Supplier Reps Succeeding at Seasonal · 2019-06-17 · Formal notification of significant delists to supplier –wk -10 • At this point discussions need to be had regarding stock,

Supplier RepsSucceeding at Seasonal

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Succeeding at Seasonal

1. Planned Events

2. Committed Stocks

3. Seasonal Pack Changes

4. The Seasons

5. One Offs

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Process overview of planned events

Commercial to send through the plan to supply chain (TPNs, Total

Buys, Supplier Info) - Wk -10

Store ordering to provide shelf fills, shelf fills/line details to be

sent out to suppliers – Wk -7

Send out information to the suppliers- Wk -6

Suppliers to confirm all details are correct - Wk -6

NBS checks to have been completed - Wk -5

First Orders Raised (this depends on supplier lead times)

Wk -4Initial Goods in deadline Wk -2 LAUNCH & Report - Wk -0

On Sale/review/push plan goes into effect/Cancel pallet

rounding for last two pushes -Wk 1

Event ends

These actions will be managed by promotions and event management team - Tesco.

In case of lead times more than 4 weeks, suppliers needs to co ordinate with the promotion and event management team & buyer to understand requirements.

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Event Month Category implemented

H&B Gifts BWS Impulse Free from Grocery Frozen Pet

Valentines Day Jan/Feb Y Y Y

Mothers Day Feb/Mar Y Y Y

Fathers day May/Jun Y Y Y

Easter Mar/Apr Y Y

Halloween Sep/Oct Y Y

Christmas Nov/Dec Y Y Y Y Y Y Y

Seasonal events

The above timelines needs to be used only as a guideline as roughly what period an event starts.

Using this and process flow in the earlier slide the supplier needs to get in touch (latest), 3 months ahead of the

event with the buyer if they have not received a promotional plan yet for an event.

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Events range change process flow:ACCOUNTABILITY TASK TIMELINE Comments

Category Commence Supplier Discussions -24

Category New list of TPNBS and Delists (90% view) -23 Please ensure these are saved to range reset SharePoint site. - Tesco

Category/Legal NPD new line letter send to suppliers highlighting deadlines -23

CategoryDetailed supplier negotiations at line level commence

-20

Category Buying team to request NPD for product dimensions -20

Category NPD Lists to Data Ops Team -20 Please ensure these are saved to range reset SharePoint site. - Tesco

Category All significant delists to be notified to OL suppliers -16 Please ensure these are saved to range reset SharePoint site. - Tesco

Category Deadline for All NPD to be in my product induct -16 Please ensure these are saved to range reset SharePoint site. - Tesco

Category Deadline for All NPD physical samples or full size pre-printed artwork submitted to data ops -12

Category Supplier negotiations at line level conclude, final de-list and ranges communicated -11

Category All significant delists to be notified to branded suppliers -10

Category/ SRD / Data Ops

Deadline for all Lines to be Fully authorised.-9

Any unauthorised lines removed from planograms

Supply Chain First orders week -4 -4Supply Chain All stock in depot by week -2 -2

ALL Live week / Implementation 0

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Events range change process map Milestones for suppliers:NPD new line letter highlighting deadlines – wk -23Own label suppliers delists notification – wk -16

• At this point discussions need to be had regarding stock/dry goods left and if required clearance plan with Tesco

Information to be loaded into “my product induct” – wk 16• Product spec

Data Ops team in Tesco to receive product samples or pre printed labels from supplier – wk -12• Important that the barcode is scannable in these samples

Formal notification of significant delists to supplier – wk -10• At this point discussions need to be had regarding stock, if any clearance plan is required. This discussion can be started

earlier as well if there is a significant risk of overstocksFirst order – wk-4 • For long lead time though this will need to happen at a time depending on the lead time. Hence it is very important to be

upfront and be clear with the buyer regarding the lead times of the new product.• Also the first order is raised by the range change team, so it is important to co ordinate very closely with them to ensure

right quantity and right time the order is raised.Stock in tesco depot – wk -2• If there is a risk to have availability of stock in depot 2 weeks ahead of launch supplier needs to communicate to Tesco

as this could hamper the availability during launch.

