presentation to cfo west 2014
Post on 06-Jul-2015
129 Views
Preview:
DESCRIPTION
TRANSCRIPT
Daniel G. Reynolds October 31, 2014
Collaborate with Suppliers
Using Technology
to Drive Performance
2
About Our Industry • Retail lawn and garden centers
–Independents
–Local/regional chains
• No Internet retailers
• Fragmented suppliers
• No imports of live plants
3
Fragmented Suppliers 4
Local/Regional Chains
No Imports of Live Plants CFR § 319.37-8:
– Plants for planting at the time of importation into the United States must be free of • Sand • Soil • Earth • and other growing media
5
About Our Company
• 2nd largest garden center chain
• Dallas and Houston markets
• Public company (SEC exempt)
• 70% of revenue from live plants
6
Today’s Agenda • Competitive challenge • Strategic response • Rethinking how we stock our
stores • Rethinking how we work with
suppliers • Key take-aways
7
Competitive Challenge • Launch of Home Depot Landscape
Supply –5 stores in Atlanta –6 stores in Dallas
• Dallas stores within close proximity to our Calloway’s stores
8
Strategic Response
• Total retail focus
• The best merchandise
• The best people
• The best shopping experience
9
Total retail focus
• Divested all growing & wholesale operations – Distraction of management attention
– Money pit
– Antagonized supply chain
• Deregistered from SEC – Odd-lot share buyback
– Reduced administrative overhead
10
The Best Merchandise
• Live plants drive everything else
• The best quality
• The best selection
• Reasonable pricing
11
The Best People
• Training
• State certifications
• Low-value paperwork tasks
12
The Best Shopping Experience
• Take care of the customer first
• Everything else comes second
• Make the store look, feel and smell great
• Have fun and informative events
13
How We Stock Our Stores
• Before –No UPCs on live plants
–Manual cash registers
–No item sales data
–Cycle counts several times/week
14
How We Work With Our Suppliers
• Before –Store manager purchased
inventory
–Over 500 live plant suppliers
–Availability via fax
15
Transition 1: Centralize Buying • Vice President of Merchandising
– With full staff – Best people from the stores
• Team self-assigned product lines to Buyers based on supply chain
• Plan, source, stock, replenish, promote
16
Transition 2: Planning
Items – use Pareto (80/20) – Sales plans
– Stock plans
Suppliers – use Pareto (80/20) – Supply plans
17
Transition 3: Execute
• Manual cash registers
• Spreadsheets
• Cycle counts
• Updated plans with results data
• Continuously refine methodology
18
Transition 4: Automate
• POS system • Back office purchasing • Our own UPCs • Web application for collaboration
– Buyers – Suppliers
19
Web Application for Collaboration
• Buyer develops plans
–Sales
–Stock
–Supply 20
Web Application for Collaboration
• Supplier reviews plans –Confirm –Propose
changes
21
Web Application for Collaboration
• Supplier updates quantity
• Retail-ready merchandise
22
Web Application for Collaboration
• Buyer completes
–Supplier selection
–Store allocation
–Purchase order
23
Results
24
Before After
Number of SKUs ? 73,000
Number of live plants suppliers 500+ 138
Weekly store manager hours spent on purchasing 20+ 0
Average inventory per store $315,000 $196,000
Finance, IT, administrative staff 28 9
Web application development cost $60,000
Take-Aways Designing the new process:
–Put your top people on it –Show them the goal –Let them show you how to reach it –Give them the tools and authority –They will take you past your goal –And be missionaries for the change
25
Take-Aways Getting your suppliers on board: • Understand your suppliers’ business
–Know their pain points –Be their best customer
• Pick reliable suppliers • Make sure both of you make more
money
26
Take-Aways Implementing the technology: • Use Web apps in the cloud
–Faster to develop –Runs anywhere on anything –Keeps your network secure
• Share all the data • Give away the technology
27
One More Thing…
• …Home Depot Landscape supply closed all 11 of its stores
• And shut down the division
28
Questions
29
top related