using supply chain gateways to navigate covid-19...2020/04/01 · consumer behavior, channel shifts...

Brad Shelton, President, Collaborative Gateway Solutions

Scott Love, Senior Vice President, Retail Client Solutions

April 1, 2020

USING SUPPLY CHAIN GATEWAYS TO NAVIGATE COVID-19

Power Better & Faster Supply Chain Decisions

© 2020 Information Resources Inc. (IRI). Confidential and Proprietary. 2

Today’s Discussion

− Welcome

− Supply Chain Landscape Overview

− Navigating the New Normal

− IRI Resources Available


Supply Chain is Experiencing Spikes:

Manufacturer Facility


Supply Chain is Experiencing Spikes:

Multiple Retailer Facilities


Key Focus Areas – North American Retailers

Virus Expands

(NOW)

PO Projections

Demand Planning

Allocation Management

Carrier Performance /

Lead Time Management

Virus

Recedes

Out-of-Stock Analysis


Inventory Accuracy

Management

Lead Time Review

New

Normal

Planogram Reviews

Retailer DOS Review

New Consumer

Demand Baseline


Friday, March 13 – the Day Grocery Consumer Spending Spiked Across the U.S.

Average Sales

Source: IRI proprietary models

March 11President Trump

prime time speech, COVID-19 a global

pandemic

March 12Dow Jones drops

over 10%; significant travel restrictions

implemented

March 13Largest shopping day of the year


Deep Dive into Inventory and Sales to Help Predict Future Purchase Orders

Sales and Inventory

0

0.01

0.02

0.03

0.04

0.05

0.06

0.07

0.027

0.029

0.031

0.033

0.035

0.037

0.039

DC Inventory Average Sales



Average Store Inventory



Retailer Inventory Drained Throughout the Supply Chain

Average Distribution Center Inventory Average Store Inventory


Monday, March 16 – Retailers Respond with High Purchase Orders

Purchase Orders

WEEKEND SATURDAY



55,216

133,367

173,411

213,455

On Hand Inventory Avg Inventory April2019

Estimated need ifsales trends are cut

in half

Inventory Needed toMeet Demand ifCurrent Sales

Trends Continue

-78,151

-118,195

-158,239

Inventory Shortfalls and DC Shorts to Store in this Illustrative

Case Had a $1.6MM Lost Revenue Impact on a Supplier

Combing Inventory and Sales Can Help Determine Future Actions to Manage Risk or Capture Opportunity

Sales Performance

Unit Sales Per Store Chg vs YA +60.1%

Items Selling per Store Chg vs YA -190

Service Level to Store

Current Service Level 81.65%

Service Level YA 97.69%

DC Shorts to Store- Cases

DC Shorts to Store 72,666

DC Shorts to Store % Chg vs YA +1,149.6%

SUPPLIER TOTAL INVENTORY # OF CASES

Gap to Meet Demand


Manufacturers That Stay Tightly Aligned

with Their Retailers and the Data Will Win

Evolving Demand and Sales Spikes

Need More Inventory to Manage Demand

Store Out of Stocks Improve

Need More Inventory to Fill Shelves

Store Service Level will Improve

Need More Inventory to Fill Distribution Center

PO Fill Rate will Improve, Carrier Constraints

Reduced

Retailers May Keep Higher Days of Supply

on Some Items

Demand will Decrease, but There May Be

a New Forecast Baseline

New Normal Inventory


Looking to Navigating the New Normal:

Demand Will Normalize and Shelfs Will be Restocked

• Planogram Review and a Deep Dive into

Distribution Voids

• Out of Stock Management

• Management of High Days of Supply

• Compliance Tracking and Exemption Requests

• Inventory Review for Accuracy

• Understanding When Demand Returns

to Baseline


Top Focus Areas by Situation

Virus Expands

(NOW)