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Key watch outs:Long lead supplier who use Hillebrand Axis forecast to build floor stocks. Please ensure that the event forecast is showing up in the Axis system. Else it could result receiving a delayed order.

You could request Hillebrand to set up a weekly report similar to below showing future Tesco orders(only for long lead products):

In case during an event if you are supplying pre build units to be placed in store (eg: FSDU), you need to get more information from your promotional & event management contact. As these follow a different path to normal product supply.

• You will be able to get requisite specifications for the pre build unit.

• Store distributions

• Specific order dates and quantities.

PARTDESCR WEEK1 WEEK2 WEEK3 WEEK4 WEEK5 WEEK6 WEEK7 WEEK8 WEEK9 WEEK10

Casillero Reserva-Cab.Sauv-B0750-6-STA Tesco 2380 3920 7280 14280 2380 1540 3780 1400 0 140

Casillero Reserva-Chardonnay-B0750-6-STA Tesco 6710 0 0 220 0 0 440 0 0 0

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Committed Stocks1. Tesco Partners Toolkit

2. Committed Stocks

3. Case Study

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https://partnerstoolkit.tesco.com/sign-in/#/supplier-validate

Getting setup on- Tesco Partners Toolkit

[email protected] Issues-

https://partnerstoolkit.tesco.com/toolkit/Login-

https://partnerstoolkit.tesco.com/sign-in/#/supplier-validate

mailto:[email protected]

https://partnerstoolkit.tesco.com/toolkit/

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Tesco Partners Toolkit https://partnerstoolkit.tesco.com/toolkit/Login-

Click on Systems


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Committed StocksFind your peak sales from last period On Tesco MicroStrategy

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Locate the Stock & Sales Weekly Report-

Store ordering analysis>Share Reports> Store Ordering>Tesco Supplier Dashboards>Packaged/ Gm Weekly

Committed Stocks

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Choose the sales tab at the bottom of the report

Choose the Tesco weeks that are relevant to the period in question (Summer, Easter, Christmas)

Click Apply

Committed Stocks

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Click the 3 dots shown below

• Export the data• Data for a CSV file• Excel for an Excel File

• Analyse the data• Look for the peak weeks sales of SKU’s you think require committed stocks• Ensure the peak week sales do not correspond with any promotions that were

running, inflating these figures• Look for SKU’s that see large uplifts vs base due to weather or seasonal event• Look for SKU’s that are more volatile or where you are unable to react to demand as

quickly• If you have a new product this year, look for a comparative product from last year.• Make sure you only include products that will still be ranged when the committed

stocks go live

Committed Stocks

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Propose & agree on these volumes with your Tesco Rep

Agree the phasing of the volume by Week & by Day

Ensure your transport team or Tesco Primary are able to support the increased volumes

Agree how long the committed stocks will be held for.

Agree when the Destock will occur

Committed Stocks

TPNB Product SupplierCommitted

Stock (cases)

