6/5/2014
217:
How to Do Business
With Wegmans Food
Markets
Kathy Welch, Wegmans Food Markets
June 11, 2014
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AGENDA
• Who We Are
• What is Important To Us
• What Makes a Great Trading Partner?
• Data Quality
• Data Sync
• What’s Next?
© GS1 US 2014 ALL RIGHTS RESERVED
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$6.9B Retailer Founded in 1916
Headquartered In Rochester, NY
84 Stores With 44,000+ Employees
‘Fortune 100 Best Companies To Work For’
© GS1 US 2014 ALL RIGHTS RESERVED
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Self-Distributing Chain with DC’s in Rochester, NY, and Hazleton & Pottsville, PA
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NOTEWORTHY RECOGNITION
• 17 years on Fortune Magazine’s list of the 100 Best Companies to
Work For
• Greatest.com named Wegmans the #9 Healthiest Companies To
Work For
• Green Globes certification for sustainable construction of our
Germantown, MD store
• GS1 bestowed a Lifetime Achievement award to Danny Wegman for
his leadership, vision and innovation for sharing information between
trading partners
• Boston Consulting Group named Wegmans one of the Most
Recommended Brands of 2013
• Consumer’s Checkbook independently rated Wegmans the best in
price & quality in Virginia, Maryland, New Jersey and Pennsylvania
• Consumer Reports recognized Wegmans as the Country’s Top
Supermarket.
© GS1 US 2014 ALL RIGHTS RESERVED
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AREAS OF FOCUS
• Grow
– Family and Food Enthusiasts
– Organic
– Freshness
– Profitability
• Simplify
– Reduce Inventory
– Supply Chain Simplification
– Reduce Building Costs
• People
– Healthier, Better Lives
– Safety
– Development and Respect
© GS1 US 2014 ALL RIGHTS RESERVED
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WEGMANS’ PHILOSOPHY
“…do something no one else is doing
…offer our customers a choice they don’t have at the moment.”
- By Robert B. Wegman
© GS1 US 2014 ALL RIGHTS RESERVED
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WHAT MAKES A GREAT TRADING
PARTNER?
•
•
•
•
•
•
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Proactive communication
Actively involved in goal setting process
Tracks and achieves goals
Continuous improvement philosophy
Senior management commitment and involvement
Cross functional participation at supplier/retailer meetings
Good training process for new personnel, and an efficient
back up plan
• Sense of urgency at all levels to handle issues
• Good follow through on both Sales and Supply Chain
© GS1 US 2014 ALL RIGHTS RESERVED
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ALIGNED RESOURCES
Master Data
Distribution
Logistics
Sales
Accounting
Marketing
Sales
Master Data
Distribution
Logistics
Sales
Accounting
Marketing
Buying
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NEW WAYS OF WORKING TOGETHER –
BEST PRACTICES
Butterfly
Sales
Buying
Aligned Strategies
Diamond
IT
Distribution
Logistics
Sales
Accounting
Marketing
IT
Distribution
Logistics
Merchandising
Accounting
Marketing
Promote Growth
Aligned Resources
Collaborative Projects
With Great Return!
Eliminate Disruptions
Joint Business Planning
Common Goals and Measures
Annually
Review results, strategies,
goals for year
Quarterly
Cross functional Reviews
Weekly/Monthly
Day to Day interactions
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USING YOUR DATA …
Transportation
Planning
Shelf Planning
Warehouse
Operations
Wegmans Master
Data
Wegmans.com
Consumers
Invoicing
Procurement
GDSN is the most efficient way to
get complete and accurate data!
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COMPLETE & ACCURATE DATA
BEST PRACTICES
• Synchronizing quality item data involves good business practices and
a company wide understanding of industry standards (people,
processes and technology)
9 R&D, Package Engineering, Data Sync, IT and Sales
9 Establish a protocol for your data that follows the GS1 Package Measurement Rules
and GTIN Allocation Rules
• At Wegmans, New Item Fact Sheets should be complete and accurate
9 GTINs should be published prior to item introduction.
9 Align your sales team with an accurate data source
9 Provide the resources for your sales team to know if new items have been
successfully published before item introduction
• Manage any changes to Net Content and Case Pack Changes in
accordance with GTIN Allocation Rules.
© GS1 US 2014 ALL RIGHTS RESERVED
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GS1 US NATIONAL DATA QUALITY PROGRAM
Orange highlights what is certified/validated/verified
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5-POINT BEST PRACTICE
1.
2.
3.
4.
5.
