Official SAP Corporate PowerPoint Template

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CLOSING THE LOOP FOR EVERYDAY CATEGORY
MANAGEMENT
Supported by Roland Berger Strategy Consultants
Presentation given jointly by COOP,
Switzerland Procter Gamble SAP AG
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• Facts Figures 2000
• Sales 8443 Mio ( 13007 Mio Sfr.)
• Cash Flow 704 Mio (1085 Mio Sfr.)
• Number of Employees 36300
• Number of Stores 1610
• Square Meters POS 1113000

based in current rate of Mai 2, 2001
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The Swiss Market
Market Share 2000
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• Mission Statement
• Closest to customer on Swiss market
• Best value for price
• No 1 retailer for organic products and fair
  trade

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Key idea We will demonstrate how ongoing, value
adding collaboration will look like at Coop and
PG
From negotiation to real time collaboration
Collaboration
From project to an ongoing collaboration process
Ongoing process
Growing the cake together
Building on the CM success ...to do even better
by designing a high quality environment
Best Practice Workflow
Best Practice Process basis for automated
Workflow to achieve higher quality and more
efficiency
Improve process quality by facilitating
integration into transactional systems
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1997
1998
1999
2001
2000
Setting the System basis For everyday Category
Management
Multiplication
CM business plans for 7 Pilot- Categories
Training Seminars
Adjusting organizational structure to CM
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Progress of CM Business Planning at
Percentage of Turnover
Situation March 2001Business Plans for 41 (out
of 156) Categories are in effect.That is 26 of
all Categories and correspondsto 42 of total
turnover.
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Positive Experiences with CM
Growth of Turnover
CM resulted in consequent customer-orientation
of all main processes of Coop The new
partnership between retailer supplier from
confrontation to cooperation
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Collaboration in Category Management

• 1999/2000 Development of Categories with joint
  Business Plans Coop / PG

Market share
Market share
No 1 competitor
With great success... CM showed that we can grow
the cake together
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Collaboration in Category Management

• In 2000 PG made more than 65 Mio. ( 100
  Mio. SFR) with Coop in the categories
• In 2000 PG growth with Coop in all categories
  approx. 7 (far over average in the market)
• PG expects an increase in sales of approximately
  60 by the 2005 with Coop
• PG is supplier within 7 categories at Coop

based in current rate of Mai 2, 2001
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How did we do Category Management in the past?
Traditional manual category management
Main challenge reduce the amount of time /
manpower that is spent on CM Business Planning
Inconsistent structuring of data
Business Plan
Inconsistent SKU coding
Manual filling of tempates
POS Data Availibility
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The architecture for our Real time collaboration
Work item Analyze
Receive Analyze
Decide
Decide
Category Manager Consumer Products
Category Manager Retail
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The pillars of our collaboration
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The pillars of our collaboration
Realignment of Category Master Data

• Assortment is structured according to Consumer
  Decision Tree, for logistics, finance, and
  controlling
• Enabling an integrated market view on all SKUs

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The pillars of our collaboration
Category Logistics

• Using the layout workbench in an integrated way
  with Apollo shelf optimization software for
  space management, store shelf layouts and
  listings
• Pricing and Promotion execution
• Integration to supply chain management

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The pillars of our collaboration
Data Warehouse Category Planning

• Analyzing scanner data at POS for more than 1000
  stores
• CM reporting along the Consumer Decision Tree
  structure
• Market data provided along Coops Consumer
  Decision Tree Structures (ACNielsen, Switzerland
  IHA, Switzerland)
• Flexible reporting planning along Consumer
  Decision Tree
• Workflow enabled business process
• Central knowledge management
• Fully Web-enabled solution

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Our experiences so far and our future
expectations?
Everyday Category Management

• Basis is set
• Essential elements are up and running
• Project timeline is clear
• Key learnings so far
• Realignments of the retail organization according
  to a CM structure
• Adoption of CM philosophy for the organization
• Solid Data availability and system basis is key
  to success

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Our experiences so far and our future
expectations?
Everyday Category Management

• Expectations
• Grow even faster in a high quality environment
• From project to ongoing process through
  integration
• Enable linking of process steps using Webflow
• Increase process speed
• Roll out of the solution to all categories
• Increase fun (no frustration) for people who work
  with the solution