Total WK8

(30%)Mon WK8 Tues WK8 Wed WK8 Thurs WK8 Fri WK8

5000000 SKU 1 Supplier 1 3,000 1,000 200 200 200 200 200

5000001 SKU 2 Supplier 1 6,000 2,000 400 400 400 400 400

5000002 SKU 3 Supplier 1 9,000 3,000 600 600 600 600 600

5000003 SKU 4 Supplier 1 12,000 4,000 800 800 800 800 800

5000004 SKU 5 Supplier 1 15,000 5,000 1,000 1,000 1,000 1,000 1,000

5000005 SKU 6 Supplier 1 18,000 6,000 1,200 1,200 1,200 1,200 1,200

5000006 SKU 7 Supplier 1 21,000 7,000 1,400 1,400 1,400 1,400 1,400

5000007 SKU 8 Supplier 1 24,000 8,000 1,600 1,600 1,600 1,600 1,600

5000008 SKU 9 Supplier 1 27,000 9,000 1,800 1,800 1,800 1,800 1,800

5000009 SKU 10 Supplier 1 30,000 10,000 2,000 2,000 2,000 2,000 2,000

5000010 SKU 11 Supplier 1 33,000 11,000 2,200 2,200 2,200 2,200 2,200

5000011 SKU 12 Supplier 1 36,000 12,000 2,400 2,400 2,400 2,400 2,400

5000012 SKU 13 Supplier 1 39,000 13,000 2,600 2,600 2,600 2,600 2,600

5000013 SKU 14 Supplier 1 42,000 14,000 2,800 2,800 2,800 2,800 2,800

5000014 SKU 15 Supplier 1 45,000 15,000 3,000 3,000 3,000 3,000 3,000

5000015 SKU 16 Supplier 1 48,000 16,000 3,200 3,200 3,200 3,200 3,200

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You won’t be able to build on every SKU so: Pick the top selling SKU’s Pick SKU’s that are the most volatile and see the biggest uplifts Pick SKU’s where you are less able to react quickly

Let your internal planning teams know as soon as the volume is agreed

Keep transport teams informed of when to expect these bigger orders

Also build stock on key SKU’s in your warehouses

Orders can still spike, the committed stocks are just there to help bridge the gap in lead time

Let your Tesco rep know at any point if you foresee an issue. There's no point in ordering stock to fail.

Remember the destock. If it’s Easter or Christmas, the destock will happen peak week. If it’s Summer, this would be after the season and could take several weeks to get back to normal orders

Keep your eye on Connect

Key Watch Outs:

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Case Study- French Water Supplier Summer Stock Build

Operate from 3 production plants that deliver worldwide.

Plant A some - flexibility, Plant B- some flexibility and Plant C- Limited resource.

Operate on an 8 week production schedule with the global plants

Plant A

Plant B

Plant C

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Accurate long term forecasts are key to ensuring supply from the plants.

Majority of customers want to run stock build around the same time pre Summer season.

The conversations for summer stock build would start in Feb time, usually to be taken in May.

Obviously every customer wanting extra stock cover around the same time, leads to spikes in orders.

Global plant then could not react to all requests, due to the high volume.

Plant had to cut and switch productions around to accommodate where they could.

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Tesco are this business’ largest volume customer, so if this customer can properly plan their volume, it will lead to a much better operation.

Tesco were asked how to gain get better insight into their workings for Summer Stock builds.

The Promotions Manager said the methodology, given the products reactiveness to the weather and the short term supply constraints would be 1 peak weeks sales on key lines.

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It was decided that post season in September, a review of Tesco MicroStrategy would happen to get the information we needed

This was then put into the production plan for the following year, months ahead as opposed to weeks.

Final figures were still agreed and tweaked with Tesco in Feb, but were 99% inline with what had been planed.

Far easier to meet Stock build demands when they were in the plans so far ahead.

Forecast&

Production

TPNBs shown here

TPNB descriptions shown here

Figures shown here

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Things to think about…

Is it clear for new suppliers or new team members, who might not have got the best handovers?

Link in with your Tesco Contact to understand their methodology for stock builds

1 weeks peak sales

Half a week

Only on lines that see >35% uplift vs base

The sooner you plan, the longer you have to prepare.

Propose the same technique/methodology to other big customers

Are you engaging your Transport teams/Tesco Primary, as soon as you have a plan?

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Seasonal Pack Changes1. Label change

2. Barcode on sellable unit (EAN)

3. Barcode on case (OCC)

4. Case size change

5. Pallet quantity change

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Label changes

Label changes do not alter the case size, pallet configuration, dimensions etc. and they could be around Easter, Christmas or sporting events.

The pack should have the same barcode, case size and pallet configuration as the straight pack and so will just flow into store as if it were the normal SKU.

E.G. label changes for Father’s Day and pancake day

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Barcode on sellable unit (EAN)Barcode changes can occur for a number of reasons, e.g. if the weight changes, extra product is offered for free such as 10% free, if the product name changes or if the price of a PMP deviations.

If a new barcode is required, this can be set up via My Product Induct as you can see below.

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Barcode on case (OCC)Barcode changes are required on cases when the case size changes, or when packaging is significantly changed.

If barcodes changes are required, then set up the new barcode on My Product Induct.

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Case size change

If the case size changes, then use the "new case size" option on My Product Induct and follow the options from there

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Pallet quantity change If your pallet configuration changes e-mail your supply chain coordinator and ask them to change it for you.

