0.01 General information
- brief description of retailer’s business and its market position - market share (%)
- turnover (euros) 0.02 Chains and store formats
- brief description of each chain or store format (competitive position, target customers, assortment etc.)
- number of stores per chain or store format
- store size in square meters per chain or store format - number of SKUs per chain or store format
0.03 Private label strategy
- private label penetration (% of SKUs or % of sales) - price positioning of private labels
- relationship with private label manufacturer (e.g. brand manufacturer also selling private label, exclusive contract, joint venture, vertical integration)
1. Supply chain structure and performance
1.01 What are the main distribution alternatives from manufacturers to retail stores: - describe the main distribution alternatives (direct store delivery, distribution
through retail distribution centers, cross-docking terminals etc.) used
- who runs the different parts of the supply chains (distribution centers, terminals etc.)?
- for which product types are the different distribution alternatives used?
- what proportion of total goods handled (measured in volume, euros or order lines) do the different distribution alternatives represent?
1.02 Manufacturers’ responsiveness
- what are the order-to-delivery lead times when goods are ordered from manufacturers (either by retailer’s stores, distribution centers, or terminals)? - are there notable differences between the different product types (non-food,
1.03 Manufacturers’ service level performance
- how high are the manufacturers’ service levels typically (when delivering to retailer distribution centers, terminals or stores)? Estimate if not measured. - are there notable differences between the different product types (non-food,
packaged goods, fresh goods, greengrocery)?
- is there a notable difference between the normal material flow and situations where demand changes notably, e.g. campaigns or seasons?
- are the service levels sufficiently high?
- do you need to keep additional stock to protect yourself from manufacturer delivery problems?
- what do you think are the main factors causing manufacturer service level problems?
1.04 Distribution centers’ stock levels
- how much stock of packaged goods, frozen goods, fresh goods and greengrocery (measured in days of supply) is typically kept in the distribution centers?
- is the inventory turnover sufficiently high?
- what are the main factors causing low inventory turnover? 1.05 Distribution centers’ and terminals’ responsiveness
- what is the order-to-delivery lead-time (measured in hours or days) when the retail stores order goods from distribution centers or terminals?
- are there notable differences between the different product types (non-food, packaged goods, fresh goods, greengrocery)?
1.06 Distribution centers’ and terminals’ service level performance
- how high are the distribution centers’ or terminals’ service levels towards the stores typically? Estimate if not measured.
- are there notable differences between the different product types (non-food, packaged goods, fresh goods, greengrocery)?
- is there a notable difference between the normal material flow and situations where demand changes, e.g. campaigns or seasons?
- are the service levels sufficiently high?
- what are the main factors causing distribution center or terminal service level problems?
1.07 Retail stores’ stock levels
- how much stock of non-food, packaged goods, frozen goods, fresh goods and greengrocery (measured in days of supply) do the retail stores typically carry? Estimate if not measured.
- are there notable differences between chains or store formats? - are the inventory turnovers sufficiently high?
- what are the main factors causing low inventory turnover? 1.08 Delivery frequency to retail stores
- how often (measured in times per week) are non-food, packaged goods, frozen goods, fresh goods and greengrocery delivered to the retail stores? - are there notable differences between the chains or store formats?
1.09 Shelf availability
- is retail store shelf availability measured? if shelf availability is measured: how and how often is it measured? if it is not measured: why?
- how high is the shelf availability typically for packaged goods, frozen goods, fresh goods and greengrocery? Estimate if not measured.
- are there notable differences between the chains or store formats?
- is there a notable difference between the normal material flow and situations in which demand changes (e.g. campaigns, holidays, or seasons)?
- is the shelf availability high enough?
- what are the main factors causing retail store shelf availability problems? 1.10 The effect of situations in which demand changes significantly (e.g. campaigns,
seasons, holidays) on the supply chain:
- do special events (campaigns, product introductions etc.) or circumstances (seasons, holidays, etc.) change the supply chain structure, order-to-delivery lead times or stock-keeping principles in the supply chain?
2. Control and decision making
2.01 Control over assortment decisions
- who makes the assortment decisions (i.e. decides what products are included in a particular assortment)?
- on what level are the assortments formed (individual store, store groups, entire chain)?
- is the assortment formation completely centralized or can the individual stores affect their assortments, to what extent?
2.02 Control over product presentation decisions - does the retailer use planograms?
- who draws the planograms?
- can the individual stores make product presentation decisions (i.e. deviate from the planograms), to what extent?
