High-Velocity Supply Chains for Perishables: A Fresher

• Cognizant 20-20 Insights
High-Velocity Supply Chains for
Perishables: A Fresher Proposition
To accelerate in-store delivery and ensure the freshest goods
for consumers, today’s retailers must redesign their value chains,
and create new ecosystems informed by sophisticated logistics and
superior inventory management.
Executive Summary
The perishables sector of the retail industry is
a case of extremes: above-index gross margins
and waste; large variations in volume-to-sales
ratios (depending on seasonal and climatic
patterns) and a showcase for brand equity and
risk. In Australia, the grocery and fresh produce
1
retail industry registered a total turnover of
$131 billion in 2009, with forecasted revenue
of $194 billion by 2020 (compound growth of
3.7% p.a.). Approximately 40% of that revenue
is derived from perishables – presenting an
opportunity for retailers to achieve material,
commercial and financial gains.
At the same time, today’s consumers are better
informed, and swayed by marketing campaigns
that focus on their health and well-being,
and their desire for fresher, more nutritious
options. A recent report in The Wall Street
2
Journal highlights the changing preferences
of American consumers, who now favor freshfrom-the-source products over pre-prepared
frozen meals. (Sales of the latter fell by 3% – to
$8.92 billion in the period between 2009 and
2013, according to Euromonitor International).
cognizant 20-20 insights | august 2015
Freshness is clearly on the agenda of leading
retailers; for example, in 2013, Wal-Mart initiated
a program to ensure the freshness and quality
of its fruits and vegetables, backed by a 100%
3
money-back guarantee.
Yet providing the freshest products to customers
remains a challenge for retailers, since doing so is
not tied to a single business function; merchandising, store operations and the supply chain all
play a collaborative role in managing and maintaining freshness and reducing shrinkage in the
perishables cycle. While different approaches can
help retailers achieve this goal, developing a highvelocity supply chain is one of the most straightforward strategies for ensuring freshness and
realizing top- and bottom-line improvements.
This white paper provides insights on the
strategies, tools and technologies required to
frame and create a high-velocity, highly efficient
perishables supply chain.
The Need for a High-Velocity
Supply Chain
According to Harvard Medical School’s Center for
Health and the Global Environment, in the U.S.,
produce purchased at the grocery store normally
4
travels more than 1,500 miles from farm to
table. A typical Australian food basket travels an
estimated 70,000km – equivalent to travelling
around the circumference of the earth twice or
5
around Australia’s coastline three times. While these are impressive logistics, a road
literally less travelled could lead to fresher goods
and better nutrition for the customer.
In-store product freshness positively influences
customer demand. As stated in a report by
consulting firm Oliver Wyman, “Customers who
are satisfied with freshness will spend over a third
more in the produce department of their primary
store compared to those who are not satisfied. At
Increasing the velocity of a retail
supply chain increases revenue and
gross profit proportionately.
the same time, they will spend 8% more of their
total grocery spend with retailers whose produce
they are pleased with than the shoppers who are
not happy with that store’s produce.” The report
also stated that “freshness and shrink, managed
together, can add as much as $60M a year to a
$10BN chain’s earnings while growing sales and
6
improving its market positioning.
retailers at different touch points in the supply
chain. And a longer supply chain translates into
more touch points. Each compromises product
freshness and quality due to factors related
to loading/unloading, wait and execution time
on the dock, malfunctioning cooling systems,
or incorrect configurations that can result in
shrinkage or waste.
A high-velocity supply chain can reduce waste
(shrink) across the chain by delivering product
to store with an extended shelf life (i.e., by
consuming less of the finite shelf life between
manufacture or harvest and sale).
Extending shelf life provides more opportunities
for a product to be picked from the shelf, and
reduces the likelihood of it being thrown away
due to expiration. A 2010 study by the Asian Food
Information Centre (AFIC) reveals that 67% of
consumers in India actively consider expiration
7
dates before buying perishable goods.
While perishables make up about 38% of total
store sales, they contribute up to 65% of total
8
store shrink. Increasing the velocity of a retail
supply chain increases revenue and gross profit
proportionately (see Figure 1). The speed of the
supply chain can be directly linked to the days it
takes to deliver a product ready for sale in store.
