helping your field force achieve the perfect store (rao) accelerating retail activity

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Webinar Series Helping Your Field Force Achieve the Perfect Store – Accelerating Retail Activity (RAO)

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Page 1: Helping Your Field Force Achieve the Perfect Store (RAO) Accelerating Retail Activity

Webinar Series

Helping Your Field Force Achieve the Perfect Store – Accelerating Retail Activity (RAO)

Page 2: Helping Your Field Force Achieve the Perfect Store (RAO) Accelerating Retail Activity

Joe Bellini, CEO, AFS TechnologiesJoe Bellini is a seasoned technology executive having served as a CEO or executive with multiple companies focused on providing software solutions to the Consumer Goods industry segment. After starting his career with General Electric, he went on to lead the consulting division at HP/EDS, Oracle’s CPG solution deployments, JDA’s (i2) CPG/Retail industry solutions, and IRI’s CPG analytics team. Joe has also delivered technology solutions to companies in adjacent industries including transportation/logistics, healthcare, electronics, automotive and industrial markets. Joe holds degrees in Mechanical Engineering as well as Applied Mathematics and Statistics from the University of Massachusetts Amherst and is an alumnus of Harvard Business School. He has lectured to thousands of business executives as part of the Cambridge Technologies Education series located at MIT, holds patents in Supply Chain Planning and is the co-author of The Real Time Enterprise available at Barnes & Noble and Amazon. Contact: [email protected]

THE PRESENTER

Page 3: Helping Your Field Force Achieve the Perfect Store (RAO) Accelerating Retail Activity

What are you able to do today?

• Determine the efficiency and effectiveness of retail activities• KPIs to improve productivity• Structuring shelf with the right products• Task prioritization• Empowering reps with actionable insights

Perfect Store Execution

Page 4: Helping Your Field Force Achieve the Perfect Store (RAO) Accelerating Retail Activity

Retail Activity Optimization (RAO) is quite simply, the optimization of activities carried out by the mobile workforce, with the express objective of

Optimizing in-store operations...

and increasing efficiency.

“As the market matures, the focus is shifting to RAO, which uses advanced analytics to send the field force to the locations that will yield the greatest return on their time and efforts.”

What is Retail Activity Optimization?

Page 5: Helping Your Field Force Achieve the Perfect Store (RAO) Accelerating Retail Activity

Increase sales team efficiency by focusing on highest impact activity• Decide which stores to visit, and how often, based on sales potential and current share of shelf• Empowering sales team to make prompt interventions to address issues• Increasing planning effectiveness

Increase sales team effectiveness by applying the correct in-store standards• Ensuring optimal assortment is maintained appropriate to store segment - with low OOS • Maintaining shelf position, shelf share and planogram compliance• Ensuring compliance with expensive trade investments• Setting targets which drive increase in brand presence and sales

Driven by analysis of data gathered in the field

• Large amounts of data captured in-store need to be distilled into KPIs which readily allow manual intervention, i.e. actionable insights, or automatically schedule corrective activity

How is Retail Activity Optimization Achieved?

Page 6: Helping Your Field Force Achieve the Perfect Store (RAO) Accelerating Retail Activity

Should I visit every point of sale in my territory?

In smaller outlets or outlets in a poorer area the sales potential could easily be outweighed by the cost to serve – there is a threshold below which I should not visit – which will vary by route to market? How is this threshold determined?

What data do I need to collect and analyse?• Share of Shelf and Store Potential

• Retailer EPOS data could be available for larger stores in larger markets• Potential can be manually determined by measuring overall shelf meterage/facings for a category• Share of Shelf – competitors vs. my brands – can be carried out at many different levels of the product hierarchy• Share of Shelf trends will highlight appropriate strategy – Defend, Maintain, Gain – and the call frequency

• ‘Premiumness’

• The size of a store can be misleading – affluence of surrounding population can impact the products in an assortment and the overall potential

• Surveys can help to correctly categorize a point of sale, with scoring systems very manufacturer dependent:

• Does this store stock fine wines and spirits?

• Does this store stock organic or local produce?

