retail perspective & credentials

Wilson Perumal & Company

Retail: Perspective & Credentials

April 2015

Wilson Perumal & Company, Inc. 2

Wilson Perumal & Company at a glance

• A management consultancy with offices in North America and Europe, combining operations strategy experience with depth in retail

• We have a unique methodology of aligning Strategy, Complexity, and Operations to optimize results and drive tangible ROI

• Our retail service offering is centered around five key areas. All of which are customer focused and viewed through the lens of complexity

• We are thought-leaders and hands-on practitioners: we are aware of the challenges facing retail, and have a passion for helping retail achieve results

• We enjoy 100% reference-able clients


Current State of Retail

Major Retail Trends Key Implications

Technology has empowered the consumer and disrupted the industry

Channels are blurred and customers shop across all channels

Brick & mortar remains a key differentiator although how a store looks and operates may be radically different

Customer loyalty has declined and expectations have increased

Shoppers expect an engaged, trained, and customer-centric workforce

Retailers must embrace technology and even integrate the elements of the digital marketplace into the store

A seamless omni-channel strategy flawlessly executed is critical for survival

A nimble, efficient, and high-velocity supply chain is a requirement for executing your service and inventory strategy

Retailers must engage and delight customers across all touch points

Retailers must think of their workforce as an asset and not as an expense

Which of these trends is most imminent to your business?

Which of these implications may you experience the most challenge?


Satisfying customer expectations must be at the forefront of your Strategy and Execution planning

The right product

The right price point

When, where, and how I want it

The right services

Incentive and reliability that wins

my loyalty

• Relevant assortments

• Pricing optimization

• Engaged workforce staffed to customer traffic

• Nimble supply chain to execute fast and efficient omni-channel operations

• Effective promotion tailored to individual

•

•

•

• .

•

Strategy Execution

Customers


However, the path from Strategy to Execution is often interrupted by “Complexity”

Customers

Strategy Execution

Confused pricing between SKUs and online/offline

Overwhelming selection

Inconsistent selection and policy between channels

Product unavailabilityToo many but irrelevant promotions

Unavailability of workforce

Uncompetitive shipping charge and time

Data/Privacy breaches

Poorly-managed Complexity usually manifests in Customer-facing indications


Complexity usually builds up over time and is manifested by multiple symptoms

Silo organizations

Negatively impacts your bottom line

Good strategy but poor execution

Long decision time

Undifferentiated staff

Cumbersome processes

Retailers coping with various market forces usually experience exponential growth of Complexity

Omni-Channels

New Store formats

New

Tech

no

logy/

Big D

ata

Ce

ntr

aliz

atio

n

vs. L

oca

lizat

ion

Impact beyond customer-facing indications


Our customer-focused offerings are designed to address complexity to ensure tangible ROI is achieved

WP&C Retail Offerings “Complexity” lens helps retailers realize better

Strategic and Operational results Omni-

channel

Store Operations

Workforce Optimization

Inventory Optimization

Supply Chain

Customers

• We literally wrote the book on Complexity

• It is in our DNA to identify and resolve complexity issues and barriers to success

• Experience-based insights

• Trained to move swiftly

• Leverage internal cross-functional teams

• WPC values knowledge transfer to achieve sustainable results

Wilson Perumal & Company, Inc.

Typical Results

Sales increase of 2 – 3%

Increased in customer satisfaction scores of 15 –20%

Increase of fulfillment rates of 10 – 15%

WP&C Focused Solutions

• Development and a validation of your omni-channel strategy and operating model

• Organizational, process and product alignment

• Supply chain assessment to identify gaps and design solutions

• Store operations process definition to enable store fulfillment and in-store pick-up

• Technology review to identify barrier for inventory visibility across channels

Current Trends and Implications

Customers no longer shop channels, they shop brands. They also expect a seamless and consistent shopping experience across all channels. This creates great demands as well as a great opportunity to connect with you shoppers at every touch point of their shopping journey. Your organization as well as your processes and technology must be aligned and streamlined to deliver on your service vision while “profitably” managing increased complexity.

