WHAT GETS MEASURED GETS IMPROVED The Importance of Making your - PowerPoint PPT Presentation

“WHAT GETS MEASURED GETS IMPROVED” The Importance of Making your Customer’s Experience your Metric Susan Moore (MEng, CSCP) Head of Planning & Customer Service, Rhodes Food Group

SPOILER ALERT Having your company metrics aligned to your customer’s experience provides great benefits How do you get there and what are the benefits? 2

WHAT GETS MEASURED GETS IMPROVED • What data are you measuring? • What does your customer measure and why is it important? • Is a total business realignment needed? • The benefits in Rands 3

WHAT ARE YOU MEASURING? Case Fill Difference between Measuring an Incomplete and a Complete Environment 100% 98% 96% ? 94% Case Fill 92% 90% 88% 86% Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Old New 4

WHAT WAS THE CAUSING THE DELTA? • Hard coding the environment – Ship to points – Distribution Sites – SKUs 5

WHAT ARE YOU MEASURING? Case Fill Difference between Measuring an Incomplete and a Complete Environment 100% 98% 96% Case Fill 94% 92% 90% 88% 86% 6 7 7 7 7 8 8 8 6 6 7 7 7 7 7 7 7 7 8 8 8 8 8 8 8 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 - - - - - - - - - - - - - - - - - - - - - - - - - t v c n b r r y n l g p t v c n b r r y n l g p t u u c e a p c e a p c o a e a u u e o a e a u u e O M J O M J O N D J A M A N D J A M A F J S F J S Old New 6

BENEFITS OF AN ADAPTABLE DATA GATHERING SYSTEM • Trusted data – Trusted by yourself = time saving – Trusted by the company = credibility & support • Integration of new codes/customers/businesses – Focus on the business process, continuity and delivering results not hours spent on how to measure the results 7

WHAT DOES YOUR CUSTOMER MEASURE AND WHY DOES IT MATTER? PnP Tracking of RFG Service Level and Delta between RFG and PnP Measure PnP Tracking of RFG Service Level and Delta between RFG and PnP Measure 100% 100% Monthly 60% 90% 90% Delta between RFG & PnP measure Surprise at PnP 80% 80% 40% vendor meeting: 70% 70% PnP Case Fill PnP Case Fill 60% 60% PnP measured 20% 50% 50% service at 83% 40% 40% 0% while we were 30% 30% 0 0 1 1 2 2 3 3 4 4 5 5 6 6 7 7 8 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 measuring 90% 20% 20% -20% 10% 10% 0% 0% -40% Week Week PnP case fill PnP case fill weekly delta 8

WHAT DOES YOUR CUSTOMER MEASURE AND WHY DOES IT MATTER? How pleased are you with our 90+% service levels J ? Urm, you mean 83%? Not very pleased at all!! Oh gosh really? Sorry I have no idea how that happened Sorry 9

WHAT DOES YOUR CUSTOMER MEASURE AND WHY DOES IT MATTER? PnP Tracking of RFG Service Level and Delta between RFG and PnP Measure 100% 60% 90% Delta between RFG & PnP measure 80% 40% 70% PnP Case Fill 60% 20% 50% Nothing changed 40% Our results remained flat 0% 30% 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 20% -20% Monthly meeting 10% insufficient to allow root 0% -40% Week causing and fixing PnP case fill weekly delta 10

DID FIXING OUR HARD CODE ISSUES ALIGN OUR RESULTS WITH PNP? PnP Tracking of RFG Service Level and Delta between RFG and PnP Measure 100% NO………….. 60% 90% Delta between RFG & PnP measure 80% 40% Still had a delta up to 20% and 70% PnP Case Fill 60% an average service level of 20% 50% 79% 40% 0% 30% 40 41 42 43 44 45 46 47 48 49 50 51 20% -20% 10% 0% -40% Week PnP case fill weekly delta 11

WAS THE RFG BUSINESS ALIGNED TO THE OBJECTIVES? • Orders on discontinued SKUs were being deleted The customer will • Unfulfilled orders were being deleted order the same stock again next week so its not a But why should I real lost sale be penalised for the customer ordering discontinued SKUs? 2

IMMEDIATE CASE FILL IMPROVEMENT PnP Tracking of RFG Service Level and Delta between RFG and PnP Measure 100% 60% 90% Delta between RFG & PnP measure 80% 10% pt Improvement in case fill – 40% 70% as observed by the customer PnP Case Fill 60% 20% 50% 40% 0% 30% 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 20% -20% 10% RFG and PnP results are within 0% -40% 2% of each other Week PnP case fill weekly delta 13

WHY DID ALIGNMENT OF MEASURES DELIVER GREATER CASE FILL? • Daily identification of issues allowing quick responses • Constructive conversation with customer regarding their contribution to service level issues – Orders on discontinued SKUs – Delays at receiving – Cancelled orders still in the data 14

THE BUSINESS BENEFIT & THE HALO EFFECT • Fulfilling more cases on the orders = RRRs • More orders – Year on year growth doubled after results step changed • Monthly meetings now focus on Joint Value Initiatives • Customer is growing sales “We can’t sell fresh air” 15

TO SUMMARISE • Know what you are measuring • Make the measuring as simple as possible • Measure what is important to your customer and how your customer measures it • Align your business internally as well as externally • Work together with the customer for exceptional results With thanks to: Nomthandazo Baleni RFG Supply chain analyst Heinrich Badenhorst RFG Customer service manager Customer Service Team RFG Barend Brendenkamp PnP Supply chain planning 16