introduction to grocery wholesale operations 2015 • premier’s advisory council on government...
TRANSCRIPT
Introduction to Grocery Wholesale Operations May 27th, 2016 Chris Dini – Director of Grocery Operations
Grocery Operations
Agenda Grocery Operations Team Evolution & Mandate of Grocery Wholesale
Roles & Responsibilities
Current State & Continuous Improvement
What’s Next & The Road Ahead
Resources Available
Questions
Chris Dini – Director Leanne Rhee – Operations Holly Garner – Operations Jim Sheridan – Operations Matt Lopez – Inventory & Supply Chain Jamie Fazekas – Finance IT Cross Functional team
Grocery Operations Team
April 2015 • Premier’s Advisory Council on
Government Assets (PAC) – Striking the right balance: Modernizing
Beer Retailing/Distribution in Ontario – 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
Evolution of Grocery Operations
November 2015 • LCBO RFB 2015-010 Closed
– 13 successful respondents with 60 locations December 2015
• Grocery Management System (GMS) Launched
– On December 15th, 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
Evolution of Grocery Operations
• 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
Our Mandate
• What we are involved in… – Business-to-Business wholesale transactions – 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
Our Responsibilities
• Regulates the laws pertaining to the sales, service and consumption of alcohol
• 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
AGCO Responsibilities
Key Partners
Roles
INDEPENDENT PHARMACISTS
PATIENTS
PHARMA NEWCO Grocers
Suppliers
Wholesaling “eligible beverage alcohol products
in grocery” Program
GROCERY OPERATIONS
SOURCE OF SUPPLY
BUSINESS CUSTOMERS
Joint Activities
INDEPENDENT PHARMACISTS
PATIENTS
PHARMA NEWCO Grocers
Suppliers
Wholesaling “eligible beverage alcohol products
in grocery” Program
PRODUCT LISTING
PRODUCT ORDERING & FULFILLMENT
MARKET OPPORTUNITY
• Providing product catalogue to grocers
• Receive orders for beverage alcohol from authorized grocers
• Filling grocers orders through various supplying sources
• Supplying source for all imported beverage alcohol
• Invoice grocers for product received
• Pay suppliers for products grocers receive
LCBO Responsibilities
INDEPENDENT PHARMACISTS
PATIENTS
PHARMA NEWCO Grocers
Suppliers
Wholesaling “eligible beverage alcohol products
in grocery” Program
PRODUCT LISTING
PRODUCT ORDERING & FULFILLMENT
MARKET OPPORTUNITY
• Manufacturing and listing products for wholesale through the LCBO
• Setting retail prices • Pursuing sales and
marketing opportunities with grocers
• Supplying source to grocers for domestic beverage alcohol
Supplier Responsibilities
INDEPENDENT PHARMACISTS
PATIENTS
PHARMA NEWCO Grocers
Suppliers
Wholesaling “eligible beverage
alcohol products in grocery” Program
PRODUCT LISTING
PRODUCT ORDERING & FULFILLMENT
MARKET OPPORTUNITY
INDEPENDENT PHARMACISTS
PATIENTS
PHARMA NEWCO Grocers
Suppliers
Wholesaling “eligible beverage alcohol products
in grocery” Program
PRODUCT LISTING
PRODUCT ORDERING & FULFILLMENT
MARKET OPPORTUNITY • Purchasing decisions on
brands and quantity of products ordered
• Brand and marketing relationships with suppliers
• Paying LCBO for beverage alcohol received
Grocer Responsibilities
• 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
It’s a new business!
• Importance of data integrity
• Need for simplicity of replenishment and delivery operations
• Plentiful assortment
• Finance considerations
What we’ve learned
• Collecting feedback from suppliers and grocers
• Continuous improvement through IT enhancements
• EDI transactions • GMS portal
enhancements • Process enhancements
LCBO’s commitment for continuous improvement
Enabling a smooth transaction
• Use resources available
• 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
How you can be successful in this channel
Doingbusinesswithlcbo.com
- Grocers legally permitted to start selling Cider on June 24th
- 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
What’s next
The road ahead
Summer 2016 • Cider Assortment available to 60
existing authorized grocers
Fall 2016 • Wine licenses will be granted up
to 70 grocery stores through formal bidding process
• Winery Retail Stores will be permitted to co-locate and operate in grocery stores
• All grocery stores selling wine will have Beer and Cider licenses
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 which will be selling Wine
• 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
Available Resources
Questions?
