An Introduction to Web Based Ordering & SOS (Store Order Services) LCBO PSM Trade Symposium 2016 May 27, 2016 Chris Elliott Acting Director Retail Systems and Wholesale
Agenda SOS & SOQs – front & back Store Order SOQ Accuracy Services Promotions & Promo Separation MINs
Store Order Services What SOS Does • Sets Replenishment Policies (business rules) for all LCBO Retail stores • • Creates a new SOQ (Suggested Order Quantity) every day, for every store • • Makes the SOQ’s available over the Intranet
Store Order Services What SOS Does NOT Do • Forecast the replenishment of the LCBO warehouses • Determine store transmission / delivery schedules, or frequency of delivery • Tell stores what brands to list (or delist) • Tell stores where to shelve products
SOQs – The • Frequency of delivery Front End • Transmission lead time What Store • Store holding capacity SOQs are (when necessary) Primarily • Whether a store is Based On building inventory; for long weekends or Christmas
SOQs – The Front End Store SOQs are also based on: Each brand’s Seasonality. This is defined as weekly weighting.
Seasonality
Seasonality
SOQs – The • A brand’s Weekly Back End Average Rate of Sale Store SOQs (ARS) are Also • Weekly brand Based On performance update • Each brand’s Contribution Code (CC) that range from A thru E
SOQs – The Back End Contribution Codes are: CC Rankings A = 60% B = 20% • Store Specific • A ranking of products C = 15% within each Set D = 4% • Based on 3 factors E = 1%
SOQs – The Back End Brand Flags (Strong or Dying) ARS (Average Rate of Sale) is Blended: • Compares LW Sales vs • Assigned as a result of Forecast of 5 possibilities sales exceeding or falling (3, 6, 12, 26, 52 weeks) – short of previous week’s “Best Method” (closest forecast match) is then utilized • Flags cause the Safety Stock to adjust
SOQ Accuracy
SOQ Accuracy • Store inventory must In order to ensure SOQ Accuracy always be managed • Inventory adjustments completed as required • On Hand and On Order quantities are captured nightly at store closing
PROMOTIONS & PROMO SEPARATION
Promotions • SOS applies no uplift in forecasting to Promo brands • Store Managers continue to be responsible for ordering all of their store’s promotional needs
Promotions To Identify Promo Brands • Store specific “Location Maps” are populated for each promo period – for review & adjustment by store • Flags are used on brands to separate the promotional uplift in sales
MINs
MINs • SKU MINs are used to support a “Ready for Business” look • All MINs are initially set to 4 • MINs can be reduced below 4 • This will slow the rate of replenishment (X.O. Cognacs, Texas Mickeys, etc.)
Location MINs • Location MINs are used for • Multi-location brands such as: • Discretionary displays • Beer/cooler plinths • Refrigerated brands • Promo brands
SUMMER TOP 200
Summer Top 200
Summer Top 200
HOLIDAY TOP 200
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