Adhere to GS1 Standards and Rules for foundational attributes in
internal setup
– Foundational attributes: Brand Name, Declared Net Content/Unit
of Measure, Pack Quantity. A new GTIN must be assigned at all
applicable levels of change, following the GTIN Allocation Rules.
Assign data owners throughout the organization
– Operations, Supply Chain, R&D, Packaging, Marketing, etc.
– Documented process with control mechanisms
Appoint one entity/department/individual as the sole owner of product
data submitted to the GDSN
Accountability for gathering data, ensuring control mechanisms are
followed, and submitting the product data
Audit all new items produced in a sustainable production environment
ready for shipment (finished goods)
Execute communication on attributes, both internally and externally
© GS1 US 2014 ALL RIGHTS RESERVED
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CULTURE OF CONTINUOUS IMPROVEMENT
Focus
Leverage
Engagement
Accountability
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4 DISCIPLINES OF EXECUTION
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WEGMANS’ DATA ACCURACY INITIATIVE
Provide reporting and education for our
suppliers to improve people, processes and
technology that contribute to data quality
Perform physical audits of our suppliers’
products in our inventory to determine the
accuracy of our shared supply chain data
Apply the GS1 Standards in package
measurement and tolerances in score
carding our strategic trading partners
Data Accuracy is a strategic trading
partner KPI, as well as an important
internal metric
© GS1 US 2014 ALL RIGHTS RESERVED
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AUDIT DETAILS REPORT
All Audited Items Details Report
Grocery Warehouse Audit
KRAFT FOODS
Retail UPC:
43000004296
Item #: 360673
Highest Level GTIN:
Item
Net
C ontent
UO M
Wegmans
8
OZ
T otal
Retail
U it
12
Audited
8
OZ
12
Retail UPC:
43000004210
P ack
T ype
H eight
Width
Depth
8.325
2.925
11.325
13.225
0
8.26
2.7
11.3
13.1
Def ault Case
Highest Level GTIN:
Item
H eight
20043000004214
Case
UO M
Wegmans
9.2
OZ
T otal
Retail
U it
12
Audited
9.2
OZ
12
43000004289
P ack
T ype
11.325
13.225
0
11
12.69
Def ault Case
H eight
Width
9.15
2.925
9
2.72
Item #: 360675
Highest Level GTIN:
H eight
20043000004283
Case
Net
C ontent
UO M
Wegmans
9.6
OZ
T otal
Retail
Units
12
Audited
9.6
OZ
12
Depth
2.688
11
12.75
2.7
11.2
13
H eight
9.329
9.36
Depth
P ack
T ype
Width
Depth
0
2.7
4.25
2.75
0
Def ault InnerPack
2.68
4.24
2.75
Def ault Unit
Last Audit Date: 11/27/2009
GFIC VANILLA BEAN LATTE
Width
Depth
P ack
T ype
H eight
Unit
P ack
T ype
P ack
T ype
H eight
Width
Depth
0
2.7
4.25
2.75
0
Def ault InnerPack
2.73
4.25
2.74
Def ault Unit
Last Audit Date: 11/27/2009
GFIC VANILLA CAR SW LATTE
Inner P ack
Width
Weight
Width
Unit
Inner P ack
Depth
Weight
Item
Last Audit Date: 11/27/2009
GFIC MOCHA LATTE
Inner P ack
Weight
Item #: 360674
Net
C ontent
Retail UPC:
20043000004290
Case
Unit
P ack
T ype
H eight
Width
Depth
0
0
2.7
4.25
2.75
0
Def ault Case
Def ault InnerPack
2.7
4.23
2.74
Def ault Unit
P ack
T ype
H eight
Width
Depth
P ack
T ype
© GS1 US 2014 ALL RIGHTS RESERVED
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BENEFITS OF ACCURATE DATA
• Overstated case weights on Gatorade line
(enabled one more pallet to fit on every truck)
$2.5m per year in savings on Gatorade alone
& $1.5 – 3m additional savings potential in
other lines
• Overstated case weights on Tide product line,
took 10 inbound trucks per year off the road!
• Case weights overstated by 2 lbs.
Red Gold eliminated 7 inbound
trucks to Wegmans!
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BENEFITS OF ACCURATE DATA
• One company improved the speed to shelf of new products from 4-8 weeks
to 2 weeks. Data changes and corrections flow through GDSN seamlessly,
eliminating key entry errors and administrative time.
• Another company increased the number of new items introduced in one year
by 50%, without additional head count due to the efficiency of the process.
• Changes in case dimensions & more
accurate product specifications lead to
enough benefit to finance their entire
data synchronization program!