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WP&C Retail Offerings

Omni-channel



Store Operations

Typical Results

15 - 30% improvement in process productivity

Unlock 4 – 7% of stores payroll for redeployment

Reduced stores’ G&A expense by 3 – 6%

Conversion increase of 2-3%


• Process reengineering

• Organizational alignment

• Standard operating procedures

• Customer engagement

• Conversion measurement and impacts

• Sales-floor leadership training

• Optimal field structure

• Operationalizing emerging technologies

• Performance management


Despite the emergence of ecommerce, your stores, now more than ever, represent a unique opportunity to personally connect with your customer. The human interaction that your stores provide is a unique differentiator that an online transaction cannot duplicate. We are experts in all activities taking place within the four-walls of your stores and the enabling technologies to deliver a great customer experience while increasing productivity and reducing non-value added costs.


Typical Results

Payroll reduction of 2 – 3%


Increase sales per hour productivity

Increase customer satisfactions scores 10 – 15%


• Labor scheduling / time and attendance / task management best practice review

• Activity dictionary creation

• Baseline current schedule effectiveness and adherence

• Work as a liaison with technology providers and your business owners to drive ROI and user-adoption

• Review forecasting accuracy


Having an engaged, well-trained, and customer-centric workforce is now, more than ever, a requirement to survive and thrive in the new retail environment. Shoppers are no longer satisfied with a “transactional” experience and now desire “inspirational” service, the demand on your workforce is at an all time high. Our professionals are trained on best practices and technology to optimize your workforce to drive financial and service objectives.


Workforce Optimization


Typical Results

Improvement in inventory turns of 5 – 10%

Reduction in inventory carrying costs of 7 – 10%

Decrease in out of stocks by 10 -12%

Gross Margin improvements of 3 – 5%


• SKU rationalization and stratification

• Store clustering

• Store localization strategy

• Aged inventory analysis and disposition recommendations

• Promotional effectiveness

• Overstock, out of stock, and waste reduction

• Vendor matrix streamlining


As retailers embrace omni-channel and smaller store format strategies, the criticality to optimize inventory is at an all time high. Retailers must create relevant, localized assortments while mitigating the risks and costs of SKU proliferation. At the same time out-of-stocks are a drain on profitability and negatively impact the shopping experience. Our professional are experienced in inventory portfolio optimization while utilizing proprietary Six-facet approach to ensure results.


Inventory Optimization


Typical Results

Reduction in distribution and transportation costs of 5 – 7%

Increase of web order fulfillment of 10 – 15%



• Supply chain assessment to identify gaps and design solutions

• Supply chain & sourcing optimization

• Cross-channel fulfillment

• Distribution model analysis

• Network optimization

• Sourcing strategy


With the evolution of an omni-channel retail environment, your supply chain is now at the forefront of delivering your service strategy to your customers. Inventory visibility across the entire supply chain and directly to the customer is now the norm. Our team will review your supply chain operations to ensure it is flexible and scalable to ensure velocity and accuracy of moving merchandise in the most optimal manner to your stores and directly to your customers.


Supply Chain


Retailers our professionals have served


“This was a quick and painless way to understand our true product

profitability, and it challenges how we think about our business. I am

extremely pleased with the results.”—Fernando Palacios

EVP and Chief Integrated Supply Chain OfficerMillerCoors LLC

“WPC’s approach to complexity is the most direct route to an

efficient, profitable enterprise.”—Ed Lonergan

CEO of Diversey Inc.

“WP&C is helping us transform our business. Their insights are

phenomenal!”—David Hoogmoed

President, Land O’Lakes Purina Feed

“You are analytical and smart, but you also get things done!”

—Head of Commercial DevelopmentLeading European Retailer

“Best work I have seen in Operations Development. A case study for us as a

business”- CEO, European Electronics Retailer

“Very insightful work…it was a pleasure working with you and your

team.”-Senior Operations Director, Global 100 Retailer

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Our clients attest to our ability to impact their bottom line

“I truly believe you got to some of the key issues at [Retail Co.]”

