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LCBO PSM Trade Symposium 2016
May 27, 2016 Chris Elliott
Acting Director Retail Systems and Wholesale
An Introduction to Web Based Ordering & SOS (Store Order - - PowerPoint PPT Presentation
An Introduction to Web Based Ordering & SOS (Store Order - - PowerPoint PPT Presentation
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
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- 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
- ver the Intranet
Store Order Services
What SOS Does
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- 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
Store Order Services
What SOS Does NOT Do
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- Frequency of delivery
- Transmission lead time
- Store holding capacity
(when necessary)
- Whether a store is
building inventory; for long weekends or Christmas
SOQs – The Front End
What Store SOQs are Primarily Based On
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Each brand’s
- Seasonality. This
is defined as weekly weighting. SOQs – The Front End
Store SOQs are also based on:
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Seasonality
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Seasonality
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- A brand’s Weekly
Average Rate of Sale (ARS)
- Weekly brand
performance update
- Each brand’s
Contribution Code (CC) that range from A thru E
SOQs – The Back End
Store SOQs are Also Based On
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- Store Specific
- A ranking of products
within each Set
- Based on 3 factors
SOQs – The Back End
CC Rankings A = 60% B = 20% C = 15% D = 4% E = 1% Contribution Codes are:
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- Compares LW Sales vs
Forecast of 5 possibilities (3, 6, 12, 26, 52 weeks) – “Best Method” (closest match) is then utilized
SOQs – The Back End
- Assigned as a result of
sales exceeding or falling short of previous week’s forecast
- Flags cause the Safety
Stock to adjust ARS (Average Rate of Sale) is Blended: Brand Flags (Strong or Dying)
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SOQ Accuracy
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- Store inventory must
always be managed
- Inventory adjustments
completed as required
- On Hand and On
Order quantities are captured nightly at store closing
SOQ Accuracy
In order to ensure SOQ Accuracy
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PROMOTIONS & PROMO SEPARATION
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- 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
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- 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
Promotions
To Identify Promo Brands
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MINs
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- 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.)
MINs
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- Location MINs are used for
- Multi-location brands such as:
- Discretionary displays
- Beer/cooler plinths
- Refrigerated brands
- Promo brands
Location MINs
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SUMMER TOP 200
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Summer Top 200
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Summer Top 200
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HOLIDAY TOP 200
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Top Sparkling Wines
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Top VINTAGES Essentials
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Top TBS & Direct Beer
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Questions?
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