PO Projections

Demand Planning


Carrier Performance /

Lead Time Management

Virus

Recedes

Out of Stock Analysis


Inventory Accuracy

Management

Lead Time Review

New

Normal

Planogram Reviews

Retailer DOS Review

New Consumer

Demand Baseline


IRI Has a Variety of 90-Day Program Options to

Provide the Visibility You Need, When You Need it

Gateway

# of

Reports

Delivery /

Access

Key Inventory

Metrics in Report,

by Store

Key Inventory

Metrics in Report

by DC Other Key Metrics

Granularity of

Data

Update

Frequency Time Periods

ADUSA 4 Unify

Viewer

License

Inventory Levels, OOS,

Days of Supply (DH

only), Shipments,

Service Levels

Inventory Levels,

OOS, Days of Supply,

Shipments, Service

Levels, Authorized

POG Instances

POS Unit Sales &

Chg, Share,

Authorized POG

Instances

Store Level, DC by

Own Items,

Category,

Competitive Brands

(Sales/Share), Day

Level

SC / Sales

(Daily)

Share / Totals

(Weekly)

Latest 13, 4 and 1

weeks and day

level vs prior

period and last

year

CVS 2 Excel

Reports

Emailed

Weighted In-stock,


Shipments, Service

Levels, Lost Sales

Weighted In-stock,


Shipments, Service

Levels, Lost Sales

POS Unit / Dollar

Sales & Chg, Share,

Lost Sales

Store Level, DC by

Own Item (SC and

Sales), Category

(Sales), Day Level

SC / Sales

(Daily)

Share / Totals

(Weekly)

Latest 1 week and

day

SEG 4 Unify

Viewer

License

Inventory Levels, OOS,

Days of Supply,

Shipments, Service

Levels

n/a POS Unit Sales &

Chg, Share,

Authorized POG

Instances

Store Level,

Category,

Competitive Brands

(Sales/Share), Day

Level

SC / Sales

(Daily)

Share / Totals

(Weekly)

Latest 13, 4 and 1

weeks and day

level vs prior

period and last

year

NOTE: bolded font means that element is available across retailers


Ahold Delhaize USA Brands Insights Gateway

[email protected]

CVS Collaborative Merchandising Gateway

[email protected]

Southeastern Grocers Gateway

[email protected]

For More Information

mailto:[email protected]:[email protected]:[email protected]


Top COVID-19 Questions Manufacturers Are Asking

How are my brands doing in

this environment? If I am winning new

consumers, how do I retain them

longer term?

How much of the recent growth is pull forward and how much is sustainable,

long-term demand?

How can I read out of stocks

faster and meet consumer demand quicker?

Am I missing an opportunity

if I stop advertising during this

time?

Which retailers should we

prioritize? Is there an

opportunity to reset some trade

spend?


New IRI Solutions to Help CPG Clients During the Covid-19 Pandemic

Market Tracking / Supply Chain Solutions

1. Daily POS data

2. Weekly IRI Market

Advantage

3. Daily OOS data

4. 90-day Retail Gateway

packages

Consumer & Shopper Behavior Solutions

5. Daily Frequent Shopper

Data

6. Weekly National

Consumer Panel Data

AnalyticSolutions

7. Demand Forecasting


IRI COVID-19 Thought Leadership:

Helping You Stay Informed

IRI’s Online Insights Offers Real-Time

Updates and Weekly Reports of the

Impact of the Virus on CPG and Retail

The IRI COVID-19 Info Portal

Includes COVID-19 impact analyses, dashboards

and the latest thought leadership on supply chain,

consumer behavior, channel shifts for the U.S.

AND international markets

The COVID-19 Dashboard

Accessible through the insights portal

and tracks the daily impact of COVID-19.

This includes the top categories across

countries, out-of-stocks and consumer

sentiment on social media.

https://www.iriworldwide.com/en-US/Insights/Publications/coronavirus-impact-to-CPG-and-retailhttps://advantage.iriworldwide.com/Engineering/covid19/


How Did We Do?

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© 2020 Information Resources Inc. (IRI). Confidential and Proprietary. 21© 2020 Information Resources Inc. (IRI).

Confidential and Proprietary. 21

CONTACT US FOR MORE

INFORMATION

IRI Global Headquarters

150 North Clinton Street

Chicago, IL 60661-1416

[email protected]

+1 312.726.1221

Follow IRI on Twitter: @IRIworldwide

using supply chain gateways to navigate covid-19...2020/04/01 · consumer behavior, channel shifts...

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