POS data for supply chain benefit

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POS data for supply chain benefit
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Agenda

• POS data . What is it?
• Use of retailer data in UK
• Case benefits
• The problems
• Opportunities for integration
• Benefits of POS data
• Other developments
• Conclusion

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So why do we do it..?
thats what its all about
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POS .. what is it ?

• The clearest indication of real consumer demand
• Regular and timely consumer demand captured
  electronically usually at point of purchase
• The true demand driver

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UK Background

• Some retailers started publishing 4 years ago
• Typically as an extranet /internet application
• Before it was occasionally available if you dare
  ask
• Different metrics available but commonly
  available are
• Sales at corporate level
• Stock (store and depot)
• Data generally published daily on a daily basis
  at item level
• Unilever worked collaboratively with Sainsburys
  through Info Flow Group to maximise supply
  chain benefit of POS data.

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Manufacturers and retailers love to see it

• POS is difficult to dispute

some examples of activity in Sainsburys where
POS data gives a supply chain benefit
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Product launch case study
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Product launch case study

• KEY BENEFITS
• Understanding of product performance
• Ability to do something about it
• Reduction in stocks
• Forms Basis of Collaborative Dialogue

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Lumpy demand case study
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Lumpy demand case study

• KEY BENEFITS
• Accurate Base Line Forecast
• 3-4 improvement in forecast accuracy
• Opportunity to collaboratively discuss logistics
  arrangements

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Is that it then ?

• Clear benefits
• A will to share
• Readily available data

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A problem remained!
PAIN
Well I wanted all this data but now Ive got
it what do I do with it ???
Many sources of data Many formats of data Global
standards not being used
USE
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And the solution is..

• Integration

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Integration into ERP systems key

• Ensures use of data on a continuous basis
• Needed to overcome the data/format issues
• Automated data collection,mapping and conversion
  necessary.

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EPOS data extraction mapping
Retailer Extranet
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So what does this look like?
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Demand planners view with POS data
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Usage not limited to supply chain

• Launch and promotion
• Tracking media and promotional effectiveness
• In time to do something about it
• Event management
• Truly links consumer into value chain
• The one true demand driver

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Sales data - how it helps !a manufacturers point
of view

• Improves forecast quality /accuracy and
  understanding of consumer reaction which can be
  shared with retailer.
• Rapid visibility gives opportunity to discuss and
  adjust plans.
• Ensures the manufacturer and supply chain can
  react very quickly to changes in consumer demand.
• Trends easier to spot.
• Enables a collaborative dialogue based on a
  common understanding!

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How do Sainsburys share POS data with suppliers?

• Sainsburys Information Direct
• Performance Data Site
• Alerting Resolution Management

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Performance Data Site

• First B2B application developed
• SKU level data daily
• Various measures available
• Extractable data
• 12 weeks history
• Support Administration

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PRODUCT
PRODUCT
PRODUCT
PRODUCT
PRODUCT
PRODUCT
PRODUCT
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Alerting Resolution Management

• Pro-Active application
• Exception management of POS data.
• Electronic tap on the shoulder
• Resolves problems quickly and efficiently together

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So to summarisesharing EPOS data benefits

• Manufacturer
• Retailer
• Consumer
• WIN-WIN-WIN situation!

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Further developments and opportunities

• Developing alerting capabilities
• exception based management
• Management of short life products through
  combined sales and stock alerts
• Adding further retailer data
• additional data now coming on stream
• UK foodservice industry
• OFSCI project working with leading outlets on
  sharing data between outlet, distributor and
  manufacturer

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Conclusion

• Benefits throughout value chain
• POS most significant metric but other measures
  will follow
• We have the tools that can flexibly deliver
  customised data direct to users with minimal
  involvement.
• Opportunity to make consumer the demand driver in
  all our businesss

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Thank you !

• john.c.jackson_at_unilever.com
• paul.winsor_at_sainsburys.co.uk

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