Sainsbury’s Argos

Smashing it with AIPOracle Industry Connect

March 2017

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AIP and Argos

• The Argos business model

• Transforming to be a ‘Leading Digital Retailer’

• AIP Upgrade

Argos Business Model

2

AIP V11

3

AIP first implemented in 2006 to replenish “stocked in” skus and stores as part of the

award winning project RACO

.

Plan our stores and warehouses

Create the stock targets sent to transactional

systems for store and between tier picks

Create and release supplier purchase orders

Argos has adapted the usage of AIP as the business required

Key tool to our stock

processes

Used to provide data for

upstream planning &

reporting systems

Tool used to support

our stocking policies

Argos F & R Systems Overview

4

Reporting

RMS

AIP

MF

DP

FDT

Whse

Supplier

Planning ExecutionForecast by Sku/DC/Week

Forecast by Sku/Store/Day

Master data and inventory

RUTLS

Purchase

Orders

Purchase

Orders

Store

OrdersAssortment

Transformation

5

Extending role of AIP to support Business Transformation

Leverage AIP abilities to support this transformation

Website

Mobile

Website

Apps

(Android,

iphone, ipad)

What did we do…

7

07:00-10:00

10:00-13:00

14:00-16:00

17:00-22:00

1pm 4pm

5am 8am

What did we do…

supply chain revolution.

8

New processes & systems introduced

• dynamic route scheduling,

• single stock visibility & customer order management

• adaptations to in-store voice picking systems

• Adaptations to AIP

How does AIP contribute?

9

AIP performs its traditional role

around stock levels and orders

AIP is now our assortment and replenishment tool

Determines unique spoke stock assortment

Stock investment, product margin and customer immediacy at store level help to determine

whether to stock. Store level demand forecasts + settings in AIP parameters enable this.

Outcomes ….

Launched prior to Black Friday 2015+14%

Outcomes ….

Our new

customer

proposition

is setting a

new

benchmark

07:00-10:00

10:00-13:00

14:00-16:00

17:00-22:00

£3.95

• Home Delivery sales are close

to doubling year on year

• Inventory reductions &

improving customer

availability by c 2-3%

AND

• New formats introduced

• Dark Hub

• Cannon Street Station

• Concessions

• Collection points

• Pop ups

New revenue opportunities utilising Hub delivery & Spoke assortment capability.

AIP v14 Upgrade

12

Argos F & R Systems Overview

13

Reporting

RMS

AIP

MF

DP

FDT

Whse

Supplier

Planning ExecutionForecast by Sku/DC/Week

Forecast by Sku/Store/Day

Master data and inventory

RUTLS

Purchase

Orders

Purchase

Orders

Store

OrdersAssortment

The Background

14

Business growth since 2006, resulted in

overnight batch run pressure

High level of

customisation

makes upgrade

more difficult

Support

future

growth

plans

Aug 2015 - Start

Sept 2016 – Go Live

May 2017 - Finish

The Challenge

15

Summer 2015 Challenge

• Tactical fixes on v11 to sustain Peak 2015

• Migrate to AIP v14 by the quickest and most low risk means possible

• Complete 1st phase in readiness for Peak 2016

• Focus on a ‘lift and shift’.

AIP v14 – The Case to Upgrade

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No application limits on sku/store volumes

Larger domains, low variability measures and

improved UI – an easier application to use

Improved application performance

Improved planning functionality

New functionality

Revisit best practice within Supply

AIP v14 – Project Team

Argos brought the

business knowledge

and functional SME’s,

delivering the change

and training

Oracle Retail Consulting

provided functional and

technical QA capacity and

a link with Development

when needed GO LIVESEPT’ 16

Accenture were our

implementation partner

delivering the technical

solution and supporting

training

AIP v14 – Solution

GO LIVESEPT’ 16

Training and Change

Revised 40+ L4 Processes

Over 100 colleagues were

trained

Regular comms

Design

Lift and shift focus

Less core customisation

New functionality – as long as

no timeline impact!

Technology

“Automate everything” approach

Rapid deployments, minimal downtime

Build/Test loop accelerated

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AIP v14 – Outcome

Delivery We wanted to rollout 3 categories by Peak 2016 – we rolled out 4, 44%

of our sku count

Target completion was May 2017 – we should complete rollout this week

New functionality being exploited

Evaluating move to v15

August 2015 May 2017

• Phased v Big Bang?

Risk dictated a phased rollout

Rigorous and engaging process to determine the sequence

Deployment

GO LIVESEPT’ 16

Questions??

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