The faster this is executed, the wider the window
of opportunity to sell, and the less chance of
shrinkage/waste.
Days to Deliver ∝
1
(Opportunity to Sell)
Nonetheless, estimates tell us that produce
spends up to 50% of its life between suppliers and
Opportunity to Sell ∝
Sales
Waste/Shrinkage
Profit Potential from Increasing Supply Chain Velocity
Procurement, Warehouse & Transportation
Procurement, Warehouse & Transportation
$ Value
(Sales
and G.P.)
$ Value
(Sales
and G.P.)
VALUE
Waste
Waste
10 days
5 days
Time
Supply Chain-1
Time
Supply Chain-2
The transition from Supply Chain 1 to Supply Chain 2 shows how a high-velocity supply chain can improve gross profit.
Figure 1
cognizant 20-20 insights
2
The Perishables Supply Chain: Value vs. Time
Pick at Vendor
Perishable Product Loss
$ Value of
Product
$ value of
Risk/Waste
Sale
Time
In the critical time period between picking at the source, to sale at the retail site, a perishable product loses value
rapidly through product degradation. The supply chain must be responsive in the initial stage and cost-effective in
the latter stage.
Figure 2
The industry average for retail shrinkage in the
U.S. is around 2.7% of retail sales, with 65%
9
of that attributed to perishables. Clearly, an
opportunity exists to reduce shrinkage, increase
overall revenue and provide a fresher proposition to the customer by accelerating supply chain
velocity. The question is how? In the following
pages, we will answer that question, and detail
measures that can be taken to create a highvelocity supply chain.
Crafting a High-Velocity Supply Chain
for Perishables
Bringing efficiency to the perishables supply chain
is not just about the transportation lead time for
logistics. That responsibility lies with all functions
within the organisation that are engaged in the
end-to-end supply chain. Any sustainable velocity
strategy will require all processes involved in
product flow and management to work together
seamlessly.
Before investigating or executing an optimal
organisational structure, it is important to start
with a process analysis to diagnose the root
cause of impediments to supply-chain velocity.
This exercise, which includes the steps above,
will quickly reveal areas for improvement, and
help define future initiatives and subsequent
implementation plans.
1. Identify Priority Action Items
Optimising every stock keeping unit (SKU) in a
supply chain is unfeasible. A more pragmatic
approach is a Pareto-style analysis to define
the top 20% “highest value” and “most at risk”
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product lines, based on lead-time analysis.
Improving velocity through the supply chain for
these items will have an incremental impact on
profitability and decrease waste.
At-risk items are identified based on their ESL
(effective shelf life, i.e., the remaining life of an
Freshness and shrink, managed
together, can add as much as $60M
a year to a $10BN chain’s earnings
while growing sales and improving
its market positioning.
item) after removing lead-time components and
minimum freshness days* from the total shelf life.
ESL represents the window of opportunity to sell
a perishable item at maximum margin.
Effective Shelf Life (ESL)
=T
otal Shelf Life – Supplier to Customer Lead
Time – Minimum Freshness Days
* Minimum freshness days is the number of days a
product must maintain freshness in order for a customer to accept it, e.g., a customer will buy milk if it
has a minimum of two days of freshness remaining or
is set to expire after two days.
2. Perform a High-Level Supply Chain
Analysis
Following item prioritisation, the next step is to
review the end-to-end supply chain and isolate
the time spent at each node, or transportation
leg, in the chain. This reveals the value chain’s
role within each site, the high-level integration
3
The Pressure to Maximize Margins
Distribution Centers
Vendor
Store
Customer
REMAINING SHELF LIFE = 12 days
REMAINING SHELF LIFE = 10 days
Transport/Handling
Transport/Handling
= 2 days
= 8 days
6
Effective Shelf
Life = 6 Days
4
Min. Fresh
Days Required
= 4 Days
Freshness Risk Matrix
TOTAL SHELF LIFE = 20 days
Time
Out of the 20 days of total shelf time, only six are available to sell the product at full margin in-store.
Figure 3
touch points, and the lead time at each stage of
the supply chain (see Figure 4).