2.03 Making assortment and product presentation decisions
- are forecasts of any kind (quantitative or qualitative) used when making assortment decisions (i.e. when deciding what products to include) or product presentation decisions (i.e. when drawing the planograms)?
- how is forecasting done (who forecasts, what forecast method is used, what input data are used, and what is the forecasted time span?)
- on what level does forecasting take place (store, store cluster, chain etc.)? - what is the forecast accuracy typically? Estimate if not measured.
2.04 Promotional activity in the market
- how many SKUs are typically on promotion per store format and month? - do you run more or less campaigns than your closest competitors?
2.05 Control over promotional decisions
- who decides on the promotions, promotion types, products and prices? - on what level are the campaigns run (store, store cluster, chain)?
- can the individual stores make campaign decisions, to what extent? 2.06 Making promotional decisions:
- are forecasts of any sort used when making promotional decisions?
- how is forecasting done (who forecasts, what is the forecast method used, what input data are used, and what is the forecasted time span)?
- on what level does forecasting take place (store, store cluster, chain etc.)? - what is the forecast accuracy typically? Estimate if not measured.
2.07 Control over price decisions:
- on what level are the price decisions (store, store cluster, chain)? - can the individual stores make price decisions, to what extent? 2.08 Other relevant decisions
- are there other decisions (e.g. setting of store replenishment parameters) made on the chain or store level that have a significant impact on the flow of goods through the supply chain?
3. Main material flow management processes in the supply chain
3.01 How is the distribution centers’ normal material flow (i.e. excluding campaigns, strong seasons etc.) managed?
- how are inventory level targets set?
- who is in charge of ordering (either the manual activity or supervising automated ordering)?
- how and using what information is the replenishment order formed? - are forecasts used when orders are formed?
- how is forecasting done (who forecasts, what is the forecast method used, what input data are used, and what is the time span forecasted)?
- what is the typical forecast accuracy? Estimate if not measured. - is the forecast accuracy sufficient?
- what are the main factors causing forecast accuracy problems?
3.02 How is the distribution centers’ material flow managed in situations where
demand changes significantly (e.g. campaigns, product introductions, holidays,
seasons)?
- are the inventory targets different?
- are the replenishment orders formed in a different way?
- is forecasting done in a different way (who forecasts, what is the forecast method used, what input data are used, and what is the time span forecasted)? - what is the typical forecast accuracy? Estimate if not measured.
- is the forecast accuracy sufficient?
- what are the main factors causing forecast accuracy problems?
3.03 How is the normal material flow (as opposed to in campaign situations, during seasons etc.) through the retail stores managed?
- for which products are automatic ordering, order suggestions or manual ordering used?
- who is in charge of ordering (either manual activity or supervising automated ordering)?
- how are the orders formed when employing automatic ordering? - how are the orders formed when employing order suggestions? - how are the orders formed when employing manual ordering? - are forecasts of any sort used in ordering?
- how is forecasting done (who forecasts, what forecasting method is used, what input data are used)?
- what is the typical forecast accuracy? Estimate if not measured. - is the forecast accuracy sufficient?
- what are the main factors causing forecast accuracy problems?
Additional questions if automatic or semiautomatic ordering (e.g. order suggestions) is used?
- what system parameters are used?
- how are the parameters set and by whom, how often are they updated?
3.04 How are the material flows through the retail stores managed in situations where
demand changes significantly (e.g. campaigns, product demonstrations,
holidays, seasons)?
- for which products are automatic ordering, order suggestions or manual ordering used?
- are there changes in how the orders are formed (when ordering manually, using order suggestions, and when employing automated ordering)?
- are there changes in how forecasting is done (who forecasts, what forecasting method is used, what input data are used)?
- what is the typical forecast accuracy? Estimate if not measured. - is the forecast accuracy sufficient?
- what are the main factors causing forecast accuracy problems? 3.05 Overstock
- what happens when a supply chain member (supplier, distributor, retail store) is left with unnecessary stock?
- is the risk of overstocking somehow shared in the supply chain? 3.06 Stock-outs
- what happens if a manufacturer cannot deliver (are there e.g. service level sanctions)?
- does the retailer give the suppliers any store shelf availability guarantees? 3.07 Current material flow management performance and development needs
- what is your opinion of the current performance of material flow management through retail distribution centers, are there development needs?
- what is your opinion of the current performance of material flow management through retail stores, are there development needs?
