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CONFIDENTIAL : PROGRAMME LIGHTNING CONFIDENTIAL : PROGRAMME LIGHTNING Page 2
Agenda
Topic Presenter
Welcome and Overview Merchandise Manager
Programme Lightning Overview Gareth McFarlane
Article Number and Article Data Andre Vos
Labelling of Products Michael Timmins
Promotions Terry Vaa
Terms of Trade and Price Changes Chris Monkton
Store Cutover Activities Gareth McFarlane
Question and Answer Session Merchandise Manager
Close
CONFIDENTIAL : PROGRAMME LIGHTNING
Overview of Programme Lightning Gareth McFarlane Programme Director - Lightning
CONFIDENTIAL : PROGRAMME LIGHTNING CONFIDENTIAL : PROGRAMME LIGHTNING Page 4
What is Programme Lightning?
A long-term business transformation programme to… – Create “One Foodstuffs” way of working across the organisation (i.e. FSNI
Upper North Island support centre and stores) and build our future foundation for growth
– Standardise processes across the Upper North Island support centre, distribution centres and stores for greater efficiencies
– Enhance systems to support the new end-to-end processes for Merchandising, Purchasing, Distribution, Marketing and Selling and Finance
– Have access to timely and accurate information so we can make better decisions
Note: 1. The FSNI Lower North Island support centre and stores are not in scope for Programme
Lightning. Any changes taking place in the Lower North Island will be communicated by Project Connect
2. The changes taking place through Programme Lightning also do not impact Foodstuffs South Island
CONFIDENTIAL : PROGRAMME LIGHTNING CONFIDENTIAL : PROGRAMME LIGHTNING Page 5
We are working on…
• End-to-end processes across Merchandising, Distribution, Purchasing, Marketing & Selling and Finance
• Access to accurate and timely information
Gilmours (Completed)
Four Square New World PAK’nSAVE
FSNI Upper North Island
Lightning Transformation
• Touchscreen point-of-sales terminals
• Integration to the SAP retail solution
Gilmours (Completed)
Four Square New World PAK’nSAVE
FSNI Upper North Island
POS Replacement (StoreLine)
• Core skills, processes and systems training
• Deployment planning and on-site support throughout rollout
• On-going online access to training and self-help
Gilmours (Completed)
Four Square New World PAK’nSAVE
FSNI Upper North Island
Business Transformation
These activities must be completed prior to POS Replacement:
• Installation of FSNI Network
• Installation of FSNI Wireless Network
• Upgrade to Windows 7 and MS Office 2010
• Hardware & UPS remediation
Gilmours (Completed)
Four Square New World PAK’nSAVE
FSNI Upper North Island
(Completed)
Technical Readiness
CONFIDENTIAL : PROGRAMME LIGHTNING CONFIDENTIAL : PROGRAMME LIGHTNING Page 6
2012 - 2013 2010 – 2011
2014
Focused on planning, discovery, process design, solution architecture and high-level change impact assessment
Confirmed our partners for the POS Replacement Project (Retalix) and Lightning Transformation Project (SAP)
Completed the Business Readiness Programme with all New World and PAK’nSAVE stores which prepares them to receive the new Lightning processes and systems
Developed and received sign-off of the Business Blueprints which covered all in-scope processes and involved more than 400 people
Developed a Learning Management System to provide training and on-going self help known as “The Learning Zone”
Rolled out Retalix StoreLine POS to 3 pilot stores – 4SQ Papamoa, NW Morrinsville, PnS Albany
Successfully delivered Go-live 1 on 4 November which introduced a new SAP system to existing users at the Support Centre and 8 Gilmours stores and Retalix StoreLine POS
Preparation for Go-live 2 middle of 2014 followed by Go-live 3 – 5 which sees the introduction of SAP to the rest of the support centre and integration of SAP and StoreLine at the three pilot stores Full roll of POS
Our Deliverables
CONFIDENTIAL : PROGRAMME LIGHTNING CONFIDENTIAL : PROGRAMME LIGHTNING Page 7