3. Perform a Detailed Process Analysis
Following the high-level supply chain analysis, the
next step is to deep-dive into lower-level processes
and activities, then categorize each process
stage as either a value-adding or non-value-adding activity. The detailed analysis on the list of
process steps will identify (for removal) the latter,
and reveal opportunities to reduce the lead-time
of value-adding tasks. Figure 5 on the following
page is an example of a detailed process analysis
worksheet.
At this stage, data must be captured from various
areas and systems at each point related to
freshness and waste. This includes systems for
warehouse, transportation, point-of-sale, pro-
curement, etc. The intent is to build a quantitative
supply chain matrix that will help identify nonvalue-adding processes in the supply network.
Capturing and obtaining access to the right information is an important investment for retailers,
and key to realizing the maximum benefits from
this analysis. Most retailers retain generic information about transport lead time, wait time, etc.,
or store it in various systems.
4. Identify Future Initiatives and Actions
Restructuring the supply chain by eliminating
non-value-adding process steps (as identified in
Step 3) and selectively implementing industry
best practices can lead to a highly efficient, highvelocity supply chain. At the same time, every
retailer has different challenges, and must work
innovatively to achieve their objectives. Based
Stepping Through the Supply Chain
Transport
Producers/Farms
Packers
Processor
Figure 4
cognizant 20-20 insights
4
Warehouse
Store
Detailed Process Analysis
Process Steps - Warehouse Receiving & Putaway
Putaway
Activities
Step-1
Step-2
Step-3
Step-4
Step-5
Putaway Total
2014
Hour Clock (00:00 to 24:00)
1
2
3
4
5
6
NVA NVA NVA NVA
M
1
M
2
7
8
9
M
10
M
NVA NVA NVA
M M M
M NVA NVA M M M
2
2
2
2
3
4 2
NVA Non Value Adding
Color Key
11
M
M
12
13 14
NVA M
M M
15
M
16
M
17
M
M
M
18
19
20
21
22
23
24
25
26
M
M
M
M
M
M NVA
M
M
2
2
NVA NVA NVA
2
1
2
M
2
M
3
M
3
1
1
1
2
1
1
1
27
28
29
M
M
M
2
1
1
30
31 Total Days
11
10
6
M
12
NVA
12
1
1
51
M Value Adding
Figure 5
on the outcomes of the detailed process analysis,
these companies can identify areas for improvement and formulate key future initiatives.
• Key
Performance Indicators (KPIs): Each
entity in a perishables supply chain must have
its KPIs engineered to assure freshness and efficiency. For example, a procurement manager
should define targets to reduce overall leadtime and shrink/wastage in the supply chain.
Fostering the achievement of these targets will
help align people and processes with the common goals of delivering freshness and maximising perishable supply velocity.
Examples of initiatives undertaken by retailers
include:
• Collaboration with supply partners for speed
and freshness.
• Automation
to reduce warehouse processing
time.
• Implementation
of sophisticated replenishment technology with special considerations
for freshness.
• Centralized
functions: Organisations are
working to centralize functions across the
supply chain in order to maximize efficiencies and tighten delivery times. Centralization
helps to more effectively manage regulatory
obligations, assure compliance (in this case,
for perishables), and standardize processes
and practices.
As with any investment decision, prioritising
future initiatives based on their potential impact
and benefits is highly recommended.
Implementation Considerations and
Industry Best Practices
Transitioning from scattered procurement
processes with different objectives to centralized procurement can help accelerate product
flow and reduce waste. However, completely
centralizing operations may not be possible or
applicable in all situations; many progressive
organisations have adopted a hybrid approach
that combines a centralized strategy to gain
consensus with decentralized execution to
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improve service.
Moving to a high-velocity supply chain requires
organisational alignment and commitment, the
adoption of industry best practices, and seamless
implementation of leading technologies (see
Figure 6, next page).
Nonetheless, with 65% of all stores’ shrink
occurring in perishables departments, we see
only best-in-class (top 25%) companies placing
more emphasis on implementing industry-proven
best practices. These organisations are demonstrating an average of 22% less shrink in perishables departments than the remaining 75%.10
• Centralized
supply chain leadership: An
emerging global trend is to unify procurement, logistics, contract management, forecasting/demand planning and similar management functions under a single supply
chain leader. This helps facilitate effective
decision making with a view spanning the entire supply chain.
