introducing the ecr road map dr paul chapman cranfield school of management
TRANSCRIPT
![Page 1: Introducing the ECR Road Map Dr Paul Chapman Cranfield School of Management](https://reader035.vdocument.in/reader035/viewer/2022070415/56649c915503460f9494affa/html5/thumbnails/1.jpg)
Introducing the ECR Road MapIntroducing the ECR Road Map
Dr Paul Chapman
Cranfield School of Management
![Page 2: Introducing the ECR Road Map Dr Paul Chapman Cranfield School of Management](https://reader035.vdocument.in/reader035/viewer/2022070415/56649c915503460f9494affa/html5/thumbnails/2.jpg)
The ECR Road Map
Call to Action
2. Map &Measure
4. Develop Solutions
5. Implement
6. Evaluate
1. Plan
3. Analyse
Source: Beck, A., Bilby, C.A.L., Chapman, P.A. and Harrison, A., (2001) Shrinkage: Introducing a Collaborative Approach to Reducing Stock Loss in the Supply Chain,
ECR Europe: Brussels.
![Page 3: Introducing the ECR Road Map Dr Paul Chapman Cranfield School of Management](https://reader035.vdocument.in/reader035/viewer/2022070415/56649c915503460f9494affa/html5/thumbnails/3.jpg)
The ECR Road Map
Call to Action
2. Map &Measure
4. Develop Solutions
5. Implement
6. Evaluate
1. Plan
3. Analyse
![Page 4: Introducing the ECR Road Map Dr Paul Chapman Cranfield School of Management](https://reader035.vdocument.in/reader035/viewer/2022070415/56649c915503460f9494affa/html5/thumbnails/4.jpg)
Call to Action – 1 pagerForegone Income Additional Costs
• Sell more…
• …more often…
• … at higher margin
• Variable costs:
• Fixed costs:
• Others:
Sales opportunity = € Cost opportunity = €
Scope:
![Page 5: Introducing the ECR Road Map Dr Paul Chapman Cranfield School of Management](https://reader035.vdocument.in/reader035/viewer/2022070415/56649c915503460f9494affa/html5/thumbnails/5.jpg)
Call to Action - Example
Foregone Income Additional Costs• Sell more…
– Wider product range– More store locations
• …more often…– OSA– Frequent ordering– Increase footfall
• … at higher margin– Trade up shoppers– New product lines
• Reduced Shrink• Reduced expenses
– Fixtures
• Less Inventory
Sales opportunity = €15m Cost Saving = € 2m
Scope = Hot product lines / all stores
![Page 6: Introducing the ECR Road Map Dr Paul Chapman Cranfield School of Management](https://reader035.vdocument.in/reader035/viewer/2022070415/56649c915503460f9494affa/html5/thumbnails/6.jpg)
The ECR Road Map
Call to Action
2. Map &Measure
4. Develop Solutions
5. Implement
6. Evaluate
1. Plan
3. Analyse
Source: Beck, A., Bilby, C.A.L., Chapman, P.A. and Harrison, A., (2001) Shrinkage: Introducing a Collaborative Approach to Reducing Stock Loss in the Supply Chain,
ECR Europe: Brussels.
![Page 7: Introducing the ECR Road Map Dr Paul Chapman Cranfield School of Management](https://reader035.vdocument.in/reader035/viewer/2022070415/56649c915503460f9494affa/html5/thumbnails/7.jpg)
90%
100%
Number of SKUs
Cu
mu
lati
ve L
osse
s
8% of SKUs account for 30% of loss
20% of SKUs account for 50% of loss
Concentrate on ‘Hot Products’
0%
10%
20%
30%
40%
50%
60%
70%
80%
![Page 8: Introducing the ECR Road Map Dr Paul Chapman Cranfield School of Management](https://reader035.vdocument.in/reader035/viewer/2022070415/56649c915503460f9494affa/html5/thumbnails/8.jpg)
Project Charter – 1 Pager• Which Products?
