criteria_Rev C14/01/2019 31