Organisational Design
An effective organisational design must be guided
by a formal process for integrating people, information and technologies across the enterprise –
all focused on meeting key business objectives.
Thus, a design that supports a high-velocity
supply chain must take into account the following:
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• Supply
chain council for food chain: The
purpose of a governing council is to provide
direction and help align the supply chain
12
strategy with all other functions and departments in the organisation. The council can
5
Enabling a High-Velocity Supply Chain
High-Velocity
Supply Chain
Organisational Design
Business Process
(Industry Best Practices)
Technology
Enablers
(Best of Breed)
Figure 6
help measure and monitor the impact of new
initiatives for perishables. Its membership
should include the leader of the supply chain
organisation, as well as corporate executives,
business unit managers and other influential
stakeholders within the company. Its existence will indicate that supply chain management has the endorsement and commitment
of senior leadership.
to the big markets to ensure that perishable
items get to customers within 48 hours of
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being harvested.
Vertical integration may not be the best
solution for all supply chains; however, grocery
retailers must re-evaluate their supply network
and examine the benefits of vertical integration while analysing the market competition
and the dominance of buyers and sellers.
Business Process Changes
Over the 2011/12 financial year, affirming
the vertical integration model, Morrison’s
opened 37 new stores, acquired two manufacturing sites, and established a major new
distribution centre. Efficient processes, a
vertically integrated business model and a
cost-conscious culture enabled Morrison’s to
drive out unnecessary waste and allowed the
company to offer its customers great food at
14
“affordable” prices.
To meet customers’ needs for freshness,
retailers must revisit their ability to plan and
execute process and supply chain strategies.
As illustrated in Figure 7 (see next page), the
following represent industry best practices for
maximising velocity and responsiveness across
the perishables supply chain.
• Process
collaboration: Leading perishables
retailers already enjoy a high level of collaboration with their supply chain partners. They
not only collaborate on data, but also on processes and business objectives. Since a perishables supply chain depends on speed, the
crucial collaboraton focal points are vertical
integration, innovations in network sharing,
and sharing demand forecasts.
>>Network
collaboration: Perishables retailers need to look at increasing collaboration
in extended supply chain networks to help
bridge the gap between vendors and customers. An emerging trend is for supply chain
partners to share distribution networks and
infrastructure. Although not popular for distributing highly perishable items, this model
is being used by Kraft, Nestle, Heinz, Unilever and several other retailers in Europe to
15
transport shelf-stable foods.
>> V ertical integration – “paddock to plate”
value chain: The emerging trend in perishables is to maintain effective control
of supply, quality and speed. Many retailers are investing in fruit, vegetable and
livestock farming, either through collaboration or ownership, to secure supply and
ensure freshness. The goal is to exert more
control over the end-to-end supply chain
through vertical integration, and minimize
the total supply lead time from farms to
customers.
The ECR Sustainable Distribution Group
initiative (UK) aims to decrease the food
and grocery industry’s transport miles
by sharing vehicles and improving the
efficiency of warehousing networks. To date,
this initiative is said to have saved 24 million
road miles on UK roads and 60 million liters
16
of diesel fuel per year.
>>Single
view of forecast: Sharing the demand forecast and POS data with suppliers
For example, Aussie Farmers Direct has
designed its supply chain as close as possible
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Process Changes – Key Drivers
Supply
Chain
Visibility
Vendor Contracts
High Velocity
Supply Chain
Key Drivers
Collaboration
Dynamic Allocation
Demand
Forecasting
Lean Logistics
Figure 7
(within organisational norms) diminishes the
17
bullwhip effect across the supply chain by
reducing inventory costs at supplier hubs
and helping to control production costs.
As a result, the retailer receives fresher
product on time, and with a lower probability
of stock-out.
24% of unit sales and 52% of total profit
in the grocery channel. Further, the report
noted that of the top-ten food categories by
dollar volume, seven were fulfilled through
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DSD processes.