-Director of Supply Chain, Grocery Chain


Jim Malafronte• Over 10 years retail industry and 20 years retail consulting experience in retail strategy, retail analytics,

workforce management, store operations and business transformation; unlocking value from their operations and delivering tangible ROI

• Extensive list of retail clients served covering all major formats (luxury, dollar stores, big box, specialty, hardlines / softlines, chain drug, wireless, etc.)

• Former Vice President for Verint Systems (a $1B actionable intelligence organization) in their Video Business Analytics division

• BS and MBA from the University of Kentucky

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Retail Focused Professionals (I)Stephen Wilson• Managing Partner and co-founder of Wilson Perumal & Company

• More than 15 years of experience advising senior clients on critical strategy and operations issues

• Co-author of Waging War on Complexity Costs and Growth in the Age of Complexity (McGraw-Hill 2015)

• Retail experience in a broad set of functional areas, including Enterprise performance; Range & Promotions; Customer & Channel; Supply Chain & Sourcing, and Operations Excellence

• Formerly Partner, Accenture (following Accenture’s acquisition of George Group Consulting)

• MBA from Wharton; frequent contributor to the FT (Agenda), Investors Business Daily

Ann Bryan• Seasoned strategy manager with over 15 years of experience in strategy & consulting

• Retail experience includes strategy and operating model design of several retail formats (supermarket, hypermarket, convenience store, gas station store) for global retail chains, ecommerce strategy and technology design, customer loyalty program design, store clustering and portfolio optimization

• Former Project Leader with BCG; Former Director of Corporate Strategy, Applied Materials Inc.

• Hand-on operational experience through two successful retail entrepreneurial ventures

• MBA from Kellogg (Fulbright scholar); MS Operations Research from UC Berkeley


Retail Focused Professionals (II)

Steve Liguori• Expertise in business simplification, operating model design, process optimization, and growth strategy

• Significant retail and consumer goods experience, including projects in portfolio optimization, process design, promotional effectiveness, out-of-stock reduction, and distribution effectiveness

• Worked with retail clients from a $1B grocery retailer to an £8B European electronics retailer

• Former Manager, Analytical Research & Development, Pfizer

• MBA from Emory University; BA in Physics from College of the Holy Cross (National Physics Honor Society)

• Over 20 years of experience in Supply Chain and Logistics via consulting and industry operations roles

• Specific experience in inventory management, distribution operations, transportation management (incl. fleet), reverse logistics and logistics network planning & design across multiple industries

• Specific retail experience from Lowes, Michaels, and Kmart with projects from enterprise transformation programs to distribution center slotting improvements

• Former director of global logistics with responsibility for NA and European transportation and distribution including international ocean and air from Asia

• BSIE and MSIE from Purdue University

David Toth

Jacob Carr• In-depth experience in growth strategy, operational improvement, and M&A/due-diligence projects

• Led numerous retail projects such as a turnaround initiative for a $10B retail services firm as well as developing a new growth strategy for a $1B retail chain

• Previously, Jacob was head of strategy and M&A for a $1 billion division of Thermo Fisher Scientific, and Director of Strategic Development at DaVita

• MBA from Harvard Business School and a BS in Economics and Poli Sci from the US Air Force Academy


North America Europe

One Galleria Tower13355 Noel Road, Suite 1100

Dallas, TX 75240

+1 972-716-3930

Longcroft House2/8 Victoria AvenueLondon, EC2M 4NS

+44 (0)203 206 1496

Contact Us:

www.wilsonperumal.com

Retail Leads

Jim Malafronte+1 404-216-2205

[email protected]

Ann Bryan+1 650- 862-1896

[email protected]

mailto:[email protected]

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retail perspective & credentials

Retail

linegood strategy

operations strategy

inventory strategy retailers

itthe right servicesincentive

highvelocity supply

delight customers

key differentiator

differentcustomer loyalty