Grocery Operations Introduction to Grocery Wholesale Operations May 27 th , 2016 Chris Dini – Director of Grocery Operations
Grocery Operations Team Agenda Evolution & Mandate of Grocery Wholesale Roles & Responsibilities Current State & Continuous Improvement What’s Next & The Road Ahead Resources Available Questions
Grocery Operations Team Chris Dini – Director Leanne Rhee – Operations Holly Garner – Operations Jim Sheridan – Operations Matt Lopez – Inventory & Supply Chain Jamie Fazekas – Finance IT Cross Functional team
April 2015 • Premier’s Advisory Council on Government Assets (PAC) Evolution of – Striking the right balance: Modernizing Beer Retailing/Distribution in Ontario Grocery Operations – 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
November 2015 • LCBO RFB 2015-010 Closed – 13 successful respondents with 60 locations Evolution of Grocery Operations December 2015 • Grocery Management System (GMS) Launched – On December 15 th , 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
Our Mandate • Enabling you to pursue sales opportunities • 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
• What we are involved in… Our – Business-to-Business wholesale transactions Responsibilities – 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
• Regulates the laws pertaining to the sales, AGCO service and consumption of alcohol Responsibilities • 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
SOURCE OF SUPPLY Key Partners PATIENTS Suppliers Roles Wholesaling “ eligible beverage alcohol products in grocery ” Program PHARMA INDEPENDENT Grocers NEWCO PHARMACISTS GROCERY BUSINESS OPERATIONS CUSTOMERS
PATIENTS Suppliers Joint Activities PRODUCT MARKET LISTING OPPORTUNITY Wholesaling “ eligible beverage alcohol products in grocery ” Program PHARMA INDEPENDENT Grocers NEWCO PHARMACISTS PRODUCT ORDERING & FULFILLMENT
LCBO Responsibilities PATIENTS Suppliers • Providing product catalogue to PRODUCT MARKET grocers LISTING OPPORTUNITY Wholesaling • Receive orders for beverage “ eligible beverage alcohol from authorized grocers alcohol products • Filling grocers orders through in grocery ” Program various supplying sources • Supplying source for all imported beverage alcohol • Invoice grocers for product PHARMA INDEPENDENT Grocers NEWCO PHARMACISTS received PRODUCT ORDERING • Pay suppliers for products grocers & FULFILLMENT receive
Supplier Responsibilities PATIENTS Suppliers • Manufacturing and listing PRODUCT MARKET products for wholesale LISTING OPPORTUNITY through the LCBO Wholesaling “ eligible beverage • Setting retail prices alcohol products in grocery ” Program • Pursuing sales and marketing opportunities with grocers PHARMA INDEPENDENT NEWCO Grocers PHARMACISTS • Supplying source to grocers PRODUCT ORDERING for domestic beverage & FULFILLMENT alcohol
Grocer Responsibilities PATIENTS Suppliers PRODUCT MARKET • Purchasing decisions on LISTING OPPORTUNITY Wholesaling brands and quantity of “ eligible beverage products ordered alcohol products in grocery ” Program • Brand and marketing relationships with suppliers PHARMA INDEPENDENT Grocers NEWCO PHARMACISTS • Paying LCBO for PRODUCT ORDERING beverage alcohol received & FULFILLMENT
It’s a new business! • 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
What we’ve learned • Importance of data integrity • Need for simplicity of replenishment and delivery operations • Plentiful assortment • Finance considerations
LCBO’s commitment for continuous improvement Enabling a smooth transaction • Collecting feedback from suppliers and grocers • Continuous improvement through IT enhancements • EDI transactions • GMS portal enhancements • Process enhancements
How you can be successful in this channel • Use resources available Doingbusinesswithlcbo.com • Data integrity • 80% of new item submissions were incorrect and cannot be processed • Invalid UPC/SCC codes may lead to product refusals and payment opportunities • Simplifying delivery operations • Build relationships with grocers
- Grocers legally permitted to start selling Cider on June 24th What’s next - Release of RFB to Grocers for Wine licenses - Info sessions this summer for Wine manufacturers and agents - Closure of RFB and announcement of new grocery partners - Grocers to start selling wine in late fall 2016
The road ahead 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 Fall 2016 which will be selling Wine • Wine licenses will be granted up to 70 grocery stores through formal bidding process Summer 2016 • Winery Retail Stores will be permitted to co-locate and • Cider Assortment available to 60 existing authorized grocers operate in grocery stores • All grocery stores selling wine will have Beer and Cider licenses
Available Resources • 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
Questions?
Recommend
More recommend
