Scorecard Concept Description

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Guide to ECR concepts

Demand Management

Supply Management

Concepts

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Demand Management

D3. Optimize Assortments

	Score	0	1	2	3	4
Concepts	General Meaning	Nothing Planned	Plans agreed but have not yet started implementation	Pilot tests being conducted	Roll out of implementation started	Fully Implemented
Assortment Planning	The process of optimizing the assortment mix to fulfil the needs of target consumers.	No clear understanding of the role of the category in meeting corporate objectives or the role of individual products within the category.	The category role is understood but little understanding of the role of products. Recognition of the value trading partners provide but not yet involved in the assortment decisions.	Some consumer and market data used to make segment decisions. Developing an understanding of the role of categories, brands and products. Involvement of trading partners is limited.	Clear understanding of products in meeting category objectives. Some trading partners are involved and a wide range of consumer, market and trading partners information is used.	Clear understanding of the impact of assortment on the category, other categories & corporate objectives. Routine involvement of trading partners using joint information.
Assortment Execution	The process to translate the assortment plan into efficient/effective implementation.	No consistent process exists. Measures are not defined or collected to assess.	Systems & processes are being developed to formalize the assortment execution process and some efforts to measure & coordinate assortment execution are being developed.	Some efforts to implement an effective assortment execution process exist - limited success. Shelf implementation or manufacturer range adjustments are slow, remnant inventories are high.	An assortment execution process has been implemented and is usually followed. Improvements in compliance and inventories are being realized.	A highly effective assortment process is routinely used. It is a short cycle from assortment decision to complete implementation. Remnant inventory is almost eliminated.
Assortment Evaluation	The degree to which assortments are evaluated jointly against a common set of objectives.	No efforts to evaluate the impact of assortment decisions on consumer satisfaction, inventory, cost and out-of-stock.	An understanding exists of the need to measure assortment effectiveness. Some basic analysis is routinely conducted.	Assortments are evaluated based on traditional costs and volume basis. Some reviews with trading partners are conducted.	A broader set of results and process measures are evaluated related to category objectives (like category growth, consumer satisfaction, market basket or closure rate). Joint reviews with trading partners include consumer data.	An agreed set of measures are evaluated jointly by trading partners and related to the category and corporate objectives. These targets are routinely being met.

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