The DSD model launched by Nestlé in 2009
ensured the availability of Nestlé products
wherever and whenever consumers wanted
them, thereby allowing the company to
continue broadening its distribution base
into non-traditional alternative locations.
In 2012, following the model’s success,
Nestlé also invested in modern DSD/route
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accounting solutions.
For Smithfield Foods Inc., a pork processor
and hog producer, the biggest challenge is
18
to determine how many hogs to produce.
If the company can forecast customer
demand (i.e., how many leg hams are
required, say in December), it can determine
when and how many hogs to have ready —
allowing time for the sow to be bred and give
birth, and for the pigs to grow.
A centralized distribution network is another
way to tread the line between optimising truck
loads and meeting the need to ship quickly
and directly. In this model, small branch
warehouses are positioned close to the point
of consumption; stores do not rely on traditional warehouses to receive products that
take longer to process and ship.
• Lean logistics with innovative distribution
strategy: Perishable products require unique
distribution strategies. The journey to a lean
supply chain begins with innovative distribution channels and progresses through continuous process improvements, automation, and
the adoption of best-in-class technologies.
Warehouse processes, if not optimised
separately for perishables, may slow time to
store. Through agreements with suppliers,
retailers can leverage advance shipping notes
(ASNs), enabling warehouses to pre-allocate
the shipment to be received for cross-docking,
or make necessary arrangements for flowthrough/pick-to-zero.
Sourcing a product is only half the job; the
item must also be available at the store,
and time to store is directly tied to network
complexity. There is a growing need to strategically leverage the DSD (direct store delivery)
channel directly from farms/production to
store/customer to distribute more product.
In 2008, the Grocery Manufacturers Association (GMA) reported that DSD represents
cognizant 20-20 insights
Aligning replenishment frequency with the
7
vendor ordering calendar and receipt times at
stores/warehouses is essential to achieving
a smooth product flow throughout the
supply chain.
mated replenishment and inventory planning
are standard practices among leading retailers, measures for gauging the freshness of
perishable goods (e.g., shelf life, wastage parameters) in planning systems are rare. Leading software providers are enhancing their
• Dynamic allocation: The freshness of products
at a warehouse is a primary success criteria for
fulfilling a stock-allocation strategy. The key
is to have clear visibility of the expiry date or
“best before” date of the available and in-transit
stock. The warehouse should also be able to perform dynamic allocation to avoid waste.
The rapid growth of multi-option retail
has made order fulfilment more complex.
Therefore, the supply chain must be able to
prioritize and optimize the management of
e-commerce and retail store orders.
The journey to a lean supply chain begins
with innovative distribution channels
and progresses through continuous
process improvements, automation, and
best-in-class technologies.
solutions by incorporating perishables replenishment modules in their offerings. Inventory planning and replenishment information
from automated planning systems can reduce
shrinkage to a great extent and help pick up
speed in the supply chain.
• Supply chain visibility: An estimated 30 per-
cent of all global perishables shipments never
reach consumers because of a variety of supply
21
chain issues. Monitoring stock levels over the
course of the day through the supply network,
ideally in real time, can further improve inventory management. Traceability is an important aspect in identifying areas for improvement. It can
help determine the actual lead time, processing
time and wait time at each step in the supply
chain before the product reaches the customer.
JDA offers “Date Sensitive Inventory” (DSI), a
module within the JDA Fulfillment application
that can accelerate delivery to customers. DSI
enables a time-phased replenishment plan for
store and warehouse deliveries by optimising
order size and order frequency based on
freshness criteria and wastage constraints.
Papa John’s implemented Manhattan Associates’
fleet software system and a visibility package,
UK-based Isotrak, to boost its freight-tracking
capabilities. A 2013 case study by Manhattan
Associates highlights that the implementation of new technology provided unprecedented visibility, reduced expenses and improved
efficiency and productivity at every point in the
22
supply chain.
The JDA perishables system helped Butterball
manage perishables-related issues, reduce
risk and improve customer satisfaction. With
the implementation of JDA’s date-sensitive
inventory management module, planners could
modify Butterball’s plans to minimize any excess
23
inventory and ensure customer satisfaction.
