POST MORTEM (CHRISTMAS BUILD-UP)

MACRO

Major Activities Responsible LAST YEAR PRESENT
Forecasts Merchandising July 2010 Early September
Meet with suppliers regarding their commitment in the forecast Merchandising with SPIC August 2010 2nd week of September 2011
Creation of Ordering Schedule based on Merchandising seasonal forecast SPIC 1st week of October 2010
Ordering of Seasonal Build SPIC 2nd week of September – 3rd week December 2011 Oct 7, 2011
Mass Displays Merchandising Not have the data as to when Merchandising submitted their plans Sent plans for selected items for mass displays (1st week of November 2011)
Push of stocks from the DC of other Seasonal items (without mass display quantities) SPIC Setup up in E3 through held quantities Setup in E3 through held quantities

MICRO (only on 2011 plan)

A. Forecasts

Merchandising was responsible to compute for the forecast quantities that will be ordered for the seasonal SKUs. They used last year’s consolidated sales for their computation (including % lift). It was submitted to SPIC early September however we still need to meet with the suppliers in order to discuss commitment of stock availability based on forecast, extended terms, delivery dates, etc..

B. Meet with Suppliers regarding the forecast

SPIC and Merchandising have only met with 6 of the top suppliers (Unilever, Nestle, Alaska, Del Monte, Federated, Fly Ace). Sir, this was also the time wherein Merchandising and SPIC are also planning for the opening of Edsa Central (3rd week of October) and Shopwise Cebu (3rd week November opening).

C. Creation of Seasonal Build

SPIC used as reference the previous year’s workfile to create the schedule of deliveries and using terms of payment to determine the allocation % and quantity per order. Schedule was done 1st week of October 2011. We followed delivery schedule of the supplier at Tunasan.

D. Releasing of Orders to Suppliers

I have discussed with Sir Armand my concern on when we shall release the orders for the seasonal build. It was already the 6th of October and we have not released the PO’s. Upon his advise we planned to start the order release Oct 7, 2011. I had advised Merchandising of this plan as well through email. Orders were released on schedule and was highlighted on the weekly Inventory Meeting (Oct 11, 2011).

During the week of October 10th, RCV set up an alignment meeting with SPIC as to the store ordering allocations and delivery schedules. In the alignment meeting, revisions were made in the allocations and delivery schedule, this is to maximize the terms of the suppliers. SPIC needed to re-do the allocations and call up the suppliers for the new schedule. Most suppliers schedule was deferred to week of Oct 24th. (refer below)

E. Replenishment

Replenishment team was monitoring deliveries of suppliers. If there are unserved orders, immediately these unserved quantities were re-ordered.

Week Fill-rate (Chain)
Oct 17-23 85.3%
Oct 24-30 75.0%
Oct 31-Nov 6 74.6%
Nov 7-13 76.1%
Nov 14-20 82.0%
Nov 21-27 91.5%
Nov 28-Dec 4 80.3%
Dec 5-11 92.0%

F. Mass Display

Merchandising created a plan to setup up mass display quantities for selected SKUs for select stores. Mass displays were scheduled to be at the stores by Nov 15th. Plans were submitted to SPIC for setup in E3 before the said date.

G. Inventory at Tunasan

From the Nov. 7, 2011 MPC report current stockdays scenario was at --- days. Based from the meeting of Sir Armand with PS, PS was not comfortable with the stockdays figures. It was therefore decided by Sir Armand and I to manually push to the stores seasonal SKUs that have enough stocks at the DC during this particular week. Allocation was ---