STOCK MANAGEMENT - PowerPoint PPT Presentation

Loading...

PPT – STOCK MANAGEMENT PowerPoint presentation | free to download - id: 1fb350-NjA2O



Loading


The Adobe Flash plugin is needed to view this content

Get the plugin now

View by Category
About This Presentation
Title:

STOCK MANAGEMENT

Description:

13. Department Percents. DELLMART & COMPANY. 14. Category Role ... Apollo. Spaceman. Process. Assign minimum. Add for full case stocking ... – PowerPoint PPT presentation

Number of Views:82
Avg rating:3.0/5.0
Slides: 65
Provided by: wfran7
Learn more at: http://www.dellmart.com
Category:

less

Write a Comment
User Comments (0)
Transcript and Presenter's Notes

Title: STOCK MANAGEMENT


1
STOCK MANAGEMENT
  • W. Frank Dell II, CMC
  • September, 2003

2
AGENDA
  • INTRODUCTION
  • DEPARTMENT / CATEGORY / ITEM
  • REPLENISHMENT
  • PROMOTING

3
Objectives
  • Introduce stock organization and management
  • Present the science of buying
  • Identify promotion management

4
Retail Strategy
5
Product Quality
6
Target Market
  • Socio-demographics
  • Age
  • Sex
  • Education
  • Income
  • Household
  • Single
  • Married
  • Multi-generations

7
Supermarket Evolution
8
AGENDA
  • INTRODUCTION
  • DEPARTMENT / CATEGORY / ITEM
  • REPLENISHMENT
  • PROMOTING

9
Department Drivers
10
Typical Departments
  • PERISHABLE
  • Fresh
  • Meat
  • Produce
  • Fish
  • Bakery
  • Prepared Food
  • Package
  • Diary
  • Frozen
  • NON-PERISHABLE
  • Edible
  • Non-Edible
  • Health Beauty Care
  • General Merchandise

11
Department Size
12
Number of Departments
  • MINIMUM
  • Perishable
  • Non-Perishable
  • OR
  • Random Weight
  • Packaged
  • MAXIMUM
  • Meat
  • Produce
  • Fish
  • Bakery
  • Prepared Food
  • Dairy
  • Frozen
  • Dry Grocery (ambient)
  • HBC
  • GM

13
Department Percents
14
Category Role
  • Destination - To be the primary category provider
    and help define the retailer as the store of
    choice by delivering consistent, superior target
    consumer value.
  • Routine - To be one of the preferred category
    providers and help develop the retailer as the
    store of choice by delivering consistent,
    competitive target consumer value.

15
Category Role (Cont.)
  • Occasional/Seasonal - To be a major category
    provider, help reinforce the retailer as the
    store of choice by delivering frequent,
    competitive target consumer value.
  • Convenience - To be a category provider and help
    reinforce the retailer as the store of choice by
    delivering good consumer target value.

16
Category Strategy
  • Strategies
  • Traffic Building
  • Transaction Building
  • Profit Contribution
  • Cash Generating
  • Excitement Creating
  • Image Creating
  • Turf Defending
  • Characteristics
  • - High share, frequently purchased, high of
    sales
  • - Higher Ring-up, impulse purchasing
  • - Higher Gross Margin, turns
  • - Higher turns, frequently purchased
  • - Impulse, lifestyle oriented
  • - Frequently purchased, highly promoted, impulse,
    unique
  • - Used to draw customer base

17
Category Drivers
18
Category Sub-Category
  • Grouping of like products and/or sub-categories

19
Perishable Percents
20
Non-Edible Percents
21
Number of Categories
  • Categories
  • Minimum 1
  • Maximum 85
  • Example
  • Juices
  • Sub-Categories
  • Minimum 0
  • Maximum 9
  • Example
  • Fruit Nectars
  • Powdered
  • Tomato

22
Segment Sub-Segment
23
Item Drivers
24
Item Planning
  • Support category role and strategy
  • Provide an eye appealing presentation
  • Minimum of 2 facings
  • Recommend full case stocking
  • Minimizes labor
  • Reduces damage

25
Retail Price Space Interrelated
26
Shelf Holding Capacity
  • Average non-promotion movement
  • Replenishment cycle
  • Order to shelf time

27
Space Allocation
  • Software
  • Apollo
  • Spaceman
  • Process
  • Assign minimum
  • Add for full case stocking
  • Adjust for replenishment cycle
  • Add for profit
  • Adjust for presentation

28
Assortment
  • Components
  • Brands
  • Flavor, style and color
  • Size
  • Research
  • Excess difficulty to find item and shop
  • Shortage limits sales and customer satisfaction

29
Measurement
  • Per linear meter
  • Per floor square meter
  • Per display square meter

30
Per Display Square Foot
31
Units Per DSF
32
New Items
  • Match target market
  • Should replace existing item
  • Complete or fill in offering
  • Increase category sales and profits
  • Item cannibalization not productive

33
Managing Multiple Formats
  • Formats
  • Hypermarket
  • Supermarket
  • Limited assortment
  • Hard discount
  • Warehouse
  • Club
  • Convenience
  • Organic
  • Issues
  • How to manage?
  • Who controls?

