Scorecard Concept Description

Global Scorecard.net

Guide to ECR concepts

Demand Management

Supply Management

Concepts

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Supply Management

S4. Operational Excellence

	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
Reliable Store Operations	The process, methods and tools available to monitor, assess sources of problems, if any, and track resolutions concerning point of sale product availability, lay-out and promotional activities.	On-shelf availability and other retail effectiveness measures not measured and no plans to measure it.	Plans developed to measure retail effectiveness (e.g. sales/ labor hour, backroom inventory as % sales).	Retail effectiveness and efficiency measures are in place. Basic systems in place to set plan-o-grams and maintain in store inventories. Analysis is conducted collaboratively with key trading partners.	Analysis of effectiveness/efficiency measures have resulted in specific plans and changes to work processes. Improvements are being seen in Retail measures but they are still below target. Shelf product availability monitored and shared on a regular basis.	Integrated store processes designed to seamlessly flow the product to the shelf with flexible labor scheduling and improved collaboration between trading partners resulting in full compliance and high standards. Store effectiveness and efficiency measures are being met. Shelf product availability continuously monitored and shared on a regular basis and used to improve shopper availability.
Reliable Distribution	The process, methods and tools available to monitor, assess sources of problems, if any, and track resolutions concerning delivery efficiencies and effectiveness.	No measures in place.	Measures identified, targets are set and results are reported, but no plans are in place to improve results.	Regular, systemic monitoring of delivery and invoicing performance. On as exception basis, problems are worked between trading partners.	Close co-operation between trading partners to understand the root causes of delivery & invoicing problems. Plans are in place to fix issues, results are improving. Limited track and trace functionality.	Full collaboration to achieve delivery standards that are among the top results between trading partners. Product is delivered on time, in full, damage free and invoiced correctly. Full lot traceability in real time.
Reliable Production	The process, methods and tools available to monitor, assess sources of problems, if any, and track resolutions concerning production effectiveness.	Production reliability is not measured and there are no plans to develop monitoring capabilities.	Plans to measure production reliabillity have been established. Responsibilities are assigned but no action taken yet.	Production reliability is monitored and reported, but not routinely and not for all products. Planning for lot traceability and zero defect programmes.	Production reliability measured routinely for all products. Downtime analysis performed on a routine basis. Production performance to master schedule measured. Limited lot traceability available.	Production reliability measured daily for all products, underpinned by a zero defects approach. Planned maintenance programs fully implemented. Production teams fully empowered to improve reliability. Full adherence to, and synchronisation with, the production schedule. Full lot traceability exists.
Reliable Stock Loss Management	The process, methods and tools available to monitor stock loss, identify its causes, prioritise and implement collaborative solutions and to evaluate performance.	Stock loss is not measured and there is limited awareness of the problem. There are no plans to alter stock loss measurement processes, to share information or to take individual or joint proactive measures to reduce stock loss.	Stock loss is identified as a concern and tools are put in place to measure the scale and nature of the problem company wide. Local proactive solutions are identified, but no action is taken either individually or collaboratively.	Isolated, but detailed, programmes that forcus on 'hot' products are implemented, based upon information and data gathered. Programmes are reviewed and areas for internal collaborative working are identified.	Programmes are implemented company wide with internal collaboration and strategic support from all departments. Databases to collect information are in place company wide and analysis is used to update programmes. Identification of need and agreement to work collaboratively with external organisations and companies.	Stock loss is tackled as a part of corporate policy, in a proactive manner. Within the organisation there is a dedicated department for handling stock loss. The problem is measured and analysed on a regular basis. A systematic plan to tackle shrinkage, both individually and collaboratively, is in place, which is acted upon and regularly reviewed. Optimisation of shopper satisfaction achieved through integrating markdown and loss management with product availability.
Reliable On-Shelf Availability Management	Process required to deliver agreed on shelf availability levels. The on-shelf availability target is optimised on a balance of cost, service, consumer expectation and lost revenue.	Out-of-stock rate not known. Trading partners have no plans to tackle on-shelf availability, because it is not seen as an issue.	The out-of-stock topic has been identified as an issue by both trading partners based on first indicators. Project plan agreed to start an OSA project. Management attention focused on the issue.	Joint OSA pilot started. Out-of-stock rate estimated based on physical counts or POS sales data exchange. Root cause identified, main focus agreed and actions taken in partnership.	Started to build integrated EPOS measurement in order to measure in-store availability on a continuous basis.	OSA is an integrated business process. Continuous measurement with automatic and alert based data capture, regular root cause analysis and continuous actions based on consumer value creation strategies in undertaken.

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