vendor excellence: creating & maintaining a win/win ... excellence workshop (ss2013).pdfhere is...

Vendor Excellence: Creating & Maintaining a Win/Win Partnership

Vendor Excellence page 2

Faith Founded; People Friendly

Why We Exist:

We SERVE to make lives better

Our Strategic Anchors:

Great Customer Experience

Win/Win Vendor Partnerships

Smart Supply Chain

Core Values:

• Caring

• Determination

• Faith Friendly

10% of our profits go to the less

fortunate and other worthy causes

page 3

Employee Owned Our Employee Stock Ownership Plan (ESOP)

engages ad motivates our employees to

continue to build the organization while providing

an opportunity to share in the profitability and

growth of KeHE.

How We Succeed – Strategic Anchors

Vendor Excellence

How do we add value for our Vendors?

Survey sent out January 2013 to a mix of 550 supplier and brokers


Here is what they told us!

• KeHE focuses on 3 broad areas of responsibility relative to it’s vendor

relationships – Administrative Support

– Supply Chain Collaboration

– Sales Advocacy


Remaining presentation focuses on Sales Advocacy

Sales Advocacy: 3 Key Areas

• Our vendors told us “We’re Good but not GREAT!”

• How do we go from Good to GREAT? – Help Vendor control Expenses (Vendor Advocate)

– Great Communication Skills

– Sales Expertise


and now…the cast of… ALL MY VENDORS

• Scott Widtfeldt – Playing the part of Clint Wheeler

from Supply Chain and random

sales associate

• Laura McCord – Playing the part of Brandon

Barnholt “The Big Kahuna” and the

telephone

• Mark Kroencke – Playing the part of Dan Creedon of

Business Excellence

• Terry Gaar – Playing the part of the Vendor,

Harry and himself


The Vendor Advocate

page 8

Sales

Vendor Excellence

The Problem

page 9

Sales

Expenses

Vendor Excellence

10

Expense Drivers

Spoils

WH Inventory Coverage

Inventory Returns

Audit Recovery

$14.6M

$3.1M

$2.8M

$1.4M Vendor Excellence

11

What The Supplier Is Seeing

Spoils

WH Inventory Coverage

Inventory Returns

Audit Recovery

Vendor Excellence

$22M

How Much Is That?

1.9% of FYTD US Sales

65% of our FYTD EBITDA

50% of our vendor funded

promotions

Michael Jordan’s House

Insert page 12

$22M

13

Expense Mitigating Activities

Spoils

WH OOD’s

Inventory

Returns

Audits

Category

Reviews

Vendor Excellence

14


Spoils

WH OOD’s

Inventory

Returns

Audits

Account

Deletions

Vendor Excellence

15


Spoils

WH OOD’s

Inventory

Returns

Audits

Brand

Productivity

Vendor Excellence

16


Spoils

WH OOD’s

Inventory

Returns

Audits

AOM

Execution

Vendor Excellence

17


Spoils

WH OOD’s

Inventory

Returns

Audits

Issue

Resolution

Vendor Excellence


EP Management

EP Documentation

Problems

Good for Vendor?

Account Execution

$61M in EP Pass Through Annually

Annual Repayment

$732K Customer Repaid

Wrong Info Provided

No Backup

Duplicate Submission

19

SKU Optimization

AOM Execution

EP Management

Account Deletions

Category Reviews

Issue Resolution

Our Suppliers Need Your Service

Flair Clip


COMMUNICATION

page 21

Communication

• Tools that will provide a more thorough/consistent method of communicating

with vendors and brokers – Retailer Bio

– Vendor/Broker Newsletter

– New Vendor Inquiry

– Category Review Schedule

– Category Review Questionnaire

– Store Level Newsletter = Execution

• “A little goes a long way here”


Importance

RankFactor/ Activity

Importance

Score

Execution

Score

Importance vs.

Execution Gap

2 Banner-specific communication 4.69 2.86 39%

6 KeHE HQ communication 4.54 3.72 18%

7Providing sales, fill rate, inventory position and

other information through Oak RC4.53 3.81 16%

Flair #1: Retailer Bio

page 23

Basic Info: History,

Store Count, Layouts,

Targeted Consumers,

Competition, Initiatives,

etc.

New Item Info: Proper

Channel, Contact,

Sample Address,

Sample Quantity, etc.

1. Retailer History/Background:

2. Number of Stores: 3. Regions: 4. Major Markets:

5. Banner Names:

6. Store Layouts (Store w/in a store, Segregated/Integrated): 7: Targeted Consumers (Ethnic, Supplier Diversity, etc.):

8. Main Competition:

8. Retailer Initiatives:

1. How Best to Present New Items (Email, Phone, Appointment Only, etc.):

2. New Item Contact Person: 3. New Item Contact E-Mail:

4. New Item Contact Address: 5. Additional New Item Information:

6. Sample Address: 7. Number of Samples Required:

Guide to Success at Retailer X

Bas

ics

New

Item

sRetailer Logo

Vendor Excellence

Flair #1: Retailer Bio ctd.

page 24

Promos/Ads/Demos

Info: Frequency &

Depth Minimums,

Slotting, Demo Contact,

etc.

Additional Info:

Retailer Shows,

Educational

Opportunities,

Incentives, etc.

Other Info to Include:

Store Listing, Category

Review Schedule,

Retailer Category

Manager Contacts, etc.