The key advantages of the JDA perishables
system (i.e., date sensitive inventory) include:
• Procurement
considerations: The effective
shelf life of a product should be a key consideration during contract formulation and
sign-off. A retailer must define a realistic lead
time that meets freshness criteria and ensures
compliance. Penalties and rewards are agreed
upon during negotiations and when defining
terms of purchase with suppliers.
>> Implementation speed and scalability (ease
of configuration and deployment).
>> Enhanced
visibility into the replenishment
plan (advance planning/speed).
>> More visibility into inventory at the distribution center and in the store with the expiration date (less shrink).
Technology Enablers
>> Optimised orders (quantity/frequency) with
Implementing industry best practices, organisational design and appropriate technologies
are critical to achieving a high-velocity supply
chain. Some of the key technologies and considerations are:
perishables consideration (less shrink).
>> Perishables-specific
exception for taking
proactive actions (management by exception).
>> Future
visibility of quantity being expired
(visibility to trigger proactive actions for
markdown or promotion).
• Automated
replenishment and inventory
planning to optimise freshness: While auto-
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SAP (via the SAP for Retail suite) offers procurement capabilities for managing perishables. Buyers can create scenarios for a push/
pull strategy, distribution to stores and vendor
evaluation. The critical needs of buyers are
addressed through SAP’s Perishables Procurement Work Centre. This module provides
buyers with the tools and consolidated information they need to manage purchasing\
distribution decisions for perishables across
24
business divisions.
The starter pack service for grocery retailing
and meat processing includes unique solutions
from SAP for Retail and SAP Enterprise
Solution Services. It offers a complete
solution based on SAP best practices for retail
packages, supports pre-configured, industryspecific business processes, and offers a
25
number of enhancements.
The Oracle Retail Advanced Inventory
Planning system calculates the product/store
level inventory need for perishable products
– balancing waste and availability based on
an item’s shelf life and acceptable loss due to
26
waste.
• Forecasting
tools with perishables characteristics: Retailers must use best-in-class
technologies to generate accurate forecasts,
which in turn drive a more efficient and
effective supply chain.
why consumers decide to buy or not to buy
a product or service. The Planalytics solution
gathers weather-driven demand signals and
assists in sales-history cleansing to formulate
27
baseline forecasts.
“Our weather-driven demand number is tied
directly to what percentage of our sales were
up or down. You would be amazed at the correlation between how our volume performs
and how the weather performs.” (Testimonial
28
by Subway at Planalytics.)
• Management
by exception: A supply chain
team should be alerted by system-generated exceptions that allow the team to focus
on priority issues. The intent is to avoid any
delay in taking action.
• Efficiency
through innovative solutions:
Quickly delivering a product to the customer
is a key success factor in the perishables
supply chain; however, this capability often
comes with a high cost. Consequently, there
is a pressing need to generate innovative
solutions that alternately add value and/or
remove non-value-adding activities.
• Traceability
and tracking technologies:
Retailers are continuously evolving and
embracing more sophisticated technologies to track stock through the supply chain
network. Adopting leading-edge technologies such as RFID or real-time visibility tools
is required to minimize product shrinkage in
perishables. Using global standards such as
GS1 DataBar across the supply chain will help
track information such as lot number, serial
number and expiry dates. Standardization
through the global trade item number (GTIN)
provides accurate traceability of products in
end-to-end supply networks.
Forecasting tools for perishables must offer
random weight consideration; incorporate
robust algorithms to account for seasonality; distinguish demand anomalies due to
marketing/promotions, and employ lost sales
calculation logic along with basic functions.
Multiple software companies provide demandforecasting tools; all should be evaluated and
An estimated 30 percent of all
global perishables shipments never
reach consumers because of a variety
of supply chain issues.
selected based on the specific needs of the
organisation.
• Technology to integrate weather impacts:
Exceptional weather events can have a
major business impact; however, daily
weather may have an even greater effect.
Weather conditions are a primary reason
cognizant 20-20 insights
Looking Forward
The perishables supply chain is unique in
terms of operations and product characteristics. Retailers looking to develop a worldclass perishables supply network must first
understand the concept of an effective shelf
life (the available days that a product can be
sold without becoming unfit for consumption)
in order to identify the top 20% of items that
contribute to 80% of waste.