POS Replacement – Retalix StoreLine
• Retalix StoreLine replaces the 4690 and introduces touchscreens at the checkout
• Store transitions: – All Gilmours stores – Four Square Papamoa – New World Morrinsville – PAK’nSAVE Albany – New World New Lynn – New World Kumeu
• Full Upper North Island support centre regional deployment has commenced and will take about 2 years to complete
CONFIDENTIAL : PROGRAMME LIGHTNING CONFIDENTIAL : PROGRAMME LIGHTNING Page 8
Lightning Transformation – SAP • Introduces the new SAP solution which standardises our processes for Merchandising,
Purchasing, Distribution, Marketing and Selling and Finance
• Go-live 1 on 4 November 2013 – 8 Gilmours stores – Existing users at the support centre – Commercial Operations, Property, Gilmours Merchandise team
• Go-live 2 in mid- 2014
– Integration with SAP for Fresh Produce DC, Roma Rd and Rotorua distribution centres and chill/frozen distribution centre
– New SAP users at the support centre – rest of Retail and Supply Chain teams
• Go-lives 3-5 with the three pilot stores following Go-live 2 – PAK’nSAVE Albany – New World Morrinsville – Four Square Papamoa
• Early 2015: All going well with the above pilots, we will then rollout SAP based on the same
regional approach as for StoreLine POS and this will take about 4 years to complete
CONFIDENTIAL : PROGRAMME LIGHTNING CONFIDENTIAL : PROGRAMME LIGHTNING Page 9
Key Changes at the Upper North Island Support Centre
• Ordering, promotions, article and vendor information management will be migrated to SAP or integrated with SAP – This will impact the Merchandise, Retail and Supply Chain divisions who are
currently using various systems
• New articles are entered in SAP by the support centre only, and not by individual stores – Completeness of product information and pricing accuracy is vital
• All vendor information will be migrated to SAP for Retail – Important to keep us updated on any changes in key contacts and vendor details and
provide us with a generic email to ensure continuity of communication if someone leaves or changes positions
• Single nationally used merchandise category hierarchy (MCH) across
Foodstuffs to provide consistent reporting
CONFIDENTIAL : PROGRAMME LIGHTNING CONFIDENTIAL : PROGRAMME LIGHTNING Page 10
Key Changes at Retail stores migrating to SAP (PnS Albany, NW Morrinsville, 4SQ Papamoa)
• All articles that stores buy and sell, or buy and use in store will need to be setup in SAP before they can sell or order them
• Stores can set their own store pricing • All local vendors will need to be setup up in SAP • All invoices will need to reference your vendor number to process, and PO
number, if relevant • Once it is created or updated in SAP, stores will receive notification to view the
product or vendor information • Stores on SAP will strongly encourage electronic communications such as
email for statements, DDN, credits, etc. • Stores will use the new merchandise category hierarchy and all articles will be
assigned to specific departments in-store • Earlier visibility of local deals will enable greater accuracy in forecasting and
replenishment • Introduction of store-driven cycle counting and ordering process • Potentially, new functionality of creating order proposals to the buyer when in
store, but this is store dependent
CONFIDENTIAL : PROGRAMME LIGHTNING CONFIDENTIAL : PROGRAMME LIGHTNING Page 11
What does this mean for you…
• Validation of price on purchase orders via Foodstuffs Exchange
• Automated settle and pay process for purchase orders and invoice matching
• Volumetric terms of trade to correctly price orders, taking into account promotional pricing and order value loaded into SAP where negotiated
• Quantitative assessment of vendors (and Foodstuffs) performance
• Store will not be able to sell your articles if your vendor details and article data has not been setup in SAP
CONFIDENTIAL : PROGRAMME LIGHTNING
Article Number and Article Data
Andre Vos Merchandising Business Process Owner