Planning Efficiency: Candidate Store

Page 7: Helping Your Field Force Achieve the Perfect Store (RAO) Accelerating Retail Activity

• There is a consensus amongst manufacturers that taking responsibility for the optimal presentation of their own products in retail outlets is vital in order to compete effectively with other manufacturers

• Defining the ‘Perfect Store’ from the perspective of a manufacturers own brands is challenging, and on-going due to the competitive nature of the industry – products, promotions and retail outlets are forever changing

• Perfect Store KPIs and targets therefore need to be continuously defined, monitored and adjusted based on feedback from the field and the sales achieved

What data do I need to collect and analyse?• Suggested product assortment vs. actual ranged products• Out of Stocks• Compliance with trade promotions terms• Compliance of the realogram vs. planogram• Price vs. recommended/agreed price• Share of Shelf vs. competition and segment target• Orders

Sales Effectiveness: the Perfect Store

Page 8: Helping Your Field Force Achieve the Perfect Store (RAO) Accelerating Retail Activity

Out of StockLowers visibility, resulting in lost sales

Product RangeIs the store stocking the right range of products

Trade PromotionHeavy spending with limited visibility of compliance.

Shelf PositionPlanogram compliance and positioning are critical to brand health

Empowering the RepNeeds to intuitively execute the right strategy for each store

“Winning at the shelf” − today, purchase decisions are influenced at the shelf more than ever before – Manufacturers need to act in-store to reinforce the performance of their brands

What Should I Be Doing?Control in-store actions through creation of activities including; objectives, distribution and category share checks

The Perfect Store

Page 9: Helping Your Field Force Achieve the Perfect Store (RAO) Accelerating Retail Activity

In order to win at the shelf, it is necessary to flexibly define, capture and analyze in-store standards…

To win at the shelf, products must not only be physically present in the correct store, but must also be accompanied by their promotional activities and be displayed correctly…• The Perfect Store strategy defined by your organization must be designed to enforce this

corporate message and will be measured and enforced by KPIs• In our experience, Perfect Store KPIs vary considerably by manufacturer, therefore any solution

addressing this area must be flexible enough to enable:• Different KPIs – and the capture of the different underlying data requirements• Different target values for the KPIs – which will also vary by each customer segment• Different dashboards and reports displaying the KPIs – which will vary by role

What is the Perfect Store?

Page 10: Helping Your Field Force Achieve the Perfect Store (RAO) Accelerating Retail Activity

• This is achieved by defining a number of KPI’s, each driving retail execution excellence in line with the corporate strategy. For example:

• Distribution rate of 90% for core brands• Shelf share 60% for core brands• One Incremental Location achieved each call cycle• Are all initiatives achieved?• Was merchandising quality achieved e.g. over 90% of the listed products were audited

• KPI’s are measured by capturing data in the field through tasks such as:• Distribution• Share of Shelf• Planogram Compliance• Promotion Compliance

How might you define the Perfect Store?

Page 11: Helping Your Field Force Achieve the Perfect Store (RAO) Accelerating Retail Activity

Prepare Tasks Ordering Close

Create the basis of the ‘Perfect Store’ vision, to be executed at the right point

Calls executed intuitively by reps in-store with mobile client

Retail Activity OptimizationPerfect Store Scorecard compliance and problems highlighted in analytics.

Field activities modified to support changing priorities, focusing on the activities to ensure the Perfect Store e.g. sudden drops in brand visibility.

Assortments

Tasks

PromotionsSurveysAttachments

Planograms

Targets

Route Plans

Price Lists Call

TypesUsersHierarchies

Territories

Back Office• Allocates tasks• Creates in-store

objectives• Creates

performance targets

• Updates customer segmentation

Perfect Store Planning-Execution-Analysis Cycle

Page 12: Helping Your Field Force Achieve the Perfect Store (RAO) Accelerating Retail Activity

The AFS Retail Activity Optimization model flexibly enables the collection and measurement of the KPIs needed to determine the efficiency or effectiveness of retail activity – but the activity is not optimized until this information is converted into actions.

Actionable Insights for the field sales team - in-store actionable insights

• It is key that information captured in call is intuitively summarized and presented back to the rep to enable prompt corrective action – after the audit is completed, issues are highlighted

• Intelligent use of the data collected, automating common activities e.g. out of stock products automatically added to the order form

Actionable Insights for sales management – cycle planning• Which customers should be the focus of the sales team this cycle?• What activities should be performed to ensure growth and brand presence?• Where should we run a promotional activity to gain the most return?