34
Multiple Format Plan A
  • All Format Buyer
  • Advantages
  • Buying power
  • Lowest cost
  • Disadvantage
  • Lose focus
  • Conflicting decisions

35
Multiple Format Plan B
  • Format Merchant
  • Advantages
  • Buying power
  • Dedicated focus
  • Disadvantages
  • Conflicting decisions

36
Multiple Format Plan C
  • Format Buyer
  • Advantage
  • Greatest focus
  • Disadvantage
  • Fragmented buying
  • Added cost
  • Increase items
  • Increase transactions

37
AGENDA
  • INTRODUCTION
  • DEPARTMENT / CATEGORY / ITEM
  • REPLENISHMENT
  • PROMOTING

38
Holding Cost
( Cube Rate ) (Cost Rate)
  • Cube is the dominate supply chain cost driver
  • Display space is a scarce resource
  • Wide range of products
  • Health Beauty Care
  • Paper products

39
Time Vs Quantity
  • Traditional
  • Weekly data
  • Fixed review
  • Vary quantity
  • Recommended
  • Daily data
  • Daily review
  • Fixed quantity

40
Fixed Time
41
Variable Time
42
Supplier Economics
2 Order Cost
--------------------------------------------------
------------------------- (Wk Int. Rate Wk
Dollars) (Wk Cube Rate Wk Cube)
  • Economic Order Interval - Weeks
  • Balance
  • Holding cost Vs order cost

43
Cycle Stock
2 Pallet Cost
---------------------------------------------
------------------------------------------
((Wk Int. Rate Wk Dollar) (Wk Cube Rate Wk
Cube))
Wk Cases
  • Quantity Weeks Average Movement
  • Round to warehouse pallet quantity
  • Balance
  • Holding cost Vs handling cost

44
In-Stock Probability
45
Safety Stock
CPW (RI VLT) (( 1MMAD / CPW) (1 LMAD /
LT) ) SF - (( RI VLT) CPW)
  • Cases Per Week
  • Review Interval
  • Vendor Lead Time
  • Movement Mean Average Deviation
  • Lead time Mean Average Deviation
  • Lead Time
  • Service Factor

46
Item Order Point
(( Rev Int VLT) CPW) Safety Stock
  • Trigger point for ordering an item

47
Replenishment Model
48
Forward Buy
Savings ( Extra Handling ) Holding
Cost
  • Quantity Weeks Average Movement
  • Excess inventory
  • Cut off
  • Management maximum
  • Next vendor promotion
  • Product dating
  • Round to pallets

49
AGENDA
  • INTRODUCTION
  • DEPARTMENT / CATEGORY / ITEM
  • REPLENISHMENT
  • PROMOTING

50
Why Promote ?
  • Create merchandising excitement
  • Attract customers
  • Present savings
  • Show value
  • Reward loyal customers
  • Increase sales

51
Promotional Components
52
Promotions are Difficult
53
Breakeven on 11 Deal
54
Promotional Effect
55
Promotion Forecasting
  • Controllable
  • Category
  • Season
  • City Vs Suburban
  • Price
  • Support
  • Advertising
  • Display
  • Frequency
  • Un-Controllable
  • Weather
  • Competition

56
Promotional Index
57
Promotion Dollar Sales
58
Cannibalization
  • Rare across categories
  • Occasional across sub-categories
  • Common in sub-category
  • Item uniqueness
  • Current Vs future consumption

59
Promotion New Rules
60
Share Volatility
61
Promotion Planning
  • DO NOT
  • Promote slow selling items or categories
  • Over promote
  • DO
  • Track competition promotions
  • Feature your strength
  • Create consumer excitement

62
Summary
  • Strategy determines items
  • Customer determine categories
  • Display space is a scarce resource
  • Vary time not quantity
  • Develop promotional indexes

63
Thank You
64
  • W. Frank Dell II, CMC
  • President
  • DELLMART Company
  • 125 Hardesty Road
  • Stamford, CT 06903 USA
  • Tel 203-968-8609
  • Fax 203-968-8613
  • e-mail Wfdell2_at_msn.com
About PowerShow.com