CONFIDENTIAL : PROGRAMME LIGHTNING CONFIDENTIAL : PROGRAMME LIGHTNING Page 13
Article Overview
• Every article is bought and sold under an SAP article number
• 7-digit article numbers – The old 6-digit Foodstuffs numbers are replaced with new 7-digit numbers and the
current RPG grouping will be replaced by Price Families and Product Groups
• Non-barcoded Fresh Foods will use 5-digit PLU numbers – For selling by each (e.g. cabbage), or by kg (e.g. rump steak), or both each and kg
(e.g. capsicum) – PLUs are standardised across Foodstuffs with SAP rollout
• All articles will have cost and RRP prices loaded by the support centre
• Ranging: “Core”, “Recommended”, “Optional”
• Store Specific Article
CONFIDENTIAL : PROGRAMME LIGHTNING CONFIDENTIAL : PROGRAMME LIGHTNING Page 14
“New” Article Data
• Please send your article data to Foodstuffs first and discuss with the Category Manager before informing stores
• Article data can be submitted to Foodstuffs via: – GS1 (internet)
– UBF form for barcoded articles – email UBF@foodstuffs.co.nz
– NBF form for non-barcoded articles – email UBF@foodstuffs.co.nz
• Used for non-barcoded Fresh Foods, and • For articles with no retail barcode (e.g. shipper only, sold as Bulk)
CONFIDENTIAL : PROGRAMME LIGHTNING CONFIDENTIAL : PROGRAMME LIGHTNING Page 21
“New” Article Data
• Data is then validated, and accepted or rejected
• Vendors are advised by email
• Data must be accurate and complete! – Please double-check:
• Retail Units per Inner, Shipper, Layer, Pallet fields • Dimensions for Retail Unit, Inner, Shipper accurately – they relate to the pallet weights
and heights • List Price applies to all Banners
CONFIDENTIAL : PROGRAMME LIGHTNING CONFIDENTIAL : PROGRAMME LIGHTNING Page 22
“Change” Article Data
• Change the article data and send to Foodstuffs via: – GS1 (internet) – UBF form for barcoded product – email UBF@foodstuffs.co.nz – NBF form for non-barcoded product – email UBF@foodstuffs.co.nz
• Includes non-barcoded Fresh Foods, and shippers without retail barcodes
• On the UBF, select Update “Y”
• Include the CRUC no (Customer Retail Unit Code)
– For new articles this will be the 7-digit Article number post-Go-live 2
• Update the relevant data fields
CONFIDENTIAL : PROGRAMME LIGHTNING CONFIDENTIAL : PROGRAMME LIGHTNING Page 23
UBF and NBF Training Sessions
• To help vendors with completing these documents, we have organised training sessions as follows: – Tuesday 13 May 9.00 am and 1.00 pm – Wednesday 14 May 9.00 am and 1.00 pm
• Venue: – Roma Road
• Tamah will email all attendees an invitation for them to register for the session they wish to attend
CONFIDENTIAL : PROGRAMME LIGHTNING
Fresh Products Barcodes
Michael Timmins POS Business Process Owner
CONFIDENTIAL : PROGRAMME LIGHTNING CONFIDENTIAL : PROGRAMME LIGHTNING Page 25
Fresh Product Barcodes
What labels are impacted? • Supplied to fresh retail departments • Labelled by suppliers using price embedded (020) barcodes Architecture current/ future
AS 400
4690/ StoreLine StoreLine
020ppppc$$$$c 80% 020pppp$$$$$c 20% 02ppppp$$$$$c
SAP
CONFIDENTIAL : PROGRAMME LIGHTNING CONFIDENTIAL : PROGRAMME LIGHTNING Page 27
Promotions Overview
• Overall, the promotions process remains unchanged for Retail
• The agreed promotions process for retail applies in principle to both Grocery and Fresh – Due to the complex nature that exists in most of the Fresh categories there may be
process variations that may also include an alternate system solution
• The Category Team will continue to work alongside you to manage a “Category Plan” using “Deal Sheets” in Microsoft Excel format – SAP will provide the Category Team tools to increase efficiency across these
processes
• Centre promotions will be transitioned back to the Legacy AS400 until all retail stores are on SAP – As a result, all existing Legacy system limitations will continue until this time (i.e.
deal and funding types, promotional product groups, etc.)