• Process Scope (from where to where?)
• Performance measures and improvement target– Shrinkage - ?? %
– Sales + ??%
• Time Table– Start date
– First results
– Project completion
![Page 9: Introducing the ECR Road Map Dr Paul Chapman Cranfield School of Management](https://reader035.vdocument.in/reader035/viewer/2022070415/56649c915503460f9494affa/html5/thumbnails/9.jpg)
Project Charter – 1 Pager
• Which Products?– Hot Products
• Process Scope (from where to where?)– Store operations in hot stores
• Performance measures and improvement target– Shrinkage - 50 %
– Sales + 20%
• Time Table– Start date now!
– First results next week
– Project completion 3 months
![Page 10: Introducing the ECR Road Map Dr Paul Chapman Cranfield School of Management](https://reader035.vdocument.in/reader035/viewer/2022070415/56649c915503460f9494affa/html5/thumbnails/10.jpg)
Board of Directors(Shareholders)
Colleagues
Logistics Service
Providers
Consumers
Customers
Suppliers
Regulatory/ Governmen
t Bodies
Project
Identify Stakeholders
![Page 11: Introducing the ECR Road Map Dr Paul Chapman Cranfield School of Management](https://reader035.vdocument.in/reader035/viewer/2022070415/56649c915503460f9494affa/html5/thumbnails/11.jpg)
Stakeholder Analysis – 1 pagerPeople or Groups Affected
Names
Level of Com
mitm
ent
Enthusiastic Support
Help It Work
Compliant
Hesitant
Indifferent
Uncooperative
Opposed
Hostile
![Page 12: Introducing the ECR Road Map Dr Paul Chapman Cranfield School of Management](https://reader035.vdocument.in/reader035/viewer/2022070415/56649c915503460f9494affa/html5/thumbnails/12.jpg)
The ECR Road Map
Call to Action
2. Map &Measure
4. Develop Solutions
5. Implement
6. Evaluate
1. Plan
3. Analyse
Source: Beck, A., Bilby, C.A.L., Chapman, P.A. and Harrison, A., (2001) Shrinkage: Introducing a Collaborative Approach to Reducing Stock Loss in the Supply Chain,
ECR Europe: Brussels.
![Page 13: Introducing the ECR Road Map Dr Paul Chapman Cranfield School of Management](https://reader035.vdocument.in/reader035/viewer/2022070415/56649c915503460f9494affa/html5/thumbnails/13.jpg)
Distribution Node
Store
Tesco DC, Hungary
Gillette Pack Centre, UK
Gillette DC,Hungary
Tesco store, Hungary
Supply Chain Overview
![Page 14: Introducing the ECR Road Map Dr Paul Chapman Cranfield School of Management](https://reader035.vdocument.in/reader035/viewer/2022070415/56649c915503460f9494affa/html5/thumbnails/14.jpg)
Break seal in yard
Back lorry on to dock
Unload pallets on to dock
Check number of pallets
Attach pallet label
Move pallet to warehouse location
Check pallet references
Receive products
Put away in warehouse
Pick order then marshal pallets
Load pallets into lorry
Dispatch to CarrefourDist. Ctr
Supply chain process hierarchy
Supplier DC
Retailer DC
Retailer Store
Supply Chain Site Process Steps
![Page 15: Introducing the ECR Road Map Dr Paul Chapman Cranfield School of Management](https://reader035.vdocument.in/reader035/viewer/2022070415/56649c915503460f9494affa/html5/thumbnails/15.jpg)
Map Process Detail
Lorry Arrives
Check Paperwork & Seal
Unload Delivery
Sign for delivery
Close & Seal Lorry
![Page 16: Introducing the ECR Road Map Dr Paul Chapman Cranfield School of Management](https://reader035.vdocument.in/reader035/viewer/2022070415/56649c915503460f9494affa/html5/thumbnails/16.jpg)
RetailerDC
SupplierDC
2
1
2
1 3
2
1 3 Retailer Store
Measure Basic Inputs and Outputs of Every Site
![Page 17: Introducing the ECR Road Map Dr Paul Chapman Cranfield School of Management](https://reader035.vdocument.in/reader035/viewer/2022070415/56649c915503460f9494affa/html5/thumbnails/17.jpg)
The ECR Road Map
Call to Action
2. Map &Measure
4. Develop Solutions
5. Implement
6. Evaluate
1. Plan
3. Analyse
Source: Beck, A., Bilby, C.A.L., Chapman, P.A. and Harrison, A., (2001) Shrinkage: Introducing a Collaborative Approach to Reducing Stock Loss in the Supply Chain,
ECR Europe: Brussels.