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myProduct: Induct https://partnerstoolkit.tesco.com/toolkit/Login-


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Key Watch outs:

1. Monitor your stocks internally – do you have the right pack ready to go at the right time to hit certain events e.g. Easter, Christmas, Mother’s Day etc.?

2. If a pallet configuration is changed for a limited time, remember to switch it back.

3. Ensure forecasts are robust so seasonal products are not left over following the event.

4. If you are setting up new barcodes, ensure you do this with adequate time (time to include Tesco receiving and scanning new barcodes into their systems).

5. Appendix

https://partnerstoolkit.tesco.com/toolkit/api/document/assets/trn:tesco:asset:uuid:23c78407-00c2-4597-afad-6c6a1de83560?inline=true – barcode jargon buster

https://view.pagetiger.com/myproductinduct

- My Product Induct guide

https://partnerstoolkit.tesco.com/toolkit/api/document/assets/trn:tesco:asset:uuid:23c78407-00c2-4597-afad-6c6a1de83560?inline=true

https://view.pagetiger.com/myproductinduct

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The Seasons

1. Overview of current Tesco season based forecasting

2. Sub-Groups

3. Case Study

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Actual Seasons – Automated Weather Changes

Regional Weather

Forecasts

Ordering System Logic Forecast

• Metra Weather provide Tesco with the future weather forecast - 11 days out.

• It is region specific

• The weather readings feed into the Tesco system 3 times a day

• Each subgroup has sales models based on weather forecasts

• Logic is updated each year

• System creates a revised forecast each day

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Metra Weather

• White = In line with expected temperatures at that time

• Shades of Blue = Colder than expected• Shades of Red = Warmer than expected

• Weather factors which will influence shopper behaviour are defined as:-

• Hours of Sunshine• Rainfall

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Actual Seasons – Manual Weather Changes

Process Top line Checks

Detailed Checks

Weather Steps

• Daily weather checks of future weather forecasts

• Looking for changes vs. seasonal average

• Check what the system has done at a subgroup level

• Compare to similar historic weather periods

• Check what the system has done across weather regions at a subgroup/product level

• Compare to similar historic weather periods

• Where there are gaps compared to historic data, steps are applied

• Communication sent

• Actioned daily

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Actual Seasons – Committed Stocks

Peak week and stock to commit decided

List shared with suppliers and suppliers given a week

to flag issues

Final list and volumes confirmed

Buy in over 3 weeks Stock held until just before the peak week.

Plan reviewed and Bs&Cscollated

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Sub-Groups

There are substantial differences between category sub-sectors in their weather and events driven % sales uplifts.

It is essential that both parties understand these detailed dynamics and ensure that their weather based forecasting assumptions are based on the individual characteristics of each sub-sector.

Many suppliers have expert knowledge of the markets within which they operate. These market insights should be discussed and shared with Tesco in order to create collaborative forecasts.

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Key Watch Outs:

• All Suppliers should utilise the 3 week forecast available on Tesco Connect.

• A “Season warning” communication should be sent before the beginning of each season by Tesco to ensure that all suppliers are appropriately focused and prepared for the season ahead.

• Tesco utilise Metra Weather live feeds to monitor weather data, and as best practice would recommend suppliers source weather data similarly.

• Best practice is for suppliers to analyse maximum, minimum and average demand by SKU across a year to gauge its demand volatility to weather.

• Tesco should inform all suppliers when a “Weather Step” has been declared so that suppliers understand why there has been a change in demand and can also plan accordingly for the coming weeks and months.

• If there are unexpected changes to the Tesco forecast, suppliers need to get in touch with their Tesco Supply Chain contact.

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Case Study – A Cider supplier from the West Country

The Cider supplier has adopted the following approach to succeed at seasonal:

Closely monitor sales out data on the Tesco Link system on a daily and weekly basis.

Based on this data, calculate the median, maximum and minimum weekly volumes. This shows the products weather volatility.

Create own accurate forecast to create stock cover for maximum weeks with an additional buffer on top of this.

Sense check own forecast versus the Tesco Connect 3 week forecast available via the Supplier Portal.