Automated scheduling of activity – issues beyond a certain threshold could trigger corrective activity – extra calls or activities scheduled or suggested for the next visit (a mechanism already adopted by a number of AFS customers)• Sales order declining or increasing• High rate of Out of Stock• Core assortment rates declining

Empowerment or Automation?

Page 13: Helping Your Field Force Achieve the Perfect Store (RAO) Accelerating Retail Activity

Data Discovery is about getting answers to the important questions about business performance• Which stores have distribution issues?• Based on past trends, which stores are at

risk of exceeding tolerance soon?• Which brands are under-performing, and

not meeting defined targets

Sales Intelligence

Page 14: Helping Your Field Force Achieve the Perfect Store (RAO) Accelerating Retail Activity

• A recent Gartner study of digital merchandising solutions concluded that best-in-class performance now results in 95% + accuracy, with results returned within 5 minutes.

• Typically a complete category within a large supermarket can be audited by taking just 10 pictures.

• Information for every SKU, including competitor products covering distribution, out of stock, share of shelf and exact planogram compliance is available within the same call to enable prompt and precise corrective actions

• This has huge implications for Retail Activity Optimization• The cost of auditing is significantly reduced• The accuracy and volume of information is dramatically increased enabling a much higher degree of insight and fine

tuning of the Perfect Store and Candidate Store processes• Audit data can now be captured where it has never been captured before - be it by delivery drivers, sales managers

or part time merchandisers – without detracting from core activities

• AFS has partnered with Trax to embed their digital merchandising solution within AFS Retail Execution

RAO has just been optimized!

Digital Futures

Page 15: Helping Your Field Force Achieve the Perfect Store (RAO) Accelerating Retail Activity

AVAILABILITY SHARE OF SHELF PRICINGPROMOTIONAL ACTIVATIONS

Ensure Core Brands are Always

on the Shelves

Track Share of Shelf for any Brand

Price Alignment & Track Competitive

Pricing

Monitor all Promotional Activations

Visually Track your Shelf

Strategy In-Store

COMPETITVE INSIGHTS

PLANOGRAM COMPLIANCE

SHELF STANDARDS

Understand the Market Landscape

Visually Track your Shelf Strategy

Quickly Measure Against Shelf

Guidelines

Ensuring The Execution of Your Strategic Framework

Page 16: Helping Your Field Force Achieve the Perfect Store (RAO) Accelerating Retail Activity

• Costs are reduced – call coverage is optimized, focusing on the customers who drive growth

• Sales are increased – sales teams spend more time on business building activities

Perfect Store definition presented intuitively

Balanced territories and optimized routes

Perfect Store definitions flexibly assigned by back office – definitions shared with distributors

Balanced territories and optimized routes reflecting sales potential and ‘premiumness’ of points of sale

Field force focused on right activities by targets set at many levels – territory, store, category, SKU or user

Right Perfect Store definitions implemented in the right store – compliance measured and enforced

ImprovedEBIT

Increased Gross Margin

(Actionable Insights)

Reduced Costs(Process

Improvements)

Retail Optimization

Execution Efficiency

Efficiency Impact

Effectiveness Impact

Actionable insights enable corrective activity – OOS increasing, ranging issues, declining order volumes

What are the benefits?

Page 17: Helping Your Field Force Achieve the Perfect Store (RAO) Accelerating Retail Activity

Time For Questions?

Page 18: Helping Your Field Force Achieve the Perfect Store (RAO) Accelerating Retail Activity

Joe BelliniCEO, AFS Technologies [email protected] | t: (602) 522-8282

Contact Details

Page 19: Helping Your Field Force Achieve the Perfect Store (RAO) Accelerating Retail Activity

AFS Technologies (AFS) is the leading provider of software solutions purpose-built for consumer goods companies. We are committed to generating improved outcomes at the point of purchase coupled with generating efficiencies in trade spend, retail execution and supply chain. With experience developed over its 30 year history, AFS serves more than 1,300 customers of all sizes in over 50 countries around the world. The AFS products are innovative, configurable solutions that are proven to optimize your potential with automated processes, improved productivity and rapid time to value.

To learn more about AFS, visit www.afsi.com.

About AFS Technologies

Page 20: Helping Your Field Force Achieve the Perfect Store (RAO) Accelerating Retail Activity

Thank You!