WHAT GETS MEASURED GETS IMPROVED The Importance of Making your - - PowerPoint PPT Presentation

“WHAT GETS MEASURED GETS IMPROVED” The Importance of Making your Customer’s Experience your Metric

Susan Moore (MEng, CSCP)

Head of Planning & Customer Service, Rhodes Food Group

SPOILER ALERT

Having your company metrics aligned to your customer’s experience provides great benefits How do you get there and what are the benefits?

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WHAT GETS MEASURED GETS IMPROVED

• What data are you measuring?
• What does your customer measure and why is it important?
• Is a total business realignment needed?
• The benefits in Rands

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WHAT ARE YOU MEASURING?

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86% 88% 90% 92% 94% 96% 98% 100% Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18

Case Fill

Case Fill Difference between Measuring an Incomplete and a Complete Environment

Old New

?

WHAT WAS THE CAUSING THE DELTA?

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• Hard coding the environment

– Ship to points – Distribution Sites – SKUs

WHAT ARE YOU MEASURING?

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86% 88% 90% 92% 94% 96% 98% 100% O c t

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Case Fill

Case Fill Difference between Measuring an Incomplete and a Complete Environment

Old New

BENEFITS OF AN ADAPTABLE DATA GATHERING SYSTEM

• Trusted data

– Trusted by yourself = time saving – Trusted by the company = credibility & support

• Integration of new

codes/customers/businesses

– Focus on the business process, continuity and delivering results not hours spent on how to measure the results

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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

PnP Case Fill Week

PnP Tracking of RFG Service Level and Delta between RFG and PnP Measure

PnP case fill 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43

• 40%
• 20%

0% 20% 40% 60% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Delta between RFG & PnP measure PnP Case Fill Week

PnP Tracking of RFG Service Level and Delta between RFG and PnP Measure

PnP case fill weekly delta

WHAT DOES YOUR CUSTOMER MEASURE AND WHY DOES IT MATTER?

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Monthly Surprise at PnP vendor meeting: PnP measured service at 83% while we were measuring 90%

WHAT DOES YOUR CUSTOMER MEASURE AND WHY DOES IT MATTER?

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How pleased are you with

• ur 90+% service levels J?

Urm, you mean 83%? Not very pleased at all!! Oh gosh really? Sorry I have no idea how that happened Sorry

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• 20%

0% 20% 40% 60% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Delta between RFG & PnP measure PnP Case Fill Week

PnP Tracking of RFG Service Level and Delta between RFG and PnP Measure

PnP case fill weekly delta

WHAT DOES YOUR CUSTOMER MEASURE AND WHY DOES IT MATTER?

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Nothing changed Our results remained flat Monthly meeting insufficient to allow root causing and fixing

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• 20%

0% 20% 40% 60% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Delta between RFG & PnP measure PnP Case Fill Week

PnP Tracking of RFG Service Level and Delta between RFG and PnP Measure

PnP case fill weekly delta

DID FIXING OUR HARD CODE ISSUES ALIGN OUR RESULTS WITH PNP?

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NO………….. Still had a delta up to 20% and an average service level of 79%

• Orders on discontinued SKUs were being deleted
• Unfulfilled orders were being deleted

WAS THE RFG BUSINESS ALIGNED TO THE OBJECTIVES?

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But why should I be penalised for the customer

• rdering

discontinued SKUs? The customer will

• rder the same

stock again next week so its not a real lost sale

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• 40%
• 20%

0% 20% 40% 60% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Delta between RFG & PnP measure PnP Case Fill Week

PnP Tracking of RFG Service Level and Delta between RFG and PnP Measure

PnP case fill weekly delta

IMMEDIATE CASE FILL IMPROVEMENT

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10% pt Improvement in case fill – as observed by the customer RFG and PnP results are within 2% of each other

WHY DID ALIGNMENT OF MEASURES DELIVER GREATER CASE FILL?

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• Daily identification of issues allowing quick responses
• Constructive conversation with customer regarding their contribution to

service level issues

– Orders on discontinued SKUs – Delays at receiving – Cancelled orders still in the data

THE BUSINESS BENEFIT & THE HALO EFFECT

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• Fulfilling more cases on the orders = RRRs
• More orders

– Year on year growth doubled after results step changed

• Monthly meetings now focus on Joint Value

Initiatives

• Customer is growing sales

“We can’t sell fresh air”

TO SUMMARISE

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• Know what you are measuring
• Make the measuring as simple as possible
• Measure what is important to your customer and how your customer

measures it

• Align your business internally as well as externally
• Work together with the customer for exceptional results

With thanks to: Nomthandazo Baleni RFG Supply chain analyst Heinrich Badenhorst RFG Customer service manager Customer Service Team RFG Barend Brendenkamp PnP Supply chain planning