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0

2,000

4,000

6,000

8,000

10,000

12,000

26/2

12/3

26/3 9/

423

/4 7/5

21/5 4/

618

/6 2/7

16/7

30/7

13/8

27/8

10/9

24/9

8/10

22/1

05/

1119

/11

3/12

17/1

231

/12

14/1

28/1

11/2

25/2

11/3

25/3 8/

4

Analyse historic Sales Out Data by SKU from Tesco Link and cross reference against weather factors at that time

Tesco Link

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0

2,000

4,000

6,000

8,000

10,000

12,000

26/2

12/3

26/3 9/

423

/4 7/5

21/5 4/

618

/6 2/7

16/7

30/7

13/8

27/8

10/9

24/9

8/10

22/1

05/

1119

/11

3/12

17/1

231

/12

14/1

28/1

11/2

25/2

11/3

25/3 8/

4

Excluding Christmas and January (where there is a non-weather influenced sales peak), maximum, minimum and median levels of weekly volumes can be seen. This enables the supplier to calculate the weather volatility level of each SKU.

Volatility

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0

2,000

4,000

6,000

8,000

10,000

12,000

26/2

12/3

26/3 9/

423

/4 7/5

21/5 4/

618

/6 2/7

16/7

30/7

13/8

27/8

10/9

24/9

8/10

22/1

05/

1119

/11

3/12

17/1

231

/12

14/1

28/1

11/2

25/2

11/3

25/3 8/

4

Based on the volatility of each SKU, a buffer stock provision will be incorporated into forecasts and production plans.

Buffer Stocks

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MEDIAN WEEKLY VOLUME = 5,800 units

MINIMUM WEEKLY VOLUME = 4,400 units

MAXIMUM WEEKLY VOLUME = 7,500 units

% UPLIFT LINKED TO WEATHER = +29% (7500/5800)

ADDITIONAL 20% BUFFER STOCK TO COVER MAXIMUM WEEKS = 1,500 UNITS (20% of 7,500)

TOTAL SUMMER WEEKLY STOCK COVER = 9,000 units (7500+1500)

Buffer Stocks

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The supplier’s own forecasts can be cross-referenced against the 3 week Tesco Connect Forecast available via the Supplier Portal.

Tesco Connect (3 week forecasts)Tpnb Description Tpnd Depot Depot name Forecast date Order week Forecast cases

12345678 PRODUCT X 987654321 540 LICHFIELD PBS 10/04/2019 w/c 15/4/19 100

12345678 PRODUCT X 987654321 400 THURROCK GROCERY DEPOT 10/04/2019 w/c 15/4/19 80

12345678 PRODUCT X 987654321 530 GOOLE PICK BY STORE 10/04/2019 w/c 15/4/19 90

12345678 PRODUCT X 987654321 180 MAGOR GROCERY 10/04/2019 w/c 15/4/19 150

12345678 PRODUCT X 987654321 501 LIVINGSTON GROCERY 10/04/2019 w/c 15/4/19 50

12345678 PRODUCT X 987654321 140 READING AMBIENT PBS 10/04/2019 w/c 15/4/19 110

Weekly Total w/c 15/4/19 580















Total w/c 15/4 + 22/4 + 29/4 1490

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One Offs

1. Plan

2. Execute

3. Recover

4. Case Study

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Succeeding at Seasonal - What Counts as a One Off?

• Raw Material Shortage - CO2 shortage

• Unexpected Weather Impact - Beast from the East, Elongated Summer

• Production Issues / Downtime – Factory Fire

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PREPARE EXECUTE RECOVER

Succeeding at Seasonal – One Offs3 Steps to Success

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Succeeding at Seasonal – One Offs

Due to the nature of a one of event, it can be difficult to prepare. However key contingency planning does help reduce reaction times and recovery times. It is also key to protecting the service level on key lines.

Good communication & collaboration vital during one off issues.

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One Offs – Plan – Key Stages

Agree Level of Buffer Stock

Careful Consideration of Tesco Specific / Own

Label / Star Lines

Identification of Key SKU’s

Allowing Quick Reaction in the event of an Issue – Communication

delivered to key stakeholders as soon as issue identified.

