Jon Rubich. President Insight2Action. Using Big Data to Create Store DNA and Achieve Optimal Customer Deliveries and Satisfaction
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1 2013 ATC Fall Conference Using Big Data to Create Store DNA and Achieve Optimal Customer Deliveries and Satisfaction Jon Rubich President Insight2Action
2 USING BIG DATA TO CREATE STORE DNA & ACHIEVE OPTIMAL CUSTOMER DELIVERIES & SATISFACTION 10/15/2013
3 Define Big Data Big data is the term for a collection of information too large and complex to effectively manage with basic database management tools or traditional data processing applications. Page 3
4 Big Data - A Visual Nightmare Page 4
5 Big Data - The BIG Numbers 5,000 part numbers 2,000 stores 104 periods 50 measures Category X Part # Total Supplier ,000,000,000 Customer ,000,000,000 A Customer might have 30+ of these categories or 1.5+ TRILLION Page 5
6 Big Data - A manageable approach Millions of Data Points vs Trillions Supplier Cost: $ Tens of Thousands Traditional database constructs + Easy to use applications + Flexibility & Quicker to implement Reseller Cost: Potentially $Millions Large Hardware & Database Constructs + Software Expenses & Years to implement Page 6
7 Store DNA Each cell block, each zip code, store has a Consumer Profile & Vehicle Parc that is unique. Page 7
8 Store DNA- impacts on VIO Each cell block, each zip code, store has a Consumer Profile & Vehicle Parc that is unique. Page 8
9 Insights2Action Client Customer Satisfaction Wk Rolling Trends Page 9 * Results Vary 9
10 WHY SHOULD WE EXECUTE THIS? HOW DO I EXECUTE THIS?
11 Why- The Customer wants your support In 2013, a survey conducted by Insights2Action across 15 of the largest resellers said that the skill most lacking from their suppliers was Category Management. In the same survey, Distribution & Assortment, and Pricing are the number 1 & 2 respective areas of need. Page 11
12 Why- Customer Survey Feedback (Aug-Sep) In large part, our suppliers are not able to support our efforts even in making assortment decisions and when they do it takes forever. Reseller 1 Beyond the top couple of companies, I am not getting very good assortment support at a local level Reseller 2 Almost no one can tell me what the optimum levels are for pricing their products. Reseller 3 Opportunity Page 12
13 Why - The customer has limited market visibility Distribution & Assortment Inputs Reseller Data Supplier Data Third Party Data Proprietary Analytics Reseller Outlets Both Supplier & The Customer/Consumer The Customer/Consumer Reseller Lose $ Opportunity Page 13
14 Why - The customer has limited visibility Distribution & Assortment Visibility - Incomplete & Limited in scope Limited Market Data? Retail Reseller Commercial Page 14
15 Why - The customer has limited visibility Distribution & Assortment Visibility Expansion- Complete & Robust Supplier Data A Wider Lens Third Party Data Sources Reseller Retail Commercial Proprietary Analytics Page 15
16 Why- Expands the value proposition Maximize the Customer/Consumer Benefit Inputs Reseller Data Supplier Data Third Party Data Proprietary Analytics Reseller Outlets The Customer/Consumer Page 16
17 Why- Our Responsibility to Support the Customer 1999 Data Availability 2006 Data Availability Opportunity $ Page 17
18 How-- >Supplier Assessment IT Resources Available? Personnel Commitment? Financial Resources? Timely Execution? Page 18
19 How--- > Third Party Assessment Proven ability to Aggregate Aftermarket Data? Depth of Cross Category Experience? Do the people actually working on the project have the comprehensive knowledge of the Aftermarket dynamics? Transparent Methodology? Ability to take Insights to Action? Page 19
20 How-Transparency is Critical Brio No Black Box Approach 2,100 page document Page 20
21 How- Transparency is Critical Brio Page 21
22 How- Transparency is Critical Brio Chipotle Page 22
23 How- Distribution & Assortment Purpose Methodology Assessment Operational Goals Tool Development Execute Page 23
24 How- Define Inputs Internal External Third Party Page 24
25 How- Define Outputs Reports for different purposes Internal External Page 25
26 How- Executing Customer Capability Potential Constraints Obstacles to Overcome Page 26
27 How- Example Deliver what the customer wants Page 27
28 Category Management & Analytical Consulting Services Suppliers Rep Agencies Resellers CM & Sales Training Analytics/Categor y Planning Tool Development Organizational Optimization Research Price Shop & Availability Tool POS Reporting Tool Acct/Business Manager Distribution & Assortment- Store Level Customer Category/Line Review Tool BPM-Business Performance Manager DNA- Distribution & Assortment System Enhanced Customer Category/Line Review Confidential; Not to be reproduced without written consent of JCA Group, LLC, and Retail Insights, LLC; Jon Rubich
29 JON RUBICH
30 Qualifications and Experience Since 1984, a leader in technology & its application Bought my first computer in 1984 General Foods/ Kraft General Foods Managed all 4 of the major Space Management Tools for General Foods Developed the first Retail Shelving standards for Kraft General Foods Nestle USA Became the first National Company to train its brokers on laptops & Space Management software One of the first 8 Category Plans Ever Created Developed Nestle Insight, the first proprietary Category Management Suite of tools, including assortment analysis using Activity Based Costing methodologies. Developed Nestle Promotional Planning Systems which aided the sales team in tracking base and promotional volumes and costs, which saved the company over 28M in trade spending in Developed Nestle New Item Launch Tools that imbedded video, and animation into sales presentations and allocated local marketing spending funds that surpassed all new item launch expectations. Page 30
31 Qualifications and Experience Pennzoil Quaker State/Shell Assembled POS system from all major retailers in Integrated Shipment data with POS data United Components, Inc Developed the Industry s first Specific Assortment tool -utilized multiple data sources in 2005 Developed a POS reporting Tool for multiple divisions Insights2Action 2004-Present Developed data driven Advertising & Promotion planner for Reseller Developed customized templates for multiple Resellers Co-Developed and executed 10 Category Pans using store specific data -Reseller Developed analytical system for WebFETCH Price Shop Tool Developed DNA, The first multi-source Localized Distribution & Assortment system in the Aftermarket Developed the first Customer Specific, Assortment Tool utilizing their specific data inputs. Developed a Point-of-sale reporting System to help a supplier manage their customer s business. Page 31
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