![Page 18: Introducing the ECR Road Map Dr Paul Chapman Cranfield School of Management](https://reader035.vdocument.in/reader035/viewer/2022070415/56649c915503460f9494affa/html5/thumbnails/18.jpg)
FMEA: Risk Assessment
• Step 1. Identify the failure modes in each step of the process– In your group brainstorm for 1 minute per step
– Capture every idea on a separate PostIt Note
• Step 2. Score each failure mode– Use the S / O / D scoring scale
S = severity
O = likelihood of occurrence
D = likelihood of detection
• Step 3. Brainstorm the causes of the highest scoring risk– Use the fishbone diagram
![Page 19: Introducing the ECR Road Map Dr Paul Chapman Cranfield School of Management](https://reader035.vdocument.in/reader035/viewer/2022070415/56649c915503460f9494affa/html5/thumbnails/19.jpg)
Risk Assessment Table – 1 pager
Process StepPotential Failure
Mode(s)Potential Effect(s)
of Failure S O D RPN
![Page 20: Introducing the ECR Road Map Dr Paul Chapman Cranfield School of Management](https://reader035.vdocument.in/reader035/viewer/2022070415/56649c915503460f9494affa/html5/thumbnails/20.jpg)
Risk Analysis Scoring
S
1 Single item
2 Case / inner pack
3 Crate / shipper carton
4 Pallet / dolly
5Lorry load
O
1 Yearly or less
2 Monthly
3 Weekly
4 Daily
5Hourly
D
1 Detectable prior to event
2 Detect as it happens
3 Detect at end of day
4 Detect at end of period
5Not detectable
![Page 21: Introducing the ECR Road Map Dr Paul Chapman Cranfield School of Management](https://reader035.vdocument.in/reader035/viewer/2022070415/56649c915503460f9494affa/html5/thumbnails/21.jpg)
FMEA ExampleProcess Step
Potential Failure Mode(s)
Potential Effect(s) of Failure S O D RPN
Goods moved to secure store-
room
Key is lostStore goods in hall
2 3 1 6
Lock Broken
Free access 2 1 1 2
Door not locked
Free access 2 5 4 40
No room in store- room
Store goods in hall
2 4 3 24Measures EffectMeasures EffectSeveritySeverity
Measures Failure & EffectMeasures Failure & EffectOccurrenceOccurrenceMeasures FailureMeasures FailureDetectionDetection
![Page 22: Introducing the ECR Road Map Dr Paul Chapman Cranfield School of Management](https://reader035.vdocument.in/reader035/viewer/2022070415/56649c915503460f9494affa/html5/thumbnails/22.jpg)
Fishbone Diagram
• Visual way to represent the relationship between a failure mode and possible causes
• Every failure mode will have several causes
![Page 23: Introducing the ECR Road Map Dr Paul Chapman Cranfield School of Management](https://reader035.vdocument.in/reader035/viewer/2022070415/56649c915503460f9494affa/html5/thumbnails/23.jpg)
Failure mode
People Materials
Machines Methods
Fishbone Diagram – 1 pager
![Page 24: Introducing the ECR Road Map Dr Paul Chapman Cranfield School of Management](https://reader035.vdocument.in/reader035/viewer/2022070415/56649c915503460f9494affa/html5/thumbnails/24.jpg)
Door not locked
People Materials
Lock broken
Don’t care, not important
Machines Methods
Unclear instructions
Lost key
Forgot
Key holder on holidayLate delivery to store
Other jobs took priority
Fishbone Diagram Example
![Page 25: Introducing the ECR Road Map Dr Paul Chapman Cranfield School of Management](https://reader035.vdocument.in/reader035/viewer/2022070415/56649c915503460f9494affa/html5/thumbnails/25.jpg)