Collaborative Forecasting

Communicate with Tesco if Struggling to maintain Buffer

Identification of Key Tesco Contacts

Contingency Planning / Risk Assessment

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One Offs- Plan

NO

YES Fine- No further action to be taken

Implementation of Contingency Planning, including appropriate Communications to Key Tesco

Stakeholders & Identification of key SKU’s

Is there a sufficient amount of safety stock available?

Identification of Issue

Do you have the ability to increase safety stock

YESNO

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One Offs – Execution – Key Stages

Identification of Issue Implementation of Contingency Planning

Communication to Key Tesco Stakeholders

Communication to include Root Cause, Key Actions, Risk Assessment per line.

Agreement on communication plan – Calls / Meeting / Emails etc

Actions

Review Planned Activities – Risk to Promotions – engage both Commercial &

Supply Chain

Agree Prioritisation of Key SKU’s / Star Lines

Use of SAR reports to limit shortages / spread volume

Out of the box thinking – consider prioritising key depots, amendment to MOQ Req etc

Share Daily Stock view with Tesco until recovered

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One Offs- Execution

Can orders be met?Compare current floor

stock vs Tesco Connect

Agree Communication plan with Key Tesco Stakeholders – eg

Review Calls

What is the risk to Tesco? I.E Impact to promotions? Is your

product a star line?

Daily share of stock holding on Key SKU’s

Stock to be supplied to Tesco as normal

SAR form to be sent to Tesco before 14:00 to help supress

orders to allow stock build rather than going in and out of stock

YES

NO

Turn off promotions or delay with Tesco – if

appropriate

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One Offs – Recover – Key Stages

Communication to Key Tesco Stakeholders

Collaborative Plan for Recovery

Key Time Frame / Actions agreed

Communication plan agreed reference Updates

Review & Revise

Lessons Learned – What went well, What Didn’t

Revise Contingency plan if needed

Potential Product Substitution to fill space on Shelf

Use of Key Reporting to monitor Recovery –Connect, Visual Insights

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One Offs- Recovery

Collaborative Strategy Plan. This will be in line with supply vs demand

Can the promotional activity be changed?

Are you able to supply any other products in place for the interim

that Tesco could still sell through?

Review – What worked well and what didn’t work so well.

Key Learnings – How can we collaborate more effectively in the future

Any key process changes needed or amendments to future contingency

planning.

Share recovery against plan data – to assure on track

Think outside the box – some examples

Ask if Tesco can apply settings to restrict store replenishment –changing store replenishment to be based on sales opposed to shelf capacities. This will allow you to build up safety stocks quicker.

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Key Watch Outs:

• Communication is Key – It will make the difference to your Success – Important at all stages

• TPNB including on all communications

• SAR Reports – Vital to managing volume of orders and ensuring no wasted space in depots / trucks

• Review of Upcoming Activity – does a hard decision need to be made for the right reasons

• Use the reporting tools which Tesco provide – they will be Key to managing the situation eg Connect, VI

• Collaborate with Tesco – Prioritise Key Sku’s if needed

• Think Outside the Box

• Learn from your mistakes

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Case Study – Ready to Drink Supplier

• Identification of Issue – 2 fold Sales above forecast on NPD in addition to CO2 hit – impacting production

• Daily review of Connect allowed SAR’s to be used to manage Volume

• Minimum order reduced from full pallet to layers to ensure stock on shelves / supply to all depots.

• Available Stock moved to centralised 3PL to allow picking – normally direct from production site.

• System amendment to allow picked layers to be despatched with full pallets

• Key communication between Account manager & Tesco Commercial Team to ensure agreement on plan

• Close review of Recovery to ensure switch back to full pallets happened as soon as stock levels normalised.

2 New Canned Lines – Launched Spring 2018

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When is your next event featuring?

Are you prepared?

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Are you confident your execution will be optimal?

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How will you recover from the next big unknown?

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Thank you.

Documents

Supplier Reps Succeeding at Seasonal · 2019-06-17 · Formal notification of significant delists to supplier –wk -10 • At this point discussions need to be had regarding stock,