Slide 1
VCF Retail Scorecard Analysis ProjectYou wont improve if you
dont keep score!
Scorecards MatterScorecards depends upon POV
VCF Compliance Collaboration
VCF Scorecard Project Challenges
No one wants to be first!Confidentiality How to showcase
?Initial Project ScopeRetailer Scorecards ~ 20 Retailers submitted
scorecard samplesFocus on ComplianceAdditional metricsScorecards
represented wide diversity of retail:Apparel hardlinesMass
merchants Department & Specialty
Review representative sample scorecards (retail)
Common metricsBest practicesDiscover trendsIdentify
opportunitiesExplore collaboration
Objectives of VCF Scorecard ProjectProcessAnalyze
InterviewsCompositeTrendsInsights
Scorecards = Key for Top to Top Meetings
Retailer Sound bites
A matter of Accountability Have to hold their feet to the fire
Scorecards are proactive messages for BIG issues even if you are
not there!Problem is that vendors dont see compliance as strategic
Compliance scorecards are the springboard to Partnership!Need to
listen to suppliers to get to ground truth Reminder Retail
Scorecard POV
Finding: Common Metrics ComplianceScorecard Core Metrics not
surprising:ASNFill rateOn-time Order AccuracyError rate /
%PackagingChargebacks
Focus on Vendors on what affects both our costs and their
performance on floor
Finding: Scorecard FrequencyQuarterly IF only minimal
violations
Monthly Standardized for all key vendors
Weekly Trend for top, key accounts
Portal Current is on-line
Frequency increasing with automation of scorecardsRetailer
Insights on EffectivenessClear metric definitionsConsistency and
ACCURATE data!Same scorecard internally with your merchants!Drill
down capabilityEnable Vendors to drill downDiagnostic, meaningful
compliance error codesCommunication with top vendorsReach common
understandingFocus on partnership rather than catching bad
Findings: Feedback beyond the #sData = Events
Metrics = Performance / ratios
Benchmarks = Performance against standards
Critical Success Factors:AlignmentAccuracyDefinitionsPutting
data in a computer
doesnt make itor youany smarter!
Discovery
OnlineScorecard Complexities
Different weekly cycleDifferent SKUsPackaging
requirementsInventory
Separate Scorecards?16Best Practices: Composite
ScorecardDashboard like Portal
Multi-Dimensional
Graphical Trends
Coded Alerts
Drill Down
Efficiency + Execution + Profitability
Composite: Supply Chain & Compliance
Best of Breed
Mouse overDrill downBest Practice: Alerts, Trends GradesCritical
Success Factors:Easy, consistent definitionsCommunication &
feedback
Grades dont mean anything or tell us what to change, unless they
are consistent across scorecards
Best Practice: Execution & Profitability
Best Practice: Portals w/ User Views
User Criteria:
Filter variablesSelect timeDrill downNirvana beauty lies in the
eyes of the partners
Next Steps: How do we proactively changeA question of balance
& perspective
Problem is that vendors dont see compliance as strategic
How come retailer scores vary so much cant afford to adjust to
each one!Best PracticesWe need to survey vendors!
What is their POV?
What do they need?
What makes it work?
What are their metrics
Toward Collaboration
Getting on the same pageDefinitions
Consensus
Consistency
Joint MetricsDont leave money on the tableToward Collaboration
ProfitabilityRetailer Scorecards
Vendor Scorecards
?Understanding
Align
Balance
Joint MetricsVendor KPIsSalesGM$AUR Mix$ /
sq.ft.ConversionAttachMarket BasketReturnsROI Ads & PromosVCF
Scorecard Project Next Steps
Retailer Scorecards:Expand retailer scorecard sampleExpand scope
beyond complianceAnalyze onlineVendor Scorecards:Collect Vendor
SampleCore Vendor MetricsBest PracticesBuild a composite joint
scorecard POV
You always have a choice
29Q & AWhat surprised you the most?
What didnt surprise you?
What is your biggest take away?
Who else needs to hear this Continuing the Conversation
Chris H. Petersen, PhDIntegrated Marketing SolutionsSenior
Partner, CEOEmail: [email protected]:
@chrishpetersenLinkedIn: Handle - ChrisHPetersen
Website: www.imswired.comBlog:
www.ResultsCount.Typepad.comTwitter: @IMSResultsCountFacebook: IMS
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