Grocery Operations Introduction to Grocery Wholesale Operations May - - PowerPoint PPT Presentation

Introduction to Grocery Wholesale Operations

May 27th, 2016 Chris Dini – Director of Grocery Operations

Grocery Operations

Agenda

Grocery Operations Team Evolution & Mandate of Grocery Wholesale Roles & Responsibilities Current State & Continuous Improvement What’s Next & The Road Ahead Resources Available Questions

Chris Dini – Director Leanne Rhee – Operations Holly Garner – Operations Jim Sheridan – Operations Matt Lopez – Inventory & Supply Chain Jamie Fazekas – Finance IT Cross Functional team

Grocery Operations Team

April 2015

• Premier’s Advisory Council on

Government Assets (PAC)

– Striking the right balance: Modernizing Beer Retailing/Distribution in Ontario – 150 grocer licences before May 2017 to sell beer to the public – Maximum of 450 total

June 2015

• Ontario Budget

– Province announced it would proceed with this recommendation

September 2015

• LCBO RFB 2015-010 Wholesale Supply

Agreements for Beer

– Up to 60 grocery stores before end of year 2015

Evolution of Grocery Operations

November 2015

• LCBO RFB 2015-010 Closed

– 13 successful respondents with 60 locations

December 2015

• Grocery Management System (GMS)

Launched

– On December 15th, authorized beer grocers placed orders

February 2016

• Premier’s Advisory Council on Government

Assets (PAC)

– Striking the right balance: Modernizing Wine & Spirits Retailing/Distribution in Ontario – Existing authorized grocery stores (60) licenced to sell beer can sell cider – Initial allocation of 70 wine, beer and cider licenses; competitive process to begin mid- 2016 – Winery Retail Stores permitted to operate inside grocery stores before May 1, 2017 and grocers will be granted beer and cider licenses

Evolution of Grocery Operations

• Enabling you to pursue sales
• pportunities
• Here to serve as a conduit for you to

grow your business in a new channel

• Increased Mandate

– An operational enterprise of the Province. – Importer of record for all beverage alcohol products in Ontario – Wholesaler of record for all beverage alcohol sold by grocers

Our Mandate

• What we are involved in…

– Business-to-Business wholesale transactions – Access between suppliers and grocers – Listing and order flow – Financial processing – Fulfillment facilitation

• What we are NOT involved in

– Targeted consumer marketing Access between suppliers and grocers – Product category management – Grocer sales & marketing plans – LCBO sales and promotions – Determining wholesale product mix

Our Responsibilities

• Regulates the laws pertaining to the sales,

service and consumption of alcohol

• Enforces Ontario regulation on Government

stores 290/15 as per but not limited to the following – Types of products eligible – Shelf space requirements – Hours of operation – Advertising rules – Trade spend restrictions – Sampling rules

• WWW.AGCO.ON.CA

AGCO Responsibilities

Key Partners Roles

INDEPENDENT PHARMACISTS PATIENTS PHARMA NEWCO

Grocers Suppliers

Wholesaling “eligible beverage alcohol products in grocery” Program

GROCERY OPERATIONS SOURCE OF SUPPLY BUSINESS CUSTOMERS

Joint Activities

INDEPENDENT PHARMACISTS PATIENTS PHARMA NEWCO

Grocers Suppliers

Wholesaling “eligible beverage alcohol products in grocery” Program

PRODUCT LISTING PRODUCT ORDERING & FULFILLMENT MARKET OPPORTUNITY

• Providing product catalogue to

grocers

• Receive orders for beverage

alcohol from authorized grocers

• Filling grocers orders through

various supplying sources

• Supplying source for all imported

beverage alcohol

• Invoice grocers for product

received

• Pay suppliers for products grocers

receive

LCBO Responsibilities

INDEPENDENT PHARMACISTS PATIENTS PHARMA NEWCO

Grocers

Suppliers

Wholesaling “eligible beverage alcohol products in grocery” Program

PRODUCT LISTING PRODUCT ORDERING & FULFILLMENT MARKET OPPORTUNITY

• Manufacturing and listing

products for wholesale through the LCBO

• Setting retail prices
• Pursuing sales and

marketing opportunities with grocers

• Supplying source to grocers

for domestic beverage alcohol

Supplier Responsibilities

INDEPENDENT PHARMACISTS PATIENTS PHARMA NEWCO

Grocers

Suppliers

Wholesaling “eligible beverage alcohol products in grocery” Program

PRODUCT LISTING PRODUCT ORDERING & FULFILLMENT MARKET OPPORTUNITY

INDEPENDENT PHARMACISTS PATIENTS PHARMA NEWCO

Grocers Suppliers

Wholesaling “eligible beverage alcohol products in grocery” Program

PRODUCT LISTING PRODUCT ORDERING & FULFILLMENT MARKET OPPORTUNITY

• Purchasing decisions on

brands and quantity of products ordered

• Brand and marketing

relationships with suppliers

• Paying LCBO for

beverage alcohol received

Grocer Responsibilities

• Delivered a B2B wholesale solution to

enable Beer sales in grocery

• 60 grocery stores now have access to

Beer sales

• Over 150 beer producers now have

access to the grocery channel

• Over 600 beer items available for grocery
• Fulfilled over 1,500 orders from grocers

from December to April

It’s a new business!

• Importance of data integrity
• Need for simplicity of

replenishment and delivery

• perations
• Plentiful assortment
• Finance considerations

What we’ve learned

• Collecting feedback from

suppliers and grocers

• Continuous improvement

through IT enhancements

• EDI transactions
• GMS portal

enhancements

• Process enhancements

LCBO’s commitment for continuous improvement

Enabling a smooth transaction

• Use resources available
• Data integrity
• 80% of new item submissions were

incorrect and cannot be processed

• Invalid UPC/SCC codes may lead

to product refusals and payment

• pportunities
• Simplifying delivery operations
• Build relationships with grocers

How you can be successful in this channel

Doingbusinesswithlcbo.com

• Grocers legally permitted to start

selling Cider on June 24th

• Release of RFB to Grocers for

Wine licenses

• Info sessions this summer for Wine

manufacturers and agents

• Closure of RFB and announcement
• f new grocery partners
• Grocers to start selling wine in late

fall 2016

What’s next

The road ahead

Summer 2016

• Cider Assortment available to 60

existing authorized grocers

Fall 2016

• Wine licenses will be granted up

to 70 grocery stores through formal bidding process

• Winery Retail Stores will be

permitted to co-locate and

• perate in grocery stores
• All grocery stores selling wine will

have Beer and Cider licenses

Spring 2017

• By spring of 2017, there will be

up to a total of 150 stores selling Beer and Cider, and up to 90 of which will be selling Wine

• Striking the right balance
• www.ontario.ca/page/striking-right-balance-modernizing-

wine-and-spirits-retailing-and-distribution-ontario

• Grocery Website
• www.doingbusinesswithlcbo.com
• Online webinars
• Procedure Manual
• Power point presentations
• Key Contacts
• Ontario Liquor Control Act Regulation 290/15
• https://www.ontario.ca/laws/regulation/150290
• Grocery Operations team
• wholesaleservice@lcbo.com

Available Resources

Questions?