It is important to adopt a structured approach
for analyzing and uncovering the root cause
of waste and identifying future initiatives.
Vertical integration, network collaboration
9
and collaborative planning create a foundation
for an efficient and sustainable supply chain.
Enforcing perishables KPIs within the organisation and compelling all stakeholders to ensure
the delivery of fresh products will serve as a
catalyst for achieving the objective of a fresh
supply chain.
Adopting perishables-specific technologies can
help lead the way to a high-velocity supply chain
that accelerates and coordinates information, aligns
business processes, reduces waste and assures the
delivery and availability of fresh products. In this
way, retailers can boost sales, reduce shrinkage and
establish a “fresh” connect with consumers.
Footnotes
1
2020: Industry at a Crossroads, Australian Food and Grocery Council. https://www.atkearney.com/
documents/10192/178350/2020_industry_at_a_crossroads_final.pdf/702b00d1-cdca-4e8f-85d87f55dbc26952.
2
The Wall Street Journal, “Frozen Foods Grow Cold as Tastes Shift to Fresher Fare,” June 26, 2014. http://
online.wsj.com/articles/frozen-foods-grow-cold-as-tastes-shift-to-fresher-fare-1403826097.
3
“Walmart Launches Fresh Produce Guarantee in U.S. Stores.” http://news.walmart.com/newsarchive/2013/06/03/walmart-launches-fresh-produce-guarantee-in-us-stores.
4
Sophie Glabella and Asha Bee Abraham, Food Miles in Australia: A Preliminary Study of Melbourne, Victoria
[Internet], 2008 [cited June 20, 2008]. http://www.ceres.org.au/sites/default/files/CERES_Report_%20
Food_Miles_in_Australia_March08.pdf http://www.ecofriendlyfood.org.au/buy_locally.
5
“Fresh Infatuation,” CNBC.com, 08-Oct-12. http://m.cnbc.com/special_reports/5/content/49101716/1.
6
Oliver Wyman, “A Retailer’s Recipe.” http://www.oliverwyman.com/content/dam/oliver-wyman/global/
en/2014/jul/2014_OW_aRetailersRecipe_4.pdf.
7
Arvind Singh Rana, “Old is no Longer Gold - Applying theory of constraints to improve freshness of
products.” http://www.vectorconsulting.in/insights/consumer-goods/old_is_gold_no_more.html.
8
“Sales And Shrink By Department, Where’s my Shrink?” http://wheresmyshrink.com/shrinkbydepartment.
html.
9
National Retail Research Group Facts. http://www.retailcontrol.com/articles/7-facts-about-retail-shrinkthat-will-blow-you-away%E2%80%A6/ | http://wheresmyshrink.com/executivesummary.html.
10
“Trends in Loss Prevention and Store Operations Control for 2012.” http://www.retailcontrol.com/articles/6trends-in-loss-prevention-and-store-operations-control-for-2012/.
11
Bob Engel, “10 Best Practices You Should be Doing Now,” Quarter 1, 2011 issue. http://www.supplychainquarterly.com/print/scq201101bestpractices/.
12
Ibid.
13
“Taking advantage of the Organic Supply Chain,” Australian Organic Spring 2013 | Issue No.1.
14
Corporate Responsibility Review 2011/12 - Food with thought, Wm Morrison Supermarkets PLC http://your.
morrisons.com/Documents/Morrisons_CR_Review_5MB.pdf.
15
Emerging Trends in US Logistics Part II: Food Safety Trends—Food chain Intelligence. http://www.food-chain.
com.au/Dispatch3.pdf.
16
“An Emerging Coffee Trend - Food Chain Intelligence.” www.food-chain.com.au/ABF.pdf.
17
Reducing the Bullwhip Effect via Market Research-Gleaned Insights, Cognizant. http://www.cognizant.com/
InsightsWhitepapers/Reducing-the-Bullwhip-Effect-via-Market-Research-Gleaned-Insights.pdf.