Analysis Summary
Process StepPotential Failure
Mode(s)
Potential Effect(s) of
FailureS O D RPN
Goods moved to secure store-
room
Door not locked Free access 2 5 4 40
No room in store- room
Store goods in hall 2 4 3 24
Door not locked
1. FMEA
2. Fishbone
![Page 26: Introducing the ECR Road Map Dr Paul Chapman Cranfield School of Management](https://reader035.vdocument.in/reader035/viewer/2022070415/56649c915503460f9494affa/html5/thumbnails/26.jpg)
The ECR Road Map
Call to Action
2. Map &Measure
4. Develop Solutions
5. Implement
6. Evaluate
1. Plan
3. Analyse
Source: Beck, A., Bilby, C.A.L., Chapman, P.A. and Harrison, A., (2001) Shrinkage: Introducing a Collaborative Approach to Reducing Stock Loss in the Supply Chain,
ECR Europe: Brussels.
![Page 27: Introducing the ECR Road Map Dr Paul Chapman Cranfield School of Management](https://reader035.vdocument.in/reader035/viewer/2022070415/56649c915503460f9494affa/html5/thumbnails/27.jpg)
Action Planning
Improvem
ent / Potential O
pportunity ($)
High
Low
Slow/Hard Fast/Easy
Ease of ImplementationChange Project
QuickWin
MajorInitiative
![Page 28: Introducing the ECR Road Map Dr Paul Chapman Cranfield School of Management](https://reader035.vdocument.in/reader035/viewer/2022070415/56649c915503460f9494affa/html5/thumbnails/28.jpg)
The ECR Road Map
Call to Action
2. Map &Measure
4. Develop Solutions
5. Implement
6. Evaluate
1. Plan
3. Analyse
Source: Beck, A., Bilby, C.A.L., Chapman, P.A. and Harrison, A., (2001) Shrinkage: Introducing a Collaborative Approach to Reducing Stock Loss in the Supply Chain,
ECR Europe: Brussels.
![Page 29: Introducing the ECR Road Map Dr Paul Chapman Cranfield School of Management](https://reader035.vdocument.in/reader035/viewer/2022070415/56649c915503460f9494affa/html5/thumbnails/29.jpg)
Been There, Done That?
Attributes of Poor Projects
Attributes of Good
Projects
1. List the attributes of projects you have worked on
2. Highlight the key differences between poor projects & good ones
![Page 30: Introducing the ECR Road Map Dr Paul Chapman Cranfield School of Management](https://reader035.vdocument.in/reader035/viewer/2022070415/56649c915503460f9494affa/html5/thumbnails/30.jpg)
ECR Road Map Principles
• Collaborate and engage all stakeholders• Focus effort on the processes: Products /
Information / Money• Identify greatest oppportunities then target root
causes• Remove the opportunity for loss or error• Evaluate & learn
![Page 31: Introducing the ECR Road Map Dr Paul Chapman Cranfield School of Management](https://reader035.vdocument.in/reader035/viewer/2022070415/56649c915503460f9494affa/html5/thumbnails/31.jpg)
ECR Road Map Benefits
• Ensures the right resources and people engaged• Better and more sustainable results• Less daunting• More cost efficient• Higher probability of success• Quicker to implement• Lessons can be reapplied to other problems
![Page 32: Introducing the ECR Road Map Dr Paul Chapman Cranfield School of Management](https://reader035.vdocument.in/reader035/viewer/2022070415/56649c915503460f9494affa/html5/thumbnails/32.jpg)
The End
(or the beginning ….)