CONFIDENTIAL : PROGRAMME LIGHTNING
Terms of Trade and Price Changes Chris Monkton Purchasing Business Process Owner
CONFIDENTIAL : PROGRAMME LIGHTNING CONFIDENTIAL : PROGRAMME LIGHTNING Page 29
Key Concepts
• Terms of Trade – improve correctness of purchase order pricing – Payment terms
• Settlement discount • Payment cycle
– Standard pricing Terms – Lead time
• Price Changes – List price changes – Time critical – Flow to purchase orders – Promotional pricing – Support Centre – Store Deals
• Time bound • One off deals
– Date relevant
• Purchase order delivery – Exchange – Non-exchange
• Invoicing
– Improving first time match – More efficient payment process – Accuracy of GP
CONFIDENTIAL : PROGRAMME LIGHTNING CONFIDENTIAL : PROGRAMME LIGHTNING Page 30
Terms of Trade
• Terms of Trade have been migrated as they are currently defined
• Financial terms – Charge through terms such as settlement discounts and payment terms are the same
• Moving away from maintaining Net Price to maintaining List Price with discount
terms loaded – Those already set this way are the same in the new system – Ongoing improvement of accuracy of terms of trade maintained
• Logistics
– Lead-time
• Capturing the difference between banner terms for Go-live 2
CONFIDENTIAL : PROGRAMME LIGHTNING CONFIDENTIAL : PROGRAMME LIGHTNING Page 31
Price Changes
• Price Change Notification – No change to current notification process – Notice period continues to be important – Price changes now dynamical linked to sell price changes – Driven from the Vendor List price
• Relevance to Purchasing Process
– Purchase order pricing utilises terms of trade and negotiated purchase price at the level it is negotiated • Deals negotiated at stores take precedence over deals loaded at the support centre and are
used as per the effective date loaded • Negotiated prices must be loaded in vendors’ systems to improve invoice match rates • One off deals can be loaded at purchase order level at the time of purchase • Short supply should not mean a change in invoice price – terms should still apply • Foodstuffs will better manage long term Out-of-Stock - Blocking flag for Purchasing is in
current design
CONFIDENTIAL : PROGRAMME LIGHTNING CONFIDENTIAL : PROGRAMME LIGHTNING Page 32
Price Changes
• Pricing Precedence – Purchase order pricing is based on the date the purchase order is raised – The delivery date of orders is the order date plus lead time, but also factors in
trading days and holidays – due dates should always be working days
• Key Goal – A more accurately priced purchase order, which flows through Foodstuffs and
vendors systems
CONFIDENTIAL : PROGRAMME LIGHTNING CONFIDENTIAL : PROGRAMME LIGHTNING Page 33
Purchase Orders and Invoicing
• Purchase Order Delivery Method – Preferred method to deliver purchase orders to you is through Foodstuffs
eXchange – Auto fax delivery method maintained – Non Foodstuffs eXchange vendors
• Delivery method will continue to be by fax, but through the Foodstuffs eXchange
• Invoicing – Preferred method to deliver invoices to us is through Foodstuffs eXchange
• Line by line match, less price queries and credits • Accurate Moving Average Price • Accurate profitability reporting for product performance measures
CONFIDENTIAL : PROGRAMME LIGHTNING CONFIDENTIAL : PROGRAMME LIGHTNING Page 35
What Happens When a Store Migrates to SAP
• Vendor and article data for that store hosted in the current Foodstuffs systems will be migrated to SAP
• Store Specific Vendors: – For store specific vendors, each vendor must complete the Foodstuffs Vendor Application Pack
and submit it to Foodstuffs before the store can transact with the vendor – If all the required details are provided, interim Food Safety approval may be granted, and the
application approved. Once the vendor is approved, an SAP Vendor number is assigned
• Store Specific Articles: – If stores have their own store-specific articles each vendor must provide the GS1/UBF/NBF
product information to Foodstuffs, before these articles can be purchased and sold – If all the required data is provided correctly and validated, the Category Manager will load the
article for that store Banner – Once all the article data is loaded and created in SAP, the store can list the item for sale
• Purchase Orders: – Leading up to each store’s cutover to SAP we will look to minimise the number of purchase
orders migrated to SAP – Were possible orders placed prior to cutover, for delivery after go-live, will be created with an
SAP purchase order number
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