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WHY DATA SYNCHRONIZATION?
• Quality Data Sync allows us to connect our business information.
• Strategic sharing of data with partners will enable business growth
9 We all speak the same language
9 Our people collectively agree on goals & measures
9 The information we share is timely, useful and accurate
• Benefits of Data Sync are foundational – improved standards,
accuracy, completeness
• High quality, synchronized information is foundational to mission
critical processes and cost saving initiatives, eliminating non-value
added work
• Increasing time to collaborate on value-added processes
© GS1 US 2014 ALL RIGHTS RESERVED
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WHAT HAVE WE LEARNED?
• Consumer gains in service level and consistent low prices
• Optimization of warehouse space and truck loads
• Opportunity to expand the boundaries between supply chain
partners.
• Fewer invoice disputes
• Speed to shelf with new items
• Reduced labor costs to resolve shelf tag and scan errors.
• New Focus on Reverse Logistics, Tracking, Monitoring
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EDI AT WEGMANS
• Mandatory for any Grocery, Dairy, Frozen, GM, HBC vendor
• Specific EDI transactions based on replenishment type:
9 DSD
9 Warehouse
9 VMI
9 Quick Response
• Contact merchandising representative to start process
• Testing/ compliance done on free on line tool through GXS
• After testing is complete, verify that you have good data!
© GS1 US 2014 ALL RIGHTS RESERVED
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WEGMANS.COM/FOR OUR SUPPLIERS
for our suppliers
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WEGMANS.COM/FOR OUR SUPPLIERS
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What’s Next?
© GS1 US 2014 ALL RIGHTS RESERVED
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INFORMATION DRIVEN
VALUE CHAIN
Leveraging
Accurate
Data is
a Supply
Chain Advantage
Leveraging
Accurate
Enriched
Data
is a Competitive
Advantage
© GS1 US 2014 ALL RIGHTS RESERVED
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Nikhil Pujari
Advisory Services Manager
1WorldSync (GS1 US)
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TODAY’S SMART CONSUMER
$
Price
Comparison
Mobile
Coupons
i
Refined
Product
Information
$
Add-On Functions
• Shopping list
• Find the w ay in the store
• Etc.
SelfScanning
Inspiration
& Offers
Payment
$
© GS1 US 2014 ALL RIGHTS RESERVED
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ATTRIBUTE EXPLOSION IN THE INDUSTRY
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ATTRIBUTE EXPLOSION IN THE INDUSTRY
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ATTRIBUTE EXPLOSION IN THE INDUSTRY
© GS1 US 2014 ALL RIGHTS RESERVED
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ATTRIBUTE EXPLOSION IN THE INDUSTRY
© GS1 US 2014 ALL RIGHTS RESERVED
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ATTRIBUTE EXPLOSION IN THE INDUSTRY
© GS1 US 2014 ALL RIGHTS RESERVED
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INDUSTRY TRENDS
− Compliance
− Recipient
Specific
Requirements
− Mergers &
Acquisitions
Attribute
Explosion
− Retail
− Food
− E-tailers
− .com
MultiChannel
Digital
Content
− Marketing
− eCom
− Amazon
− Images
− Videos
© GS1 US 2014 ALL RIGHTS RESERVED
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CPG RECIPIENTS - KEY ACTIVITIES
• Retailers planning to request 500+ attributes via GDSN in the next 612 months
• Leveraging a supplier collaboration system that combines GDSN and
top off product information that connects to their internal downstream
systems
• Leveraging Data Quality programs to ensure operational efficiencies
by comparing physical audit data with GDSN data
• Participation in 1WorldSync Recipient Share Groups (example
images, regulatory, chemical ingredients, attribute harmonization)
© GS1 US 2014 ALL RIGHTS RESERVED
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CPG SUPPLIERS - KEY ACTIVITIES
•
•
•
•
GDSN sharing of core supply chain data
Providing non-GDSN data via customer automated item setup system
Accelerated implementations of automated data aggregation solutions
Implementation of up to 150 GDSN attributes in Foodservice*
* Significant number of these Foodservice suppliers would be common with the retail industry
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Data Sync Contacts
Kathy.Welch@Wegmans.com
(Master Data, Manager)
Cady.McMaster@Wegmans.com
(Master Data, Specialist)
Amy.Schmalfuss@Wegmans.com
(Master Data, Specialist)
Neysa.Cross@Wegmans.com
(EDI Specialist)
© GS1 US 2014 ALL RIGHTS RESERVED
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Thank You
Questions?
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