3.08 Current forecasting performance and development needs
- what is your opinion of the current performance of forecasting at the retail distribution centers, are there development needs?
- what is you opinion of the current performance of forecasting at the chain or store level, are there development needs?
4. Most important improvement opportunities in the area of logistics
4.01 What are the main development opportunities in the area of daily consumer goods logistics?
- in the short term (<= 3 years) - in the long term (> 3 years)
- are there differences between packaged goods, frozen goods, fresh goods and greengrocery?
- are there differences between the different store formats?
- what are main development opportunities at the different echelons of the supply chain (manufacturer’s production and warehousing, distribution, store operations)?
5. Collaboration and information exchange in the supply chain
5.01 Current information sharing practices (i.e. exchange of information beyond the typical price, product information, shipment notices etc.)
- what information do you receive from the suppliers (in connection with product introductions, campaigns, holidays and seasons, in other situations)? - how is the information used, by whom (job and function)?
- what information do you give to suppliers (in connection with product introductions, campaigns, holidays and seasons, in other situations)?
- how is the information used, by whom (job and function)? 5.02 Current state of collaborative planning
- what kind of collaborative planning do you engage in together with suppliers (in connection with product introductions, campaigns, holidays and seasons, in other situations)?
- how does the planning collaboration happen in practice (what persons are involved (jobs and functions), who does what, how is the final plan formed, how does collaborating improve the quality of the plan)?
- what are the benefits of this type of collaboration to the retailer and to the supplier (operational, financial, organizational etc. benefits)?
5.03 Current state of collaborative forecasting
- what kind of collaborative forecasting do you engage in together with suppliers (in connection with product introductions, campaigns, holidays and seasons, in other situations)?
- how does the forecasting collaboration happen in practice (what persons are involved (jobs and functions), who does what, how is the final plan formed, how does collaborating improve the quality of the forecast)?
- what are the benefits of this type of collaboration to the retailer and to the supplier (operational, financial, organizational etc. benefits)?
5.04 Current state of replenishment collaboration
- are you involved in some kind of replenishment collaboration? - how does the replenishment collaboration happen in practice? - how does collaborating support replenishment?
- what are the benefits of this type of collaboration to the retailer and to the supplier (operational, financial, organizational etc. benefits)?
5.05 Is collaboration / information sharing different with private label suppliers? 5.06 Ongoing or ended development projects
- are you currently engaged / have you been engaged projects in which new information sharing practices or collaborative planning, forecasting or replenishment practices have been developed?
- if you have: please describe the projects (what has been done, how, with whom, with what results, involving what persons etc.)
- if you have not: why?
- what is the current status of these development projects (ended, pending, trial, pilot, small scale implementation, large scale implementation)?
5.07 Experiences from development projects and current practice
- in which situations is collaboration (either exchange of information or joint planning or forecasting) most valuable?
- what collaboration practices work best (e.g. information exchange vs. joint planning or forecasting)?
- what collaboration practices do not seem to work?
- what are the most important benefits of collaboration from the retailer’s , point of view?
- what are the most important benefits of collaboration from the supplier’s , point of view?
- what are the most important challenges or obstacles of collaboration from the retailer’s point of view?
- what are the most important challenges or obstacles of collaboration from the supplier’s point of view?
- what costs and investments are involved?
5.08 IT systems supporting information exchange or collaboration
- have you facilitated the information exchange or planning and forecasting collaboration with information systems?
- what types of systems have been used? - have you needed to invest in new systems? - have the suppliers invested in new systems?
- are you intending to invest in new information systems in a near future to support information exchange or collaboration?
- are you member of some sort of private or public exchange? are you intending to join one?
5.09 Some retailers engage in collaborative planning and forecasting with their suppliers, others do not actively collaborate but do share information (e.g. point- of-sales data), and some do neither – what do you think explains these differences?
5.10 Value of information exchange and collaboration
- do you think retailers can benefit from increased information exchange or planning and forecasting collaboration with suppliers? how (operational, financial, organizational etc. benefits)?
- do you think suppliers can benefit from increased information exchanged or planning and forecasting collaboration with retailers? how?
5.11 The VICS CPFR model
- if you are familiar with the VICS CPFR model, please give us your thoughts on it
5.12 Retailer’s vision of the future:
- do you think information exchange and collaborative planning and forecasting will increase or decrease in the future? why? how fast? (in general, and in your case)
- in what situations do you think collaboration is needed?
- do you think the focus should be more on information exchange or collaboration? why?