1. Promo Frequency Min: 2. Promo Depth Min: 3. Slotting/Free Fill Requirements:

4. Grand Opening Requirements:

5. Approximate Cost of Ad Programs: 6. How to Participate in an Ad Program:

7. Approximate Cost of Demos:

8. Demo Contact Person: 9. Demo Contact E-Mail:

10. Demo Contact Address: 5. Additional Promo/Ad/Demo Information:

1. Upcoming Retailer Shows: 2. Educational Opportunities (Webinars, Conference Calls, District Meetings, etc.):

3. Retailer Social Media Opportunities: 4. Required Vendor Merchandising Support:

4. Incentive/SPIFF Opportunities:

I'm here to help! Contact me with any questions/concerns! Name:

Address:

E-Mail:

Phone:

Ad

dit

ion

al In

form

atio

n

Guide to Success at Retailer X

Pro

mo

s/A

ds/

Dem

os

Retailer Logo

Vendor Excellence

Flair #2: Broker/Vendor Newsletter


Flair #3: New Vendor Inquiry

• Vendor IN KeHE – Standardized email response

– New Item slide

– Roadmap

– Retailer Bio


Flair #3: New Vendor Inquiry

• Vendor NOT in KeHE – Standardized email response

– Vendor Questionnaire

– New Item slide

• Balance new vendor expectations and retailer expectations

with the reality of actual on boarding process at KeHE Vendor Excellence page 27

Flair #4: Category Review Schedules

• Designed for those that do not have formalized review schedules

• Aligns with KeHE HQ Category Reviews – You will have our corporate reviews in advance of these proposed date


Flair #5: Category Review Questionnaire


• 1-pager you can send out in advance to vendors to better understand

the programs they would like to run with your retailer

Flair #6: Weekly/Monthly Communication to Retail


SALES EXPERTS

page 31

Sales Experts

• We need you to be the resident Natural/Fresh/Specialty/Multi-Cultural expert

at your account – Lean on your Category Managers for information and training

– Read up on trade magazines

– Use the Toolbox!

• Know your retailer’s hot buttons. Convey that to our vendor community to

drive top line sales – Help guide our vendors through the maze

– Right Items/Right Store

• Set realistic expectations for the vendor


Sales Expert: Toolbox

page 33

• Go To Market Roadmap

Core Items

New Items

Promotional Plan

Marketing

Support

• Publications

• Shows & Events

• Additional Resources:

• OAK

• Cognos

• Friday Account Manager Call

Vendor Excellence

Sales Experts: Brand Productivity

page 34

• Success in this initiative is ultimately good for all parties

KeHE, Retailers, & Vendors

Brand

Productivity

Index

Sales PPD

Most

Productive

Brands

Vendor Excellence

Sales Experts: Brand Productivity Results

page 35

• Huge upside when retailers implement new strategy at shelf – Strong $PPD increase!

• Reduced Credits

• Increased Promotional Support

• Higher Fill Rates

CANNED VEGETABLES: 4' $195.76 $76.93 154.47%

GLUTEN FREE: 8' $119.92 $111.64 7.42%

GLUTEN FREE: 24' $104.14 $96.51 7.33%

SOUP: 8' $151.65 $133.54 13.56%

ITALIAN: 4' $164.54 $149.17 10.30%

SALAD DRESSING: 4' $105.12 $93.28 12.69%

VINEGAR: 12 LINEAR FEET $130.86 $102.36 27.84%

COCKTAIL MIXERS: 4' $123.88 $112.52 10.10%

PASTA: 4' $128.73 $121.06 6.34%

Brand Productivity Results

CATEGORY NEW $PPD OLD $PPD INCREASE

Vendor Excellence

Sales Experts: Speed 2 Shelf

Internal process

page 36

Program

– Streamlined process

CM alignment

Sync departments

– S2S Identifier

OAK priority code

AOM Event

Account Manager Calls

Defines expectation

– New item tracker

Visibility

Scorecard

– High potential items

Trend

Supported 100%

– Supports all channels

One contract & price

Replaces New 2U & Look What’s New

– Clusters

Achieve 20 POD’s

– Retailer POS updated

– Communication

– OAK RC

– KeHE websites (March 2013)

– eBlasts (to clusters)

Vendor Excellence

Sales Experts: Quarterly Marketing Initiatives

“Free From” Set


wheat

dairy

peanuts

tree nuts

egg

soy

fish

shellfish

• Each Quarter Marketing will communicate at least 3 initiatives – Account Managers to pick and execute against at least 2 initiatives

– Scorecarding

“Free From” Definition

38 Source: National Digestive Diseases Information, March 2012; HealthCare Zone 03/12; National

Foundation for Celiac Awareness, 2011; FoodAllergy.org ; American Academy of Pediatrics, 2011

90% of all

allergies

free from:

wheat

dairy

peanuts

tree nuts

egg

soy

fish

shellfish

Gluten Free +

“Free From” Opportunity

page 39

Celiac Sufferers

20 Million Consumers

Other Food Allergy Sufferers

130 Million Consumers

Source: American College of Gastroenterology, October 2011; Elucidare, January 2011

1990 2012

<1 in 50 children <.75% of Americans

1 in 10 children 4.0% of Americans

“Free From” Concept

1. Establish the sections: important categories, right brands

2. Educate our retailers: common allergies, item selection “free from”

3. Prepare our retailers: shelf talkers, brochures, support groups

4. Involve our retailers: social media, events, shows

5. Involve our vendors: demos, nutritionists, additional information

page 40

GLUTEN FREE ORGANIC/NATURAL FREE FROM

“I need help finding the

products I am looking

for. It is so much better

to have the products

grouped together.”

Summary

Vendors need YOUR help in these 3 Areas:

1. Vendor Advocacy: Help control their Expenses!

Store Level Spoils

Warehouse out of dates

Inventory Returns

Audits

2. Communication: Engage our Vendor/Broker Community

3. Sales Experts: Be the Ambassador for our vendors with your customers


vendor excellence: creating & maintaining a win/win ... excellence workshop (ss2013).pdfhere is...

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