18
“Temperature-Controlled Logistics: Provide or Perish.” http://www.inboundlogistics.com/cms/article/temperature-controlled-logistics-provide-or-perish/.
19
Powering Growth Through Direct Store Delivery, Sept., 2008. Grocery Manufacturers Association (GMA).
http://www.gmaonline.org/downloads/research-and-reports/DSD_Final_111108.pdf.
“Nestle’s DSD Model Opens New Retail Channels.” http://www.dairyfoods.com/articles/87925-nestles-dsdmodel-opens-new-retail-channels.
20
cognizant 20-20 insights
10
21
Global Cargo Monitoring/Cargo Tracking. http://globaltrademanagement.blogspot.com.au/2007/11/networked-supply-chains-require-better.html.
Papa John’s Supply Chain Case Study, Manhattan Scope. http://www.manh.com/resources/case-study/
papa-john-s-optimizes-inventory-visibility-and-transportation.
22
23
Real Results Magazine, Volume 8, Issue 2. ©2013 JDA Software Group, Inc. jda.com/realresultsmagazine.
SAP for Retail: Help. http://help.sap.com/saphelp_46c/helpdata/en/ae/59637806ba11d3ae06080009d22
32d/content.htm http://wiki.scn.sap.com/wiki/display/Retail/Perishables+Procurement.
24
SAP Solution Brief. “Plan, Deploy, and Optimize Retail Software Faster and Easier Than Ever.” http://www.
sap.com/bin/sapcom/en_us/downloadasset.2012-11-nov-30-08.plan-deploy-and-optimize-retail-softwarefaster-and-easier-than-ever-pdf.html.
25
Oracle Retail Application Products Overview. http://www.oracle.com/us/products/applications/retail/
supply-chain-planning/advanced-inventory-planning/overview/index.html | http://www.oracle.com/us/
products/applications/047071.pdf.
26
27
Planalytics, “Business weather intelligence.” www.planalytics.com.
Success Stories – Planalytics. http://www.planalytics.com/success-stories/.
28
About the Authors
John Bacon is Director of Consulting with Cognizant Business Consulting, working with clients in the ANZ
region. He has over 20 years of experience in the retail sector in executive management across buying,
pricing, e-commerce, retail operations and information technology, and consulting roles across APAC in
supply chain strategy and transformation, retail analytics, e-commerce and digital functions. John holds a
bachelor’s degree in information technology from Queensland University of Technology (QUT). He earned
his certification in Training & Workplace Assessment from Box Hill Institute (BHI). He can be reached at
John.Bacon@cognizant.com.
Nitin Khanna is a Senior Consultant within Cognizant Business Consulting’s Retail Practice. He has
10 years-plus of experience across supply chain management and operations in retail, consumer goods,
process and manufacturing industries. He is a certified supply chain professional by APICS, and holds
an M.B.A. from NITIE, Mumbai, India and a bachelor’s degree in engineering from IIT Roorkee. He can be
reached at Nitin.Khanna@cognizant.com.
Vivek Naithani is a Manager in Cognizant’s Business Consulting practice, with over 10 years of experience
in the retail and supply chain space. Vivek’s current areas of interest include merchandising, integrated
planning, supply chain visibility and traceability, and supply chain compliance. He is a certified supply chain
professional by APICS, and holds an M.B.A from MDI, Gurgaon, and a bachelor’s degree in engineering from
PEC, Chandigarh. He can be reached at Vivek.Naithani@cognizant.com.
About Cognizant
Cognizant (NASDAQ: CTSH) is a leading provider of information technology, consulting, and business
process outsourcing services, dedicated to helping the world’s leading companies build stronger businesses. Headquartered in Teaneck, New Jersey (U.S.), Cognizant combines a passion for client satisfaction, technology innovation, deep industry and business process expertise, and a global, collaborative
workforce that embodies the future of work. With over 100 development and delivery centers worldwide
and approximately 218,000 employees as of June 30, 2015, Cognizant is a member of the NASDAQ-100,
the S&P 500, the Forbes Global 2000, and the Fortune 500 and is ranked among the top performing and
fastest growing companies in the world. Visit us online at www.cognizant.com or follow us on Twitter: Cognizant.
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